Introduction To
Integration Project
Management
Methodology No. M14
August, 2000
Contents
•
Purpose and Objectives
•
Critical Success Factors & Pitfalls
•
Planning & Monitoring Formats
•
•
Tasks, Work Breakdown Structure & Resource
Assignment
Role of the Integration Management Office (IMO)
2
Purpose & Objectives
•
•
•
•
•
Explore fundamental tools and techniques
Illustrate principles of project management
Demonstrate the value of using project
planning tools and techniques
Provide simple guidelines to facilitate the use
of project planning
Illustrate the reasons to invest the time
required to do effective planning
3
Effective Project Planning: Critical
Success Factors
•
•
•
•
•
•
•
•
•
Start the planning process early (prior to closing
if possible)
Link the business strategy to tactical planning
Describe the overall integration plan (for various
constituents across both businesses)
Manage planning and execution rigorously
Document the impact to the business
Communicate frequently, clearly and uniformly
Involve and mobilize employees
Plan-Do-Review
Address efforts proactively and avoid firefighting
4
Pitfalls: When Companies Fail to Plan
Effectively
•
•
•
•
Employee uncertainty and frustration can negatively
impact customers and stakeholders (value
destruction)
Organizational turmoil may increase unwanted
employee turnover
Managers spend too much time on minutiae,
firefighting or employee concerns instead of the key
activities
The integration time line may become understated,
while expected benefits become delayed or
unrealized
5
Integration Program Management: Key
Planning/Monitoring Formats
MONITORING
Flash
Reports
PLANNING
Status
Reports
Activity
Work Plans
Planning
Matrix
Benefits
Tracking
Team
Charters
Commun.
Needs
Log
Functional
Synergy
Worksheets
Issues
Log
6
Primary Uses For Each Of The
Planning/Monitoring Formats
Planning Matrix
Provides a description of the end state for each functional/process area, and acts as a roadmap for the business integration effort.
Team Charters
Provides context for the teams reason for being. Identifies the high level what, why, when and how of each integration team.
Activity Workplans
Provides the work breakdown, dependencies, deliverable and timing associated with each team effort. The essence of each team plan
would be rolled up into an overall integration master plan.
Functional Synergy Worksheets
Provides a standard format for documenting estimates of revenue enhancing, cost reduction or cash flow enhancing improvements
anticipated from integration team activities.
Status Report
Provides a vehicle to monitor the extent to which program activities have been completed.
Flash Report
Provides a less formal format for reporting progress in a bullet format. Captures thoughts for a discrete period of time on key
accomplishments, team “temperature”, issues and concerns, and next steps.
Benefits Tracking
Provides a format to track actual benefits achieved versus estimates
Issue Log
Provides a mechanism to identify progress limiting issues and track their resolution
Communications Needs Log
Provides a vehicle to identify topics that need to be communicated to different constituencies. This is a major input to the program office in
their effort to disseminate program information.
7
Planning/Monitoring Formats: Integration
Planning Matrix
Purpose:
• Provides a format to describe the intended end state for each functional/process area, and
acts as a roadmap for the business integration effort
Integration Area
(Department, Function,
Process)
By department,
function or process
End State Concept Of
Business
(Operations, Organization,
IS)
Opportunity (H,M,L)
TThheeHHooww
Business Risk (H,M,L)
at
Whhat
TThheeW
Integration Complexity (H,M,L)
• Provides the first comprehensive view of an integrated end state and anticipated benefits
TTh
heeW
Whhy
y
Total
Budgeted
Headcount
Target Benefits
Target
Integration
Date
Key Integration Steps
Issues, Dependencies,
Gating Factors
How the business will operate
when integrated (e.g., consolidated,
integrated, centralized/decentralized,
etc.)
