Project Management Part 1

Presented by ZweigWhite

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Seminar Overview
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Introduction and Logistics Headaches and Learning Objectives Facts, Figures, and Things to Consider Skills and Abilities of Today¶s Project Manager What we need to do, when, why and how Project Phases Key Concepts Excellence in Project Leadership Objectives in Motion

Headaches and Learning Objectives

Project Management Headaches
‡ Identify one or two challenge areas you experience with project management: 1. _____________________________________ 2. _____________________________________

Learning Objectives
‡ Identify one or two areas or topics you want to learn more about or become more informed on: 1. _____________________________________ 2. _____________________________________

Elements to Consider

Project Management
Project Management is Applying knowledge, skills, tools, and techniques to project activities to meet all requirements. Good Project Management is Delivering the project so that it meets everyone¶s criteria for success± ours and the client¶s.

Critical Role of Projects
Experts in Industry Strong Teams Increase Value of Firm Provides Opportunities

Build Expertise

Attract New Talent

PROJECTS

Fuel Firm Growth
Investment & Reinvestment

Realize Vision

Marketing Tool
Repeat Clients New Clients Business Development

Attract New Talent

Training Strong Teams

Build Expertise

Project Management Worst Practices
‡ Stemming From One of Three Areas
Leadership ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ No strategic plan tie-in Little to no investment in training Not allowing PMs to fully lead projects Poor communication flow Infrequent feedback to PM and team Little information sharing Unrealistic budgets and schedules Leadership does not support PM best practices ± no one held accountable

Process

Training

Project Management Worst Practices
‡ Stemming From One of Three Areas
Leadership ‡ ‡ ‡ ‡ ‡ ‡ ‡ Too many ³ways´ of managing projects Everything is rushed Utilization: challenges matching staff to needs of the project Unrealistic budgets and schedules Little understanding of the system, components, and players No tracking of project profitability Scope creep / not paid for changes

Process

Training

Project Management Worst Practices
‡ Stemming From One of Three Areas
Leadership ‡ ‡ ‡ ‡ ‡ Training Little to no investment in training ± learning as we go Project manager is a role ± not a title Unclear roles and responsibilities Support staff does not understand the project, client or goals of the project No mentoring on special skills ± scoping, scheduling, time management, leadership of team

Process

Causes of Claims
‡ Top Four Non-technical Risk Drivers
3 % 7% 4% 6% 3% %

%

%
Source: XL Insurance

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Clie

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roje eam Commu i a io Ca a ili ies

Causes of Claims
‡ Project Team Capabilities Issues
Unqualified design staff assigned to project
Insufficient number of staff Other - 9

5
Inexperienced project manager

Unqualified on-site staff assigned to project Source: XL Insurance

Project outside firm¶s normal territory -

Causes of Claims
‡ Communication Issues
Lack of procedures to identify and/or address conflicts, omissions, or errors

Other Project issues & disputes not handled correctly - 8
Source: XL Insurance

Lack of documentation regarding changes in scope - 10

Project staff not aware of their responsibilities - 10

Scope of services not clearly explained to client -

Things to Consider
‡ ‡ ‡ ‡ ‡ ‡ This is our client¶s investment We play a big role in how that investment pays off (or not) Our client wants everyone to win Whether we like it or not, we have to work with others Success is all about leadership and attitude As project managers, we¶ll always be learning

Project Teams

Team Dynamics
‡ Applies when we work on projects ‡ What constitutes the project team based on the type of project ‡ Lines of authority based upon the roles each individual plays on the project ‡ One individual may perform different roles on different projects

Principals Project Managers Projects

Project Team

Principals

‡

‡ ‡

‡

Review all aspects of the project, including contract, scope, schedule, budget, and task breakdown Facilitate resource allocation Mentor Project Managers by providing support and information Assure overall project management performance

