MBA 570
Summer 2011
WHAT IS A PROJECT?
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Project
◦ a series of jobs usually directed toward some
major output and requiring a significant
period of time to perform
“A temporary endeavor undertaken to create a
unique product or service”
Project Management Institute, 2000
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Compression of the product life cycle
Global competition
Knowledge explosion
Corporate downsizing
Increased customer focus
Small projects that represent
big problems
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Many tasks do not fit neatly into businessas-usual.
Need to assign responsibility and authority
for achievement of organizational goals.
Need to succeed and prosper!
300000
260,000+
250000
235,000
200000
207,066
150000
128,381
76.550
100000
40.343
50000
2,800
0
4,400
6,415
10,086
18,184
27,052
52,443
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Unique
Specific Deliverable
Specific Due Date
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Multidisciplinary
Conflict
Complex
Part of Programs
Why Some Projects Fail………
Five Reasons for Failure
1.
Lack of Project Manager Authority
“I must be a mushroom. They keep me in the dark, feed me manure,
and then they can me.”
2.
Lack of team participation
“If workers were smart, they’d be managers. Why ask them anything?
After all, I’m the boss.”
3.
Bad reporting
“Reports are just useless paperwork and an irrelevant management
requirement. I fill out the form and then forget the form.”
Why Some Projects Fail………
Continued
4.
Lack of people skills
“I don’t thank people just for doing a good job. Doing a good job is what they
get paid for.”
5.
Unrealistic goals and schedules
“Your mission, should you decide to accept it…if caught or killed, the Secretary
will disavow any knowledge…”
…..and Others Succeed
Three Reasons for Success
1.
Committed teamwork
“If anything goes bad, I did it. If anything goes semi-good, then we did it. If
anything goes real good, then you did it. That’s all it takes to get people to win
football games.”
– Paul “Bear” Bryant
2.
SMART Goals With Real Consensus
“Specific, Measurable, Agreed-Upon, Realistic, and Time-Specific.”
3.
Use of project management tools as a means, not an end.
“We have 562 pages of charts and graphs and still don’t have a clue!”
Business Failures
The construction industry is the largest single employer of the
country’s work force, it makes a major contribution to the gross
national product, and yet suffers one of the highest annual business
failure rates in the country. Studies have shown that the number of
failures in the construction industry is much higher than it should
be. The reason for the high failure rate is not because owners of
companies do not have the technical skills required for construction
but because owners have not developed adequate business
management skills or techniques.---in particular; communication
skills!
Most business failures occur within the first three years of operation
with the major reason being a lack of planning. Some of the other
reasons which lead to business failure are:
• Insufficient working capital
• Failure to qualify for loans
•Excessive growth
• Borrowing money from relatives and friends
• Company officers taking a too large of a salary
• Purchase or lease of expensive vehicles as status symbols
• Not keeping adequate accounting records
• Poor project estimating as a result of:
a.
not knowing the cost of material
b.
under estimating labor costs
c.
not understanding overhead or general conditions
d.
inadequate profit margins
• Loss of owner or key person
• Too many projects starting at the same time
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Conflict Resolution
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Creativity and Flexibility
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Ability to Adjust to Change
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Good Planning
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Negotiation
◦ win-win versus win-lose
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Each party in the negotiation must believe they have
achieved. In other words, both must feel they are or were
successful.
Do not forget the other party is a human being and needs
to feel the other side cares.
Fairness is essential to success. Both you and your
opponent must perceive that you were treated fairly. (You
will know whether you were fair in your treatment of the
other person.)
A deal is a deal! You need to honor your side of the
agreement and the other side must honor theirs.
The essence of negotiations is to do business again. Both
parties must win.
Universal Truths
The sum and substance or so-called “Universal Truths of
Negotiations” are as follows:
• Everything is negotiable,
• We negotiate continually,
• The process is predictable,
• Information is crucial to success, and
• Time constraints affect the outcome.
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When you are negotiating with two people;
Sit where you can watch both.
