Project management implementation from the practical point of view Denis Premec ICEC-IPMA congress Ljubljana 2006

Who am I Denis Premec Consultant for project management implementation and modernization. Working mostly for Slovenian companies. Defining and developing project management processes and methods to meet companies needs. Project management information systems implementator. Project management office’s consultant and mentor. Trainer for project managers and project teams. You can find my and my colleague’s articles on www.ipmit.si. 2

Project management implementation components from my point of view Project organization vs. functional organization Defined project management processes Project management office Project management information system Constant training & education Projects & PM on-going promotion 3

A trigger for implementation can be… …strategic goal for more effective business operations and development …a need for higher competition on the market …a complex problem in company that must be solved. … Zunanjim svetovalcem je skupna ta lastnost, da si lahko neobremenjeno ustvarijo sliko stanja v podjetju, poleg tega pa razpolagajo z veliko širšim spektrom znanj kot posamezni zaposleni v podjetju oz. imajo to znanje integrirano v eni osebi. Vsako podjetje ima zagotovo nekaj narejenega na tem področju, iz česar se lahko izhaja. Brez podpore vodstva tisti, ki vpeljuje spremembe, nima potrebnega zaledja in avtoritete. Odpiranje fronte sprememb lahko samo povzroči odpiranje fronte odpora med zaposlenimi. Večji začetni koraki so potrebni, da se podjetje in zaposleni zavejo, da spremembe prihajajo; seveda se bodo pojavili neki manjši odpori zaradi teh večjih prvotnih korakov – takoj potem popustimo tempo sprememb in s tem nekoliko “pridobimo” zaposlene. Npr. s kadrovsko in finančno službo, ipd. Promocija sprememb v podjetju je pomemben način pridobivanja in vzdrževanja podpore vodstva in vodij projektov ter prispeva k dvigu zavedanja o vpeljanih spremembah; ob tem vpeljevalec sprememb pridobiva tudi koristne povratne informacije in jih vgrajuje v nov sistem. 4

Common trigger for PM renovation Project 7 Project 1 Project 2 Project 4 Projeckt 3 Project 5 Project 6 Human resources Other resources €, $, … Time limitations 5

In many cases… …a company is convinced that PM is just another process … a company is not aware of all future influences on employees and their reactions …company management with functional management and project managers with team members don’t share the same opinion and view about projects and project resources …the trigger for PM implementing is in fact a wish to implement PM information system “because others have it” Zunanjim svetovalcem je skupna ta lastnost, da si lahko neobremenjeno ustvarijo sliko stanja v podjetju, poleg tega pa razpolagajo z veliko širšim spektrom znanj kot posamezni zaposleni v podjetju oz. imajo to znanje integrirano v eni osebi. Vsako podjetje ima zagotovo nekaj narejenega na tem področju, iz česar se lahko izhaja. Brez podpore vodstva tisti, ki vpeljuje spremembe, nima potrebnega zaledja in avtoritete. Odpiranje fronte sprememb lahko samo povzroči odpiranje fronte odpora med zaposlenimi. Večji začetni koraki so potrebni, da se podjetje in zaposleni zavejo, da spremembe prihajajo; seveda se bodo pojavili neki manjši odpori zaradi teh večjih prvotnih korakov – takoj potem popustimo tempo sprememb in s tem nekoliko “pridobimo” zaposlene. Npr. s kadrovsko in finančno službo, ipd. Promocija sprememb v podjetju je pomemben način pridobivanja in vzdrževanja podpore vodstva in vodij projektov ter prispeva k dvigu zavedanja o vpeljanih spremembah; ob tem vpeljevalec sprememb pridobiva tudi koristne povratne informacije in jih vgrajuje v nov sistem. 6

In very few cases… …a company recognizes a project management as a tool for strategic goals achievement …projects are part of company yearly strategic planning …it’s so hard to find a company management that proactively support changes and dares to confront with functional managers Zunanjim svetovalcem je skupna ta lastnost, da si lahko neobremenjeno ustvarijo sliko stanja v podjetju, poleg tega pa razpolagajo z veliko širšim spektrom znanj kot posamezni zaposleni v podjetju oz. imajo to znanje integrirano v eni osebi. Vsako podjetje ima zagotovo nekaj narejenega na tem področju, iz česar se lahko izhaja. Brez podpore vodstva tisti, ki vpeljuje spremembe, nima potrebnega zaledja in avtoritete. Odpiranje fronte sprememb lahko samo povzroči odpiranje fronte odpora med zaposlenimi. Večji začetni koraki so potrebni, da se podjetje in zaposleni zavejo, da spremembe prihajajo; seveda se bodo pojavili neki manjši odpori zaradi teh večjih prvotnih korakov – takoj potem popustimo tempo sprememb in s tem nekoliko “pridobimo” zaposlene. Npr. s kadrovsko in finančno službo, ipd. Promocija sprememb v podjetju je pomemben način pridobivanja in vzdrževanja podpore vodstva in vodij projektov ter prispeva k dvigu zavedanja o vpeljanih spremembah; ob tem vpeljevalec sprememb pridobiva tudi koristne povratne informacije in jih vgrajuje v nov sistem. 7

