管理项目交付 Managing Project Delivery-Chapter 4.pdf

Set-upplandeliveryInthecontextofprojectdelivery,theprojectset-upplanisthewayweadministertheproject.Itisbasedontheapprovedprojectbusinesscasewhichexplainswhattheprojectneedstodelivertomeetthebusinessneeds.Therobustdeliveryoftheset-upplanreliesontheProjectManagerandProjectTeamworkingtogethertoensurethattheprojectisdeliveredinavalue-addway.Thetwoconceptswhicharefundamentaltoset-upplandeliveryare:PeoplemanagementthecontinuedengagementoftheProjectTeamandmanagementatamacroandmicrolevel.Valuemanagementtheeffectivemanagementofvaluesothattheprojectdeliversaleansolutionforthebusiness.Inordertomanagetheseconcepts,theProjectManagerneedstomanagespecificstakeholderseffectively(teammembersandcustomers)anduseLeanSixSigmatoolstosupportthatmanagement.Whatisaprojectset-upplan?AsdefinedindetailinRealProjectPlanning(Melton,2008),aprojectset-upplanisthatpartofaProjectDeliveryPlan(PDP)thatistheformalarticulationofHOWtheprojectwillbeadministered.Thegoalistoassurethebusinessofthecertaintyofoutcomewithrespecttotheoriginalbusinesscase.Itcoversthefollowingfourplanninganddeliverythemes:Projectorganization.Projecttype.Projectscope.Projectfundingstrategy.Howtomanagedeliveryofaprojectset-upplanTotrackthedeliveryoftheprojectset-upplan,aProjectManagermustbehavebothasaLeanSixSigmaconsultantandasapeoplemanagerinordertoactivelymanagetheset-upstrategy(Figure4-1).TheProjectManagerhastoconsiderhowbesttomanagetheagreedset-upstrategyforthatproject,consideringallhardandsoftaspects.Althoughthekeyrelationshipindeliveringtheset-upplaniswiththeProjectTeam,theProjectManageralsoneedstoconsiderthewiderstakeholdergroup,particularlythecustomerandend-userswhocansupportvaluemanagementinparticular.85111_H8515_Ch04.indd851_H8515_Ch04.indd85111/25/20087:10:46PM1/25/20087:10:46PM ManagingProjectDeliveryTheProjectManagerasapeoplemanagerThepeoplemanagementskillsrequiredofaProjectManagerareoftenunderrated.However,withoutthemthemanagementoftheProjectTeamandthecustomerorend-usergroupisimpossible.ManagingtheProjectTeamTheProjectManagerneedstobehaveasthelinemanagerforthepeopleinhisteameventhoughthisisatemporarysituation,anditislikelythateachteammemberhasahomebaseintheorganizationwithanassociatedfull-timelinemanager.Theroleoftemporarylinemanagermeans:Gettingtoknoweachteammemberunderstandingtheirstrengthsandweaknessesandtheirroleinthesuccessoftheproject.Findingopportunitiestofurtherdevelopeachteammember.Buildingamotivatedgroupofindividuals(ateam)sothattheircombinedeffortisgreaterthanthesumoftheparts(individualteammembers).Managingthecustomerorend-usergroupTheProjectManagerneedstobehaveasachampionofchangeforthepeopleinthecustomerorend-usergroup.Afterallitisthesepeoplewhoseworkingliveswillbechangedasaresultoftheproject.Theroleofachampionmeans:Gettingtoknowkeyteammembersinthecustomergroupfindingthosewhocanbecomechangeagentsbygettingtheremainderofthecustomergroupmotivatedbythechanges.Findingopportunitiestoengageandinvolvethesekeyteammembers.Energizingacustomerteamsothattheyarewelcomingofthechangeandactivelysupportit.TheProjectManagerasaleanmanagerThereisonlyonequestionaleanmanagerwillaskastheprojectprogressesdoesthisaddvalue?Thisquestionmaybelinkedtothescope(tangiblevaluedeliveredastheoutputfromtheproject)ortheprojectprocess(intangiblevaluegeneratedasapartofprojectdelivery).AsstatedinRealProjectPlanning(Melton,2008)valueisafeature,condition,serviceorproductthatthecustomerconsidersdesirable,andwhichisdeliveredtothemwhenandwheretheywantit(Adamsetal.,2004).Inotherwords,inaprojectcontext,valueisafunctionofscopeandprojectprocess.LeanprojectscopeProjectscopeisonlyofvalueifitisrequiredtoenablethedefinedandagreedbusinessbenefits.ThereforetheroleoftheProjectManagerinmanagingvalueinthiscontextisclearifscopeisntlinkedtobenefits,thenitshouldberemoved.LeanprojectprocessProjectprocessisonlyofvalueifitmovesthedeliveryoftangibleprojectvalue(scope)forward.ThereforetheroleoftheProjectManagerbecomesthatofwastemanager(Figure4-2),identifyingandeliminatinganywastefromtheprojectdeliveryprocess.Aleanprojectisonewhereeachstage,86111_H8515_Ch04.indd861_H8515_Ch04.indd86111/25/20087:10:46PM1/25/20087:10:46PM Set-upplandeliveryTheprojectbusinesscaseSet-upstrategymanagementEngagedProjectdeliversProjectTeamvalueFigure4-1Set-upstrategymanagementDoinganyprojectactivitywhichdoesntmovetheprojectforwardsreportsordeliverableswhicharenotneededAnyerrorduringprojectdeliverywrongdecision,incorrectinformation,Waitingfordecisionsanythingnotrightfirstorinformation(internalortimeOverexternal)productionDefectsWaitingWasteTheexcessivemovementTheinappropriatelocationMotionTransportoftheProjectTeamoroftheProjectTeamwhilstdeliveringtheprojectinappropriatewaystodealhavingtochasepeopleforwiththisProjectTeamactionsorexcessivetransportratherthanmeetingsco-locationorvirtualworkingOverInventoryprocessingDoinganyactivitytoaProjectresourcesqueueingpointwhereitstopsforuseimmediatelypriormovingtheprojecttoabottleneckprojectforwardschangewhichdeliverables,fundsordoesntaddvaluepeopleFigure4-2Theseventypesofwasteasappliedtotheprojectdeliveryprocess87111_H8515_Ch04.indd871_H8515_Ch04.indd87111/25/20087:10:47PM1/25/20087:10:47PM ManagingProjectDeliveryactivityordecisioninthedeliveryprocesscontributestothetangibledeliveryofvalueandthereforetheenablingoftherequiredbusinessbenefits.Leanthinkingstartswiththecustomerandthedefinitionofvalue.Therefore,asaprojectisavehicletodelivervaluetoacustomer,theprinciplesofleanthinkingshouldbeapplicabletoprojectdeliveryandspecificprojectmanagementprocesseswithinthat.Aprojectwhichisnotlean:Isnotnecessary.Iscompletedlate,overbudgetorinnon-compliancetoscopeobjectives.Isnotabletorealizethebusinessbenefitsforwhichitwasauthorized.Wastecanberemovedfrommanystepsintheprojectdeliveryprocess,fromhowstakeholdersaremanagedtohowthefinaltangibleprojectdeliverableisdeveloped.However,tobetrulylean,alltheseelementsneedtobelinkedwithinarobustbusinessprocesstoensuretheflowofvalueasdeliveryprogresses.TheleanProjectManagerusesLeanSixSigmatools,techniquesandprocessestodelivervalue(Adamsetal.,2004).88111_H8515_Ch04.indd881_H8515_Ch04.indd88111/25/20087:10:48PM1/25/20087:10:48PM Set-upplandeliveryProjectorganizationDuringtheprojectplanningstage,considerableeffortwillhavebeenusedtoselectanddeveloptheProjectTeamsothattheycanworkeffectivelyduringprojectdelivery.Thereforethegoalduringprojectdeliveryistoappropriatelymanagetheteamsothattheycontinuetoperformandsupportprojectsuccess.Thefocusisonmanagingpeopleandtoanextentusingtheprojectasanopportunitytodeveloppeople.TeamperformancemanagementTherearethreeareasofteamperformancewhichneedtobeeffectivelymanagedduringprojectdelivery:Activitymanagementensuringthattheteamdothethingstheyneedtodotodelivertheproject.Capabilitymanagementensuringthattheteameitherhaveordeveloptheskillstodelivertheproject.Relationshipmanagementensuringthattherelationshipswithinandexternaltotheteamaresupportiveandalignedtoachievingtheprojectgoals.AllthreerequireanelementofteamadministrationsupportaswellasactivemanagementbytheProjectManager.Forexample,inorderto:Delivercompletedprojectactivitiestheteamneedtrackingtools,accesstoprojectdocumentation,regularprogressupdates,andaplacetowork.Developenhancedskillstheteamneedtrainingandtrainingresources.Maintaingoodworkingrelationshipstheteamneedregularinteractionandcontact,throughprojectteammeetingsandinformalget-togethers.However,allarereliantonbuildingacustomizedteam(theidealstate)ratherthanbeinggivenateam,ateamstructureand/orspecificteammembers(usuallylessthanideal).ActivitymanagementAperformingteamwillcarryouttheprojectactivitiesinlinewiththeplansothatthescopequantity,qualityandfunctionalityaredeliveredtoenabletherequiredbusinessbenefits.Akeypartofassessingtheperformanceoftheteamisintrackingwhethereachteammemberisdeliveringtheirpartoftheoverallscope.TheRACIChart(Melton,2007,2008)shouldbeusedasabaselinetocheckwhetheralltheactivitiesarebeingcompletedbytheappropriateteammembers,forexample:R
