Supplier Management In Troubled Projects Christopher L. Dennis Steaming Kettle Consulting December...

Supplier Management In Troubled Projects

Supplier Management In Troubled Projects

Christopher L. DennisSteaming Kettle ConsultingDecember 5, 2008

Christopher L. DennisSteaming Kettle ConsultingDecember 5, 2008

6/13/08 Steaming Kettle Consulting 2

Our ScenarioOur Scenario

• You are summoned to a meeting…

• Grave boss

• You are summoned to a meeting…

• Grave boss

Will you fix it?

Grave situation

You can

• Make accurate diagnoses• Triage efficiently, and• Cultivate good bedside manner

enhance your ability to resuscitate troubled projects

when you


Many Scary Questions

Do we know the real problem?

Can relationships change to accommodate an altered scope?

Are suppliers part of the problem?

Should we even try?

Can the problem project be saved?

Can the problem project be saved?

You can You can

• Localize the source of troublesome symptoms• Deepen understanding of team/supplier relationships, and• Uncover suppliers’ secret power

• Localize the source of troublesome symptoms• Deepen understanding of team/supplier relationships, and• Uncover suppliers’ secret power

increase suppliers’ contributions to project recoverywhen you


Project SuppliersProject Suppliers

In Group

OutGroup

• Project Team

• Material supplier– Raw or Finished

• Corporate– Purchasing– IT

• Service bureau– Design– Marketing


Where Are Vendors Entangled?

Where Are Vendors Entangled?• Work breakdown approach

– Leverage existing project documentation

– Comfortable for experienced PM

• Value stream approach– Leverage existing process

documentation– Comfortable for lean and 6S


Project Pathogens

Project Pathogens

• Inadequate information• External events• Unclear or wrong goals• Unproven technology• Inadequate resources• Failure of

communication• Failure of management


Example Work Breakdown Example Work Breakdown New Bicycle WBS

1.MarketResearch

2. Design 3. Prototype 4. Market 5. Transferto Prod.

CustomerInterviews

Frame Build DesignCampaign

SourceNew Parts

CompetitorSurvey

DriveTrain

MechanicalTest

RecruitNew Retail

ModifyLine

FinancialAnalysis

Finish MarketTest

TeamSponsorship

AlterDistribution


Step 1: ID Troubled Work Step 1: ID Troubled Work New Bicycle WBS

1. MarketResearch

2. Design 3. Prototype 4. Market 5. Transferto Prod.

CustomerInterviews

Frame Build DesignCampaign

SourceNew Parts

CompetitorSurvey

DriveTrain

MechanicalTest

RecruitNew Retail

ModifyLine

FinancialAnalysis

Finish MarketTest

TeamSponsorship

AlterDistribution


Step 2: List Vendors for TW

Step 2: List Vendors for TW

New Bicycle WBS

Prototype

Build

MechanicalTest

• As you list, look for – Repeating names– New relationships– New services/

materials

• As you list, look for – Repeating names– New relationships– New services/

materials

Steel StampingWest WeldingIronworks, Inc.

Sensors ’R UsWild RideWest WeldingData Bucket


Step 3: Map SymptomsStep 3: Map Symptoms

• Common symptoms – Delivering nothing– Delivering

garbage– Delivering late – High costs

• Eliminate asymptomatic

• Common symptoms – Delivering nothing– Delivering

garbage– Delivering late – High costs

• Eliminate asymptomatic

Noth

ing

Garb

ag

e Late

Cost

Steel Stampng

West Welding*

Ironworks, Inc.

Sensors ’R Us

Wild Ride

Data Bucket


Step 4: Localize SymptomsStep 4: Localize Symptoms

• Did project teamset up trouble by…?– Failing to deliver– Delivering garbage– Delivering late – Passing on costs

• Did project teamset up trouble by…?– Failing to deliver– Delivering garbage– Delivering late – Passing on costs

• Dependencies– Evaluate input

quality

• Dependencies– Evaluate input

qualityFixed

UnworkableDesign

NoExcuse

ProjectTeamDelay


Diagnosis ChecklistDiagnosis Checklist

Troubled work packages, prioritized– Critical path

List of vendors– Symptomatic relationships

Localized symptoms– Root cause helpful but not necessary– May never know root cause

• To increase contributions– Must know the now contribution

Troubled work packages, prioritized– Critical path

List of vendors– Symptomatic relationships

Localized symptoms– Root cause helpful but not necessary– May never know root cause

• To increase contributions– Must know the now contribution


Deepen Understanding of Team/Supplier Relationships

Deepen Understanding of Team/Supplier Relationships

• People– Quality of

interaction

• People– Quality of

interaction

• Statement of Work– Is it working?