When you have two people on your team;
Sit apart so you “speak with two voices.”
When you have a large group opposing their
small group;
Keep your group together for the
appearance of power.
When they have a large group opposing your
small group;
Intermingle to diffuse their power.
Scope
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The year 1962
“We commit this nation to put a man on the moon and return him
safely to this earth by the end of this decade, and to do the
other things, not because they are easy but because they are
hard.”
The triple constraint project has begun.
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Time constraint: How long do you have?
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Budget constraint: How much can you spend?
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Performance criteria: What results must your project achieve to
meet its purpose?
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Project: Put a man on the moon
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Time: constraint: By the end of the decade.
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Performance: Safe return to Earth
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Budget: Unknown
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You can have it fast.
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You can have it cheap.
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You can have it good.
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Pick any two!
Ranking the Triple Constraint
Try identifying and then ranking the Triple Constraints for the following project..
Project: The Smithsonian National Air and Space Museum, the world’s most
popular museum, was a Federal government project accomplished ahead of
schedule and under budget.
The goal of the project was to build a world-class aviation and space museum for a
budget of $30 million and open it on July 4, 1976.
1.
Identify the Triple Constraints.
Project:
Performance criteria:
Budget constraint:
Ranking the Triple Constraint
2.
Rank the Triple Constraints.
Driver:
Middle constraint:
Weak constraint:
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Time required to complete a project
Availability of key resources
Cost of resources
Timing of solutions to technological problems
Actions taken by competitors
Actions taken by clients
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No, but it can be managed
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Manager-As-Supervisor Versus Manager-AsFacilitator
Systems Approach Versus Analytical Approach
◦ suboptimization
Must ensure project team members have
appropriate knowledge and resources
Micromanagement
Communication Paths Between a Project’s PartiesAt-Interest
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Geographically Dispersed Projects
Communication Via
◦ email
◦ Web
◦ telephone
◦ video conferencing
“Never let the boss be surprised!”
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Acquiring Resources
◦ getting necessary quantity and quality can be
key challenge
◦ “irrational optimism”
Fighting Fires and Obstacles
Leadership and Making Trade-Offs
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Necessary to meet three overriding
responsibilities
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Credibility - The PM is believable
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◦ technical credibility
◦ administrative credibility
Sensitivity - Politically Astute and Aware of
Interpersonal Conflict
Leadership, Style, Ethics - Ability to Direct
Project in Ethical Manner
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FACILITATION
The Key To Productivity
in the Workplace
-TO MAKE EASIER
(Webster’s 11th Collegiate Dictionary)
INDIVIDUAL
VS.
GROUP
DECISION
MAKING
THE
MENTAL
ASPECT
FACILITATORS ARE PROCESS
MANAGERS
THEY DO NOT
EVALUATE
OR
CONTRIBUTE IDEAS OF THEIR OWN
MANAGING PROCESS IS
YOUR ONLY JOB
“
--from My Tao, by R.W. Russell
SEPARTING ROLES: LEADER
(Facilitator, Leader, and Member)
Leader
Traffic Cop
Participant
Can you be Captain, Coach, Quarterback,
Referee, and Cheerleader all at the same
time?!
Which Role(s) would you give up; keep?
He/She is the Neutral Servant of the group.
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With the basic decision making
process and the specific “road
maps,” proper facilitation will help
you avoid potholes and detours,
and get you where you want to go
in an efficient, effective manner.
Things You Can Do To Intervene
and Get Things Back on Track
When They Start To Go Wrong
Check for agreement
Recycle to last level of agreement
Play dumb
Say what is going on
Maintain/regain focus
Use team memory
Avoid process battles
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Enforce process agreements
Constantly encourage
Accept/legitimize/deal or defer
Be non-defensive
Use body language
Don’t talk too much
Boomerang
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There’s no one right way to solve problems; we can try lots of
different tools. Which do you want to try first?
You can only do one thing at a time.
It’s OK to disagree.
People don’t stick to agendas they haven’t agreed upon.
