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Procurement Management Planning

In Procurement Management Planning, we plan how we will go about procuring every resource, human or material, that we’ll need to contract for in order to complete the project. We also specify the kinds contract we will use and may even draft them before we select the Vendor. If we’re asking contractors and suppliers to submit bids we identify the selection criteria we will use before the request for proposal or even sent out. This kind of detail planting protects the procurement process from the unethical and even illegal things that can happen during the procurement process. If the criteria for selecting the winning vendor is established early, it’s very difficult for people of the organization to try and change those criteria to the benefit of a friend or acquaintance.  Similarly we didn’t five the skill sets in the people we’ll be on the project team.  With all of these decisions made before we begin to execute the project plan we are much more efficient and have better making decisions on the fly as we purchase things.

This is a lecture video on Procurement Management planning by Dick Billows, PMP. The is also a Project Manager in Action Video written and produced by Dick that shows you have Project manager project sponsor and team working to develop their procurement management planning. You’ll see them negotiate with vendors and acquire people for the team from other departments in the organization.

Lecture Video

Project Manager in Action Video

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Project Charter Development

Project Charter Development happens during initiation.  The project charter is presented at the end of the initiation and reviewed and hopefully approval by management. That approval authorizes the sponsoring project manager to begin detailed planning and to make use of corporate resources in that process.  That’s not a go-ahead started project would rather to start the planning.  The project charter includes at least the high-level scope, high-level risks and it appoints the project manager.  The charter also can include estimates of the amount of resources and time which the project will take as well as explanation of the assumptions that are behind the scope of the project and the constraints that it faces.  A good charter triggers a lot of discussion and occasionally conflict. But it’s much better to find out during initiation that some departments won’t lend you resources than after your 30% finished.  Charter is a very useful device for avoiding surprises by surfacing potential conflicts at the beginning of the effort.

This is a lecture video on Develop Project Charter by Dick Billows, PMP, from the Initiation Process Group and the first process in the Integration Knowledge Area.

Lecture Video

Project Manager in Action Video

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Team Building Techniques

Dick Billows, PMP
Dick Billows, PMP
CEO 4pm.com
Dick’s Books on Amazon

Leaders use team building techniques to increase the team members’ motivation, work attitudes and performance.  These techniques are used for three Moments of Truth (MOT). If team leaders handle them properly, these Moments of Truth (MOT) produce team members who actually try to do the following:

  • finish assignments early
  • take responsibility for solving problems
  • try to find better, faster ways of producing their deliverables.

When these MOTs are handled badly, they produce a team that does the following:

  • let the work fill the available time
  • wait for someone else to solve their problems
  • focus their attention on avoiding blame for failure.  Leading Teams Main Page

Team Building Techniques: Moment of Truth #1 – Team Commitment to Their Assignments

The first Team Building Technique Moment of Truth comes early, during the project planning phase when you’re building the plan and schedule. You’ll work with your team to define their assignments. You are clear about the deliverable they will produce and how you will measure if it is acceptable. You will document all that in a one-page work package so there is no confusion or misunderstanding. Finally, you’ll speak to their boss and pin down the team member’s availability for the assignment.

Working with the team member, you’ll estimate the amount of workteam building techniques the deliverable will take.  The two of you will calculate the task’s duration (how long it will take) from that data. It is important that the team member is clear on the assignment and has input into the estimate. You create a work package that is like a contract. That’s because changes to the assignment also require changes to the estimate. That’s the best way to do an estimate because it helps build the team member’s commitment to their assignment.    Leadership and Team Assignments

Team Building Techniques: What Gets in the Way?

Lots of things can destroy the success of this team building technique. Trust between you and the team member is a key component.  Sponsors and lazy project managers who won’t do their work are one cause of problems.  These people need to take the risk of being wrong rather than hedge their bets with vague expectations.  Here’s an example. Let’s say that during your project initiation meeting with the sponsor, he was quite clear about the required completion date and repeated it often.  Successful project managers always respond with, “I understand when you want the project done.  But I won’t know if that date is possible until I understand exactly what you want. Then I must determine how much work that will take and how many people I will have to do it.” The sponsor won’t like that answer, but it is the truth.  A foolish project manager commits to the due date without having all of the necessary  information. Effective Feedback

As you get deeper into planning this example project, it becomes obvious that finishing all the tasks by the sponsor’s due date is impossible. It’s not just tough. Even with lots of overtime, it’s mathematically impossible. So you are waiting for exactly the right moment to tell the sponsor that their date is impossible. You are also hoping for a miracle breakthrough that will make the date feasible. You’re working with the team members on estimating their tasks and starting to squeeze them on their estimates.  Eventually you abandon their participation and just make the task durations hit the sponsor’s completion date. Team Types

Bad Team Building Techniques: Due Date Determines the Schedule

This is the dilemma of the first Team Building Technique Moment of Truth. You can confront the sponsor with the truth about the date and take the heat. Or you can yield to the temptation to continue postponing the confrontation. In the latter situation, you show the sponsor acceptable dates by backing into the schedule from his completion date. You do this silly process by starting from the sponsor’s desired completion date and working backward. You pluck task completion dates from the sky like this, “Jack has to be finished by June 23 so Mary has to be finished by June 5th and Pat has to be finished by May 19, etc.”

When you are done with this exercise, you will have met the sponsor’s required date. Then you tell each team member when their assignment has to be finished. If anyone protests, you blame the sponsor directly or shrug and point up to the executive floor. This lets the project finish precisely on the sponsor’s due date, at least on paper. That makes the sponsor happy, at least for awhile.  You may be thinking, “We’re smart and hard working; maybe we CAN finish by then.” Team Building

This technique is widely used. In fact in some organizations, plucking dates backward from a due date is their project management best practice. Of course these organizations have 70% project failure rates. More to the point, the imaginary finish dates that you plucked from the sky cause you to fail at Project Team Building Moment of Truth #1. The project team feels they have been plucked themselves. The younger and more innocent members of the team are discouraged, knowing that they will fail to finish on time. The more experienced team members also know they’ll finish late. But their experience tells them they will get to spend months after the project’s “finish” date cleaning up the mess that was frantically slapped together to finish “on-time.”