• Statement of Work– Is it working?


Supplier Relationships

Supplier Relationships

SalesContractingLeadersInformation

ExchangeMaterial ExchangeFeedback/compliancePayment

SalesContractingLeadersInformation

ExchangeMaterial ExchangeFeedback/compliancePayment

In Group

OutGroup


Step 1: Diagram Relationships

Step 1: Diagram Relationships

Role In Group Out Group

Project Team West Welding

Sales Anne M. Rex Semter

Leaders Me Alan Bailey

Design Hand-off

Empty (Quit) Alan Bailey

QA/QC, Handback

Santosh J. ??? (Don’t know)

Accts Pay. Clerk 1 Clerk 2

Be ClearAbout

Vacancies

RecognizeKnowledge

Gaps


Step 2: Quality AssessmentStep 2: Quality Assessment

• Look For– Silence– Fear– Fatigue– Disinterest– Overload– Misunderstandi

ng– Surprise– Your insight…

• Look For– Silence– Fear– Fatigue– Disinterest– Overload– Misunderstandi

ng– Surprise– Your insight…

Role IG OG

Sile

nce

Fear

Fatig

ue

Overlo

ad

Su

rpris

e

Sales AM

RS

Leaders Me AB

Design Hand-off

0 AB

QA/QC, Handback

SJ ???

Accts Pay.

C1 C2• Assessment worksheet

– http://steaming-kettle.com/…

• Assessment worksheet– http://steaming-kettle.com/…


Step 3: Collaborate on Adjustments

Step 3: Collaborate on Adjustments

• Consider– Goal alignment– Role clarification– Strategic awareness– Personnel swaps – Their ideas

• Remember, their engagement and action is a contribution

• Consider– Goal alignment– Role clarification– Strategic awareness– Personnel swaps – Their ideas

• Remember, their engagement and action is a contribution


Revisiting SOWListen FirstRevisiting SOWListen First• Problems you might not

know about• Fresh solution ideas• People are more likely to

implement ideas they own


Revisiting SOWChoosing Words

Revisiting SOWChoosing Words• Get rid of “win-win”

– You’re asking for more– Supplier indicates a

win for them

• Use questions to generate possibilities– New possibilities are a

significant contribution

• Get rid of “win-win”– You’re asking for more– Supplier indicates a

win for them

• Use questions to generate possibilities– New possibilities are a

significant contribution


What false or outdated assumptions are we operating under?

What false or outdated assumptions are we operating under?


Help make the impossible possibleHelp make the impossible possible

What in the SOW is preventing us from implementing a brilliant idea?

What in the SOW is preventing us from implementing a brilliant idea?

Help remove the frustrating obstacles that prevent creative ideas from being implemented.

Help remove the frustrating obstacles that prevent creative ideas from being implemented.


How is the SOW inhibiting delivery?

How is the SOW inhibiting delivery?


Be Wary: Truth May HideBe Wary: Truth May Hide

• Vendor Relationships 7• Vendor Relationships 7


Getting OutGetting Out

• Avoid rash action• Avoid rash action

• Before divorce– Consult your consul– Calculate the total

costs• Including your consul

– Reassess risk

• Before divorce– Consult your consul– Calculate the total

costs• Including your consul

– Reassess risk


What contribution is needed?

• Fulfill vendor promise– Review scope

of work

To increase suppliers’ contributions to project recovery…

• Do something spectacular– Unveil vendors’ secret power


Contribution’s Benefit Contribution’s Benefit

• Why should a vendor increase their contribution?– They can sell it to the next customer

• Ensure vendors a real benefit– Whole-hearted endorsement– Ownership stake

• Why should a vendor increase their contribution?– They can sell it to the next customer

• Ensure vendors a real benefit– Whole-hearted endorsement– Ownership stake


The Power of “Wow!”The Power of “Wow!”

• Use end-of-project viewpoint– What will your organization say after the

contribution?– What would the vendor put on their web

site after the contribution?

• Use “Wow!” to open up possibilities– Fear constrains thinking– Break everyone’s mind set

• Use end-of-project viewpoint– What will your organization say after the

contribution?– What would the vendor put on their web

site after the contribution?

• Use “Wow!” to open up possibilities– Fear constrains thinking– Break everyone’s mind set


Wow! We made up four weeks using their embedded systems programmer!