Preliminary project
prioritization; Resource/
skills assessment; Risk
management
Quantification of
opportunities; Reality check
of consolidation/ integration
plans
What phases or interim steps are
required to get to the end state
What activities must other integration areas
(units) perform (complete) before this
integration area can begin/complete particular
tasks. What external factors may impact
progress (e.g., regulatory gating issues)
8
Planning/Monitoring Formats: Work
Team Charters
Charter Outline:
Key
Activities
Process
Logic
Schedule
of Work
Benefits
End State Vision /
Description of Objectives
Milestones
R & R’s
Sponsor
Mission
Objectives
Work
Team
Manager
Critical
Issues
Topics of Focus
Measures
Skills/Resources Required
Critical
Success
Factors
Deliverables
Budgets
Dependencies &
Critical Success Factors
Major Activities / Milestones
Business Benefits / Measures
Results
Overall Timing
9
Planning/Monitoring Formats: Work
Team Charters
WORK TEAM CHARTER
TEAM/FOCUS AREA:
LEADER:
END STATE VISION / DESCRIPTION OF OBJECTIVES:
Purpose:
• Provides context for the teams reason
for being
• Identifies the WHY, WHAT, WHO and
WHEN for team activity at a very high
level.
TOPICS OF FOCUS:
SKILLS/RESOURCES REQUIRED:
DEPENDENCIES & CFSs:
MAJOR ACTIVITIES & MILESTONES:BUSINESS BENEFITS:
BUSINESS BENEFITS / KEY MEASURES:
OVERALL TIMING:
10
Planning/Monitoring Formats: Activity
Work Plans
ACTIVITY WORK PLAN
TEAM/SUB-TEAM:
TEAM LEADER:
Act.
No.
Work Breakdown Structure - Activity/Task Description
Responsible
Person(s)
Start Date
End Date
Dependencies
Purpose:
• Provides the work breakdown and
timing for the integration program
• Provides timing, dependencies and
primary responsibility for each activity
11
Planning/Monitoring Formats:
Functional Synergy Worksheets
Purpose:
Provides a standard format for documenting estimates of revenue enhancing, cost reduction or
cash flow enhancing improvements anticipated from integration team activities
Functional Synergy Worksheet
Funtion
(
___ Revenue Enhancement
___ Cost Reduction
___ Cost Avoidance
Year 1
) - Detail
___ Cash Flow/Utilization
Year 2
Year 3
Year 4
Year 5
) $
$
$
$
$
Synergy
$
$
$
$
$
Assimilation Costs
$
$
$
$
$
Recurring Cost of Benefit-Related Activities
$
$
$
$
$
Title/Subject
Net Synergy - (
As-Is
To-Be
Action Steps and Timing:
Risks:
Reporting (How to Measure):
12
Planning/Monitoring Formats:
Functional Synergy Worksheets
Functional Synergy Worksheet
(
Net Synergies / Impact
Type*
Year 1
Year 2
Function
Year 3
) - Summary
Year 4
Year 5
1.
$
$
$
$
$
2.
$
$
$
$
$
3.
$
$
$
$
$
$
$
$
$
$
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Total Net Synergies
Type: (RE) Revenue Enhancement; (CR) Cost Reduction; (CA) Cost Avoidance; (CFU) Cash Flow/Utilization
13
Planning/Monitoring Formats:
Functional Synergy Worksheets
Functional Synergy Worksheet
(
(
Function
Function
) - Overview
) - Summary
Year 5
Year 4
Year 3
Year 2
Year 1
Consolidated Synergies
Synergy Benefits
$
$
$
$
$
Assimilation Costs
$
$
$
$
$
Costs of Benefit-Related Activities
$
$
$
$
$
Net Synergy
$
$
$
$
$
14
Planning/Monitoring Formats: Status
Reports
TEAM STATUS REPORT
TEAM/SUB-TEAM:
STATUS DATE:
TEAM LEADER:
Act.
No.