Having timeframes can keep up on track.
People don’t feel understood unless they get a response.
You can’t solve two problems at once; which do you want to work
on?
If you can’t agree on the problem, you won’t agree on the solution.
It’s your team/group/meeting.
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Terrific! You’re all terrific!
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Gee, you all look tired/sad/unhappy….
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I’m feeling frustrated – what about you…?
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Let’s review the Team Memory and see if we can get back on track.
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Are you discussing what to do, or how to do it?
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Could we slow down; I don’t think everyone is clear on
what
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the problem is?
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It’s not the role of the facilitator to solve your problems.
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Let’s freeze and look at our process.
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It’s good to share information, not evaluates
right/wrong.
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We need to remember where we are in the P-S process.
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Go slow now to go fast later.
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FACILITATIVE BEHAVIORS
FACILITATOR CONTRACT
Boomerang
 Try to stay neutral
Maintain/Regain focus
 Not contribute my ideas
Play dumb
 Manage process (be meeting
Say what’s going on
“chauffeur”)
(say the unsayable)
 Focus team energy on the
Check for agreement
task
Avoid process battles
 Defend you from personal
attack
Enforce process agreements
 Make process suggestions
Accept/Legitimize/Deal or
Defer
 Need your help to keep in
Be non-defensive
role
Use body language
 It’s your meeting
Use the Team Memory
KNOW WHERE YOU’RE GOING
PAVE THE WAY
DEFINE YOUR ROLE
A) Poor Execution
B) Poor Planning
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“Ready, Fire, Aim”
“Paralysis by Analysis”
No
planning
Too
Much planning
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Overview
◦ brief description of project
◦ deliverables
◦ Milestones or significant events
◦ expected profitability and competitive impact
◦ intended for senior management
Objectives
◦ detailed description of project’s deliverables
◦ project mission statement
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General Approach
◦ technical and managerial approaches
◦ relationship to other projects
◦ deviations from standard practices
Contractual Aspects
◦ agreements with clients and third parties
◦ reporting requirements
◦ technical specifications
◦ project review dates
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Schedules
◦ outline of all schedules and milestones
Resource Requirements
◦ estimated project expenses
◦ overhead and fixed charges
Personnel
◦ special skill requirements
◦ necessary training
◦ legal requirements
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Evaluation Methods
◦ evaluation procedures and standards
◦ procedures for monitoring, collecting, and
storing data on project performance
Potential Problems & Required Project History
◦ list of likely potential problems
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Understand the expectations that the
organization has for the project.
Identify who among senior managers has a
major interest in the project.
Determine if anything about the project is
atypical.
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Gather Project Team
Provide Team Members with Pad of Sticky-Notes
Team Members Write Down all Tasks They can
Think of.
Sticky-Notes Placed and Arranged on Wall
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Identify and arrange all activities in successively
finer detail by level
List type and quantity of all resources required
for each activity
Show activity predecessors and task duration
Show all project milestones following their
predecessor activities
Identify individual or group assigned to perform
activity and have ‘sign off’
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What is the job to be done?
What is the purpose of the job?
What are the activities within the job?
What is the purpose of each activity?
Could the job be done another way?
Is every listed activity necessary?
Who does the work?
Who could do it better?
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Where is the work done?
Could it be done somewhere else more
economically?
When is the work done?
Would it be better to do it some other time?
How is the work done?
Could more efficient methods be used?
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Budgets are plans for allocating organizational
resources to project activities.
◦ forecasting required resources, quantities
needed, when needed, and costs
Budgets help tie project to overall
organizational objectives.
Budgets can be used as tool by upper
management to monitor and guide projects.
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Late 1950s
◦ Program Evaluation and Review Technique
(PERT)
 U.S. Navy, Booz-Allen Hamilton, and
Lockeheed Aircraft
 Probabilistic activity durations
◦ Critical Path Method (CPM)
 Dupont De Nemours Inc.