responsibleCheckthattheteammemberallocatedtothisactivityhasactuallycompletedthetask.Theywillhavebeenallocatedthetaskduetotheirparticularskillset.Thereisusuallyonlyonepersontakingfullresponsibilityforthecompletionofanactivityordeliverable.Whereaperson,suchasateamleader,istakingresponsibilityforasetofactivitiesordeliverables,therewouldusuallybeamoredetailedRACIchartforthiswhichismanagedbytheteamleader.89111_H8515_Ch04.indd891_H8515_Ch04.indd89111/25/20087:10:48PM1/25/20087:10:48PM ManagingProjectDeliveryA
accountableCheckthatthepersoninoverallchargeoftheactivityishappywiththeoutcome.Dependingonthetypeofactivity,thislevelofaccountabilitymaybeseenastheapprovaloftheactivityoutcomesuchasaninterimdeliverable.Onlyonepersoncanbeheldaccountableforanactivity.C
consultedCheckthatteamconsultationandinvolvementisprogressingappropriately.Peopleareconsultedforanumberofreasons:Participationduringtheprogressoftheactivitybyateammemberwithaspecificcapability.Technicalreviewbyateammemberwithaspecificcapability.Reviewbyastakeholderwhoneedstobeengagedintheactivityasapartofownershipoftheoutcomeordeliverable.Mostactivitiesneedsomeformofsupportforcompletion,andtheProjectManagershouldensurethatthespecifiedandrequiredsupportisavailable.I
informedCheckthatteamcommunicationofthecompletedactivityiseffectiveandaccurate.Thetotalnumberofpeoplewhoneedtobekeptinformedoftheprogressorcompletionofanactivitywilldependonhowtheinformationwouldbeusedtoprogressotherprojectactivities(orasapartoftheStakeholderEngagementTrackerorCommunicationsTracker).AnexampleofacompletedRACIChartisshowninTable4-1.Thisistakenfromasmallofficereorganizationprojectwhereoneteammemberwasaskedtomanagetheprojectfortheteammanager(sponsor).Table4-1ExampleRACIChartProjectManagementToolkit–RACIChartProject:OfficereorganizationDate:Week1Names→SponsorProjectTeamTeamTeamActivity↓ManagermemberAmemberBmemberCDevelopnewofficelayoutAIRCICICIDevelopacostestimateIAR


CostestimateapprovedARCI


ManageexternalsuppliersAIRC

ManageofficechangesAIRCIIITheRACIChartcanbeconvertedintoatrackingtoolforusebytheProjectManagerandProjectTeam(page95).Itisalsousedasthebasisforactivityprogressmeasurement,suchastheprojectschedule(GanttChartormilestonechart).Itisimportantthatactivity-trackingtoolsareovertandavailabletotheteam:90111_H8515_Ch04.indd901_H8515_Ch04.indd90111/25/20087:10:49PM1/25/20087:10:49PM Set-upplandeliveryTheteamshouldbemotivatedbythesumoftheirindividualachievements.Anyareaoflowperformanceisobvioustoallthususinganelementofpeerpressureandsupporttohighlightandmitigatepoorperformance.ForanyProjectManager,thetwoareasofperformancebeingmanagedviaareviewofactivitycompletionare:Activity-completioneffectivenesstherightthingsbeingdonebytherightperson.Activity-completionefficiencytherightthingsbeingdoneintherightwayattherighttime.CapabilitymanagementAteamispulledtogethertodeliveraproject,andthesumofeachmemberscapabilityistheteamscapabilitytodelivertheproject.Therefore,duringprojectplanning,agreatdealoftimeandeffortneedstobespentgettingandsettinguptherightteam.CapabilityprofileAProjectManagerneedstounderstandandmanagethecapabilityprofileofhisteamandbeawareofanychangestothatprofilewhichmaybecausedby:Peoplejoiningorleavingtheteam.Peoplenotperformingornotdevelopingasexpected.Acapabilityprofileisaneffectivetooltoreviewteamstrengthsandweaknesses.Oncetheseareknown,aProjectManagercanchoosestrategiestostrengthenthestrengthsandeliminatetheweaknesses.CapabilityriskassessmentDuringprojectdelivery,theProjectManagerneedstomanagethatcombinedcapabilityanddevelopitasappropriatetotheprojectrequirements.Akeypartofthatmanagementistheidentificationandmitigationofrisks.AProjectManagershouldbereviewingthecapabilityprofileasitchangesduringdeliveryandreviewthisagainstidentifiedrisksandassociatedmitigationplans.Forexample,ifakeycapabilityiswithinonlyoneteammember,thenastrongmitigationplanisneededtoensurethateithertheteammemberremainsontheprojectteamforthedurationoftheproject,orasuccessionplanisinplace.Thelatterisusuallyappropriateforalong-termproject.CapabilitydevelopmentAProjectManagerwillhaveselectedteammemberswhoareexpectedtodevelopspecificcapabilitiesastheprojectprogressesandthenusethosetosupportdeliveryoftheproject.Individualsandteamsneedsupportinordertodevelopcapabilitiesincluding:Formaltrainingtobuildknowledgeandskillleveloffthejob.Onthejobtrainingtobuildcapabilityastheprojectisdeliveredunderthesupportofanotherteammember.Mentoringandcoachingtobuildspecificelementsofknowledge,skilland/orbehaviouraldevelopmentthroughadefined1-1relationshipduringprojectdelivery.91111_H8515_Ch04.indd911_H8515_Ch04.indd91111/25/20087:10:49PM1/25/20087:10:49PM ManagingProjectDeliveryShortcasestudyAsmallProjectTeamhasbeenformedtomanageasensitivebusiness-changeissuewithinalargeeventmanagementcompany:theoutsourcingofamajorbusinessfunction(administrativesupport).Thesixteammemberswereselectedinordertoprovideacollatedteamcapabilityprofile(Figure4-3)inorderto:Deliverthemostappropriatesolutiontomatchthebusinessneeds.Managethesensitivechangesituationasstafftransitiontoanewcompany.Thesmallteamofsixseniormanagerswasmaintainedasastableteamthroughouttheprojectandtogethertheywerecapableofsuccessfullydevelopinganddeliveringanappropriate,practicalsolution.Theeventualoutsourcingoftheadministrativefunctionsproceededwithminimalshort-termnegativeimpactonthebusinessandmaximizedsustainablelong-termbenefits(linkedtocostandflexibilityofapproach).5Akeystrength4Unconsciouslycompetent3Consciouslycompetent2ConsciouslyCapabilityleveldeveloping1Aknownweakness0NoneABCDEFTheeventsOutsourcingProjectBusinessGettingthingsStakeholdermanagementprocessandmanagementchangedonemanagementCapabilitybusinessprojectsmanagementKnowledgeSkillsBehavioursKey:IndividualcapabilityassessmentTeamaveragecapabilityFigure4-3Shortcasestudy–capabilityprofile92111_H8515_Ch04.indd921_H8515_Ch04.indd92111/25/20087:10:50PM1/25/20087:10:50PM Set-upplandeliveryRelationshipmanagementAnimportantaspectofteammanagementishowpeopleworktogetherastheprojectisbeingdelivered,(theirinterpersonalrelationships).Thiscanbeconsideredinthreeways:FacilitationhowtheProjectManagerchoosestointeractwiththeteam.Teamworkinghowtheteammembersinteractwitheachother.Mentoringandcoachinghowteammembersworkwithinspecific1-1relationshipsfordevelopmentpurposes.FacilitationDependingonthenatureoftherelationships,aProjectManagermaymanagethisaspectinanumberofways.ThefacilitationmodelforProjectTeammanagement(Figure4-4)describestwointeractingcriteria:Levelofintervention:ThisdescribestheamountofinvolvementanddirectmanagementfromtheProjectManager,eitherhighorlow.AnindicationofthisisthepercentageoftimetheProjectManagerspendswithhisteam.Levelofinnovation:ThisdescribesthedifferentwayswithwhichtheProjectManagermayinteractwithhisteam.Themorecustomizedaprocess,themoreinnovationhasbeenusedtomanagetheteam.Theresultofhavingallpossiblecombinationsofthesecriteriaisfourdifferentmodesoffacilitationforteammanagement.1.ContentmanagerFormostProjectManagers,thisisthenormalmodewhenstartingtoworkwithaProjectTeam.TheProjectManagerintroducestheprocess,whichthegroupwillfollowforaparticularsituation,andisinvolvedinthedevelopmentofthefinaloutputs.ContentManagerInfluencerTypicalmodewithinanewlyTypicalmodewithinahighlyformedteamwithperformingteamwithnorelationshipsinearlystagesrelationshipissuesHighProjectManagerlikelytouseProjectManagerlikelytouseatraditionalprocessandnovelactivitiesandprovidestronglyinfluencedirectiondirectionratherthanandcontentinstructionProcessManagerGamesMasterTypicalmodewithinaTypicalmodewithinahighlynormallyperformingteamperformingteamwithgoodDegreeofinterventionwithnorelationshipissuesinterpersonalrelationshipsLowProjectManagerlikelytouseProjectManagerlikelytouseatraditionalprocessandanovelgame/processandtargetsandthenlettheteamallowtheteamtouseitwithuseitwithminimalsupportminimalinterventionLowHighLevelofinnovationFigure4-4Facilitationmodesforteammanagement93111_H8515_Ch04.indd931_H8515_Ch04.indd93111/25/20087:10:50PM1/25/20087:10:50PM