Work Breakdown Structure - Activity/Task Description
Responsible
Person(s)
Start Date
End Date
Estimated %
Complete
Comments
Purpose:
• Provides a periodic update of the extent to which
work plan activities are complete
• Provides clarifying commentary regarding activity
status as required
15
Planning/Monitoring Formats: Flash
Reports
WORK TEAM FLASH REPORT
TEAM:
STATUS DATE:
KEY ACCOMPLISHMENTS:
Purpose:
• Provides a high
level bullet-point
update of team
events and
progress for a
particular timeframe
• Provides a vehicle
to surface progresslimiting issues
TEAM “TEMPERATURE”:
ISSUES & CONCERNS:
NEXT STEPS:
16
Planning/Monitoring Formats:
Benefits Tracking Log
BENEFITS LOG
Benefits Realized
Cash Flow
Cost Reduct
Cost Avoid
Oppty.
No.
Rev. Growth
Type
Description of Benefit
Team/Resp.
Value
($000)
Implement
Due Date
Q1
($000)
Q2
($000)
Q3
($000)
Q4
($000)
Q1
($000)
Q2
($000)
Purpose:
To provide a format to track
benefits expected, responsible
personnel, and timeline. Specific
responsibility and timeframes
should be assigned.
17
Planning/Monitoring Formats: Issue Log
ISSUE LOG
Issue #
Issue Description
Submitted By
(Person/Team)
Assigned To
Date
Opened
Date
Closed
Resolution
Purpose:
To provide a format to track
issues that are outside the
control of a single team, and
that will inhibit progress
unless resolved
18
Planning/Monitoring Formats:
Communications Needs Log
COMMUNICATIONS NEEDS LOG
Item #
Topic/Message
Audience
Date
Requested
Draft
Responsibility
Disposition
Purpose:
• Provide a vehicle to identify topics that need to
be communicated to either internal or external
constituencies
• Provide a major input to the program office in
their effort to disseminate program information
• Provide a major input to the program office in
their effort to disseminate program information
19
Project Planning Stages: Overview
Work Breakdown
Structure
Defining Project Dimensions
• WBS structure tree
• Identifying major topics of focus
Elements of
Work
What Really Needs to be Done?
Definition of
Dependencies
What Needs to be in Place First?
Getting Who
You Need
• Identifying key milestones
• Defining phases/tasks/activities
• Understanding predecessor relationships
• Sequencing & preliminary schedules
Assigning Resources
• Skills Inventory
• Responsibility Matrix
• Scheduled refinement
20
Work Breakdown Structure
(WBS)
Work Breakdown Structure
Objectives:
• To establish a common method to divide complex, multifaceted programs into a consistent set of dimensions
• To enable viewing a project plan in a hierarchical
(taxonomic) order
• To provide a structure to break larger efforts (e.g., phases,
deliverables) into more discrete building elements (i.e.
tasks, activities, action steps)
22
Work Breakdown Structure
Approach:
• List the dimensions in which people will be doing work
By Team, By Geographic Area, By Topic, By Deliverable, By Phase, By Activity, etc.
• Decide by which dimensions you will potentially want to “slice”
(view) the ultimate work plan (e.g., all work happening in Asia)
• Rationalize and standardize on a common set of planning
dimensions
• Organize these dimensions into a standard hierarchy
• Orient all team leaders to the standard work breakdown hierarchy
to which all project plans will conform
23
Work Breakdown Structure Tree Chart
Team
Sub-Team
Geography
Topic Of Focus
Etc.
Note:
Work Breakdown Structures set
the stage for resource planning,
roles and responsibility
mapping and identifying
interdependencies to other
integration deliverables
1.
1.1
1.2.1
1.2.4.1
1.2
1.2.2
1.2.4.2
1.2.3
1.2.4.3
1.2.4
1.2.4.4
1.2.4.5
1.2.4.6
The lowest levels of the hierarchy represent the actual
work. . . Phases, Activities and Tasks
24
Work Breakdown Structure Example
1.
Strategic/
Operational
Direction
Project
Management
1.1
Team/SubTeam
1.1.1
Geographic
Dimension
Customer
Commitment
Finance &
Administration
Human
Resources
EMEA
Topics
of
Focus
1.1.1.1.1.1
Asia/Pacific
Communications
Transition/
Shared
Services
Latin
America
Canada
Country Specific
Employee
Benefits
Terms &
Conditions of
Employment
Compensation
“As-Is”
Assessment
Employee
Evaluation/
Selection Proc.
