Study Project in Global Business General Guidelines

1. Study Project in Global BusinessGeneral Guidelines

2. Limit your scope • Something that interests you • The topic be academic or practical • Scholar style • Business project style • State your topic June 4th Choosing a Global Business Topic

3. Note the university plagiarism policy • Failure is ok • In business situations usually better to state why an idea would not work than to continue to pursue the idea • Creative ideas typically come after lots of dead ends • You will be evaluated on how well explain your position • Follow the anomalies • Data that does not fit often leads to rewarding avenues • Experts often overlook the unexpected • Reputations and fortunes have been made from spotting anomalies and following them • Stay in scope Philosophical considerations

4. Any project will consist of manageable pieces • Set intermediate goals • Applies to individual projects as well as enterprise projects • Stick to your milestones and deliverables • Mountains are climbed one goal at a time Make a plan

5. Group A Group B • Monday 25 June • Plan for source data • Monday 9 July • Data organization • Monday 30 July • Draft of finding or bus plan • Monday 13 August • Draft of Report • Monday 20 August • Draft presentation • Wednesday 27 June • Wednesday 11 July • Wednesday 1 August • Wednesday 15 August • Wednesday 22 August Suggested milestone dates

6. Large organizations evolve away from transactions orientation • Routine tasks are outsourced • Typical transactions functions • Repetitive • Low skill • Low pay • Move toward project orientation • May have internal consulting organizations • Other staff may form teams for the duration of a project, or for parts of a project • Traditional staff functions like marketing or finance become project oriented Effective Project ManagementStructure of large organizations

7. 1. Identify a need • Request for proposal (RFP) • Written by customer • Contractors respond with • How they might solve the problem • Costs and schedule for the work • Informally - needs defined in meetings or by management • Typically handed off to internal project team • Important to correctly define the need (very often management will have only a vague idea) • Very common for entire departments to be project oriented (example are FP&A or internal consulting) Effective Project Management Project lifecycle

8. 2. Develop a solution • Proposal to customer • Contractors submit proposals and bids • Develop approaches to a solution • Estimating types and amounts of resources needed • Estimate of time to design and implement the solution • Internal team responds to management or team defined need or request • Work will be preformed by internal staff • Often parts are contracted out for specialized expertise • Effort in this phase is from contractors or internal project staff • Negotiate and sign a contract (note internal teams often have written agreement) Effective Project Management Project lifecycle

9. 3. Perform the Project • Detailed planning • Implement the plan to accomplish the objective • Accomplish the objective • Project complete when it is accepted by the customer • Customer obligation to review or validate results • This is where careful wording of contracts is important • Quality, budget, time Effective Project Management Project lifecycle

10. 4. Terminating the project • Confirming all deliverables accepted by customer • Confirming invoices sent to customer and paid (internal projects often transfer priced) • Evaluate performance of the project • Customer feedback • Team feedback Effective Project Management Project lifecycle

11. Establish a baseline plan • Define project objective • Divide the project into major packages • Define the specific activities for each work package • Portray the activities in a network diagram • Sequences • Interdependencies • Make time estimates for each activity • Make cost (resource) estimates for each activity • Calculate a project schedule and budget • Adjust scope, time estimates, or resources if necessary • Baseline plan is critical to success of any project Effective Project Management Importance of Planning

12. Elements of a baseline plan • Start and completion dates for each activity • Amounts of resources for each time period • Budget for each time period and cumulative budget through each period • Monitoring progress through the project • Compare to planned progress • Must know which activities have been started or completed • When the activities began and ended • How much money has been spent or committed • Take corrective action as needed Effective Project Management Importance of Planning