Wow! When our GIS provider folded, they took up the slack in less than two weeks!

Wow! When our GIS provider folded, they took up the slack in less than two weeks!


Wow! A great

power supply design! On

time and 20% savings!


Engage Your Team in Wow!

Engage Your Team in Wow!

“What incredible invention would make this job much easier and the project more productive?”

“What incredible invention would make this job much easier and the project more productive?”


Your Mission: Three Wow! Statements

Your Mission: Three Wow! Statements

• Look back after recovery– Hear your sponsor’s voice– Imagine a vendor’s marketing flyer

• Think big, smile, laugh at your outrageousness– 3 minutes

• Look back after recovery– Hear your sponsor’s voice– Imagine a vendor’s marketing flyer

• Think big, smile, laugh at your outrageousness– 3 minutes


Getting the Message OutGetting the Message Out

• You don’t know who has the secret power– Every vendor– Vendor’s vendors– Vendor’s consultants

• You don’t know who has the secret power– Every vendor– Vendor’s vendors– Vendor’s consultants

• Personal, personal, personal– Secret powers

revealed by trust– Engage the team

• Personal, personal, personal– Secret powers

revealed by trust– Engage the team


Starting the “Secret Power” Conversation

Starting the “Secret Power” Conversation

“What do you dothat we don’t know about?”

Why do

you ask?

We searching for

a partner to…


Guam Networking Example

• Objective: debug network for new billing system(33% packet loss, billing system >$1M)

• Trouble: IT staff unable to make go-live deadline• Solution:

– Champion overtime– Marshal local forces and equipment– Institute rigorous testing and replacement program

• Outcome: network available (<0.1% packet loss) on time

• Cost: ~15% of total budget


Converting Revelation to Contribution

Converting Revelation to Contribution

• Vendor Solutions 6• Vendor Solutions 6


Summary, Conclusions, Q & A1


Credits

Credits

• Chest, http://www.acorncv.com/about_acorn/images/middle_panel_booth_color_low.jpg• Bearded Boss, http://images.picturequest.com/common/detail/82/82/22158282.jpg• Surgeon, http://www.brainybetty.com/medical4.htm• Panic attacks, http://www.faascotland.co.uk/images/Panic%20Attacks.jpg• John Deere, http://kookoosnest.smugmug.com/gallery/815387/1/36416213/Medium• Interferogram, http://www.physics.lsa.umich.edu/demolab/graphics/6d40_10b.jpg• Bunny suit, http://daringfireball.net/misc/2006/01/intel-chip.jpg• Optimum plot, http://www.netmba.com/images/operations/project/time-cost/timecost.gif• Red albatross, http://www.idiotsincracy.com/albatross.jpg• Herd of doctors, http://jonkeegan.com/images/surgeons.jpg• Huge albatross, http://simonc.f2o.org/south/images/albatross.jpg• Alarm magaphone, http://www.missioncreep.com/gillette/images/alarm.jpg • Hatless and hatted, http://www.villagehatshop.com/media/mens-hats-header.jpg • Political rally, http://www.wheresthepaper.org/photo/DSC_0035.JPG • Dr. Bag, http://www.brainybetty.com/medical4.htm• X-ray Doc, http://www.brainybetty.com/medical4.htm• Time bomb, http://mednews.stanford.edu/stanmed/2005winter/story_images/cover.jpg• Rock n roll fake blood, http://skazat.com/justin/images/journal/6_13_04/theshowistherainbow.jpg• Clothes cut, http://www.spencer.it/Posteraid/File%20Match3/foto3.gif• Palm sunset, http://www.ovchamber.com/archives/Palm%20Tree%20Sunset.jpg• Amputee, http://www.abc.net.au/science/news/img/health/amputee200605.jpg• Soyuz rocket, http://sci.esa.int/science-e-media/img/b2/screen11954.jpg• Clipboard doctor, http://www.ibtstw.org/occupations/photos/doctor.jpg• Ground control, http://esamultimedia.esa.int/images/venusexpress/vex_fct_mcr_xxl.jpg• Diagonal albatross, http://www.vision.net.au/~jennings/NewGallery/images/Albatross • Bloody spike, http://onedropofblood.com/images/odobsc6.jpg • Forearm x-ray, http://home.pcisys.net/~xrayservice/HTML/IMAGES/armhand.jpg• Bandaids, http://www.benetton.com/coloexb/web/hires/foto50.jpg • Camouflage, http://www.kilmenyniland.com/painting/camouflage.jpg• Pirate buttons,

http://eur.news1.yimg.com/eur.yimg.com/xp/afpji/20060509/060509005610.1nji6e440_skull-and-crossbones-above-a-keyboardb.jpg