How to start Internal experts and external consultants Starting point is current situation – find positive cases Company management support Progress must be obtained with small, but constant steps First step can be large one – let them feel change Connection with other management systems in company Promotion of implemented components Zunanjim svetovalcem je skupna ta lastnost, da si lahko neobremenjeno ustvarijo sliko stanja v podjetju, poleg tega pa razpolagajo z veliko širšim spektrom znanj kot posamezni zaposleni v podjetju oz. imajo to znanje integrirano v eni osebi. Vsako podjetje ima zagotovo nekaj narejenega na tem področju, iz česar se lahko izhaja. Brez podpore vodstva tisti, ki vpeljuje spremembe, nima potrebnega zaledja in avtoritete. Odpiranje fronte sprememb lahko samo povzroči odpiranje fronte odpora med zaposlenimi. Večji začetni koraki so potrebni, da se podjetje in zaposleni zavejo, da spremembe prihajajo; seveda se bodo pojavili neki manjši odpori zaradi teh večjih prvotnih korakov – takoj potem popustimo tempo sprememb in s tem nekoliko “pridobimo” zaposlene. Npr. s kadrovsko in finančno službo, ipd. Promocija sprememb v podjetju je pomemben način pridobivanja in vzdrževanja podpore vodstva in vodij projektov ter prispeva k dvigu zavedanja o vpeljanih spremembah; ob tem vpeljevalec sprememb pridobiva tudi koristne povratne informacije in jih vgrajuje v nov sistem. 8

A CASE 9

Crucial problems – before implementation no clear rules no consensus what is a project no prioritization of projects (in fact ad-hoc prioritization) no actual list of ‘’projects‘’ project charters didn't exist objectives, deliverables, deadlines, time schedule not clearly defined no final plans of projects 10

Crucial problems – before implementation no resource planning, no change assessment too many projects dedicated to the same employees no control of the projects and resource’s allocation conflict between department tasks and project tasks no coordination between the projects on highest level no stimulation for project managers and team members not enough knowledge of project management 11

Results of PM implementation Organizational solutions – project organization, prioritization, project definitions, project management office rules Process solutions – defined project life cycle and responsibilties of project members through life cycle PM documents implemented PM Office started to operate Project management information system implemented Education, trainings, promotion… 12

Minimal portfolio of PM documents Organizational rule document (defines project management environment) Project life-cycle management document (“methodology”) Project initative document Project team forming document Project charter Weekly Monthly status report Change request Closing report 13

Top-level PM documents Organizational Rule document: Less than 20 pages Basic definitions Project roles Criterias, sorts and status of projects Priority of the projects Project Information system The beginning and organization of the project Impetus of project: project initiative, cooperation between organizational units, coordination between projects. Access rights to Project IS Process regulations document: Less than 20 pages Life cycle of the project Preparation of the project Reestablishment of the project Execution of the project Ending the project 14

Example: Organization of a project B o D Project council Sponsor PM Office Project manager Subproject Project group manager Vodje projektov: “Kot vodje projektov nimamo nobenih pristojnosti” … “Nimamo zagotovljenih potrebnih virov” Vodje služb (funkcijski management): “Projekti povzročajo zmedo v sicer stabilni funkcijski organizaciji” … “Vodje projektov posegajo v naše pristojnosti” Vodstvo podjetja (najvišji management): “Rezultati projektov ne izpolnjujejo naših pričakovanj (poslovnih ciljev)” … “Projekti ne zagotavljajo izvajanja strategije podjetja” Team leaders Team members Project group 15

Projektna pisarna PP PP PP PP PP 16

Example: Project preparation Potreba po projektu Priprava pobude pobudnik Obravnava vodja oddelka vodja sektorja š kolegij Odobritev uprava Arhiv Opredelitev projekta : cilji, rok, sponzor,… NE DA Projekt v pripravi Sklep o imenovanju vodje projekta, nadz. kakov. Pobuda za projekt Zapisnik seje uprave Exact project preparation process influenced on a better and cautious way of project’s defining. No more “tons of projects”. 17

Example: Project planning Resource planning for projects influenced on resource planning for non-project tasks – influence on functional managers and their way of planning. 18

Some benefits for the company After a year all the projects are signed in the IS (project portfolio) We can tell which people are working on projects – data base for the project resources Information system is a basis for statistic reviews and status reports about projects In any time we can tell which project is on the run and which is on the hold The people are no longer confused what they have to do on which assignments – the IS system sends them a mail on which tasks they are assigned and about changes on tasks In any time the project office can make a portfolio analysis without too many time spent for contacts with project managers 19

Some more important facts Employees accepted the new project management processes, forms and reports. (The old processes were not well accepted, they were complicated and with too many forms) They are pleased for all help the project management office offers them. (At last employees have a “call center” for help and they feel more safely) The projects are periodically supervised and ended – concluded, and project plans are changed timely and delay reported to the board so the board can decide. (In past employees have had a feeling that they were alone, that teher is no supervision, that nobody knows for them) 20

PM Information system Project Center: Priority of the project: High priority Middle priority Low priority Delays of the project: 0 delay Small delay Big delay 21

APPLICATION for project planning & tracking - scheduling plans All necessary project information Project Management Office homepage Project 01 homepage Scheduling plan (gannt & timesheet) Project 02 homepage Documentation workspace & archive . . . . . . . . Project Portfolio Analysis Resource Allocation Availability . . . . Project n homepage APPLICATION for project planning & tracking - scheduling plans - resources & financ. plans C E N T R A L P R O J E C T S E R V E R P r o j e c t D a t a b a s e

Conclusion a complex change, Project management implementation is: a complex change, coordinating project teams, company management, company environment and technology implementing is exacting and long-lasting, a success depends on the current situation of company environment and readiness of employees for mentality and habits changes. 23

Thanks for listening, we’re through! Net: www.ipmit.si Mail: info@ipmit.si Phone: 01/ 300 98 00 Fax: 01/ 300 98 20