Worst of all, what kind of commitment do you get from your team with this kind of process? People who know they have no chance of hitting their “committed” dates have little dedication or enthusiasm for their tasks. Even if you and the team use every ounce of creativity, you must squeeze the plan and develop shortcuts to slash the duration. 99.9% of the time these efforts will still fall short of the sponsor’s completion date expectation.

Team Building Techniques: Moment of Truth #2 – Handling Bad News

Whatever happens during planing, every project next faces the second Team Building Technique Moment of Truth. It starts at an early project team meeting and continues until the project is complete. Here’s how it goes. One of the members says to you, “I’m gonna finish a week, maybe two, later than planned.” Visions of the whole project collapsing flash through your mind. But you have choices on how you handle the situation.

This bad news may tie your stomach in knots because the slipping task is on the critical pathThat means it will delay the entire project completion date. It’s very easy to react emotionally. You might even treat this bad news as a personal betrayal by the project team member.  So you you get angry and act as if it’s something for which you can punish them. That action stops the team members from telling you about problems.  The team member who spoke up will not tell you next time and the rest of the team won’t either. Even if your anger is delivered to the team member in private, the rest of the team will hear about the incident within hours.

Some project managers (and executives) think refusing to listen to bad news is a sign they are dynamic and aggressive leaders. The truth is just the opposite; they are stupid. When project managers teach people not to give them bad news, they deny themselves the opportunity to solve slipping tasks when they are small problems. From then on, team members will wish and hope they can finish on time rather than tell the PM about the problem. They won’t lie. They’ll just use a bit of optimism when reporting the status of their assignments. The PM who doesn’t view bad news as an opportunity to fix a problem dooms himself to learning about big problems when it’s too late to fix them.

You need to learn to handle bad news positively and show appreciation for the opportunity to solve the problem. Keep in mind that the team member with a late task often is not to blame. Even if they are the culprit, it shouldn’t be obvious that you’ve reached that conclusion. You should handle the variance as a problem you and the team member have to jointly solve. You want your team members to continue to trust you. When they do, you get the valuable opportunity to solve problems early, when they’re small. If you discourage your team members from giving you bad news, you doom yourself to discovering problems when it’s too late to recover.  Leadership & Team Performance

Bad Team Building Techniques: Moment of Truth #3 – Micromanagement

Even if you are able to plan correctly and handle the bad news properly, you will still face Team Building Technique Moment of Truth #3. The temptation for many technically savvy PMs is to react to every problem by diving right in and making all the decisions. For many project managers, this is a very comfortable position. It’s much easier than trusting the team members and giving them room to make mistakes and own their results. These PMs even relish the sight of a line of team members outside their cubicle waiting for decisions. You know the micromanagement disease is raging when these PMs start complaining about how their team members, “lack initiative and the ability to work independently.” Of course, none of the team members feel ownership of any result or have a sense of achievement because the PM is making all the decisions.

Micromanagers want to “make things happen, now!” so they stick their fingers into everyone’s assignments. They may have built a commitment foundation where the team feels accountable for their achievements. But as soon as they make the decisions and treat the team members as drones, they’ve reverted to micromanaging. It’s difficult to keep your hands off people’s assignments when the sponsor is putting pressure on you about missed deadlines and budget overruns. But that is exactly the moment when you need the benefit of a project team that feels accountable for their achievements. Then they have some incentive to meet and, hopefully, exceed their assignments.

Team Building Techniques: Summary

When you succeed in each of these three Team Building Techniques Moments of Truth, you substantially increase the likelihood of project success. Each of the Team Building Techniques Moments of Truth involves both personal leadership techniques and sound project management processes.

You can learn these processes and our proven project management methodology in our online courses with individual coaching and mentoring. You will practice every tool and technique you are learning in assignments and role-playing exercises with your instructor. Whenever you have a question or want to discuss a technique, you can telephone or e-mail your instructor and always get a response within 24 hours. You have as many live online meetings with your instructor as you need.

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Work Breakdown Structure Tasks

Dick Billows, PMP
Dick Billows, PMP
CEO 4pm.com
Dick’s Books on Amazon

The Work Breakdown Structure (WBS) tasks are the basis for the project manager’s assignments to the team members. They are used to estimate costs and the schedule (duration). It is also the framework for reporting the project’s status to the sponsor. The WBS is central to everything a project manager does and plays a major role in determining the project’s success. You build this network of tasks by breaking down the project scope and major deliverables. The Work Breakdown Structure (WBS) contains everything that the team must produce to deliver the project scope.  Main WBS Work Breakdown Structure Page

Work Breakdown Structure Tasks – Questions

People always have questions about how to build the Work Breakdown Structure (WBS). They often ask how big the WBS should be and how many tasks it should have. There is no magic number of tasks in a project. The number in your work breakdown structure depends on the capability of your team members. You need to consider a number of factors.

  • What is the correct duration for the assignments I’m going to make to my team?
  • How frequently do I want to receive status data and estimates to complete from my project team and vendors?
  • How often do I want to update the project schedule with current data?
  • How risky are the tasks in this project?

Work Breakdown Structure Tasks and Team Capabilities

As you can see from this list, you design the tasks in the Work Breakdown Structure to fit your management style and the capabilities of the project team members. In this article, we’ll consider the team member’s capabilities. If you have a project team made up of experienced professionals who have performed their tasks dozens of times, your work breakdown structure will have a small number of large tasks. The tasks will have longer durations because these experienced professionals can handle assignment durations of 7 to 21 days. you should give experienced professionals larger, more challenging assignments and the independence and decision-making freedom that go with it.

