Global Project Management Best Practices

1. Global Project Management Best Practices Session #406Tuesday, April 271:30 – 2:30 p.m. By: Gregory A. Garrett, CPCM, PMPWinner ofProject Management InstituteProject Management ExcellenceAward NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

2. Center for Business Practices (CBP) Survey Results CBP 2003 Survey* - 1,000 project professionals from manufacturing, health care, and information technology worldwide Top Three Challenges • 23.9 percent – Lack of a consistent approach to managing projects • 19.7 percent – Poor resource allocation • 16.9 percent – Managing too many projects or the wrong projects • *CBP is a part of PM Solutions, of Havertown, PA an International PM Training and Consulting Firm NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

3. CBP Survey Key Results • 53.1 percent of the companies surveyed, had a low level of project portfolio management maturity • 51.7 percent of the companies surveyed, considered their projects complex or highly complex • 44.6 percent of the companies surveyed, had established a Project Management Office (PMO) or PM Center of Excellence NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

4. CBP Survey Key Results (continued) Top Three ProjectPerformance Metrics • 78.9 percent – Improvement in on-time-delivery dates • 65.8 percent – Reduction in cost vs. budget/plan • 57.9 percent – Improvement in Quality of Products and/or Services NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

5. CBP Survey Key Results (continued) Top Three Project Management Implemented Improvements • 77.9 percent – Software Tools • 69.1 percent – Methodology development • 69.1 percent – Staff training NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

6. Global Project Management (PM) Best Practices • Global PM Methodology • Global PM Support Structure • Executive Sponsorship • Global PMO • Regional or Country PMO • Web-based PM (Knowledge Management) • PM Networking • Accurate & Real-time Project-level data • Global Project Portfolio Management Managing Complex Outsourced Projects, by Gregory A. Garrett, CCH 2004 NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

7. Case Study: Sun Microsystems Overview With over 35,000 employees in 100 countries Sun is performing project management on a global scale. Key Facts • About 500 trained and certified Project Management Professionals • Use of PM Performance Model • Use of Customer Loyalty Index (CLI) • Use of Quality Feedback Loop • Proven Sun PM Methodology • Principal driven tools • Business Case • Quality (Six-Sigma) • Risk Management PMI, PM Network Magazine, 2003 NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

8. Key Projects Portfolio NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

9. Individual Global Business Competencies Adapted from The Global Challenge, by Moran & Riesenberger, New York, McGraw-Hill, 1994 NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

10. Organizational Global Business Competencies NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

11. The PM Solutions Project Management Maturity Model SEIMaturity Levels PMI KnowledgeAreas Each Knowledge Area is broken down into specific components. Specific Components are used to measure maturity and develop action plans. From: The Strategic Project Management Office, by Kent Crawford, Marsel-December 2001. NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

12. Project Management Organization Benchmarking Study Managing Complex Outsource Projects, by Gregory A. Garrett, CCH 2004. NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

13. Checklist of 20 Ways to Ensure Complex Projects Fail or What Not To Do! • Who needs roles and responsibilities? • Begin work without a contract. • Forget about Project Progress Reports. • Who needs acceptance criteria? • Change team members frequently. • Keep changing requirements. • Don’t document anything. • Hire the cheapest subcontractors. • Select project team leader from whomever is available. • Who needs a project plan – Just do it! • Who needs executive support? Managing Complex Outsourced Projects, by Gregory A. Garrett, CCH 2004. NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

14. Checklist of 20 Ways to Ensure Complex Projects Fail or What Not To Do! (continued) • Who cares about a supplier’s past performance? • Who needs a business case? • Promise the customer whatever they want. • Agree to whatever delivery schedule the customer wants. • Forget about the Project Kick-off meeting • Agree to unlimited liquidated damages. • Who needs performance-based requirements? • Forget about Earned Value. • Play the lie and blame game Managing Complex Outsourced Projects, by Gregory A. Garrett, CCH 2004. NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

15. Recommendations for Global PM Improvement • Based upon research, experience, and recent discussion with several of the leading project management consultants who have helped numerous organizations worldwide improve project performance the following major actions are suggested. • Ensure Top PM Talent • Improve Information Systems • Streamline Staffs • Build High-Performance Teams • Recognize & Reward Outstanding Performance • Develop Project Leadership Succession Plans Managing Complex Outsourced Projects, by Gregory A. Garrett, CCH 2004. NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”