13. Earned Value • Percent complete for each work package • Subjective estimates • Honesty is critical (avoid overconfidence) • Smaller work packages are better • Multiply percent complete against Total Budgeted Cost=EV • Compare with Cumulative Actual Cost to see if value of work performed is keeping up with cost. • Cost performance index (CPI)= CEV/CAC • Earned value divided by actual cost • Use this to estimate forecast cost at completion • Forecast cost to completion = Total budget cost/CPI • Method assumes continuing efficiencies or inefficiencies • Hazard of becoming PM mid-project = false % complete Effective Project Management Importance of Planning

14. Cumulative actual cost (CAV) • Total amount spent at a point in time • Could be low or high due to % completion • Cumulative budget cost (CBC) • Amount budgeted to a given point in time • Assumes work is on schedule • Cumulative earned value (CEV) • Value of work actually performed so far • Adjusts the budget amount for % completion • Cost Variance = CEV – CAC ($ gap between work performed and actual cost) • Assuming budgeted efficiency going forward: • FCAC=CAC + (TBC-CEV) • Actual cost so far plus total budgeted minus earned value • Implies any efficiencies or inefficiencies so far will go away • Contrast with TBC/CPI approach (continues efficiencies or inefficiencies) Effective Project Management Managing the Project

15. Plans, organizes and controls the work to accomplish the project objective • Assures that the customer is satisfied that objectives are achieved • On time • In budget • Right quality • Develops plans or leads others to develop • Reviews with the customer • Sets up a tracking mechanism • Organizes the work • Gets commitments or signs contracts • Assigns accountability • Tracks actual progress against plan Project Manager Responsibilities

16. Ability to handle stress • Conditions change constantly • Conflicts • Technical problems • Customer requests • The PM has to be calm • Help project team handle their stress • Problem-solving • Early identification of problems • Accurate information • Open communication • Analytical skills • Big picture view • Effective time management • Self-disciplined • Organized • Willing to delegate Skills of a Project Manager

17. Changes can be caused by • Customer • Project team • Unexpected events • User of the project results • Change later in a project has greater impact • Create procedures for documenting and authorizing changes • Communication between PM and customer • Communication between PM and project staff • Always put changes in writing • Avoid doing slight enhancements for free • Managing end-user change (procedures) • Often very difficult • Time and patience to overcome resistance to change • Work with end-users during project design Managing change

18. Delegation is assigning responsibility and giving authority to make decisions • Successful delegation requires establishing accountability • PM defines tasks and desired results • Scope • Quality • Budget • Schedule • Expected product • Clearly communicating expectations • Tracking systems • Regular meetings Delegation defined

19. 1= least delegation. 6 = most delegation. 1 Investigate the problem. Give me all the facts, and I’ll decide what to do and who will do it. 2 Investigate the problem. Let me know possible alternatives and recommend one. I’ll decide. 3 Investigate the problem. Let me know what action you prefer to take. Wait for my approval. 4 Investigate the problem. Let me know what action you will take. Do it unless I say no. 5 Investigate and take action. Tell me what you did. 6 Investigate and take action. You decide if you need to tell me. Degrees of Delegation

20. Allocate sufficient resources • Match skills to the task • Empower individuals to decide how to use budgeted resources • Stretch assignments develop people (look at potential) • Do not tell people how to do the job • They will feel PM lacks confidence in them • They will be less committed to the result • Effective management requires showing confidence in people • People will be more creative when they can decide • Avoid criticizing • Fear of failure causes paralysis • Fear will cause people to ask the manager to approve everything • Establish accountability • Clearly define expectations • Project management information system • Reporting system • Measure and evaluate progress relative to plan Delegation Issues

21. Select the right project • Fits the business • Look at alternatives (such as incremental changes) • Find the right people for the project • Select the right contractors when employees lack expertise • Use employees as leaders • Or customer employees as leaders • Use off-the-shelf products where possible • Schedule regular progress meetings • Establish control mechanisms • Keep project within scope • Keep project on schedule and on budget Elements of a Successful Project