ManagingProjectDeliveryForexample,duringaprojectmeetingtoreviewsupplierperformance,aProjectManagerwouldoutlinethesupplierreviewprocess.Hewillbehighlyinvolvedinthemeetingand,asthechair,willstronglyinfluencetheoutcomethroughdirectquestioningandrespondingtoquestionsfromteammembers.2.ProcessmanagerProjectManagersrecognizethatsomesituationsdorequirelesshands-oninvolvement.ThismodecanbeusedwhenaProjectTeamneedstobeheavilyinvolvedbutwithinafairlystandardprocesswheretheoutputsaretypicallyownedbytheProjectTeam.Forexample,duringaprojectrisk-reviewsession,theProjectManagerwouldintroduceastandardriskmanagementprocessandleavetheteamtoreviewrisksandassociatedmitigationplansandtoidentifynewrisks,describetheconsequencesandscoreinanobjectiveway(thescoringsystemisusuallydefinedbeforehand).IndividualteammemberswouldownspecificmitigationplansandtheProjectManagerlooksattheoverallimpactofthese.3.InfluencerSometimesaprojectsituationrequiressomeinnovationiftheappropriatesolutionistobeidentified.Inordertodothis,theProjectManagerneedstorelyontheexpertisewithintheteamandallowthemthefreedomtodeveloptherightsolution.However,duetotheparticularsituation,theProjectManagerstillneedstoinfluencethedirection(usuallylinkedtobusinessbenefitsmanagement).Forexample,duringthedeliveryofatechnicaldesignphasetheProjectManagermayfacilitateabrownpaperschedulingexercise.Thisisatechniquewheretheschedulebeginsasalargepieceofbrownpaperonawall.Theteammembersusepostitnotestosuggestthetechnicaltasks,time-scaleanddependencieswhilsttheProjectManagerchallengesthem.4GamesmasterSometimesaprojectsituationneedsaProjectManagertobeinnovativebutlessactivelyinvolved.Thistendstobewhentheteamneedtousetheirtechnicalexpertise.Forexample,aProjectTeamdesigninganimprovedmanufacturingprocessdecidetouseasimulationoftheimprovedmanufacturingprocessusingbuildingbricksandinvolvingtheoperators(endusers).TheProjectManagerensuresthatthegameissetupappropriatelyandthenstandsbacktowatchthegamebeingplayed.Ifthedesignedimprovementisrobust,thenitwillbecapableofhandlingthesimulatedsituationsandtheoperatorswillhavebeentrainedinasafe(andmemorable)environment.TeamworkingTeamsrequiretheirProjectManagertobemoreorlessinvolvedasdescribedpreviously.However,attimes,theirneedsmayconflictwiththeProjectManagersviews.ThiscancauseconflictbetweentheteamandtheProjectManager.Tomitigatethese,typicalapproachescanbeused:TeambuildingThereneedstobeacultureofcontinualteambuilding.Onprojectsbeingdeliveredoveralengthydurationinparticular,therecanbeteammembersleavingandjoiningthroughoutitslifespan(sometimesasapartoftheplan),andthisneedstobemanaged.Typicallythestagegatesintheprojectroadmap(page99)canbeusedtoholdteameventswhichcancelebratesuccess,reviewperformanceandplanforthenextstage.CommunicationAppropriatecommunication,particularlyofchangesinmanagementapproach,isfundamentaltomaintainingagoodrelationshipbetweentheteamandtheProjectManager.AninternalCommunicationsPlanshouldbedevelopedtoensurethatchange,progressandteamachievementsareappropriatelyandfrequentlycommunicatedandcascadedtoallteammembers.ConsistencyAProjectManagerneedstobehaveinawaywhichbuildstrustwithintheteam.InRealProjectPlanning(Melton,2008),acontinuumofempowermentwasdescribed.Inessence,this94111_H8515_Ch04.indd941_H8515_Ch04.indd94111/25/20087:10:51PM1/25/20087:10:51PM Set-upplandeliverymodelstatesthattrustisgainedbydefininghowtheProjectManagerwilloperatewithanindividualorteamandthenbyoperatinginthatway.Forexample,ifaProjectManagerdelegatesauthoritytoateammemberandthenmakesthefinaldecisionhimself,heisstartingtobuildacycleofdistrust;themorehecontradictshimself,themoretheteamwillnottrusthim.Theconverseis,therefore,alsotrue.Inaddition,poorinterpersonalrelationshipswiththeteam,ultimatelyleadingtoovertconflict,canoccur.Inthissituation,theProjectManagerhasaclearroletofacilitateresolutionforthebettergoodoftheproject,theProjectTeamandtheindividualsinvolved.Conflictresolutionwouldtypicallyinvolvesomeformofmentoringsothattherootcauseoftheconflictisidentified,aswellasresolvedinthecurrentsituation.Problemsthatarenotfullyresolvedwillonlysurfaceagainlaterintheproject.Goodteamworkingwillenabletheteamtodotheirpartindeliveringtheproject,anditisanimportantaspectofoverallteammanagement.MentoringandcoachingInspecificsituations,individual1-1mentoringorcoachingisnecessary.Thismaybelinkedtocapability,performance,developmental,behaviouralorrelationshipissuesandisdistinctanddifferentfromusuallinemanagementgoals,althoughitshouldalignwiththem.Foranymentoringorcoachingscenario,thegeneralprocessshowninFigure4-5canbeapplied.Thecriticalstepintheprocessisthefirstestablishingtherightpersontomentororcoach:1.InformalcoachingdiscussionTodetermineifthecoachistheright’fitUsuallythefirst5.Capabilitydevelopmentformal2.ContractingUsingavarietyoftechniquestodevelopsessionDevelopmentofthecoachingcontractcapabilityinlinewiththeplan6.Capabilityreview3.BaseliningReviewandassessmentofcapabilityuntilUsingaselectionoftoolstobaselinetheseiterativephasestheplanisachievedandthecontractBulkofcoachingworkincapabilityinaspecificareacompleted4.Gapanalysis7.Close-outReviewofcapabilityversusneeds,andFormalclosureofthecontractbriefEarlycoachingworkdefineacoachingdevelopmentplanAfterActionReview(AAR)containingalearningoutcomestableFigure4-5Coachingprocess95111_H8515_Ch04.indd951_H8515_Ch04.indd95111/25/20087:10:51PM1/25/20087:10:51PM ManagingProjectDeliveryProjectManagersoftengetcoachingfromthesponsor,particularlyifworkinginnewareaofthebusiness,oranassignedProjectDirectoriftheprojectisparticularlylarge,complexorapartofabiggerprogramme.TeamleaderswithintheProjectTeamcanbecoachedbytheProjectManagerwhichisparticularlyappropriateifthepersonislookingtogainexperienceandinsightsintoprojectmanagement.TeammemberswithintheProjectTeamcanbecoachedbytheirTeamLeadersintermsoftechnicalexpertise,ortheProjectManagerforprojectmanagementexpertise.Thecoachingismadespecifictotheindividualateachstage,althoughsomebasictoolsaregenericsothataclearframeworkcanbeestablished:Coachingcontractawayofcontractingsothatexpectationsareclearandagreed(Figure4-6).Learningoutcomestableawaytomeasuresuccessduringtheprogressofthecoachingormentoring(Table4-2).ScopeGroundrulesJohnandMikewillmeet1:1approxi-Johnistodrivethecoachingprocessthematelyevery3weeksatJohn’sschedulingwhen,whatandhowThescopeofthe1:1’sisasper‘John’sAllcoachingsessionsareconfidentialunlessneeds’butinsummaryistocover:explicitlyagreedotherwise(2-way)DevelopmentofconsultancycapabilityActions/agreements/commitmentswillbekeptspecificknowledgeskillsandbehavioursbybothJohnandMikeSupportonconsultancyassignmentsJohnwillkeepMikeupdatedonkeyThecoachingwillcontinueuntiltheissues/scenariosasagreedduringthesessionsachievementofthelearningoutcomegoalsCommunicationVisionofsuccessInputto1:1sessionsmustbedrivenbyDevelopmentofJohn’sconsultancycapabilityJohntheagenda,thepreparation,etc.asmeasuredbytheachievementoflearningJohnmustoutlinetheprojectscenario(pastoroutcomegoalspresent),theissueandproposedsolutionsDevelopmentofJohn’sconsultancyrolewithinJohnwilltrackhowherespondstocertaintheBusinessConsultancyteamstimulus(differentpeople,differentsituations)DevelopmentofJohn’sconfidenceandalsohisInconsultancyskills/knowledgedevelopment,reputation(howothersseehim)thesessionswillbedrivenbycurrentassignmentsFigure4-6ExamplecoachingcontractThementoringorcoachingshouldcontinueuntilthecoachingcontractiscompleteandthelearningoutcomeshavebeenachieved.Akeypartofmeetingthesementoringandcoachingexpectationsisestablishinganappropriate2-wayrelationshipbasedon:Mutualtrustbybothadheringtothecoachingcontract.Opennessandhonestybybeingfrankinboththecurrentsituationandfeedback.Agoodcoachwillbeabletoreadbodylanguagetotestwhetherthereisanyconflictbetweentheverbalandbodylanguage.96111_H8515_Ch04.indd961_H8515_Ch04.indd96111/25/20087:10:51PM1/25/20087:10:51PM