Policies &
Procedures
Payroll
Administration
Stabilizing / Parallel Operations
Activities &
Tasks
Information
Technology
Fleet
Management
Training
Corporate/
Global
Labor
Relations
1.1.1.1.1
People
&
Properties
Manufacturing
Facilities
Retention
Process
1.1.1.1
Corporate
Driven
Processes
“End State” /
Requirements
Definition
Outplacement
HR
Information
Systems
Recruitment/
Staffing
Job Classificatn
/ Career Path
Etc.
Consolidating / Integrating / Transforming
Development
Implementation
25
Example: Work Plan Using A PreDefined Work Breakdown Structure
Activity#
1.
1.1
1.1.1
Activities/Tasks
People & Properties
Facilities
Global/Corporate
Base level Real Estate Organization
Engage Real Estate Management Team (REMT)
Prepare an agenda of needs for the REMT meeting
Review/adjust REMT approach
Set up structure required to manage Int'l R.E. Process
Standarize facilities approach (Process Plan)
Set up pyramid structure required for (5) R.E. Project Mgrs
Assign the needs for facilities in each country to (x) brokers
Obtain the names of the country managers
Train the permanent International Real Estate associates
Train the International Real Estate Project Managers
Train the Delphi Country Managers
1.1.1.1.1
Note the use of left to
right indentation to
accentuate the WBS
hierarchy
1.1.1.1.1.1
1.1.1.1.1.2
1.1.1.1.1.3
1.1.1.1.1.4
1.1.1.1.1.5
1.1.1.1.1.6
1.1.1.1.1.7
1.1.1.1.1.8
1.1.1.1.1.9
1.1.1.1.1.10
1.1.1.1.1.11
Team
Planning Needs
Develop a list of countries that require a facility
Establish the priority for facilities
Develop a master working schedule and dates
Develop a master status report
1.1.1.1.2
Sub-Team
1.1.1.1.2.1
1.1.1.1.2.2
1.1.1.1.2.3
Region
1.1.1.1.2.4
1.1.2
1.1.2.1
Country
EMEA
Austria
Develop preliminary space plan
Perform project verification
Select site
Negotiate lease/rent arrangements
Specify interior requirements
Design interior of facitlity/Develop construction plans
Approve design
Approve R.A.
Execute lease
Order furniture and equipment
Construct facility ("Build Out")
Relocate to new facility
Close out process
1.1.2.1.1
1.1.2.1.2
1.1.2.1.3
Topic of Focus
1.1.2.1.4
1.1.2.1.5
1.1.2.1.6
Activities
1.1.2.1.7
1.1.2.1.8
1.1.2.1.9
1.1.2.1.10
1.1.2.1.11
1.1.2.1.12
1.1.2.1.13
1.1.2.2
Belgium
Etc.
26
Elements of Work
Elements of Work
Milestones
Interim goals that are used to track
the progress of the project. These
events typically represent the
beginning or end of a phase.
Phases
A phase represents major stages of
The project. It consists of a group
of related tasks. Breaking the project
Into phases allows you to focus on
One aspect of the project at a time.
Tasks/Activities
A task represents actual work that
will be done on your project.
Completion of task moves the
project forward measurably.
Examples
Shared Service Center Operational
As-Is Assessment
Requirements Definition
Development
Implementation
Define Organization Structure
Identify Open Positions
Recruit for Open Positions
Train Staff
28
Remember:
The Bottom-Level Tasks Should. . .