WBS Work Breakdown Structure

However, not every team is composed of project superstars. You’re going to have some people on your team who have some experience with projects and know their jobs but for whom a two-week assignment would be discouraging and maybe even intimidating. So for these people you’ll design task assignments that are about 5 to 7 day’s worth of work.  You’re still giving them responsibility for an important deliverable but you’ve broken it up into smaller pieces. That lets you track their work more frequently.  Frequent deliverables are a major factor in the accuracy of your status reports.  That’s because even before a deliverable is finished and accepted, your team members report how much work they’ve completed and how much work remains to be done.

Finally, you may have a team with new hires or people who have little experience with your company. Or they may have limited expertise in the technology of their task or no experience working on projects. With these people, you want to break the assignments into small pieces where they have a deliverable to produce every day or two. You would have a large work breakdown structure containing smaller tasks with short durations. That kind of Work Breakdown Structure works best with inexperienced people because you will be expecting several deliverables from them every week. This gives you the opportunity for frequent feedback on their work and coaching to improve their performance. With these newer team members, it is a valuable motivational technique to increase the size of their assignments as they demonstrate their ability to produce deliverables on time and within budget.

Designing your Work Breakdown Structure with these team member considerations also allocates your time properly. You don’t want or need to spend a much time reviewing the work of one of your experienced project superstars. That kind of micromanagement will irritate them and interfere with their feelings of independence and professionalism. That’s why you give them the biggest assignments with the longest duration. The people who need the most review of their deliverables will have the smaller assignments and shorter duration. That’s where you’ll spend most of your time.

Work Breakdown Structure Task Risks

The last consideration in the Work Breakdown Structure is the risk of each individual task. They can affect the risk of the project as a whole. If one or two of the high-level deliverables have a high risk of duration or cost overrun, you’ll break down those major deliverables into smaller pieces. Some examples are deliverables that have a high risk of changes in technology or the technology is uncertain and cost overruns are likely. When you break down those major deliverables into smaller pieces, you’ll get reports on them every day or two. That prevents big problems from surprising you when it’s too late to fix them.

You can learn how to create the Work Breakdown Structure in our online project management courses. We offer online project management courses in business, IT, construction, healthcare, and consulting. At the beginning of your course, you and your instructor will have a phone or video conference to design your program and what you want to learn. We make certain that your case studies, project plans, schedules and presentations fit your specialty. You can study whenever it fits your schedule and work at your own pace.

  1. 101 Project Management Basics
  2. 103 Advanced Project Management Tools
  3. 201 Managing Programs, Portfolios & Multiple Projects
  4. 203 Presentation and Negotiation Skills
  5. 304 Strategy & Tactics in Project management

 

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3 Point Estimating – PERT

Dick Billows, PMP
Dick Billows, PMP
CEO 4pm.com
Dick’s Books on Amazon

Estimating is tricky for project managers because the customer wants the project to be done quickly and cheaply. You want your team to be committed to the numbers because they are realistic and fair. On top of that, everyone is concerned with the risk that exists on any project. So the best estimating technique should give you accurate numbers and some assessment of the risk in the tasks and the project as a whole. The best approach is to quantify the estimate and the risk of not hitting it. We use the 3 point estimating technique, or PERT which comes from the NASA space program, to do this.

This process lets you estimate work and duration with the team members and hear about the risks they see on their assignments. It also lets you give project sponsors the opportunity to decide what level of risk they want to accept on the project. Then you can quantify the additional costs that would be incurred to reduce the risks to a lower level.

The 3 point estimating process or PERT, which stands for Project Evaluation and Review Technique, is a three-step process where you discuss the team member’s task and risks. This includes the good risks that could cause this task to take less work and the bad risks that could cause it to take more work. Second, you note these risks in a work package and discuss the approach to the task with the team member. Third, the team member makes three estimates: an optimistic estimate, a pessimistic estimate and a best guess estimate. You apply the formulas* (at the end of this article) to those three estimates to come up with the actual data that you will use in the project schedule.

Common Estimating & Risk Issues

There are two mindsets that often cause trouble in the estimating process:

  • Executives believe that projects have no risk
  • Team members think that padding their estimates will protect them from blame.

Both of these mindsets are false and they  get in the way of accurate estimatingThe 3 point estimating technique or PERT deals with both these mindsets. Three point estimating is a straightforward process for developing estimates using a little bit of statistics.  It gives you a tool to quantitatively communicate about the risk of a task’s estimate.  It lets you stop pretending that task #135 is going to finish in precisely 15 days or that the project will absolutely finish by August 30. It also lets you address the issue that most projects are launched with less than a 35% chance of finishing by their promised due date. Because no one talks about that issue, executives think the completion date is 100% guaranteed. They believe the completion date is only missed when someone goofs off.

As an example, the best project managers tell sponsors that a project has a 65% chance of finishing by Analogous EstimatingAugust 30. These PMs also explain what they can do to improve those odds to 75% or 90% and what it will cost. Those PMs manage the assignments of their project team members with an understanding that there is risk on each assignment. They use 3 point estimating, PERT, techniques to get accurate numbers and reflect the risk.

3 Point Estimating or PERT Process

The 3 point estimating process starts with a discussion with the team member about the risks in their task assignment. You discuss the bad risks that will make their task take more work and more time. You also discuss the good risks that will cause it to take less work and time. Why should you do this step? Because you need an estimating process that addresses the team member’s legitimate concern that bad things will happen on their assignment and they’ll be blamed for not meeting the completion date.