Set-upplandeliveryTable4-2ExamplelearningoutcomestableLearningHowachieveDevelopmentoutcomesCommentsoutcomeoutcome(Month7)RedAmberGreenAnareaofknowledge,DevelopmentMinimalOutcomeOutcomeCommentsonprogressatskillorbehaviourmethodoutcomeprogressesachievedreviewpointobservedwithsupportKnowledgeDevelopWorkwithBaselineTargetTargetNowassignedtotwoseparateausersunderstandingcoachtoMonth1Month7Month12consultancyassignmentsandoftheconsultancydevelopOneThreeusingprocess.Onecompletedprocessknowledgeasassignmentassignmentsandtheother75%completed.consultancydelivereddeliveredExcellentfeedbacktodate.assignmentsaredeliveredSkillconsultancyReviewcurrent
BaselineTargetMonthAllthreetoolsusedeffectivelytoolsdevelopmentuseoftheseMonth17onbothcurrentassignmentstoexpertlevel:toolswithassignmentroadmap,mentorandcharterandcontractdevelopplanSkillconsultancyAttendlessonsBaselineTargetTargetMonthNotreallyhadhadantoolsdevelopmenttowithmentorMonth1Month7for12forexpertopportunitytousethesemuchexpertlevel:benefitandthenreviewlessonslevelwithoutlotsofsupportmaps,measuresmapstheuseoftoolsoncurrentassignmentsSkillbusinessAttendakaizenBaselineTargetTargetMonthAttendedkaizenandimprovementtoolseventbeingMonth1Month7for12forexperttookaleadinoneofthedevelopmenttoexpertleadbymentorkaizenlevelsessions.Needtofindmorelevel:multiplecause,andgetliveuseopportunitiesforlargegroupinterrelationshipandinthesetoolsfacilitationofthesetoolstimevaluemapsUseandreviewoncurrentassignmentsBehaviourtogainBaselineTargetReviewFeedbackfromcustomersconfidenceasaMonth1Month7Month12onexcellentperformanceonconsultantassignmentstodate.Seeingincreasedconfidenceandcapabilityatcoachingsessions.BehaviourtoBaselineTargetReviewStillseeingahighdegreeofdevelopabroaderMonth1Month7Month12intervention.Forexample,atrangeoffacilitationthekaizeneventJohnstilltookstylesaleadaroundtheflipchartstillverytraditionalCoachingsummaryJohnhasprogressedinallareasandinparticularisdemonstratinganincreasedlevelofconfidence,capabilityandhenceperformance.Continuedmentoringinspecificareasisrequiredandperhapsassignmenttosomemorecomplexproblemswithlargerteamsandmorecomplexstakeholderissues.97111_H8515_Ch04.indd971_H8515_Ch04.indd97111/25/20087:10:52PM1/25/20087:10:52PM ManagingProjectDeliveryTool:TrackingRACITheaimofthistool(Table4-3)istoensurethattheProjectTeamisoperatingasplannedduringdelivery.Althoughitwillcheckwhetheranactivityhasbeencompletedornot,themaingoalofthistoolistocheckiftheappropriateteammemberhascompletedthatactivity.Inspecificcircumstances,itiscriticalthatactivities,tasksordeliverablesfollowaspecifiedroutefromgeneration,throughreviewandapprovaltocompletionandhandover.Thistoolcanbeusedtotrackonlythoseactivitieswhichhavethiscriticality,asawaytomanageoneelementofprojectrisk.Thereareothertoolsthatfocusoncompletionofactivitiesintermsofmeetingcost,time,quality,quantityandfunctionalitycriteria(pages110to117).Thistoolwouldgenerallybeusedasapartofaninternalteamreviewratherthanasaprogress-trackingmechanismandisdemonstratedinthecasestudyattheendofthischapter(page123).Table4-3TrackingRACIexplainedDeliveryToolkit–TrackingRACIProject:Sponsor:Date:ProjectManager:ActivitytrackingActivityRY/NAY/NCY/NIY/NGap(responsible)(accountable)(consulted)(informed)analysisname>orname>orname>orname>orcommentno>no>no>no>onanygaps>ActionplanActivitytrackingEachactivityandnamefromtheoriginalRACIChartisinserted,andthenareviewisconductedandanygapsnoted:Didtheappropriateperson(R)completetheactivity?Wasappropriateapprovalachieved(A),ifappropriate?Wereappropriateteammembersorexternalstakeholdersconsulted(C)?Wereallappropriatepeoplekeptinformed(I)oftheprogressandcompletionoftheactivity?Forlargeprojectsitmaybeappropriatetoonlyreviewactivitiesthatarehighrisk.Ifaninappropriatelyqualifiedorcompetentpersoncompletestheactivities,thentheprojectisatrisk(duetoeitherlackofregulatorycomplianceorlackofperformance).ActionplanForeachidentifiedgap,animpactassessmentshouldbedone,andbasedonthatanyrequiredactionsshouldbeprogressed.Forexample,ifadocumentrequiredaspecificallyqualifiedpersontoapproveit98111_H8515_Ch04.indd981_H8515_Ch04.indd98111/25/20087:10:53PM1/25/20087:10:53PM Set-upplandeliveryandthathasnotbeendone,theactionmustbetocompletetherequiredreviewandapproval.Ontheotherhand,ifanactivityinvolvedanend-userrepresentativeotherthanthatplanned,itmaybeasimplecaseofagreeingwiththecustomerthatthepersoninvolvedwasappropriateandnootheractionisneeded.IdentifyingandresolvingteamissuesAllteamswillhavesomeissueswhenworkingtogetherandakeyaspectofprojectmanagementistoaddressthoseissuesbeforetheybecomeproblems.TherearetwotoolsproposedinTable4-4andTable4-5whichcanbeusedtofacilitatethis.Thefirst,theTeamIssuesTool,isessentiallyawayfortheteammemberstohighlightissuesandallowstheProjectManagertounderstandthoseofthehighestpriority.Thesecondtool,theProjectTeamAuditTool,isintendedfortheProjectManager,toevaluatetheeffectivenessoftheProjectTeamandestablishresolutionoftheproblems.Table4-4TheTeamIssuesToolexplainedDeliveryToolkit–TeamIssuesToolProject:Sponsor:Date:ProjectManager:TeamissuesidentificationandanalysisTeamissueTeamscoreParetoscoremembers>TeamactionplanTool:TeamIssuesToolTheaimofthistool(Table4-4)istoensurethattheProjectTeamhaveanopportunitytodiscussandresolveissueswhicharepreventingteamperformance.TeamissuesidentificationandanalysisThisisdoneintwophases:1.Teamissuetheteamtakepartinatraditionalbrainstormprocess:Themembersareaskedtowritedownanyissuestheyseewithcurrentteamperformanceonpost-itnotes.Onceeveryonehasfinishedwritingthepost-itsareallputuponthewall.Theteamworktogethertocategorizetheissuesbycollatingsimilarpost-its.Thefinallistofissuesiswrittenontoaflipchart.Thetypesofissuespeoplemayintroducecoverallaspectsofteamworking,forexample:Conflictorapathyintheteam;theteamculture.99111_H8515_Ch04.indd991_H8515_Ch04.indd99111/25/20087:10:53PM1/25/20087:10:53PM