CAI Project Management Excellence Series
1. To establish the importance of building trust through capability and visibility.
2. To establish the potential value of a project control room that monitors project conditions.
3. To identify the types of metrics that should be monitored by a project control room.
4. To show how CAI has responded to this challenge (and benefited from it).
5. To suggest a familiar framework to describe the measures that matter.
Objective of Session
Part One
Building Trust
What Is Trust?
“Opportunities will go to those I trust. My ability to trust you is based on two things,
1. My Belief That You Know What You Are Doing, and2. My Ability to Know You Are Doing It”
Trust, but VerifySuzanne Massie, a writer on Russia, met with President Ronald Reagan many times between 1984 and 1987. She taught him the Russian proverb, "doveryai no proveryai" (trust, but verify) advising him that "The Russians like to talk in proverbs.
Why Do We Trust Industrial Operations?• Critical Process Factors Identified –
They Know What to Monitor to Ensure Results Produced Safely (Pressures, Temperatures)
• Systematic Monitoring – They have multi-level process monitoring systems to track the factors that drive results.
• Integrated Control Room – Critical performance indicators and related data on entire process visible to those responsible.
• Trained, Experienced Personnel – Interpret control room information address causes of trending-out-of-control conditions before they develop into more serious issues.
And Not Trust Project Managers?
Source: http://versionone.com/assets/img/files/ChaosManifesto2013.pdf
• Studies “Reveal” that IT Executives Don’t Trust the Service Providers They Rely On
• It’s About Improving “Challenged“ Project Success Rates
Source: http://versionone.com/assets/img/files/ChaosManifesto2013.pdf
Little Improvement in Decade
Part Two
The OpportunityThere’s ROI in Control Room Capability Trust Building
We Need a Control Room Capability Like This…
– Comprehensive, Up-to-date Operating Results and Critical Conditions Data
– Key Performance Indicators Displayed in Action Compelling Dashboard
– Charts for Detecting Time Series Trends– Drilldown Into Source Data for
Verification and Understanding Root Causes
To Go After the Improvement Potential in This…
http://www.mckinsey.com/insights/high_tech_telecoms_internet/the_perils_of_ignoring_software_development February 2015
– Today: Number of top 100 product and service companies - that are now dependent on software – has DOUBLED (to nearly 40%) in the past 20 years.
– Tomorrow: Revenues from digitized products and channels are expected to exceed 40% in industries such as insurance, retailing and logistics.
Because We Need to Do THIS
• Digital Projects Transformation
http://www.mckinsey.com/insights/high_tech_telecoms_internet/the_perils_of_ignoring_software_development February 2015
It Will Take Control Room Capability and Credibility
–For the Opportunity to Take on Larger, More Complex Projects With Less Risk• Monitoring Critical Conditions• Responsible Team in Loop
– As An Organization– As An Individual Project Manager
Part Three
So…What SHOULD the Control Room Monitor?
Customers Expect PMs to Predict the Future
• At Least IT Executives Agree, It’s Difficult to “Master” Predictability
Source: http://versionone.com/assets/img/files/ChaosManifesto2013.pdf
But, We Measure the Past
Two Types of Measures
• We Have Lagging Indicators– Backward Looking– Track Progress
• We Need Leading Indicators– Forward Looking– Enable Management
Traditional Lagging Measures
• Volume• Quality• Cost
Leading Indicators: The Early Warning Signs
Experts Agree on What We Should Measure
What ARE the Early Warning Signs?
• Kappelman Research– Derived List of
• Six People Factors• Six Process Factors
Early Warning Signs: The Dominant Dozen
People-Related Process RelatedTop Management Support Documented RequirementsProject Manager Capability Change Control ProcessStakeholder Involvement Schedule Planning/MgmtProject Team Commitment Communication EffectivenessTeam Member Skills Resource AssignmentSME Availability Business Case
The Dominant Dozen
http://ism-journal.com/ITToday/projectfailure.pdf
Part Four
Getting Started: Monitoring the Core Conditions
Three Important CONDITIONS to Monitor• Expectations Management • Sponsor Involvement • Process Compliance
To Minimize One Project Risk Factor• Project Rework Probability
What Metrics Should We Monitor?Every Project’s Core Conditions
According to the Carnegie Mellon Software Engineering Institute, “Data indicate that 60-80% of the cost of software development is in rework.” Source: Paul D. Nielsen, “About Us: From Director and CEO Paul D. Nielsen,” Carnegie Mellon Software Engineering Institute, http://www.sei.cmu.edu/about/message/
What Metrics Should We Monitor?The Four Missing Metrics
• SMART – Are expectations clear?