22. Make things happen Let things happen Wonder what happened • Set a positive example • Work late if that is required • Project a positive attitude – enjoying the work • Focus on ways to get the job done • Reward milestones • Create an environment of trust, and of high expectations • Recognize successes, avoid discouraging people • Create a vision for others to follow (goals and benefits) • Delegate and hold people accountable Leading a project

23. Timely, honest and direct • Prevents rumors • Builds trust • Share good and bad news quickly • Create an atmosphere that encourages open communication • Accept differing points of view • Allow people to bring issue without fear • Solicit comments and ideas, rather than dominate • High level of communication most important early in project • Builds good working relationships • Establishes clear expectations with the customer Communication

24. People gain knowledge and competency from the project • Technical development • Problem solving • Negotiating and time management • Acknowledge that mistakes happen • No fear of failure • Create stretch assignments • Follow up on formal training • Assignments • Presentations Developing people

25. Unclear goals • PM needs to articulate vision of the goals and expected benefits from the first meeting • The vision needs to be said repeatedly at status review meetings throughout the project • Lack of project structure • Importance of establishing procedures for communication, approvals, documentation • Provided in written form and reinforced • Unclear definition of roles • Ambiguity or overlap of roles • Explanation of how individual roles relate to others’ • Turnover • Small number of people working on long term is more efficient than large number working short term • Highly important concept • Idea is that putting more human resources on a lagging project commonly does not bring speed • Look for people with versatile skills, can contribute to multiple aspects of the project • Specific expertise for short time commonly contracted out • Bad behavior • Hostility, lack of professional comportment, disruptive behavior • Need to follow through with release from project if behavior continues • Lack of commitment • Recognize accomplishments • Explain importance of each project role Barriers to team effectiveness

26. PM sets tone • Does what seems right and fair • Communicates the expectation • Written policy and training on ethics • Types of unethical behavior • Kickbacks on purchased materials • Submitting low bids with intent to raise price later • Dishonest time reporting • False travel expense reports • Plagiarism and taking credit for the work • Bribing inspectors or approving bad test results • Misleading the customer about project status • Taking supplies or equipment for personal use • Need for peer pressure against ‘trying to get away with being caught’ • Unethical behavior erodes trust and entire foundation of integrity Ethical behavior

27. Make weekly lists of goals for the next week • Make to-do lists at the end of each day • Read the daily to-do list first thing in the morning • Control interruptions • Set aside blocks of time for e-mails, returning phone calls • Interruptions cause inefficiency • Learn to say no to avoid over-commitment • Use waiting time • Try to handle paperwork only once • Reward yourself at the end of the week (if) Time management

28. Work scope • Resource assignments • Requests for more resources • Requests for different assignments • Schedule – sequence or duration of tasks • Cost – who pays for overruns? • Priorities • People work on multiple tasks • Limited equipment resources • Organizational issues • Ambiguous or inadequate communication • Lack of timely decision making • Leadership style or procedural issues • Personal differences – such as resentments Sources of Conflicts

29. Conflict can be beneficial • Raises awareness of problems • Can cause clarity, creativity, or problem solving • Avoid withdrawing from conflict or forcing • Compromise solutions often less than best • Confront issues directly • Problem solving approach • Places high value on outcome and relationships • Open exchange of information (no-one tries to win) • Requires willingness to work in good faith and understand other points of view • Honesty required • Manage emotions (try not to become attached to a point of view) Handling conflict

30. Develop problem statement – specific • Identify possible causes of the problem • Gather data and verify likely causes • Distinguish symptoms from causes • Work on correcting causes • Identify possible solutions • Avoid doing the first or most obvious • Try creativity (brainstorming) • Evaluate alternative solutions • Need weighted criteria for a scorecard • Evaluate each viable solution against the criteria • Determine best solution • Scorecard is an input • Use expertise of the team to reach final decision • Revise the project plan • Will the proposed solution cause problems elsewhere? • Incorporate solution into the project plan • Implement the solution • Determine of the problem has been solved Problem solving – nine step approach