ManagingProjectDeliveryProblemswithvirtualteamworking.ChangingteammembersortheProjectManager.Howperformanceismeasuredandcommunicated.2.Scoretheteamarethenaskedtoscoreeachissueontheflipchart(themaincategories).Thiscanbedoneinanumberofways:RankingscoreAskeachteammembertorankthelistintermsofimportanceofresolutiontothempersonally.Thescoreforeachissueisthenthesumoftherankings.Thelowestscoringissueisthereforethetopone,requiringresolution.VotingscoreGiveeachteammemberthreevotes(decisiononthenumberofvotesdependsonthetotalnumberofteammemberstakingpartandthetotalnumberofissuesidentified).Thescoreforeachissueisthenthesumofthevotes.Thehighestscoringissueisthereforethetopone,requiringresolution.Thescorecanbeconvertedintoapercentagescore,thusallowingaParetoanalysistobeconducted.TheaimoftheParetochartistoestablishthetopissueswhichtakeup80%ofthetotalscore.AnexampleisshowninFigure4-7.30%25%80%ofissues20%15%10%5%0%PooruntidyleavingchangestoobusyToofewmeetingsmeetingsToomuchpaperworkToomanyargumentsLowmoraleTeammemberProjectofficecommunicationProjectManagerTeammembersCustomermakingFigure4-7ExampleofateamissueParetochartTeamactionplanTheaimoftheteamactionplanistoputaplaninplacewhichwillsolveapproximately80%oftheissues,onthebasisthatthereisadiminishingreturninsolvingallissues.IntheexampleinFigure4-7,10issueswerehighlightedbyateam,withthetop4obtaining80%ofthescore.Thustheteamfocusedonthese4issuestogenerateastepchangeinteamperformance.Tool:ProjectTeamAuditToolTheaimofthistool(Table4-5)istoreviewtheeffectivenessoftheteamtheirwaysofworking(WoW)andgeneralperformance.ThiswouldusuallybeconductedinformallybytheProjectManagerormoreformallybythesponsororanotherseniorstakeholder.Thekeygoalforthistypeofauditistoidentifyproblemsearlysothatprojectsuccessisnotcompromised.100111_H8515_Ch04.indd1001_H8515_Ch04.indd100111/25/20087:10:53PM1/25/20087:10:53PM Set-upplandeliveryTable4-5TheProjectTeamAuditToolExplainedDeliveryToolkit–ProjectTeamAuditToolProject:Sponsor:Date:ProjectManager:TeamchecklistCheckResponseComment1.Isteammanagementappropriate?2.Isteamcommunicationappropriate?3.Istheteamworkingarea(officeorvirtualenvironment)supportiveofsuccess?4.Isteammoralesupportiveofsuccess?(howtheteambehaves,itsvalues)5.Istheteambeingmanagedeffectively?6.Istheteamperforming(achievingitsgoals)?7.Isthereconflictintheteam?8.Istheteamworkingeffectively?(individualperformance,clarityofroleandWoW)Teamactionplan101111_H8515_Ch04.indd1011_H8515_Ch04.indd101111/25/20087:10:54PM1/25/20087:10:54PM ManagingProjectDeliveryProjecttypeWhilsteachprojectgenerallyfollowstheoverallroadmapdescribedinChapter1(Figure1-1),theprojecttypeaffectsthewayinwhichparticularstageswithintheroadmaparehandled.Peopletendtoconsiderprojectsintermsoftheirsize,complexityandcriticality.Forexamplethelevelofcost,thedurationofscheduleandthecomplexityofscopedelivery:Istheprojectbeingdevelopedordeliveredinasinglelocation,ormanylocationsglobally?Doestheprojectinvolvethecreationofnewassetsormodificationofexistingassets?Istheprojectcostlessthan£1millionorgreaterthan£10million?Willtheprojectbecompletedinmoreorlessthanayear?Thesefourcriteriaarenotmutuallyexclusiveasmallprojectcanbecriticalorverycomplexandabigprojectcanbesimple.Anadditionaldimensiontoprojecttypeisprovidedbylookingatthecategorytheprojectfallsinto:Assetprojectsprojectswhichdeliveraphysicalasset(e.g.,anewplant,productorpieceofsoftware).Researchprojectsprojectswhichdeliverknowledge(e.g.,aduediligencereviewofapotentialacquisitionoraclinicaltrialforanewdrug).Changeprojectsprojectswhichdeliveratransformationtocurrentwaysofworking(e.g.,outsourcingITsupportorreengineeringasalesprocess).Relationshipprojectsprojectswhichset-uporchangeabusinessrelationship(e.g.,asupplycontractbetweenasteelpanelsupplierandacarmanufacturer).Toaddmorecomplexitytothepicture,somelargerprojectsmayincludeacombinationofcategoriesforexample,amajorconstructionprojectmayincludeelementsofresearch(toidentifynewknowledgerequired),relationships(establishingprocurementagreements)andassetdevelopment(tocreatethefinalbuilding).Althoughthegeneralprojectmethodologiesdescribedinthisbookandintheotherbooksintheseries(pagevii)arerobustandcanbeadaptedfordifferentcategories,sizes,complexitiesandcriticalities,therearespecificquestionsthatneedtobeaskedwhichcanchangethewaytheprojectisdelivereddependingonitstype.Thekeyquestionsthatneedtobeaskedarebasedon:Whatdefinestheprojectscope?Howwillwedefine,measureandcontrolthedeliverables(interimandfinal)?Howwillweassessprojectsuccess?Table4-6illustratestheimpactofthesequestionsacrossthedifferentcategoriesofprojects.ThedifficulttaskfortheProjectManagerinmanagingdeliveryforthesedifferenttypesofprojectsisinadaptinghisframeofreferencetothescopeandthecontrolleversavailableinaproject.102111_H8515_Ch04.indd1021_H8515_Ch04.indd102111/25/20087:10:54PM1/25/20087:10:54PM Set-upplandeliveryTable4-6ProjectcategoriesandtheirimpactProjectcategoryQuestionsWhatdefinestheprojectHowwillwedefine,measureHowwillweassessprojectscope?andcontrolthedeliverables?success?AssetUsuallydetailedrequirementsAgainstspecificmilestonesandDidwecreatewhatwesetoutwithadefinedoutcome:harddeliverables:tocreate?AnewfacilitytomanufactureDeliveryofequipmenttoAretherequirementsallmet?adrugproductsiteIsthefinalresultdeliveringAnewaccountingsoftwareApprovalofsoftwaredesignwhatwasintended?(thismaysystemspecificationorstartofbeanextendedevaluationovermoduletestingasignificantportionofitsusefullife)ResearchUsuallyaproblemoranidea:AgainsttimeorthecompletionDoessubsequentexperienceWhatwilltheimpactofofspecificgoals:showtheresearchtobecorrectrisingsealevelsbeonUKThestudywilllastsix(orincorrect)?flatlands?monthsCanweinitiate(orextend)WhatwouldhappenifweDefinedpilotexperimentsaprojecttoputtheresearchremoveawashstagefromtoestablishiftheresearchisresultsintopractice?theprocess?ontargetChangeUsuallyaproblem,anAgainstspecificmilestones,Isthenewbusinessprocessopportunityorasolutionhardandsoftdeliverables:sustained?presentedbyothers:NewWoWestablishedAreweseeingthebenefitsweSalesorderprocessingistooTrainingcompleteanticipated?expensiveSurveyofaffectedpeopleOutsourcingITtaskswillshowssatisfactionwiththeimproveservicelevelschangeRelationshipUsuallywithasetofAgainstspecificdeliverables:Isthesuppliermeetingrequirementsoranopportunity:Completebidenquirypackexpectations?AnexternalmanagementAcceptablevendorcompanyisofferingtoresponsestakeoverallourfacilitiesmanagementWeneedtoestablishasecuresourceofsupplyforarawmaterialtomeetourspecificationAssetprojectsThesetendtobetheeasiesttounderstandincontroltermssincetheyhaveareasonablywell-definedapproach(e.g.,erectingwallsisnotpossibleifthefoundationsarenotcomplete).Controlwithinthistypeofprojectisessentiallylinkedtoclarityoffundingrequirementsandaboutcheckingharddeliverablesandmilestoneachievements.TheroadmapinFigure4-8illustratesthemainstagesandstagegatesinthistypeofproject.103111_H8515_Ch04.indd1031_H8515_Ch04.indd103111/25/20087:10:54PM1/25/20087:10:54PM ManagingProjectDeliveryDesignDesignreviewreviewProjectFundingFundingImplementationCommissioningfordetailedforconceptdesignconstructionreviewreviewInitialFront-endDetailedProjectfundingImplementationCommissioningHandoverapprovaldesigndesignreviewInuseFigure4-8Projectroadmap–assetprojectResearchprojectsThesearechallengingbecausethescopetendstobefuzzy(anidea)andprogresscanbeheavilydependentonindividuals.Classicaltechniquesofmeasuringcompletion(e.g.,howwouldyouknowifyouare90%throughtheformulationofatheory?)arelessrelevant.Thisiswhyalotofsuccessfulresearchprojectstendtorunonatimebasiswithalotofstagegates(pharmaceuticaldrugdiscoveryanddevelopmentmayhaveasmanyas8or10).ControlbecomesamatterofestablishingclearcriteriaforthestagegatereviewsandanunderstandingwiththeProjectTeamthateachofthesereviewsisagoorno-godecisionpoint.Anaddedcomplexityisthataresearchprojectwhichreturnsanegativeresultisnotnecessarilyafailedproject.Thatnegativeresulthasincreasedknowledgeandmaysuggestnewresearchopportunitiesthereforetheassessmentcriterianeedtoconsiderthepotentialfornegativeresults.TheroadmapinFigure4-9illustratesthistypeofproject.ReviewofTerminateconceptResearchIdeaRegularreviewsfunding???FeasibilityInvestigation/ProjectResearchfundingproofofconceptreviewKnowledgeFigure4-9Projectroadmap–researchproject104111_H8515_Ch04.indd1041_H8515_Ch04.indd104111/25/20087:10:56PM1/25/20087:10:56PM