Executive Expectations of Project Managers

Transcription

1 Executive Expectations of Project Managers Bruce Leidal, PMP Chief Information Officer Carestream Health, Inc. April 1, 2010 Page 1

2 Before understanding Executive Expectations, let s understand Executives Page 2

3 What are the Primary Measures that drive Executives? The numbers Revenue EBIT EBITDA Cash Flow SG&A COGS AOP CapEx (Sales or Income) (Earns Before Interest and Taxes) (Earns Before Interest, Taxes, Depreciation & Amortization) (Money remaining after paying obligations) (Sales, General & Administrative) (Cost of Goods Sold) (Annual Operating Plan) (Capital Investment) Page 3

4 Why are projects selected? To impact the numbers Page 4

5 How are projects selected? Current Year Portfolio Portfolio Management Current +1 Portfolio Portfolio Strategy Portfolio Planning Portfolio Management Current +2 Portfolio Portfolio Strategy Portfolio Planning Jan 09 Apr 09 July 09 Oct 09 Jan 10 Apr 10 July 10 Oct 10 Jan 11 Portfolio Lifecycle Cadence A process view of project selection Page 5

6 What do Executives expect from you? Scope (Features/Functions) Schedule Project Execution Budget Assumes Positive Business Impact Quality Page 6

7 Let s Discuss How to Make Projects Successful You have just been named the project manager over a key business project Page 7

8 What is the First Thing you need to know about this New Project? Scope Scope is the project boundaries and objectives as defined by the Executive Sponsor. This includes the expectations of the impacts on the business. Page 8

9 What is the Second Thing you need to know about this New Project? Governance Project governance is the framework that will manage the project. The governance structure handles execution, escalations, risk mitigation, scope management, and change management. Page 9

10 What Structure is needed to govern a Project? Executive Board Steering Committee Project Leader Project Manager Roles of the Players Executive Sponsor and Key Executives that are directly or indirectly impacted by the project. Middle Managers that are directly impacted by the project, which is chaired by the Executive Sponsor. Respected leader in the organization that owns the project. Must be a Subject Matter Expert (SME) of the impacted process. Project Management Professional skilled in the methodology required to execute the project. Business Manager Functional Manager Line Managers who own the resources needed to execute the work. SMEs SMEs Subject Matter Experts needed to execute the work required to deliver the components of the project. Page 10

11 How do you build Credibility with the Executive Sponsor? Know the roles of the Executive Board and Steering Committee: Executive Board Steering Committee 4-Up Report Review (scope, schedule, cost, risk) Clarification of requirements (scope), understanding of impacts on cost and schedule. Change management. Be the Project Management Professional you are: Be well prepared at your Executive Board meetings Use your Steering Committee effectively Manage the scope (Features and Functions) Manage expectations on the scope, timing, and cost Spend time with your Executive Sponsor Page 11

12 Spending time with the Executive Sponsor: What do I talk about?* Scope setting (objectives, expected features, and functions) Up-front (high-level) planning Project structure (governance) Key staffing (identifying the star players ) Master plan Policies Monitoring execution (4-Up Report) Priority setting Conflict resolution Executive client contact (Executive Board) It s not just about having coffee * Reference: Project Management, A Systems Approach to Planning, Scheduling and Controlling by Dr. Harold Kerzner Page 12

13 What do Executives want to hear about a Project? Project Name Schedule Cost Risk Status Date: Feb. 11, 2009 Project Manager Key Project Project description Scope / Summary Implement a new process and system to significantly improve Order-to-Delivery timing. Short-term project status update User needs workshop completed. System stabilization testing is underway. Daily reporting of user issues are declining. All previously reported, very high, and high issues are fixed. Continuous-Improvement Team established to increase error- proofing. Cost CPI 1.01 $M Total Cap Exp Total Cap Exp Total Original Budget $5.9 $2.3 $8.2 $0.0 $0.0 $0.0 $8.2 Approved Changes $0.7 $2.8 $3.5 $0.0 $0.0 $0.0 $3.5 Revised budget $6.6 $5.1 $11.7 $0.0 $0.5 $0.5 $12.2 Actual $6.5 $5.0 $11.5 $0.0 $0.0 $0.0 $11.5 Remaining Forecast $0.0 $0.0 $0.0 $0.0 $0.5 $0.5 $0.5 Go-live Sep 10, 2009 P. R. O ject Schedule SPI 0.85 Milestones 2009/2010 Phase Date J F M A M J J A S O N D J Strategic Planning 18-Jun Assessment and Planning 18-Dec Design on plan 18-Feb Design completed 1-Apr System Test Readiness 3-Jun Start production conversions 29-Jun Systems Readiness 1-Aug-09 2 User Readiness Testing 5-Aug Finance Go/No-Go 20-Aug User Cutover Go / No Go 26-Aug Delivery Date 10-Sep Systems Stabilization 27-Jan Business Stabilization 27-Jan Risks/Issues ID Risk / Issue Description Mitigation 2 New stabilization issues continued to be raised 3 Financials Risk & Issue Mitigation Dashboard Focus on fixing of what is broken and manage enhancements via Governance process. Provide users with additional training and hotline support to clear billing deferrals and confirmations. Change from Last Review Criticality Probability G/Y/R New H H New H H Total $6.5 $5.0 $11.5 $0.0 $0.5 $0.5 $12.0 Variance to Revised Budget $0.2 $0.1 $0.2 $0.0 $0.0 $0.0 $0.2 This format anticipates the questions Page 13