Let’s talk a little bit about risk. When you ask me how long it will take to read this newsletter, I might estimate five minutes. Am I guaranteeing you that no matter what happens you’ll be able to read the whole thing in five minutes? No. What I mean is that 5 minutes is my best guess. That means there is a 50% chance it will take you less than five minutes and a 50% chance it will take you more than five minutes.

But if you are my project manager and you ask me for a task estimate, I would be a little hesitant to give you an estimate with a 50% chance of an overrun. What I would rather give you is an estimate where I’m 90% confident that I can finish in that much time or less. As the project manager, you would probably regard that estimate as padded. As the team member, I feel more comfortable with a 90% estimate. Unfortunately, there is no consistency in the amount of padding your team members do.

You want your team members to leave the estimating process knowing that you considered the fact that things can go wrong on a task assignment. Using the three estimates enables you to do that. It’s better than
having a team member give you a single estimate and play the padding game about how certain that estimate is. The three estimates tell you the variability in the task.

3 Point Estimating: Best Guess, Optimistic and Pessimistic Estimates

With agreement on the risks in the task assignment, you go on to ask for the team member’s estimates of work and duration (time). As the name implies, 3 point estimating requires three estimates for each task. That sounds like it will take a lot of work but it takes a matter of minutes.  You and the team member develop an optimistic estimate, a pessimistic estimate and a best guess estimate for each task. In developing those three estimates, we get more accurate estimates from team members and assess the task’s degree of risk and the range of durations.

If your team member estimates that a task has a best guess estimate of 80 hours of work, that means that 50% of the time it will take more work and 50% of the time it will take less work.

Next, the optimistic work estimate is that it will take less work than the best guess.  It is not a perfect world estimate but you want an estimate that’s based on the good risks you identified coming to pass.  The optimistic estimate is low enough that the team member thinks they can get the task done for less than the optimistic estimate 20% of the time.  The task will require more work than the optimistic estimate 80% of the time.

The pessimistic estimate is that it will take more work than the best guess. It is not a “disaster” estimate but you want an estimate that’s based on the bad risks they identified coming to pass.  The pessimistic estimate is high enough that the team member thinks they can get the task done for less than the pessimistic estimate 80% of the time.  The task will require more work than the pessimistic estimate 20% of the time.

Now let’s dip our toe into the statistics and look at two tasks, Alpha and Beta, and the calculated work estimates you would use at three different levels of confidence.

You take the three estimates and use the following simple formulas to calculate the task’s work estimate for a certain level of confidence of finishing within the estimate.

Mean=(4*BG)+OE+PE/6.  The mean is 4 times the best guess + the optimistic guess + the pessimistic guess divided by 6.

SD=(PE-OE)/6.  The standard deviation is the pessimistic guess minus the optimistic guess divided by 6.

Probability level = work= Mean +(z-score for probability)*SD

For task Alpha you can be 80% confident with an 82.2 hour estimate. But task Beta, with optimistic and pessimistic estimates that are further from the best guess than Alpha, will require an 88.7 hour estimate to reach the 80% confidence level.

Using 3 Point Estimating or PERT 

All of the better project management software packages, such as Microsoft Project®, enable you to use 3 point , PERT, estimates and create a variety of reports that communicate the project’s risks. You can take estimates like those above and calculate the odds of finishing the entire project within various durations.  That information is a solid basis for a discussion with the sponsor about the tradeoffs between cost, scope, duration, risk and resources.

To learn these 3 point estimating or PERT techniques and the entire estimating process, consider our private, online courses where you work individually with your instructor. They are available by phone, video conference or e-mail whenever you have a question or need help on an assignment. We can also deliver a customized training program at your site for up to 25 people. Call us at 303-596-0000.

 

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What is Project Leadership? – Video

Dick Billows, PMP
Dick Billows, PMP
CEO 4pm.com
Dick’s Books on Amazon

What is project leadership? It consists of proven techniques that project managers use to:

  • set standards of behavior and performance
  • motivate the team members to high performance and
  • rally the team members when the project has problems to overcome.

These tasks are particularly challenging because most project managers are technically- oriented people with little experience or skill in motivating others. Another factor that makes project leadership difficult is that the project manager often has very little or no formal authority over the project team. The lack of formal organizational authority is the number one challenge to project leadership.

Project managers must tailor the interpersonal techniques they use to fit the personality of each team member and stakeholder with whom they work. That’s the only way project managers can make up for their lack of formal authority.  Once they have “typed” the person’s personality and selected the right techniques for dealing with them, they have won half the battle. Here is a video on Team Member Personality Types

Another technique of effective leadership is to apply the best practices in terms of how the project manager trains and treats their project team members. Watch this video of a PM dealing with a situation where a team member has been pulled off the project and assigned elsewhere. In the first video, you see the PM use a technique that does not fit the personality of the team member. The result is complete failure. Then watch an analysis and see the PM do it the right way, using the right technique for the team member. Leading Teams

Communicating with the team member who has a problem

You can learn all of these skills in our online project management basics course. We individually tailor this course for business, IT, construction, healthcare and consulting specialties.

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What is Project Management and How To Do It

Dick Billows, PMP
Dick Billows, PMP
CEO 4pm.com
Dick’s Books on Amazon

What is project management? It’s a process for producing a predefined result, called a deliverable, on time and within budget. A deliverable can be a highway, an office building, a computer software, a medical records system, a book, a full-length movie and many other things. A project has a specific start and finish date. It is not an on-going effort like managing the organization’s accounting department.