Principals Project Managers Projects

Project Team

Project Manager
‡ ‡ Scope, plan, lead, organize and control the project Meet the scope, schedule and budget and achieve client satisfaction and quality standards of entire project Choose the project team, including subconsultants, and delegate tasks to each member Monitor overall project performance and make adjustments in scope, schedule and/or budget as necessary to meet client and company goals

Principals Project Managers Projects

‡

‡

Project Team

Project Team

‡ Accept assignments from Project Manager ‡ Meet the scope, schedule, budget; achieve client satisfaction and quality standards of assigned tasks ‡ Provide assistance to the Project Manager

Principals Project Managers Projects

Project Team

Project Management Knowledge Areas

Knowledge Areas
‡ Every project manager should know:
± ± ± ± ± ± ± ± ± Project integration management Project scope management Project time management Project cost management Project quality management Project human resource management Project communication management Project risk management Project procurement management

ills and

ilities

e uired

ills and

ilities

Leadership

Management

Communication

Ma e sure ou ha e ours

Leadership Skills
‡ ‡ ‡ ‡ ‡ ‡ ‡ Building relationships Decision making Professional judgment Responsibility versus authority Leading by example Developing a professional and personal career plan Mentoring

Management Skills
‡ ‡ ‡ ‡ ‡ ‡ ‡ Scoping Planning Organizing Delegating Controlling Supervising Time management

Communication Skills
‡ Listening ‡ Verbal ± One-on-one ± Conducting meetings ± Telephone conversations ‡ Writing ± Email ± Memos ± Letters ‡ Non-verbal

Roles and Responsibilities of a Project Manager

Roles and Responsi ilities

Rol

Responsi ilities

Project

Technical

Business

Marketing

Make sure t ese are lear

The Project Role
‡ ‡ ‡ ‡ Budget: Make the project profitable Schedule: Complete the project on time Coordination: Distribution and completion of tasks Communication: Keep the entire project team up to date on all project information

The Technical Role
‡ ‡ ‡ ‡ ‡ ‡ ‡ Demonstrate experience and qualifications Mentor team members Perform and/or oversee QA/QC Specialize on certain phases of projects Work on deliverables when necessary Oversee the work packages, tasks, and ³to do´ lists Manage consultants and subconsultants

The Business Role
‡ ‡ ‡ ‡ Client relationships Financial management People management General administration/communications

The Marketing Role
‡ ‡ ‡ ‡ ‡ ‡ ‡ Good work wins more good work Additional services Ask clients for leads/new projects ± cross selling Check back with client three, six months later Social/professional relationships Client referrals Business development

What We Need to Do, When, Why, and How

Project Lifecycle

Project Conception

Project Conception
‡ ‡ ‡ Scope Schedule Budget ‡ ‡ ‡ Price Contracts Risk Management

Project Scope & Understanding
‡ This is the project definition:
± When and what ‡ Outlines phases, deliverables, work packages, tasks involved in project solution ± Why ‡ Helps clients understand needs and desired outcomes ‡ Insulates us from ambiguity ‡ Sets expectations early ± How ‡ Create and use a scope checklist ‡ Everyone understands, updates, and knows where to find it

Project Budget
‡ What it will cost us internally to do this project:
± Why ‡ Make sure our projects are profitable ± What it must include ‡ Staff required and direct labor costs ‡ Breakdown of tasks and labor hours for each ‡ Sub-consultants ‡ Contingencies ‡ Reimbursable expenses ‡ Profit as a percentage of total budget ‡ Project management and technical coordination ‡ Create budget template and update

Project Budget
‡ Different ways to do it: ± How
‡ ‡ ‡ ‡ Bottom-up using WBS Recent, similar projects (with validation) Benchmarks (Hrs/sheet; $$/sqft) Input from those doing the work

± Tie to accounting / reporting system ± Updated / reviewed at milestones ± Established to view budgeted vs actual