Set-upplandeliveryChangeprojectsTheseareverymuchabouttheimpactonpeople.Whilstcertainpartsoftheprojectwillrequireconsiderationofharddeliverablesandassociatedcosts,amajorpartofthecontrolofdeliveryisstakeholdermanagementandthesustainabilityofchange.No-onewillthankyouforbringinginanewsalesorderprocessingsystemontimeandoncostwithoutensuringthechangetopeopleandtheirwaysofworkingissustainable.ThecheckpointsonthistypeofprojectroadmapareshowninFigure4-10.Notethatinthiscase,thesustainabilitycheckisaformalpartoftheprojectdeliveryprocess,toconfirmthatthechangeisrobust,andfeedsintotheprojectreview.StakeholderreviewProceeddecisionFundingChangeProceedtoideadecisionimplementFeasibility/InitialChangeChangeSustainabilityProjectimpactapprovalplanningimplementationcheckreviewassessmentInuseFigure4-10Projectroadmap–changeprojectRelationshipprojectsThisisanotherareawherethereisablendofharddeliverables(e.g.,acontract)andthesofteraspectsofstakeholdermanagement.Deliveryofthistypeofprojectrequiresnotonlyafocusontherequirements,butpotentiallyconsiderablestakeholdermanagementtoensuresupportfortherelationshipthatisbeingbuilt(e.g.,executivelevelsponsorshipbetweensupplierandcustomerorganizations).TheroadmapforarelationshipprojectisshowninFigure4-11.105111_H8515_Ch04.indd1051_H8515_Ch04.indd105111/25/20087:10:56PM1/25/20087:10:56PM ManagingProjectDeliveryOpportunityevaluationReviewrequiredInitialAgreementStakeholderShortlistingideatoproceedevaluationInitialMarketProjectMarketreviewNegotiationsAgreementapprovalenquiryreviewInuseFigure4-11Projectroadmap–relationshipprojectProjectroadmapandriskmitigationManagingdifferenttypesofprojectisessentiallyaboutmanagingrisk.Thenumberofdecisionpoints(orstagegates)withintheprojectandthefocusoftheProjectManagerreflectwheretheriskislikelytobeatitshighest.So,inaresearchproject,theriskisthattheresearchcontinuesforextendedperiodswithoutgeneratinganyusefulbenefits.Inarelationship,theriskisthatthestakeholdersdonotagreewiththeprojectdecision.106111_H8515_Ch04.indd1061_H8515_Ch04.indd106111/25/20087:10:56PM1/25/20087:10:56PM Set-upplandeliveryFundingstrategyandfinancemanagementOrganizationswillinevitablyhavetheirownprocessesandproceduresregardinghowprojectsarefundedandhowthosefundsaremanaged.AdherencetothesecompanyrulesusuallyremainstheresponsibilityoftheProjectManager,althoughmostorganizationswouldprovideappropriatesupportfromtheirFinanceDepartments(dependingonthelevelandcomplexityofthefunding).Inanyevent,theProjectManagermustmaintainaneffectivelinkbetweentheprojectfundsandorganizationalfinances.ProjectfundingTheinitialdecisiontoproceedwithanyprojectwillgenerallyhaveconsideredthebenefitsandcostsinisolationfromtheoverallbusinessfinances.Projectfundingiswherethecompanyandprojectfinancesmeet.Mostcompanieshavefoursourcesoffundingforprojects;retainedearnings(previousprofits),issuingnewshares,long-termorshort-termborrowing.Theabilityofacompanytoundertakeprojectsisthereforelimitedbyitsprofitabilityanditscreditworthiness.Projectfundingwillhaveadirectimpactoncompanyfinancesthroughtwobasicneeds:needingmoneyandneedingprofit.NeedingmoneyProjectstendtorunonmoney.Ifaprojectisfinancedbybankloans,thentherewillbeafinancingcostthattheProjectManagermaynotseedirectly.Projectsthataredelayedorthoseinwhichstagepaymentsarenotreceivedwillseeincreasedfinancingcosts.Disputedorverylatepaymentscanhavetheeffectofdrivingacompanyoutofbusiness.Forexample,in1991,DavyMcKeebecameinsolventasaresultofdelaysinaprojectforaplatformfortheEmeraldoilfield,whichinturndelayedthepaymentof$100millionatatimewhenthecompanycouldnotrefinancetheproject.WhilstaProjectManagermaybeunabletoinfluencethefinancingstrategy,understandingwherethemoneycomesfromandthecommercialimpacttothebusinessofchangestopaymentorscheduleisimportant.InthisregardaProjectManagermustlinkcostmanagementwithfinancemanagement.NeedingprofitThisusuallyaffectssuppliersorcontractorsmorethanend-usercompaniesandcanhaveasignificanteffectonthebusiness.Inthesupplyofequipmentorservices,revenueandprofitareonlyrealizedatthetimeofdeliveryoracceptance(thetwomaynotbeatthesamepoint).Whatthatmeansinpracticeisthatifacompanysupplyingapieceofequipmentcannotdeliverduetoadelayintheircustomersproject,thentheycannotclaimprofitonthesaleeveniftheyhavebeenpaidinfull.Whattendstohappeninthiscaseisthatthecustomerwillbeaskedtotakeownership(ortitle)fortheequipmentand,mostimportantly,theassociatedrisk(ifthefactoryburnsdown,itisthereceiversloss).Anotherareawhereprofitcanbeimpactedbyachangeinprojectscheduleiswhenitpushesdeliveryoverafinancialyearend.Thismightbeacceptablefortheproject,butthecompanymaynotfinditacceptable.Insimpleterms,itwouldmeanthattherevenueandprofitforecastinoneyearmovestothenext.TheinternalpressurethatthisgeneratesonaProjectManagershouldnotbeunderestimated.Thefailureofacompanytodeliveronitsfinancialpromisescanbedifficultforallandwillinevitablyresultinsignificantprojectmanagementeffortbeingexpendedontryingtorecoverthesituation.Onrare107111_H8515_Ch04.indd1071_H8515_Ch04.indd107111/25/20087:10:57PM1/25/20087:10:57PM ManagingProjectDeliveryoccasions,thecompanymayneedtosliprevenueandprofitoutofagoodperiodintothenext.Againtheprojectmanagementeffortinmanipulatingtheprojecttoachievethiscanbesignificant.ProjectandcompanyfinancesBusinessaccountingisverydifferenttoprojectaccounts(orcostcontrol).ProjectaccountsaretheretosupportthedecisionstheProjectManagerneedstomakeaboutthefinancialpositionoftheproject.Businessaccountsprovideamechanismtosupporttheoverallmanagementofthebusiness,andtherearespecificrulesgoverningthewayinwhichtheseaccountsaremaintainedandreported;manyofthemhavingstatutoryauthority.Therearetwotypesofbusinessaccount,financialandmanagement:1.Financialaccountsaregenerallythosewhichappearincompanyreportsandmustbemadepubliclyavailablebylaw.Theyshowthefinancialstandingofthecompanyatthetimetheywereprepared,andsincetheyarepublished,theyshowtheminimuminformationtosatisfythelaw.2.Managementaccountsareusuallypreparedonamonthlybasisandarefarmoredetailed,inthattheywillbreakdownthebusinessintoitslowestreasonablelevel.Frequentlymanagementaccountsareproducedonabusinessunitbasis,anditisherethattheprojectmayhavesomevisibility.Managementandfinancialaccountshavethesamestructureandcompriseabalancesheetandaprofitandloss(P&L)account.Thebalancesheetrecordstheassetsandliabilitiesofacompany.Whilstthisisausefulviewofthecompanysstrengthandstability,theP&Laccountisregardedasamoreinstantview,providedthereaderunderstandsthat:TheP&Laccountisasnapshotintime.Itshowsthefinancialperformanceofthecompanyataparticularpoint.Itisnotaforecastingtool(unlikeprojectcostcontrolreports).Profitorlossisnotthesameascash,andthetimeatwhichitemsareenteredontheP&Laccountdonotnecessarilycoincidewiththepaymentandreceiptofcash.Forexample,salesareusuallyenteredatthepointofdeliveryandinvoice.Thepaymentperiodfortheinvoicecouldbeupto120days.Theoutstandinginvoicebecomesatradedebt,butprofitcanbedeclaredwellbeforethemoneyisreceived.Theobviousresultofthisapproachisthatacompanycandeclaresignificantprofitsandhavenocash.ThecostofcapitalassetsdoesnotappearintheP&Laccountasthevaluespent.WhatappearsontheP&Listhecostassociatedwithanyinterestpaymentonborrowedmoney(fortheexpenditure)andthedepreciationchargeofthecapital(theamountbywhichtheassetreducesinvalueovertime).Fundsforrevenueprojects(projectswhichdonotgenerateacapitalasset)showdirectlyintheP&L(asrevenuemeansmoneygeneratedbythebusiness)whenthemoneyisspent.MatchingprojectandcompanyfinancesWithinaproject,therearegenerallythreetypesofmoneythattheProjectManagerlooksafter:1.Budgetandcontingencywhattheprojectshouldcost.2.Committedwhatyouhavecommittedtospend(usuallyordersplacedorman-hoursconsumed).3.Forecastwhatthefinalcostoftheprojectwillbe.108111_H8515_Ch04.indd1081_H8515_Ch04.indd108111/25/20087:10:57PM1/25/20087:10:57PM