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Essentials of Project Management

Essentials of Project Management. Why PM Skills are Important. Individual Contribution Roll-out HRIS software Outsourcing HR activities Developing new employee programs Conducting legal compliance audit Starting an HR department Strategic Contribution M&A Downsizing or restructuring

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Essentials of Project Management

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  1. Essentials of Project Management

  2. Why PM Skills are Important Individual Contribution • Roll-out HRIS software • Outsourcing HR activities • Developing new employee programs • Conducting legal compliance audit • Starting an HR department Strategic Contribution • M&A • Downsizing or restructuring • Realign performance appraisals to match strategic goals • Developing crisis mgmt plan • Facilitating culture change

  3. Where to Start “Plan your work and then work your plan.” Norman Vincent Peale author, The Power of Positive Thinking

  4. Pre-Project Planning • Defining the Project Scope • Your Project Plan • Adding Costs to the Equation • Risks • Roles & Responsibilities

  5. Project Scope Why is formalizing what is IN and what is OUT so important?

  6. What’s IN and What’s OUT Defining Project Scope Draws a “line in the sand” of exactly what will be included and what will not Helps to establish very clear expectations for your customer(s) Good reference in the event there are questions as the project progresses Acts as your foundation as new tasks are added (and the timeline adjusts)

  7. Goal Breakdown Structure Senior Management Functional Managers Subject Matter Experts From Improving your Project Management Skills by Larry Richman, AMACOM, 2006.

  8. SMART Project Objectives

  9. Refining the Objectives Project Deliverables: Measurable results, outcomes or specific products or services that must be provided in order to consider the project complete Deliverables, like goals, should be specific and measurable The more specific the deliverables, the easier it will be to plan and estimate project activities Each of these deliverables requires some type of action and most large, complex projects have phased deliverables

  10. Refining the Deliverables Project Requirements: Different from goals and deliverables – they help define how we know the goal or deliverable is completed successfully Requirements are a further breakdown of the deliverables; they describe the characteristics of the deliverable in very specific detail Example: our deliverable is a BEER, but the requirements are that it be AMBER, IN A BOTTLE, etc.

  11. Breaking Down the Goal-Example

  12. Breaking Down the Goal-Example

  13. Breaking Down the Goal-Example

  14. What’s IN and What’s OUT Why is formalizing what is IN and what is OUT so important? Why is gaining agreement from your boss on what is IN and what is OUT critical?

  15. What’s IN and What’s OUT From The Essential of Project Management by Harvard Business Press, 2006.

  16. Finalizing the Project Scope Written sign-off of Project Scope is CRITICALbefore you begin!!!

  17. Finalizing the Project Scope Before sign-off, ensure you’ve answered the following: Can we afford the project? If the project succeeds, will it be worth the cost? Do we have the skills needed to succeed? Will the project finish in time to make a difference for our business?

  18. Finalizing the Project Scope Sign-off of Project Scope: Key Stakeholders Key Management Team Members Project Sponsor Who could come back after the fact and “balk” at the scope of the project?

  19. Pre-Project Planning • Defining the Project Scope • Your Project Plan • Adding Costs to the Equation • Risks • Roles & Responsibilities

  20. Your Project Plan Where do you start when trying to define your Project Plan?

  21. Where to Start? START with the END!

  22. Where to Start? Start with the end in mind to help you define where you need to go and what you need to do to get there. As-is state To-be state • What major drivers exist that you should review? • What tasks define how you’ll evaluate each major driver?

  23. When Beginning With the End… Think of the End Deliverable from your boss’s perspective: How would your boss define success? OR How will he or she indicate that the project has been completed satisfactorily?

  24. Begin with the End • Anheuser Busch Project: • $3.0 billion in revenue across Canada • Upwards of $300MM residing in A/R • In 2010, 30%+ of A/R were overdue • ~2% of avg monthly receivables balance is written off as bad debt resulting in ~$2-3MM EBIDTA impact each year • WHAT IS THE END DELIVERABLE? • SUGGESTIONS ON HOW TO GET TO THE END DELIVERABLE? 24

  25. Defining Your Project Plan Any questions on beginning with the end?

  26. Defining Your Project Plan Project Managers use a tool called a Work Breakdown Structure (WBS) to illustrate what tasks need to be accomplished.