• Chest, http://www.acorncv.com/about_acorn/images/middle_panel_booth_color_low.jpg• Bearded Boss, http://images.picturequest.com/common/detail/82/82/22158282.jpg• Surgeon, http://www.brainybetty.com/medical4.htm• Panic attacks, http://www.faascotland.co.uk/images/Panic%20Attacks.jpg• John Deere, http://kookoosnest.smugmug.com/gallery/815387/1/36416213/Medium• Interferogram, http://www.physics.lsa.umich.edu/demolab/graphics/6d40_10b.jpg• Bunny suit, http://daringfireball.net/misc/2006/01/intel-chip.jpg• Optimum plot, http://www.netmba.com/images/operations/project/time-cost/timecost.gif• Red albatross, http://www.idiotsincracy.com/albatross.jpg• Herd of doctors, http://jonkeegan.com/images/surgeons.jpg• Huge albatross, http://simonc.f2o.org/south/images/albatross.jpg• Alarm magaphone, http://www.missioncreep.com/gillette/images/alarm.jpg • Hatless and hatted, http://www.villagehatshop.com/media/mens-hats-header.jpg • Political rally, http://www.wheresthepaper.org/photo/DSC_0035.JPG • Dr. Bag, http://www.brainybetty.com/medical4.htm• X-ray Doc, http://www.brainybetty.com/medical4.htm• Time bomb, http://mednews.stanford.edu/stanmed/2005winter/story_images/cover.jpg• Rock n roll fake blood, http://skazat.com/justin/images/journal/6_13_04/theshowistherainbow.jpg• Clothes cut, http://www.spencer.it/Posteraid/File%20Match3/foto3.gif• Palm sunset, http://www.ovchamber.com/archives/Palm%20Tree%20Sunset.jpg• Amputee, http://www.abc.net.au/science/news/img/health/amputee200605.jpg• Soyuz rocket, http://sci.esa.int/science-e-media/img/b2/screen11954.jpg• Clipboard doctor, http://www.ibtstw.org/occupations/photos/doctor.jpg• Ground control, http://esamultimedia.esa.int/images/venusexpress/vex_fct_mcr_xxl.jpg• Diagonal albatross, http://www.vision.net.au/~jennings/NewGallery/images/Albatross • Bloody spike, http://onedropofblood.com/images/odobsc6.jpg • Forearm x-ray, http://home.pcisys.net/~xrayservice/HTML/IMAGES/armhand.jpg• Bandaids, http://www.benetton.com/coloexb/web/hires/foto50.jpg • Camouflage, http://www.kilmenyniland.com/painting/camouflage.jpg• Pirate buttons,

http://eur.news1.yimg.com/eur.yimg.com/xp/afpji/20060509/060509005610.1nji6e440_skull-and-crossbones-above-a-keyboardb.jpg

Credits

Credits

• Wrestlers, http://www.normaquintana.com/circus/line-up.jpg • Table whisperers, http://www.carltonartgallery.com/images/Warren%20Dennis%20Gallery/Table

%20Talk.jpg • Okay x-ray, http://www.abc.net.au/science/news/img/health/hand7704.jpg • Devil ear, http://img280.echo.cx/img280/4048/lies3pf.jpg • Gurney, http://www.biosite.com/images/gurney.jpg• Red teapot, http://www.tbray.org/ongoing/When/200x/2006/03/30/-big/IMG_4613.jpg • Coop in the hall, http://profiles.nlm.nih.gov/QQ/B/B/S/Z/_/qqbbsz.jpg • Secret girls, http://www.alicavanaugh.com/images/f11b.jpg • Kill yourself, http://www.churchofeuthanasia.org/graphics/new/edaystp.jpg • Gurney, http://www.biosite.com/images/gurney.jpg• Guam map, http://aaa.via.infonow.net/locator/images/region_AS.gif• Nursing book, http://images.amazon.com/images/P/0323044077.01.LZZZZZZZ.jpg• E-learning, http://www.poly.asu.edu/elearning/images/eLearning.jpg• Triage, http://www.regionvhazmat.org/images/triage.jpg• EMT Book, http://images.amazon.com/images/G/covers/0/80/167/812/0801678129.l.gif• Nesting albatross, http://www.designinnature.com/IMAGES/albatross-rookerycliffs-sig.jpg• Bleeding bear, http://moblog.co.uk/blogs/21/moblog_faa38b31b520a.jpg• Military surgery, http://www.uthscsa.edu/opa/issues/milsurgery300x194.jpg• Syringes, http://www.starglass.com/images/Blunted%20Syringes.JPG• Surgical team, http://citymama.typepad.com/photos/uncategorized/surgeons_looking_at_patient.jpg• One hundred, http://www.piperreport.com/archives/Images/Cost%20of%20Drugs%20on%20Fifty