What is Project Management: It Involves Special Techniques

There are special techniques for managing projects and they start with creating a plan. The project plan is a document that details what the project is going to deliver (the scope). It is created by the person who wants the project done (the sponsor) and the person who will manage the effort (the project manager). It also defines what resources the project manager needs and how he/she will manage the people working on the project. The project manager meets with people affected by the project, called stakeholders, and learns what they require the project to produce. As the project manager breaks down the scope and requirements into smaller deliverables, they are developing a pyramid of clearly defined deliverables that lead from the smallest tasks up to the largest deliverables. At the top of the pyramid is the project scope. Good project managers focus on deliverables that are defined by metrics.  Here’s an example of a deliverable defined by a metric, “Design a payroll data entry screen with 25 data fields that allow payroll clerks to enter 65 payroll transaction per hour.”  A deliverable that is based on metrics has a number of very important benefits. First, when the project manager assigns deliverables to the project team members, they know exactly what is expected of them before they start work. They don’t have to guess or worry about failing on their assignment because the PM has defined what a good job is in measurable terms.  With that type of assignment, a team member can break it down more accurately and use their experience to plan their approach to their deliverable.

Second, using deliverables as the basis for the project lets the project manager and team members develop much more accurate estimates of the duration anWhat is a Project Managementd cost of each task. It also lets the PM determine how long the entire project will take and what it will cost. Another effective tool is the work package. The project manager should give each team member a work package which describes their deliverables and details the risks and other factors that will affect their assignment. Then PM and team member use that same work package to develop an estimate of the amount of work in their deliverable(s). This gives the team member something very much like a contract; it explains the expectations the team member must meet.

Third, managing a project that is built with deliverables gives the PM unambiguous checkpoints to measure how the project is doing versus the approved plan. Each deliverable has a crystal-clear and measurable definition of success so the project manager, sponsor and stakeholders don’t have to guess about the project’s progress. After the project plan is approved, the PM executes it by assigning work to the team members to ensure all the project deliverables get produced. As the team is working on their deliverables, the PM is monitoring their progress, controlling the project schedule, budget and scope and solving any problems. As part of this monitoring and controlling process, the project manager makes periodic status reports to the sponsor who initiated the project. During the executing phase, deliverables are reviewed and accepted as they are produced. The project stakeholders and sponsor examine what the team produced, compare it to the specifications and accept or reject the deliverables. The PM doesn’t wait until the end of the project for the stakeholders to review the deliverables. He/she does it as they are produced so they can identify and fix problems early.

Fourth, with measured deliverables as a basis for the project plan and schedule, the project manager can do a better job quantifying the impact of change requests. Using the example above, if the user wants to increase the number of fields on the payroll data entry screen from 25 to 30, the PM can use the metric along with project software and revised work estimates to quickly assess the impact of this change on the project budget and completion date.

After the last of the deliverables has been produced, the project manager closes the project by verifying with the sponsor that the project delivered what they wanted. The project manager will also archive all the data generated by the project so it can be used by other project managers in the future. That information will make it easier to plan similar projects.

What is Project Management: It’s Leading and Managing People

In addition to these planning and workflow management techniques, the project manager also has to lead, motivate and manage the project team. And they must build support from other executives in the organization for the project. Last but not least, the project manager has to “manage” the project sponsor who very often will outrank the project manager by several levels. Managing the sponsor requires a great deal of subtlety and tact if the project manager is to ensure that the sponsor plays their important role in defining the scope and controlling the project.

To learn more about how to use these tools and techniques, consider our online project management courses. You begin whenever you wish and work privately with Dick Billows, PMP, an expert project manager. You control the schedule and pace and have as many phone calls and live video conferences as you wish.

At the beginning, when you and Dick talk to design your program and what you want to learn, you will select case studies that fit the kind of projects you want to manage. Chose you course and then select the which specialty case study from business, or marketing,  or construction, or healthcare, or consulting.  That way your case studies, project plans, schedules and presentations will fit your desired specialty.

  1. 101 Project Management Basics
  2. 103 Advanced Project Management Tools
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How To Deliver a Status Report

Dick Billows, PMP
Dick Billows, PMP
CEO 4pm.com
Dick’s Books on Amazon

The way you deliver your status report determines your credibility with the sponsor and stakeholders. It impacts their level of comfort with the project itself and your ability to manage it. You need to clearly and succinctly answer the questions the sponsor and stakeholders have about the project.

Status Report: Common Questions

You should answer their questions in the first five minutes of your project status presentation or in the first paragraph of your written status report. The four questions are:

  • Will the project produce the deliverables promised in the scope statement?
  • Will it finish on time?
  • Will it cost more or less, than what was budgeted?
  • Do the team members and vendors working on the project know what you expect of them? How to Write a Weekly Status Report

Status Report: Answer Questions

You should immediately answer the four questions above and discuss the problems as well as what you can do about them. How do you answer those four questions? With language that a 10-year-old child could understand.  The answers should not assume any knowledge about the project or what people said at the last status meeting. Why does it have to be that simple and straightforward? Because project managers are often their own worst enemy when they deliver status reports. They incorrectly assume everyone in the audience is as familiar with the project as they are. Status Report Template

Status Report: State Problems and Solutions

If you delay in answering these questions at the beginning of the report, people will think you are hiding something. If there are problems and variances to the plan, you should disclose them at the beginning of your status report. You need to tell people what you will do about the problems and variances and what help you need to take corrective action. You must also quantify the trade-offs between the project scope, budget and duration to solve the problems. If you can’t fix the problems, you must tell them. The sponsor and stakeholders must have confidence that you will reveal the problems as soon as you know about them. What they hate the most are problems that surprise them late in the project. Most executives will think you hid the problems for weeks or months and revealed them only when you could no longer hide them.

Status Report: Be Brief

Project managers tend to provide too much data and they assume everyone understands it. They also tend to “deep dive” into the technology of the project itself, using acronyms and discussing technical issues until the audience is bored to death. Some project managers assume this detail is the way to build their credibility and the stakeholders’ confidence in them. The opposite is true. The stakeholders think the PM is a technical geek who has a very weak grasp on what’s happening in the real world.