• Have a tangible or measurable output/ outcome
• Be unambiguous
• Work within the same task should occur within a sequential
or parallel time frame or order
• Should only include related work elements
• Have identifiable and readily available inputs
• Be a finite, manageable unit of work
• Require a limited number of resources - most steps should
have a single team member responsible
• Fit into the natural order of work progression
29
Definition of Dependencies
Types Of Dependencies
Dependency Type
Gantt Chart
Depiction
Finish-to-Start
A task starts after its
predecessor finishes
Start-to-Start
A task starts when its
predecessor starts
Finish-to-Finish
A task finishes when its
predecessor finishes
Start-to-Finish
A task finishes after its
predecessor starts
31
Determining Task Dependencies: An
Example Of Building A House
Rough In
Plumbing
Grade
Land
Dig/Pour
Foundation
Frame
House
Task Node: Implies Work
Effort Exerted and
Deliverable Completed
Dependency Arrow: Shows
Task Relationships from
Predecessor to Successor
Finish
Walls
Paint
Interior
Rough In
Electrical
Move
In
Install
Roof
Paint
Exterior
Install
Windows &
Siding
32
Guidelines for Validating Task
Interdependence
For each task, ask:
•
A
What must be done before?
A
•
What can be done at the same time?
•
What will be done after?
A
33
Assigning Resources
Roles and Responsibility
Mapping:
Objectives:
To introduce a structured approach to participative
management and informed decision making. To establish
clear work roles in a framework that facilitates work
assignment, management, measuring and alignment.
To offer a logical process that lays out work deliverables and
tasks to be performed, then assigns accountability,
responsibility, contribution expectations and identifies who
needs to be informed that these activities are going on.
ARCI is an iterative and empowering process that resolves
ambiguities, omissions, redundancies and confusion
surrounding work assignment and performance.
Roles and Responsibility Mapping
(ARCI) Key Definitions
Accountability: Makes the Decision
The person ultimately accountable.
Includes strategic authority, yes-no, veto
and assignment powers, and final approval.
A
R
Responsibility: Perform the work
C
Contribute:
I
The person(s) assigned the job by the “A”.
Includes tactical responsibility for doing the
work and completing the tasks.
Communicate the work (2-way)
The person(s) who provide special support
or should be consulted in making decisions or
doing work.
Inform:
Socialize the Work (1-way)
The person(s) needing to be informed at key
decision points during the work. The work’s
providers, customers and beneficiaries.
Accountable
Sample ARCI Matrix.
Inform
Responsible
Inform
Contribute
By Individual
A
R
C
I
Accountable
Responsible
Contribute
Inform
1.
Assess requirements
2.
Design business system
A,R
3.
Identify potential package options
A.R
4.
Purchase package
5.
Modify purchased package
6.
Modify in-house procedures
7.
etc.
8.
etc.
9.
etc.
A
R
A
R
R
A,R
C
R
A.R
A.R
C
A
R
C
A,R
A.R
10. etc.
R
11. etc.
R
R
12. etc.
37
Integration Management Office
Divisional Executive Group
IMO Protocols
Functional Integration Teams
Engineering:
Purchasing:
PC&L:
IS&S:
HR:
ERP
Quick Hits
Change Management
Training and Skills Transfer
Implementation Management
Project Planning and Scheduling
Measures, Tracking and Reporting
Knowledge Capture and Management
Communications and Culture-Building
Finance:
Mfg/Ops
Facilities
Cross-Company Resources
The Integration Management Office will be the “nerve center”
for the integration program
38
Role & Responsibilities – Integration
Management Office
• Provide the physical and virtual
environment to support:
• Program Management
• Communications
• Knowledge Sharing
• Provide the physical and
psychological space for the
Integration Manager and team
members to conduct meetings,
facilitate communications, maintain
files and documents, resolve issues
and prominently display progress
• Provide uniform global access of
integration information to teams
• Provide visibility regarding program
performance
• Provide the resources to orient/train
integration participants and oversee
consistent execution
• Ensure that roles & responsibilities
are clearly articulated
• Provide a formal mechanism/cycle for
program review
• Provide a “hot line” to the
organization regarding integration
activities
39
The Physical IMO Environment Should
Prominently Display Plans and Progress
Example of “War Room” wall in the IMO
Project Approach
Project Schedule
X
X
X
X
X
X
Project Benefits
XXXXXXXXXXX
Early Win Scoreboard
Project ARCI
Weekly Flash
Reports
Work Team Charter
Goal Goal Goal
40