Project Schedule
‡ Course of time to follow:
± When and what ‡ Often set by client ± the duration in which we have to work ± Why ‡ It¶s a necessary measurement tool ± How ‡ Collect input from PM or team ‡ Associates deliverables with milestones or deadlines ‡ Allow for contingencies / consider any delays ‡ Distribute and share with entire team

Project Schedule
‡ Course of time to follow: ± Common Mistakes in Scheduling
‡ Too much detail ‡ Using more sophisticated structure than the project requires ‡ Not communicating or sharing the schedule ‡ Not updating the schedule ‡ Not assessing impact of certain delays ‡ Too optimistic on durations or completion dates

Key Concept: Price versus Cost Price
Sticker price the client pays for our services (their budget)

Cost
What it costs us to do the project / provide our services (our budget)

‡ ‡ ‡

If Price > Cost, we accept the project If Cost > Price, it will be a loss and we should walk away In most cases, we cannot negotiate price« We have to negotiate (and renegotiate!) scope

Contracts
‡ That thing we sign at the start: ± When and what
‡ Creates a business relationship ‡ An agreement the law will enforce

± Why
‡ ‡ ‡ ‡ ‡ Decreases risk and magnitude of dispute Good clients respect good contracts Contracts protect our resources and efforts Outlines tools and information to prevent scope creep Lawsuits are expensive

Contracts
‡ That thing we sign at the start: ± How
‡ ‡ ‡ ‡ ‡ ‡ Create a defined contract process Address all basic issues PMs are involved in contract preparation Establish contract signing authority and limits Reviewed by others Don¶t let the excitement of a new project get in the way of establishing a proper contract

Contracts
‡ That thing we sign at the start:
± The most profitable contracts include: ‡ Scope of work (as detailed as possible) ‡ Preliminary schedule, with a refined schedule of tasks to follow ‡ Project price ‡ Provision for extra / special services ‡ Exclusions ‡ Owner¶s responsibilities ‡ Invoicing and payment procedures

Key Concept: Risk Management
‡ Decrease impact of events adverse to our project
Options & Actions to Reduce Risks

Identify Risks

Prioritize

Likelihood of Occurrence

Execute Response Plans

Identify New Risks

Track All Risks

Key Concept: Risk Management
‡ Strategies for handling risk: ± Avoid
‡ Decrease threat by clarifying requirements, increasing communication, gaining experience

± Transfer
‡ Utilizing tools such as insurance, performance bonds, warranties, specific contracts

± Mitigate
‡ Reduce risk by conducting more tests, designing prototypes, requiring mock-ups, carefully hiring sub-consultants, more QA/QC, share lessons learned

Key Concept: Risk Management
‡ Best Practices:
± Risks are best carried by those who can handle them and are appropriately rewarded for doing so ± Don¶t assume the risks if you cannot handle it ± Establish a Risk Management Plan and use it ± Think severity, probability, timeframe ± Don¶t treat risks as individual problems± rather integrated challenges ± Focus on risks that lead to higher costs, failure to satisfy client requirements, time delays ± Despite best efforts, problems arise

Key Concept: Negotiation
‡ Why the Project Manager should be involved in negotiations:
± ± ± ± ± ± Client¶s primary contact Knows the client¶s goals and objectives Knows the firm¶s approach to the project Instills stronger project ownership Better able to manage project changes Shows depth of firm¶s expertise

Key Concept: Negotiation
‡ Best Practices:
± ± ± ± ± ± ± ± Prepare for the discussion; prioritize issues Understand everyone¶s goals / objectives Make a concession but receive something in return Look for non-monetary value Don¶t undercut to win the contract Don¶t yield to pressure Know when to walk away Negotiate now to spare trouble later

Thank You!

Christine Brack, PMP Principal
2 9-280-2 00 x2902 cbrack@zweigwhite.com Click here to purchase the entire series: http://www.zweigwhite.com/p- 92-ae-project-managementoptimization-series.aspx

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