When Things Go Wrong …
a presentation to PMI-NAC
16 October 2012
David L. Hamil, PMP, MBA
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
PM Solutions® Survey (2011)
•
Firms, on Average, Manage $200M in Projects / yr.
•
> ⅓ (i.e., $74M) of These Projects at Risk of Failing
•
Jobs, Businesses, etc., in Jeopardy
•
Firms with Standard PM Methodology (78%) had < 50%
as Many Project Failures as Those Without
•
~ ¾ (74%) of Troubled Projects that Underwent
Recovery Intervention in Past 3 yrs…Recovered!
•
18% of These Projects have Recovery Efforts that are
Still On-going
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
•
What’s the Project Situation?
•
Who Should Lead the Project Recovery Effort?
•
What are the Characteristics and Expectations
of the Project Stakeholders during a Crisis?
•
What are the Top Steps to Project Recovery?
•
How to we Know When we’ve Arrived?
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
Some Symptoms of Troubled Projects
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
Some Symptoms of Troubled Projects (cont’d)
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
Some Symptoms of Troubled Projects (cont’d)
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
Subtle Signs of Troubled Projects
•
Perpetual
‘s but Little Activity
•
Troubling Trends (e.g., dramatic ↑ or ↓ $pending,
dramatic changes in work being delivered, changes in
 with no approved change request(s))
•
Lots of TBDs (re: risks, issues mgt., action items)
•
Non-Progress Reports
•
Inability to Show Tangible Results
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
Project State
Normal – when Competing Project Constraints and asapplicable Project Success Factors 
Chaos – when chance is supreme or inherent
unpredictability in outcome of a situation, event, or
[project]. Confusion, disorder, disorganization, mess
Crisis -  (turning point for better/worse), decisive
moment, unstable or crucial time, … Emergency,
crunch time, zero hour. “Defining Moment”
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
Just Suppose
1.
Project Review Conducted and ID’ed a Troubled
Project ; we’re at that Defining, “Crisis” Moment
2.
Powers that be have Determined Project Still a
Viable Venture but not Continue as is
What’s the next steps, given we’re embarking on
a Project Recovery Effort (i.e., turnaround)?
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
Unequivocally the PM is One of Most Important
Success Factors in Project Recovery; no surprise
•
Significant role in determining cause of troubled
project
•
Responsible for effectively managing the process to
recover project
If/as a senior manager, one of your first tasks is
to “get the right leader [in the driver’s seat]
on the bus”
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
Can/should the current PM lead the recovery
effort?
Based on Experience I Would Say
No, unless this is a sudden crisis!
•
We need a PM w/ fair amount of project turnaround
experience to substantially ensure success
•
Turnaround is transformational…need a PM who
will challenge the status quo
We now have a new leader (PM) and a former PM
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
Should the former PM remain “on the bus” to be
mentored and learn from the new leader?
Depends
•
His/her character and attitude
•
Who team members and external team (e.g.,
customer) have allegiance to
If former PM to remain “on the bus,” he/she step aside,
responsibilities altered, to allow PM do his/her job
If in doubt now, or if determined later that he/she should be
“off bus,” then displace swiftly
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
“Leadership is not about the ability of those
around you to lead; it’s about your ability to
lead, despite what’s happening around you.”
-- Neal Whitten
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
Create a work environment where each team
member is empowered to contribute his/her
Expertise, Skills, and Experience to team’s tasks
Strong leadership and team members who likely will
be called on to
•
Work together for 1st time
• Work outside “normal” schedules
• Think “outside of box” to solve problems quickly and
effectively
• Be open and flexible to change, as situation will likely evolve
and may grow worse before it gets better. I.e., improvise
and respond to real-time experiences that inform actions …
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
A New Mission …
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
Failure is not an Option [on My Watch]
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
Krantz quickly built a team culture around the
norms of
• Optimism
• Positive Attitude
• Failure was not an option [on his watch]
• Encouraged team to focus on keeping their cool
• Solving the problem by focusing on what was working
• Trust based on expertise and preparation
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
Krantz’s “Tiger Team
• 20 different types of specialists and engineers
• Put through flight simulations to learn how to make
correct decisions under time pressures to reinforce the
importance of team knowing what to do during each
phase of crisis situation
• Co-located by “functional expertise,” to facilitate
communication
• Developed a strong sense of camaraderie
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
Krantz led both the Houston-based team and the
Apollo 13 crew through the crisis and to a state
of normalcy because “he really led, despite what
was happening around him,” and with steadfast
determination that “failure was not an option on
his watch.” His “Tiger Team,” over the course
of 4 days, became believers too that “failure was
not an option on their watch”
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
Teamwork in crisis situations necessitates
balancing internal operations with those who are
external to core team but are affected by results
To prevent crises in crisis situation, team needs to
scan external environment and think about the
implications of their actions as they relate to
external stakeholders
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
Three Steps:
1. Assessment – PM via interviews, project
plans, status reports, other project artifacts
Purpose of Assessment is to review and document
in a “State of the Project” report the deltas
between actual and expectations re: Goals &
Objectives, Scope, Resources, Quality, Risks,
Financials, Schedule/milestones
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
Assessment (cont’d)
Dual Purpose for “State of the Project” Report
1. Will be shared with key decision-makers and
other key parties where options discussed and
“response” decided (re-start, recover, re-scope)
2. Info in report (in whole or in part) could be key
in re-baselining the project
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
Step #
2.
Planning – Based on “response” from
Assessment and “State of the Project” report
a. Develop a new plan (“Recovery Plan”)
b. Determine resources needed to recover project
c. Communicate Recovery Plan; thus resetting
expectations
d. As applicable, PM should obtain senior
management and customer sign-off on
Recovery Plan
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
Step #
3.
Execution – time for PM to lead his/her team
into action using project mgt best practices
and these tips and guidelines
a. Co-location
b. Daily Scrum
c. Action Log
d. Progress/Status Report
e. Communication
Non-panicked Urgency
g. Decisiveness
f.
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
Step #
3.
Execution (cont’d)
h. Flexibility
Who’s in Charge?
j. Watch the Basket
i.
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
Hiding issues and failing to disclose problems
risk surprising our customer and our
leadership!
“Bad news does not get better with time!”
“There is a time in the life of every problem
when it is big enough to see, yet small enough
to solve” -- Mike Leavitt
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
Another aid to recovery is Attitude
Approach ALL situations with a “can do, take
ownership” attitude that gives our customer
and senior management the confidence that
we are addressing the issues and working
toward resolution
Our “finest hour” is when we take ownership
of a problem and correct our mistakes
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
Project Recovery Successful?
Once achieved, I recommend keeping the PM
and his/her Tiger Team intact and monitoring
the project for period of time to substantially
ensure project situation remains at
condition: “normal”
Conduct a
“Project _____ Recovery Retrospective”
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
Experience is a powerful teacher
We need to glean the lessons from problems
and mistakes, and not be guilty of repeating
the negative history of our past
We pat the heroes on the back who resolve
issues to customer satisfaction but let’s not
forget the heroes that planned ahead and
prevented or lessoned the severity of problems
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
I encourage you to:
• Exercise recovery, when needed
• Communicate effectively
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvv
vvvvvvvvvvv
Q & A, Comments?