%20Dollar%20Bill.jpg• Medalists, http://igorcassina.it/05_photogallery/09/images_01/14.jpg• Coffee break, http://www.eirikso.com/images/coffee/DSC03172.jpg• Swimming albatross, http://www.rosssea.info/pix/big/buller-albatross-wing.jpg• Finger bandaid, http://www.vancourier.com/gallery/gallery1/Band-aid%20finger.jpg• Evolution, http://lifewithalacrity.blogs.com/photos/uncategorized/evolution.jpg• Conductor, http://www.portlandsymphony.com/photolibrary/2/RAM_Conducting

%202%20smiling_6b1e4e8a.JPG• Shamrocks, http://imagesource.allposters.com/images/pic/IMCcard/KD6056~Clover-Field-Posters.jpg• Warning signs, http://www.lkgeorge.org/AJD-Productions/AJD_solutions/warning_signs/warning-signs.jpg

• Wrestlers, http://www.normaquintana.com/circus/line-up.jpg • Table whisperers, http://www.carltonartgallery.com/images/Warren%20Dennis%20Gallery/Table

%20Talk.jpg • Okay x-ray, http://www.abc.net.au/science/news/img/health/hand7704.jpg • Devil ear, http://img280.echo.cx/img280/4048/lies3pf.jpg • Gurney, http://www.biosite.com/images/gurney.jpg• Red teapot, http://www.tbray.org/ongoing/When/200x/2006/03/30/-big/IMG_4613.jpg • Coop in the hall, http://profiles.nlm.nih.gov/QQ/B/B/S/Z/_/qqbbsz.jpg • Secret girls, http://www.alicavanaugh.com/images/f11b.jpg • Kill yourself, http://www.churchofeuthanasia.org/graphics/new/edaystp.jpg • Gurney, http://www.biosite.com/images/gurney.jpg• Guam map, http://aaa.via.infonow.net/locator/images/region_AS.gif• Nursing book, http://images.amazon.com/images/P/0323044077.01.LZZZZZZZ.jpg• E-learning, http://www.poly.asu.edu/elearning/images/eLearning.jpg• Triage, http://www.regionvhazmat.org/images/triage.jpg• EMT Book, http://images.amazon.com/images/G/covers/0/80/167/812/0801678129.l.gif• Nesting albatross, http://www.designinnature.com/IMAGES/albatross-rookerycliffs-sig.jpg• Bleeding bear, http://moblog.co.uk/blogs/21/moblog_faa38b31b520a.jpg• Military surgery, http://www.uthscsa.edu/opa/issues/milsurgery300x194.jpg• Syringes, http://www.starglass.com/images/Blunted%20Syringes.JPG• Surgical team, http://citymama.typepad.com/photos/uncategorized/surgeons_looking_at_patient.jpg• One hundred, http://www.piperreport.com/archives/Images/Cost%20of%20Drugs%20on%20Fifty

%20Dollar%20Bill.jpg• Medalists, http://igorcassina.it/05_photogallery/09/images_01/14.jpg• Coffee break, http://www.eirikso.com/images/coffee/DSC03172.jpg• Swimming albatross, http://www.rosssea.info/pix/big/buller-albatross-wing.jpg• Finger bandaid, http://www.vancourier.com/gallery/gallery1/Band-aid%20finger.jpg• Evolution, http://lifewithalacrity.blogs.com/photos/uncategorized/evolution.jpg• Conductor, http://www.portlandsymphony.com/photolibrary/2/RAM_Conducting

%202%20smiling_6b1e4e8a.JPG• Shamrocks, http://imagesource.allposters.com/images/pic/IMCcard/KD6056~Clover-Field-Posters.jpg• Warning signs, http://www.lkgeorge.org/AJD-Productions/AJD_solutions/warning_signs/warning-signs.jpg

Email:chris@steaming-

kettle.com

Steaming Kettle Consulting

Phone:503-803-7627

Supplier Management In Troubled Projects Christopher L. Dennis Steaming Kettle Consulting December...

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