When a project status report confuses people, they assume the worst. They assume the project is out of control, that no one is monitoring the work and that the team members are equally confused and lost. They also assume that they are hearing only the tip of the iceberg and that many other problems are being hidden. As a result, they have little confidence in the project manager’s analysis of problems and recommendations for corrective action.  Earned Value

Status Report: Use Visuals

You can avoid this situation by using simple visual communications with the sponsor and stakeholders. Don’t assume they are as interested in the technical details of project management and the project work as they are. None of these assumptions are ever true but project managers often make them. Effectively communicating with stakeholders and sponsors requires you to use easily understood visuals that communicate the project status. The worst thing to give your audience is the classic project variance report which has 12 or 15 columns and lists every task in the project. This chart compares the planned start date with the actual start date, the planned finish date with the forecasted finish date and so on. No one can get an accurate picture of what’s going on in the project from that kind of data. Project Variances

You need to have visual charts and graphs that people can look at and understand in a moment. The Tracking Gantt chart available in many commercial software packages is ideal forStatus report this purpose. It has a bar chart for every task in the project. It shows when the task should start and when it should finish, usually in gray. Each task also has a second bar, usually in blue, which shows when it will start and when it will finish. If these two bars are stacked on top of one another, the task is on schedule. The red bar is the critical path which is the longest chain of tasks. It depicts the project’s actual start date and the projected finish date. This visual display lets everyone quickly see where the problems and opportunities are. It also makes it easy to explain your options for corrective action. Project Tracking Software – Video

Status Report: Tailor It to Your Audience

In addition to visual aids that tell the story with pictures, you also need to tailor the status report presentation to your audience. If the attendees are all expert project managers, the status report can be concise and fact-filled without explanations. If the audience is composed of stakeholders who have had little exposure to projects or project management, you must explain the basics. You can’t assume everybody knows as much about the project itself or project management best practices as you do.

Another issue is designing the presentation to fit the personalities of the attendees. If the audience is composed of technical staff who are very detail oriented and value a chronological presentation with plenty of data, you will have one type of presentation. If the audience is composed of “big picture” thinkers, you need to present the end results first and then offer as much supporting detail as the audience wants. If you get into too much detail for these people, they’ll quickly leave the room.  Team Status Reports Video

You can learn all these status reporting skills in our online Project Management Basics courses. You work privately, one-to-one, with a expert project manager.

At the beginning, when you and Dick talk to design your program and what you want to learn, you will select case studies that fit the kind of projects you want to manage. Chose you course and then select the which specialty case study from business, or marketing,  or construction, or healthcare, or consulting.  That way your case studies and project plans, schedules and presentations will fit your desired specialty.

  1. 101 Project Management Basics
  2. 103 Advanced Project Management Tools
  3. 201 Managing Programs, Portfolios & Multiple Projects
  4. 203 Presentation and Negotiation Skills
  5. 304 Strategy & Tactics in Project management

 

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Project Plan Template

Dick Billows, PMP
Dick Billows, PMP
CEO 4pm.com
Dick’s Books on Amazon

You can use this project plan template to define the project scope and identify major deliverables. You can also use it to manage the project risks and constraints as well as the resources it requires. On every new project, you need to decide what Project Plan Template elements to include, what to exclude and how to develop them on each particular project.   For 90% of the projects done in most organizations, your project plan should be 1–2 pages long. Managers are more likely to read a short, concise document.

Project Plan Template 1st Step – Define the Scope

You need to define the project scope as a deliverable with measurable acceptance criteria. To do that, you talk with the project sponsor, ask questions and then develop the scope statement. Next you define 4 to 7 high-level deliverables and their associated acceptance criteria. Those criteria tell everyone exactly what the project must deliver. They also help you control expectations by making it clear what the project will and won’t deliver. Fast Track Project Plans

When you ask the sponsor what he or she wants, they might say something like, “We really need to have this project cut costs for us.” You immediately try to get to quantified acceptance criteria by asking, “How much cost reduction would make this project a success?”

When the sponsor says, “$15,000 of cost reductions,” you have the scope definition with an acceptance criterion that tells you how much cost reduction the project has to deliver. This is the key to the project plan template. You can then drive the rest of the project from that number. (On larger projects consider the scope reach) How to evaluate a project plan

This is a simple example of top-down planning but most project managers don’t ask the right questions. They are satisfied with a To Do list of the first dozen things the project sponsor wants them to do. That is a terrible basis for your a project plan and it’s disastrous if you start work with no more information than a To Do list. To successfully plan a project and have high odds of project success, you need to know what the boss wants in measurable terms.  How to Plan Top Down

Project Plan Template 2nd Step – Define Major Deliverables

You then break down the measurable project scope into its major supporting deliverables.  There are several different ways to do this. The simplest is where the high-level deliverables literally add up to the scope and its acceptance criteria. Therefore, in a conversation with the sponsor, you might talk about how to break down the scope. The sponsor might say, “I want each department to develop their share of the overall savings.” During further discussion, you might identify the savings amount for each of those departments. You use them as your high-level deliverables with the acceptance criteria being the dollar amount of savings each department has to produce.

You see the major deliverables below and how they add up to the project scope of $15,000 of cost reductions.

  • Reduce order intake monthly operating expense by $4,000
  • Reduce production monthly operating expense by $2,000
  • Reduce order production monthly operating expense by $3,000
  • Reduce inventory monthly operating expense by $2,000
  • Reduce shipping monthly operating expense by $4,000  project plan template

Project Plan Template 3rd Step – Identify Major Risks

Depending on the size of the project, you may invest a great deal of time identifying the risks that threaten the project. You can do this in brainstorming sessions with the project team and stakeholders. But on a small project, you might develop your list of risks over coffee. In either case, you’ll include them in the project plan along with ideas for mitigating those risks. See example risks you would enter into the project plan template below:

  •  Layoffs may result in labor actions which disrupt operations
  •  Production may drop as much as 25% for 3 – 5 months.