• SMPL – How engaged is sponsor?
• PAL - Are processes beingfollowed?
• PRPL – Are causes of Rework being avoided?
(𝑆𝑀𝐴𝑅𝑇 ∗𝑆𝑀𝑃𝐿∗𝑃𝐴𝐿 )=𝑃𝑅𝑃𝐿
Part Five
How Do We Collect This Data?
Traditional Feedback Sources
• Lagging Indicators- Project Management Tools- Accounting Tools- Timekeeping Tools
• Leading Indicators- MBWA- Team Meetings- Formal Assessments
1. Know What You Want to Collect
• Risk Management Status
• Key Performance Indicators
• Expectations Management
• Sponsor Involvement• Process Adherence
2. Collect As Formally As Possible
• Why?• Minimize Appearance of Bias• Emphasize Importance of
Conditions Monitoring • Create Permanent Record
• How?• Standard Set of Weekly
Assessment Questions• Standard Presentation of Metrics
3. Present Metrics Clearly
• Simple Charts• Few, [Proven] Key Performance
Indicators• Control Limits Clear
Office Products Control Room
• eMail Assessment• Instructions• Spreadsheet
• Spreadsheet Consolidation
• Charts and Graphs• Status Report
Extensive Excel Widget Collections
Part Six
What CAI Has Done?
We Faced a Turning Point
• Grew Past Point of “Intimate Involvement”
• Major Project Failure • Never Surprised Again
• APO Provides Managers What They Need– Comprehensive Project
Results and Conditions Data– Key Performance Indicators
Dashboard– Time Series Data for Detecting
Trends– Drilldown Into Source Data for
Details
CAI Wanted a Tool With Control Room Capabilities
Decided to Develop Comprehensive Project Management Tool
• Comprehensive Project Data Collection– Operational Data – Human Feedback
Data
• Key Performance Indicators Dashboard– Comprehension– Commitment– Communications– Capability– Availability
Compelling Presentation to Manager…and Stakeholders
• Trend Data– See Week-to-Week
Trends in Forward-looking Performance Indicators
Trend-Driven Conditions Monitoring
• Drill Down Into Source Data for Full Story– By Project– By Role– By Condition– By Response
Dashboard Highlights Issues
Drilldown to Detailed Feedback
Detailed Data to Understand Conditions
CAI’s Results
• Dramatic Improvement in Stakeholder Communications
- CEO Is Thrilled to Be in Loop
- Higher Satisfaction Across the Board
CAI’s Results
© 2015 Computer Aid, Inc.
• More Efficient Collaboration- Issues Are Obvious- Root Causes Are, Too- Trend-based View, Not Recent
Impression
CAI’s Results
• Genuinely Troubled Projects Easy to Identify
- Unique Conditions Stand Out from Rest of Portfolio
- Conditions Not Improving Despite Actions• Finally, Really Managing vs.
Accounting and Guessing- Focused on Understanding Conditions
that Drive Results
Part Seven
How Can YOU Communicate the Need for a Control Room for Your Organization?
Show Them One They Already Know
Automotive Gauge
Odometer
Clock
Fuel Level
Speedometer
Tachometer
Oil Pressure
Oil Temperature
Water Pressure
Water Temperature
Voltmeter
A Gauge for Every Condition
Automotive Engineers Long Ago Defined the Critical Measures for Safe, Effective Engine Operation.
The Basic Engine Measures
Automotive Gauge Asks the Question To MeasureOdometer How far? Deliverables Delivered
Clock How long? Duration
Fuel Level How much further? Input Units Available
Speedometer How fast? Deliverables per Unit of Time
Tachometer How intensely? Effort Intensity
Oil Pressure Do we have enough lubrication to smooth interactions?
Supply of Lubricant to Smooth Interaction Between Components
Oil Temperature How smooth are interactions? Ability of Lubricant to smooth Interaction Between Components
Water Pressure Do we have enough coolant to keep the engine producing?
Supply of Coolant to dissipate excess engine heat
Water Temperature How effective is the coolant in keeping the engine cool?
Ability of Coolant to dissipate engine heat
Voltmeter Is enough energy being applied to the other important systems?
Ability to Support other Control and Comfort Systems
To establish the importance of building trust through capability and visibility.
To establish the potential value of a project control room that monitors project conditions.
To identify the types of metrics that should be monitored by project control room.
To show how CAI has responded to this challenge (and benefited from it).
To suggest a familiar framework to describe the measures that matter.
Did We Accomplish Our Objectives?
One More Trusted Control Room
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