  27. WBS Best Practices Start with major deliverables/milestones then work your way “down” (i.e., more detailed) based on each major task or deliverable. Involve the people who will have to do the work. You DON’T need to do it alone! Be sure to include any assumptions regarding the project. Consider presenting time factors as a range vs. a fixed # of days. Include a contingency BUT spell it out (don’t hide it within your estimate).

  28. Defining Your Project Plan A Work Breakdown Structure (WBS) is simply an outline of what needs to be done to accomplish your project. Simple WBS: Goal: Make land useable for construction Conduct site survey Obtain permits Clear site Excavate site Regradeand groom site

  29. WBS Example

  30. Defining Your Project Plan Once you identify the tasks that need to be accomplished, you then need to add the time it takes to accomplish each task.

  31. Defining Your Project Plan Gantt charts are a graphical representation of the duration of tasks Gantt charts illustrate how long a project should take Gantt charts also lay out the order in which tasks need to be carried out and any dependencies

  32. Estimating Time via WBS

  33. Where to Start? @Home Exercise: Using the End Goal worksheet, detail the major milestones and sub-tasks for your upcoming project. How long will it take you to accomplish each individual task? What is the total length of your project?

  34. Defining Your Project Plan Has anyone done a Gantt chart before?

  35. Sample Gantt Chart

  36. Pre-Project Planning • Defining the Project Scope • Your Project Plan • Adding Costs to the Equation • Risks • Roles & Responsibilities

  37. Estimating Costs Conventional Project Management Wisdom says: You may want it good, fast and cheap BUT you only get TWO!!

  38. Estimating Costs Time, Cost & Performance Trade-offs: If technical requirements are fixed, compressing the schedule will probably increase project costs. The more the schedule is compressed, the greater the rate of increase in cost per unit of time. From Improving your Project Management Skills by Larry Richman, AMACOM, 2006.

  39. Estimating Costs Time, Cost & Performance Trade-offs: Adding requirements to the scope will either increase cost or time (or both!). If the budget is fixed, negotiation is necessary on the other two parameters. From Improving your Project Management Skills by Larry Richman, AMACOM, 2006.

  40. Estimating Costs Time vs. Cost Trade-off Highest Cost Solution Early Finish Date UNITS of COST Least Cost Solution Late Finish Date UNITS of TIME From Improving your Project Management Skills by Larry Richman, AMACOM, 2006.

  41. Estimating Costs Time vs. Cost Trade-off Highest Cost Solution LIMITS Early Finish Date UNITS of COST Least Cost Solution Late Finish Date UNITS of TIME From Improving your Project Management Skills by Larry Richman, AMACOM, 2006.

  42. Estimating Costs If you have to estimate costs, where do you start?

  43. Estimating Costs Tips on determining costs: Historical costs for similar projects completed in the past Pull costs for the individual pieces, then sum them up for the total (equipment, labor, etc.) Speak with experts in the field of your project – who might that include? Request for Quotes from vendors if outside labor is required Speak with Finance for similar spend

  44. Estimating Costs At most companies, asking for $ can be a challenge... How do you sell the cost for your project?

  45. Estimating Costs When asking for Money: Start with WIIFT (What’s In It For Them) or benefits Craft your message around the ROI of the project: • Time • Efficiency • Other cost savings?

  46. Monitoring the Project Budget Typical Budget Challenges: Scope creep Inflation during long-term projects Unfavorable changes in currency rates Failing to get firm prices from suppliers or contractors (or not properly defining the scope during the RFP process). Unplanned personnel costs such as overtime, training or consulting fees

  47. Pre-Project Planning • Defining the Project Scope • Your Project Plan • Adding Costs to the Equation • Risks • Roles & Responsibilities

  48. Risks, Constraints, Assumptions Why is identifying risks and constraints important?

  49. Risks and Constraints Identifying Risks Risk Probability vs. Impact From Improving your Project Management Skills by Larry Richman, AMACOM, 2006.

  50. Risks and Constraints The “critical path” of a project is one of the best ways to track RISKs or CONSTRAINTs to your project. What is meant by the “critical path”?

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