Project Plan Template 4th Step – Identify Project Team Resource Requirements

Using the major deliverables, you now identify the number of hours of work and the skill sets required to create each deliverable. You would total those estimates up to the level of the entire project and make very rough estimates of the people and skills required. Below are examples that you would enter into the project plan template.

  •  Bill – full time 3 months
  •  Mary – half time 2 months
  •  Raj – full time 3 months
  •  Sharmaine – quarter time 4 months
  •  Henry – full time one week

Project Plan Template 5th Step – Break Down to Individual Tasks

The last of the five steps in creating the project plan is to decompose those major deliverables developed in the second step. You break them down into smaller deliverables until you reach the level of a deliverable that’s an appropriate assignment for one team member. That’s the level of your work breakdown structure (WBS). It completes the project planning process in the project plan template. Then you can move on to the scheduling process.

Project Plan Template in Practice

In many organizations, project planning is a combination of vague generalities about the objective of the project. But the one thing that is often rock solid is the completion date. That date is frequently the only measurable project result. Because project managers don’t know what the executives want them to deliver, they have no ability to exercise control over the scope of the project. As a result, the objectives change weekly. Project team member assignments are vague and ever-changing. That is why estimating is inaccurate and why 70% of projects fail when they are planned that way. Let’s look at the best practices for project planning and then look at a project plan template for projects of different size.

Project Plan Template “Best Practices” In the Real World

Very often, project managers face a difficult organizational environment. The organization lacks the processes to do project management right and the executives don’t know how to play their role correctly. In these situations, the PMs need best practices that allow them to do things effectively, even though the executives and the organization’s processes are obstacles and not assets. The project plan template will help. The purpose of this intense project planning process is to make all the decisions before starting work. The approach of making the project plan and then executing it is much more efficient than a “plan as you go” process. However, it is very difficult in many organizations.

For this approach to work, the organization, its executives and project managers must do things correctly. That is, the executives must specify exactly what they want the project to deliver. They cannot make the project assignment using vague generalities where the only thing that is specific is the due date. The organization must have processes for evaluating and prioritizing projects and giving them access to resources based on those priorities. Last, the project managers must know how to do top-down project planning. That means they are able to take the clear acceptance criteria, specified by the executive/sponsor, and decompose it down to the level of specific assignments for each team member. Most organizations fail to meet one or more of these criteria and that is why we rarely see an ideal project planning process. There are two major ways to go Large Project Planning Techniques or for less paperwork and meetings,  Small Project Planning Techniques.

Project Plan Templates by Scale of the Project

We utilize three tiers of project plans techniques in the project plan template. They depend on the scale and complexity of the project:

  • Tier 1: Small Project Plans – Done within a department with the boss as the sponsor.
  • Tier 2: Medium Project Plans – Affect multiple departments or done for customers/clients.
  • Tier 3: Strategic Project Plans – Organization-wide projects with long-term effects.shutterstock_96175697

Identify Stakeholders

  • Tier 1 – Identifying stakeholders is not necessary on an in-department project where the manager is the primary stakeholder.
  • Tier 2 – We must identify stakeholders across the organization and find out their requirements early. Requirements cost more late in the project than they would have at the beginning.
  • Tier three – Requires an elaborate process of surveys and interviews to identify internal and external stakeholders so we can consider their requirements.

Project Business Case

  • Tier 1 – We often skip this since we don’t need formal project approval on an in-department project.
  • Tier 2 – Organizations with sound project management processes require a business case to justify a project’s priority versus other projects in the portfolio.
  • Tier 3 – The scale of financial and human resources usually requires detailed justification and demonstration of the strategic impact of the project.

Project Charter

  • Tier 1 – A 1-page broadbrush plan with achievement network, risks, resources and PM authority.
  • Tier 2 – This project charter addresses the project acceptance criteria, business justification and rough estimates of the resource requirements (human and financial).
  • Tier 3 – The size of the investment in these strategic projects usually requires extensive documentation of risks, benefits and impacts on other strategic initiatives and the entire organization.

Gather Project Requirements

  • Tier 1 – Usually limited to a meeting with the boss where the PM defines the project’s scope and decomposes it into the major deliverables.
  • Tier 2 – We survey project stakeholders for their requirements. Each requirement is reviewed and either included or explicitly excluded from the project.
  • Tier 3 – We follow an extensive process of identifying and analyzing requirements gathered from the stakeholders. It includes assessing stakeholders in terms of their interests and their ability to influence the project’s success.

Project Scope Statement

  • Tier 1 – A short statement of the project’s desired result and the acceptance criteria.
  • Tier 2 – A more detailed scope statement that also covers assumptions, constraints and the major deliverables.
  • Tier 3 – A full scope baseline development with exploration of alternative means of delivering the project scope.

Work Breakdown Structure (WBS)

  • Tier 1 – Decompose high-level deliverables into the deliverable for each team member’s assignment.
  • Tier 2 – Decompose high-level deliverables and use WBS sections from previous projects that are similar.
  • Tier 3 – Usually developed in sections with the people responsible for that major deliverable doing the decomposition.

Project Plan Template Summary

This project plan template uses a five-step project planning process. You can modify the planning to fit projects of different sizes depending on their complexity. You can learn to use this template in our online Project Management Basics courses. You work privately with a expert project manager. You control the schedule and pace and have as many phone calls and live video conferences as you wish.  Take a look at the course in your specialty.

At the beginning, when you and Dick talk to design your program and what you want to learn, you will select case studies that fit the kind of projects you want to manage. Chose you course and then select the which specialty case study from business, or marketing,  or construction, or healthcare, or consulting.  That way your case studies and project plans, schedules and presentations will fit your desired specialty.