14 There is One More Key Item to Project Success Change Management The process of moving an organization from the current state to the future state. Page 14

15 How do you use Change Management to ensure success? Communicate, communicate, communicate The appropriate message to all levels and the impacted community Escalate risks, fast! Focus on risks outside of the project s control. Balance: Don t go underground OR cry wolf or be a Chicken Little. If there is risk within the control of the project, manage it, don t escalate it. Identify the Zealots and Nay-Sayers Give the Zealots a platform Get the Nay-Sayers to sit on the fence Manage your Executive s time: Regular, prescheduled meetings Exec Board Monthly 30 min Steering Committee Weekly or bi-weekly 1 hour Ensure you are ready at any time to answer the following: What workstream is most critical? (the critical path) What risk is there for this work stream? Are you resourced correctly? What are the components of the budget, and how are you doing with them? Is this project going to deliver the value? Page 15

16 Wasn t That Easy? Let s Recap Page 16

17 Recap: From an Executive View, what must a PM do? Understand & Manage the Scope Be sure the Executive Sponsor is clear with project boundaries Ensure the features and functions (requirements) match the boundaries Setup & Use the Governance Structure Convince the Executive Sponsor to implement the structure Use project governance to manage change Build Credibility with the Executive Sponsor Manage Your Executives Time & Anticipate Questions Use the 4-Up Report for status Use Change Management to Ensure Success Page 17

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19 Appendix Page 19

20 Roles and Responsibilities of People in the Project Structure Project Role and Responsibility Matrix Role Executive Sponsor Executive Board Member (Key executives that are directly or indirectly impacted by the project.) Steering Committee Member (Middle managers that are directly impacted by the project.) Business Lead (Project Leader) Description Has ultimate authority over and responsibility for the project. Establishes project scope, provides funding and resources. Coaches Business Lead and Project Manager in change management. Approves Project Charter. Leads the project Executive Board. Removes roadblocks required to mitigate risk that is not under the control of the project. Participate on the project Executive Board to review status. Approves Statement of Work, changes to scope, timing, cost and project completion. Removes roadblocks required to mitigate risk that is not under the control of the project. Participate on the project Steering Committee to monitor progress, provide resources, review scope changes and make recommendations to the Executive Board. Approves recommendations to the Executive Board on changes to scope, timing and cost. Responsible for change management to ensure project acceptance. Responsible for communicating the business needs and requirements of the project. Works on a day-to-day basis with the Project Manager and Project Team Members. Responsible for coordinating communication to the Steering Committee, Executive Board and Executive Sponsor regarding project status, risk mitigation, change management and related issues. Page 20

21 Roles and Responsibilities of People in the Project Structure (Con t) Project Manager Line Managers Responsible for successful delivery of the project. Takes direction from the Business Lead. Responsible for developing and maintaining: Project Charter, project plan, risk assessment, scope management, assumptions, and budget. Responsible for maintaining accurate status of the project and for communicating project status to the Executive Sponsor, Steering Committee, Business Lead, Project Team Members, and Key Users. Responsible for health of the Project Team and for ensuring Project Team members understand and appropriately execute their roles, responsibilities and assigned activities. Responsible for resourcing the project with Subject Matter Experts that will ensure the project success. Coordinates with the Project Manager to ensure required resources are made available at the requested time and for the requested duration. Project Team Member Key Users Takes direction from the Business Lead for project related activities. Participates as a member of the Project Team. Takes direction from the Project Manager and/or Business Lead. Responsible for delivering assigned components of the project. Accountable to the Project Manager regarding their roles, responsibilities, and activities related to the project. Responsible for maintaining accurate status of their assigned activities and for communicating that status to the project manager, including risk factors outside of their control. Participates as a member of the Project Team. Specific, identified business resources assigned to support key components of the project. Supports successful delivery of the project by identifying key features and functions. Participates in detailed analysis, design, construction, and testing needs of the project. Will become a go-to Subject Matter Expert during and after the project goes live. Page 21