Set-upplandeliveryBusinessfinanceswilldirectlyseethefollowing:Expendituremoneythathasactuallyleftthecompany.Committedprojectcommitmentsintermsofordersplaced(orhoursspent).ItwillnotseethebudgetorforecastunlesstheProjectManagerprovidesthelinkage.Thisisusuallydonethroughtwoapproaches:Cash-flowforecastsaforecastofwhenmoneywillleavethebusiness.Thiscanbeparticularlyimportantwhentheprojectcrossesoverendofyearaccountingperiods.Accrualsaforecastofbusinesscommitmentswhichwillresultinapaymentthatgoesoverthefinancialyearend.Figure4-12illustratestherelationshipbetweenthevariouscomponentsthatmakeupthefinancialpictureforboththeprojectandthebusiness.WhilstaProjectManagermaymanagetheprojectaccountsthroughtrackinghowfundsarecommitted,thefinancedepartmentarelikelytotrackonlyexpenditure.Inreality,theProjectManagerwouldkeepanoverviewofbothsituationsthroughacumulativecostcurve.161412ForecasttoContingencycompletion10Moneyleavingthecompany(invoicespaid)86InvoicesCumulativecostreceivedbut4notpaidExpendedCommittedContractsAccrued2placedForecastedBudgeted0M1M2M3M4M5M6M7M8M9M10M11M12ProjectscheduleFigure4-12ProjectandbusinessfinancialrelationshipsExplainingthecumulativecostcurveThefivecumulativecostcurvesinFigure4-12arefurtherexplainedinthefollowing:Budgetedtheapprovedprojectfunds;typicallythisleveloffundingcannotbeexceededwithoutfurtherapprovalfromtheorganization.Forecastedtheprojectedtotalprojectspend.Notethatthedifferencebetweentheforecastandthetotalbudgetisusuallythecontingency,whichisnotforecastforuse.109111_H8515_Ch04.indd1091_H8515_Ch04.indd109111/25/20087:10:57PM1/25/20087:10:57PM ManagingProjectDeliveryCommittedtheprojectfundsthathavebeencommittedthroughplacementofcontracts/purchaseordersforgoodsorservices.Theprojectfundsareeffectivelysetasideforthesespecificpurchases,eventhoughthemoneywillnotleavetheorganizationuntilthegoodsorservicesarereceived.Accruedtheanticipatedpaymentofinvoicesreceivedagainstspecificpurchaseorders.Usuallyonceaninvoiceisreceivedandapproved,thecompanyconsidersthefundingasaccrueduntilitisexpendedaccordingtoagreedpaymentterms.Expendedthepaymentofapprovedinvoicesagainstspecificpurchaseorders.Moneyhaseffectivelyleftthecompanyatthispoint.Cashflowisveryimportantinensuringthatfundsaremadeavailablefortheprojectattherighttime.Accrualsareimportantinthattheyallowformoneycommittedinonefinancialyeartobeaccountedforinthatyear.Onrevenuefundedprojects,theyarecriticalasmoneynotspentinaparticularyeariseffectivelylostandmayresultinanoverspendinasubsequentyear.ThebusinesswillthereforebeveryinterestedintheexpendedandaccruedcurvesinFigure4-12andtheProjectManagerneedstoensurethatthespeedofcommitmentofprojectfundingwilldelivertheappropriateexpenditureprofiletomatchorganizationalneeds.Acommonissueiswhenaprojecthastoeitherspeeduporslowdownexpendituretomeettheseneeds.Thiscanbeachievedthroughmanagementoforderplacementorinvoicemanagement.PlacementofpurchaseordersEitherdelayingorspeedingupplacementcanhaveanadverseimpactonaproject.DelayThesuppliermaynotbeunderanyobligationtoretaintheagreedpriceordeliveryterms.Thisisoftenovercomethroughtheagreementofquotationsfora3to6monthvalidity.EarlyOften,purchaseordersorcontractsplacedearlierthananticipatedarenotbackedupwiththeappropriatelevelofdesignorspecification.Thereforetobesurethatanincorrectorderisnotplaced,thewholeoftheworkassociatedwiththatorderhastobefast-tracked(takenoutofsequence).ManagementofinvoicesInvoiceissuedelayThroughagreementwiththesuppliertheinvoicecouldbeissuedlaterthanagreedwithinthecontract.Thisisarisktothesupplierassomeworkhasalreadybeencompletedforwhichpaymentcannotbedemanded.InvoiceissueearlyThroughagreementwiththesupplier,theinvoicecouldbeissuedearlierthanagreedwithinthecontract.Thisisariskfortheorganizationaspaymentrequestisacceptedforgoodsorservicesnotactuallyreceived.InvoicepaidlateIdeallythroughagreementwiththesupplierbutoftennot.Theorganizationmaychoosetopayaninvoicelatetosuittheirfinancialmanagementneeds.InvoicepaidearlyTheorganizationmaychoosetopayaninvoiceearlytosuittheirfinancialmanagementneeds.Thisisasignificantriskforanorganization,particularlywhenitisincombinationwithanearlyinvoiceforgoodsorservicesnotyetreceived.Inanyoftheabovesituationstheimpactonthesupplier,theorganizationandtheprojectneedstobeassessed.110111_H8515_Ch04.indd1101_H8515_Ch04.indd110111/25/20087:10:58PM1/25/20087:10:58PM Set-upplandeliveryGettingpaidandpayingforthingsPayingforthingsandgettingpaidisanotherareawheretheprojectandbusinessmeet.Thefollowingtopicswouldnormallyallbecoveredwithinthecontractorpurchaseorderforgoodsorservicesbeingprocuredandcanoftenformacrucialpartofthenegotiationprocess.PaymenttermsThefirstandmostimportantthingistoknowwhatprocedurestheaccountsdepartmentuses.Deviatingfromthesewillbedifficultandrequirefurthertimeandefforttoensurethatthingshappenwhentheprojectwantsthemto.Typicalpaymenttermsthatappearonordersarenettmonthly,30daysor60days.Nettmonthlymeanstheinvoicewillbepaidinthemonthafterthereceiptoftheinvoice,not1monthaftertheinvoice.Thirtydaysand60daysmeanwhattheysay,theinvoicewillbepaid30or60daysafterreceipt.Manycompaniesoperateonthenettmonthlyapproachandhaveasetdayforinvoicepayment.Ifthatdayismissed,thenthepaymentwillslipforacompletemonth.Donot,therefore,promisepaymenttermsthatcannotbedelivered,andensurethatanypurchaseenquiriesandordersincludedetailsoftheorganizationspaymentterms.PaymentmilestonesItisimportantthatthemilestonesforpaymentareclear,unambiguousandnotopentointerpretation.So,forexample,paymentonex-worksdeliveryshouldmeanjustthat,notpaymentonarrivalonsiteoraftercertaindocumentationhasbeenreceived.AProjectManagerwillhaveaninfluenceonissuinganinvoiceattheappropriatetimeandforapprovingpaymentforpurchasedgoods.Thereisnothingmorestressfulthanattractingtheattentionofthecreditcontrollerbecauseaninvoiceisoverdueortheattentionofasupplierscreditcontrollerbecauseaninvoicehasnotbeenpaid.RetentionsRetentionsarewhereaproportionofthecontract,usually510%,isinvoiced,butthepaymentonlybecomesoutstandingatalaterdate,usuallytheendofawarrantyperiod.GuaranteesAbankguaranteeiswheremoneyisreceived(usuallyaspartofaperformanceoradvancepayment),butthesupplierprovidesaguaranteeforthepaymentagainstaspecifictime(todeliveryofthegoods)ortimeperiod(endofthewarranty).Ifguaranteesaretobeused,thenthefinancedepartmentmustbeconsultedasmostorganizationshaveastandardformofwordsforabankguarantee.Inmanycases,thebankwillneedtoapprovetheformatbeforeissuing.Themajorpointstobeawareofare:Theguaranteeisavailableforaspecificreasonandisondemand.Thismeansthattheguaranteecanbecalledbytheholderwithoutnotification.Theguaranteeislimitedinvalueandduration.Astatementneedstobeincludedontheexpiryoftheguaranteebecausetheytendtobethingsthat,gomissing,aftertheprojectiscomplete.111111_H8515_Ch04.indd1111_H8515_Ch04.indd111111/25/20087:10:59PM1/25/20087:10:59PM