  1. 101 Project Management Basics
  2. 103 Advanced Project Management Tools
  3. 201 Managing Programs, Portfolios & Multiple Projects
  4. 203 Presentation and Negotiation Skills
  5. 304 Strategy & Tactics in Project management
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Project Charter Template

Dick Billows, PMP
Dick Billows, PMP
CEO 4pm.com
Dick’s Books on Amazon

Use this project charter template to create the charter at the end of the project initiation process. This is after you have the scope information, the statement of work (SOW) from the sponsor and before the detailed planning begins. It includes the following:

  • scope
  • major deliverables
  • assumptions
  • constraints
  • risks
  • required resources and
  • change control.

 Starting work is still a ways off and this is the best time to discuss potential risks and problems with the project sponsor. You should also discuss your authority to assign work to borrowed team members and the availability of those resources. You need to be sure the project team will show up to do the work when they’re scheduled.

Other issues you should address are the scope’s underlying risks and assumptions. You can use the project charter template to identify those assumptions and risks. Then talk with the sponsor and stakeholders about how you can avoid or mitigate the risks. You should do this before the detailed planning begins. It’s easier and cheaper to include responses to the risks now than it will be later on. The project charter template should also include a process for making changes to the project plan. Everyone needs to understand that there is a process that includes an evaluation and approval before the plan can be modified. Project Phases Main Page

Project Charter Template: Cross-functional Authority

The project charter template should also address cross-functional authority issues. But that issue often gets lost among the assumptions and “mission statement” narrative. Even when PMs generate a concise decision-making document, they are vague about the authority they need to successfully manage the project. They want to avoid conflict over this touchy subject. But if you are a savvy PM, you know this conflict is inevitable. It is better to have the debate on authority now than to wait until the project is late and over-budget. It looks like you’re shifting blame if you explain slippage by finger-pointing at cross-functional resources. You need to specify in the  project charter how you will assign work to people from across functional or organizational borders. You should design an achievement network that maps the lines of accountability and shows the sponsor and stakeholders where you need authority. You must make crystal-clear assignments to the team members that are measurable achievements.

You can’t expect to have dedicated resources you can manage as subordinates for all the project project charter templateassignments. So you have to make careful choices. You should ask for direct authority for assignments that are:

  • on the critical path
  • are high risk
  • have a long duration
  • require rare skills.

You can live with indirect authority and even settle for “in the hopper” authority on shorter, less critical assignments. This means your request for resources goes “in the hopper” with all other demands for resources. If you ask for too many dedicated resources, it will backfire. You’ll be stuck with “in the hopper” authority for every assignment on your project.

Project Charter Template: Project Sizes

The project charter template requires some information gathering.  You have choices about which elements to include.  You also have to decide how much detail to give on the elements. As we said earlier, everything flows from the Statement of Work (SOW) that the sponsor  issues to get the project started. Let’s look at initiating a project, the project charter template document, and how you’ll complete the pieces for projects of varying sizes:

Tier 1: Small Projects – Done within an organizational unit. Your manager or your boss is the sponsor

Tier 2: Medium Projects – Projects that affect multiple departments or are done for customers/clients

Tier 3: Strategic Projects – Organization-wide projects with long-term effects on all departments.

Project Charter Template: Identify Stakeholders

Tier 1: Small Projects: This step is not necessary on an in-department project where the department manager is the primary stakeholder.

Tier 2: Medium Projects: You must make an effort to identify the stakeholders in multiple departments. This avoids getting surprised by late arriving requirements that must be added.

Tier 3: Strategic Projects: This step is a process of surveys and interviews to identify internal and external stakeholders who may be affected by the project. Their requirements must be considered.

Project Charter Template: Business Case

Tier 1: Small Projects: This step is not necessary because formal project approval is not required.

Tier 2: Medium Projects: Organizations with sound project management processes require a business case to justify a project’s priority versus other projects in the portfolio.

Tier 3: Strategic Projects: The level of financial and human resources requires detailed documentation and justification of the strategic impact of the project.

Project Charter Template: Scope, Deliverables  and Risks

Tier 1: Small Projects: A 1-page overview of the plan that includes the scope, deliverables, risks, resources and PM authority.

Tier 2: Medium Projects: The project charter document addresses the project acceptance criteria, business justification and rough estimates of the resource requirements (human and financial).

Tier 3: Strategic Projects: The size of the investment in these projects usually requires extensive documentation of risks, benefits, impacts on other strategic initiatives and on the total organization.

Project Charter Template Summary

Depending on your environment, the project charter template can include many components. The charter usually has a statement about the scope or statement of work (SOW) and the principal risks and assumptions that underlie the project plan. It should also include the processes for identifying and approving changes to the project scope. In addition, the project charter template should specify what resources the project plan requires and the project manager’s authority to manage those resources. You can learn how to prepare and present your project charter in our Project Management Basics course. You’ll work privately with your instructor and have as many e-mails, phone calls and live video conferences as you need.

You learn all of those skills in our online project management basics courses. You work privately with a expert project manager. You control the schedule and pace and have as many phone calls and live video conferences as you wish.  Take a look at the courses in your specialty.

At the beginning, when you and Dick talk to design your program and what you want to learn, you will select case studies that fit the kind of projects you want to manage. Chose you course and then select the which specialty case study from business, or marketing,  or construction, or healthcare, or consulting.  That way your case studies and project plans, schedules and presentations will fit your desired specialty.

  1. 101 Project Management Basics
  2. 103 Advanced Project Management Tools
  3. 201 Managing Programs, Portfolios & Multiple Projects
  4. 203 Presentation and Negotiation Skills
  5. 304 Strategy & Tactics in Project management