Is your Project ready for Earned Value Management (EVM)? It’s all about the fundamentals Patrick Kennerson

Get these right and good EVM will follow Cultural change required to underpin good EVM EVM highlights weaknesses or gaps in the project planning and control processes and capabilities Managing a robust baseline challenges most organisation The plans must be based on Project deliverables clearly defined within the PBL, not just the functional effort Objective measures of physical progress must be assessed routinely Business systems and processes need to provide data in a timely manner Comprehensive change system is required

Cultural change This is what I find… Project Manger QA Document Management QS Comml Risk Change Manager Reporting Manager Planners

Cultural change This is what I expect…. Project Controls Director Manager 1. Project Control Mgr 2. Change & Risk Mgt 3. Commercial & Cost Mgt 4. Schedule Mgt 5. Document/Configuration Mgt 1.1 Project Controls 1.2 Policy 1.3 EVM Reporting 1.4 Reporting 1.5 Assurance 1.6 Data Integrity 1.7 System Integrity 1.8 Program Team Engagement 1.9 Process Improvement 2.1 Provide Change Management Process 2.2 Scope Change 2.3 BCR Process 2.4 Stakeholder Management 2.5 Change Document Management 2.6 Facilitate Risk Workshops 2.7 Administer Risk & Opportunity 2.8 Undertake various risk analysis 2.9 Monitor on-going risks 2.10 Provide monthly risk reports 3.1 Commercial and Cost Management Process 3.2 Cost Management 3.3 Commercial Management 4.1 Develop and maintain the overall master Schedule following good practice planning practices 4.2 Validate Supplier Schedules in support of the client Works Terms to ensure accepted Contract programs are of appropriate quality, integrity and maturity 4.3 Maintain, update and integrate program works in to the overall IMS master schedule in P6 (or similar) including all associated Milestone management 4.4 Provide accurate and timely Schedule progress and forecast information in line with the Monthly Programme Reviews (MPR) deadlines and formats 4.5 Meet the requirements of the Integrated Baseline Review (IBR) process Assurance 5.1 Facilitate best practice document management into specified programme databases 5.2 Administer the Document Management system across the programme 5.3 Establish and run the electronic filing system 5.4 Administer a storage and transmittal library facility 5.5 General admin support Risk Manager Cost Controller Change Manager Lead Planner Reporting/QA

LESSON 1 "Being responsible sometimes means pissing people off." Good leadership involves responsibility to the welfare of the group, which means that some people will get angry at your actions and decisions. It's inevitable, if you're honorable. Trying to get everyone to like you is a sign of mediocrity: you'll avoid the tough decisions, you'll avoid confronting the people who need to be confronted, and you'll avoid offering differential rewards based on differential performance because some people might get upset. Ironically, by procrastinating on the difficult choices, by trying not to get anyone mad, and by treating everyone equally "nicely" regardless of their contributions, you'll simply ensure that the only people you'll wind up angering are the most creative and productive people in the organization.

Weakness and Gaps SCOPE COSTS ANALYSIS SCHEDULE EV REPORTING CHANGE FORECAST & STATUS RISK 6

Responsibility Assignment Matrix (RAM) Weakness and Gaps Programme Control - System Project Plan (IPMP) & Project SoW OBS - Organisation Breakdown structure WBS - Work Breakdown Structure PBS - Product Breakdown Structure SoW - Statement of Work RAM - Responsibility Assignment Matrix EVM - Earned Value Management WAD - Work Authorisation Document Budget Distribution OBS WAD WBS / PBS Responsibility Assignment Matrix (RAM) Master Schedule Level 0 Risks Dependencies Risk Management Dependency planning Statement of work (SoW) Risk Model Schedules Scenario Planning Resource Profile EVM Reporting Financial Info 7

Managing a baseline

Progress Measurement Subcontract Schedules Baseline Update Activities Workpackaes IMS Subcontract Schedules Milestones ‘Critical Items’ SUBS B SUBS A Baseline Subcontractor schedules not loaded directly into PCMO schedule. Key interdependencies and deliverables identified in subcontract schedule and used in PCMO schedule for schedule integration purposes.

Business Systems Executive-Level Reports What’s the new forecast? Are we profitable yet? Deliveries are impacted! Executive-Level Reports Analytics Resource Management Cost Management DisconnectedBusiness Processes RIO Management Customer Support not notified of risk Reports Generated Manual reports generated Disparate Systems & Components Schedule updated Schedule impacted Risk identified ERP EAC impacts - overruns Schedule Management

Business Systems Gaps in Project Mgmt Discipline Analytics Resource Management Cost Management DisconnectedBusiness Processes RIO Management Disparate Systems & Components ERP Schedule Management

The End Result: Clarity Versus Chaos Business Systems The End Result: Clarity Versus Chaos BMS Gaps in Project Mgmt Discipline Program Insight and Control Analytics Resource Management Cost Management DisconnectedBusiness Processes Business Process Management RIO Management Disparate Systems & Components Schedule Management Resource Cost Analytics RIO ERP IPM Components ERP Schedule Management

Change Control – System Flow Originator PMO External Suppliers Change Committee/Board Identify Capture Assign for review Review, assess Propose action Contract revision Approve for action Assign for action Action Approve for Action Review Action Agree Closure

End of presentation Questions?