 Deterministic activity durations
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Activity
◦ task or set of tasks
◦ use resources
Event
◦ state resulting from completion of one or
more activities
◦ consume no resources or time
◦ predecessor activities must be completed
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Milestones
◦ events that mark significant progress
Network
◦ diagram of nodes and arcs
◦ used to illustrate technological relationships
Path
◦ series of connected activities between two
events
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Critical Path
◦ set of activities on a path that if delayed will
delay completion of project
Critical Time
◦ time required to complete all activities on the
critical path
Task
Predecessor
a
--
b
--
c
a
d
b
e
b
f
c, d
g
e
Activity
Predecessor
Duration
a
--
5 days
b
--
4
c
a
3
d
a
4
e
a
6
f
b, c
4
g
d
5
h
d, e
6
i
f
6
j
g, h
4
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Slack or Float
LST - EST = LFT - EFT = Slack
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Because the Gantt Chart is such a traditional
tool and appears so simple on the surface, it
doesn’t always get the respect it deserves as a
project management tool. Here are some of the
uses of a Gantt Chart.
Management reports. The simplicity and visual strength of a Gantt Chart makes
it the ideal tool to use when you’re reporting to someone who doesn’t know
project management.
Testing the Time constraint. When you’re doing preliminary project planning
and have numerous parallel tasks, you often don’t know how long the project will
take in calendar time. The Gantt Chart will show you.
Allocating resources. The Gantt Chart helps you to allocate and track resources
and identify conflicts.
Past
Present
Quality is the responsibility of blue-collar
workers and the direct labor employees
working on the floor.
Quality is everyone’s responsibility,
including white-collar workers,
indirect labor force, and the overhead
staff
Quality defects should be hidden from the
Customers (and possibly management)
Defects should be high-lighted and
brought to the surface for corrective
action
Quality problems lead to blame, faulty
justification, and excuses
Quality problems lead to cooperative
solutions
Changing Views of Quality
Past
Present
Corrections-to-quality problems should be
with minimum documentation
Documentation is accomplished
essential for “lessons learned”
so that mistakes are not repeated
Increased quality will increase project costs
Improved quality saves money and
increases business
Quality is internally focused
Quality is customer focused
Quality will not occur without close
supervision of people
People want to produce quality
products
Quality occurs during project execution
Quality occurs at project initiation
and must be planned for within the
project
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Experienced project managers sometimes look like
miracle workers. They bring in a project that seems
impossible, and solve problems that others can’t. They
have learned to think like project managers—and to use
the tools of project management effectively. As you read
and practice the tools provided, you’ll learn some of the
secrets for looking like a miracle worker yourself.
Your projects are full of hidden resources and opportunities.
Every project has hidden resources that can solve many of your problems. Proper
planning will help you uncover those resources and use them properly. These
resources go by strange names—resource slack, weak constraint flexibility, control
point identification. You’ll learn how to uncover and use them as you read this.
Resources are scarce—so don’t waste the ones you have.
Remember: You waste a resource if you don’t know it’s there in the first place.
How to Create a “Miracle on Demand”
When you need one great idea, start with several ideas.
The tools of brainstorming are an important resource for project managers.
Don’t go it alone; get input and fresh ideas from other sources. When you’re
overstressed and over-anxious, racing your brain for insights and solutions,
you don’t think at top capacity. Allow your project team to carry some of the
creative load; it helps you –and it improves their moral at the same time.
Take the time to plan and to set goals.
Thousands of projects fail each year because their managers didn’t do the
preliminary steps in the right order, especially defining and planning. Make sure
you know what the goal of the project is; make sure you understand the work;
make sure you have a plan. Then start the work. You wouldn’t go to the target
practice and shout, “Ready! Fire! Aim!” Don’t take that attitude with your
projects.
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Don’t bite off more then you can manage
Get your ducks in a row
Plan for Murphy
Don’t put off until tomorrow
Delegate, delegate, delegate
CYA (Document)
Keep your team in the loop
Measure success
Have a flexible strategy
Learn from your mistakes