ManagingProjectDeliveryBanksdochargeforsettingupaguaranteeandthenchargeapercentage,typically12%perannum.Guaranteeshaveadirectimpactoncompanyfinancesastheyareafinancialliability.Sowhilsttheyseemattractivetohelpwithcashflowinaproject,theymaynotbedesirableforthecompany.DoingbusinessoverseasItmaybepossibletosourcesuppliers,nationallybutsometimesitwillbenecessarytoprocurefrom,shipto,installandpayforequipmentoverseas.Inconductingbusinessoverseas,therearesomekeyareasthatneedtobeconsidered:CurrencyexchangeOperatingaprojectinforeigncurrenciesintroducescomplexityandcanhaveasignificantimpactonitsviability.Thereareanumberofapproaches,someofwhichdependonthesizeoftheproject:AProjectManagershoulduseonlyone(preferablyhisorganizationsnational)currency.Ifthisisnotpossible,nominatetheprojectcurrency,preferablyonethatisstableandinternational.Requestthatsuppliersquoteanddealinthenominatedcurrency(theytaketherisk)butbeawarethattheywillhaveincludedapriceforthisriskorlimitedthevariationsincurrency.Evaluatetheriskandbenefitofthisapproachasforanyotherprojectcost.Buycurrencyahead(hedge).Thisislikelytoberelevantforlargeprojectsandanareawherethefinance(ortreasury)departmentofthecompanywillbeinvolved.Theadvantageofthisapproachisthatitfixestheexchangeratefortheprojectlife.Ifaforeigncurrencymustbeused,aProjectManagershouldbefamiliarwithhiscompanyspolicies.Hemustnotagreesomethingwithasupplierorclientthattheorganizationdoesnotallow.Whereaprojectmustdealwithmorethanonecurrency,thebestapproachistosetaprojectrateandconvertallcoststolocalcurrencyatthisrate.Thiswillpreventcurrencyfluctuationsdistortingtrueprojectcostsincostcontrolreports.Currencyfluctuationscanthenbeaccountedforasbelowthelinecostssoitisclearwherechangeisaconsequenceofcurrencyfluctuationandwhereitisaconsequenceoftrueprojectchange.MovementofgoodsOncegoodshavebeenpurchased,itmaybenecessarytomovethemacrossnationalborders.Forsomepartsoftheworld,harmonizationofcustomsrulesmeansthatthemovementofgoodsisrelativelysimple.Forotherpartsoftheworld,thereisalmostalwaysdutytopayandpotentiallycomprehensiveandspecializedpaperwork.Thesewillnormallyincludeapackinglistandshippinginvoiceaswellasacertificateoforigin,whichneedstobeattestedbyanofficialbodysuchastheChamberofCommerce.Keypointstobearinmindare:Hasthedutybeenconsideredinthecosting?(5%istypical,althoughforsomecountriesandequipment12%orhigheriscommon.)Theshippingpaperworkcanonlybedonewhenthegoodsarepackedandreadyforshipmentandmaytake12weeks.Hasthistimebeenallowedintheprojectplan?Whatarethecustomsrequirementsandwhowillhandlethem?112111_H8515_Ch04.indd1121_H8515_Ch04.indd112111/25/20087:10:59PM1/25/20087:10:59PM Set-upplandeliveryWhataretherestrictionsonshippingmaterial?Insomecasesitisimpossibletoshipcertaintypesofgoods(technologyorcertainchemicals)intocertaincountries.Inothercases,somematerialshaverestrictionsontheirshipmentmethod.Forexample,bulkchemicals,touch-uppaintorlead-acidbatteries(perhapsinaback-uppowersupply)cannotbeshippedbyairanduntreatedwoodenpackingcratescannotbeshippedintosomecountries.Professionalassistancefromeitherwithintheorganizationoraspecialistshippingcompanyisalmostalwaysworthwhile.GettingpaidManyofthecriteriaforpaymentandgettingpaidoverseasaresimilartothosepreviouslydiscussed,thoughtheremaybeaneedforspecialisedmethodsofpayment.Onesuchmethodisadocumentaryletterofcredit.Aletterofcreditisabankinstrumentwhichguaranteesthatanamountofmoneyislodgedwithamutuallyagreedbankandthatthismoneywillbepaidondemandwithsuitableshippingpaperwork.Theshippingpaperworkisnormallytheshippinginvoiceandthebillofladingfortheship.Therearetwoformsofletterofcredit:revocableandirrevocable.Arevocableletterofcreditcanbecancelledoramendedatanytimewithouttheexporterbeingnotified(andisthereforeoflimiteduse).Anirrevocableletterofcreditcanbeamendedorwithdrawnonlyifallpartiesagree.Anirrevocableletterofcreditcanalsobeconfirmedorunconfirmed.Ifitisconfirmed,thenthebankhasaddeditsownundertakingtopayunderthetermsoftheletter.Anunconfirmedlettermeansthatthebankwillnotundertaketopayandmerelynotestheletter.Tosafelyconductbusiness,anirrevocable,confirmedletterofcreditisrequired.Withoutthis,theletterofcreditmaynotbehonoured.LiaisonbetweenprojectandaccountsGoodliaisonbetweenprojectfinancialcontrolsandthebusinessiscriticalinordertosuccessfullycompleteallbutthesimplestprojects.Theprojectaccountant(whetherfulltimeorpart-time)isanimportantpartofthatlink.AgoodworkingrelationshipbetweenProjectManagerandprojectaccountantwillensurethattherulesarenotinadvertentlybrokentheimportanceofbusinessfinancialcontrolsforgotten.AssetmanagementApartfromthemanagementofcashflow,yearendaccrualsandoverallexpenditure,thefinancedepartmentwillbeinterestedinhowtheprojectisimpactingcompanyassets.Mostprojecttypescandisposeofassets,amendthemorgeneratenewones,andeachneedstobetrackedwithintheorganizationalfinances.Assetsarethewaythatthecompanygeneratesrevenue,andsoanychangeneedstobetrackedwithinthecompanybalancesheet.Typicallythetimingofassetchangesisakeyareaofconcernforacompany:AssetdisposalWhenanassetisdisposedof,itisnolongergeneratinganyrevenueforacompanyandwillthereforenotdepreciateanyfurther.AssetgenerationNewassetsneedtobemaintained,andthisrepresentsanewcosttothebusinesswhichisseeninthecompanyfinancesratherthantheprojectfinances.Projectfinances113111_H8515_Ch04.indd1131_H8515_Ch04.indd113111/25/20087:10:59PM1/25/20087:10:59PM ManagingProjectDeliveryonlyconsidertheinitialcostofacquiringtheassetsothatitcanstartgeneratingrevenueforthecompany.FinancialgovernanceOftenthemostcrucialroleofthefinancedepartmentistheprovisionofappropriateadvicetotheprojectrelatingtofinancialrulesandregulationsunderwhichthecompanymustoperate.Whilstlargeprojectsmayhaveadedicatedprojectaccountantwholiaiseswiththecompanysfinancmanagementteam,itisoftenthecasethattheProjectManagermustprovidethatstronglinktoensurefinancialgovernance.114111_H8515_Ch04.indd1141_H8515_Ch04.indd114111/25/20087:10:59PM1/25/20087:10:59PM Set-upplandeliveryScopemanagementanddeliveryProjectscopedefinesthewayinwhichtheprojectwilldeliverbenefittothebusiness.Scopecanevolveoverthelifeofaproject,andoneoftheProjectManagersgreatestchallengesistheneedtoensurethattheprojectscopecontinuestodelivervalue.Scopemanagementanddeliveryshouldnotbeconfusedwithchangecontrolthefirstisaboutmanagingthedeliveryofvalue,whilstthelatterisaboutmanagingcost,qualityandtime.FormalcontrolofchangeiscoveredinChapter5,whilstthissectioncoversscopemanagementanddelivery.Beingincontrolofvaluedeliveryisatthecoreofbeingincontroloftheproject.Scopeshouldbeviewedintermsofitsabilitytoenablebenefitsandsoscopemanagementis,toalargeextent,themanagementofbenefitsrealization(Figure4-13):AreaofRequiredIdentifiesCriticalDefinesDeliversprojectDeliverablebenefitfeaturescopeEnablesFigure4-13LinkingscopetobenefitsScopemanagementprocessRememberthattheProjectManagersroleistomanage(scope)quantity,qualityandfunctionalitytodelivervalue.Theprocessofscopemanagementisreallyaboutvaluecontrolandvaluedelivery(Figure4-14).ValuecontrolThescopeofaprojectisdevelopedanddefinedsothateachactivityordeliverablerequiredforsuccessisincluded.Scopewhichdoesnotcontributetotheoutcomeiseliminated,andtheremainingscopehasaclearlinktothebenefitstoberealizedfromtheproject(Figure4-13).Thegoalthen,ofvaluecontrol,istoensurethatthisscopeisdeliveredaccuratelyandeffectively.TheprocessforvaluecontrolisshownonthelefthandsideofFigure4-14:IdentifyscopechangeDuringdelivery,therearetimeswhenscopechangesareidentified.Theseinstancesarediscussedinmoredetaillaterinthissection.Whateverthereasonfortheproposedchange,thekeyistolinkitbacktothescopedefinition.Avarietyoftoolsareavailableincludingthefollowing:FromRealProjectPlanning(Melton,2008):PathofCriticalSuccessFactors(CSFs)Inordertoachieveprojectsuccess,aseriesofCSFsareidentifiedanddefined.ACSFisanidentifiableaction/activitythatisrequiredtoachieveprojectsuccess.ThiscanbetabulatedinatableofCSFs.115111_H8515_Ch04.indd1151_H8515_Ch04.indd115111/25/20087:10:59PM1/25/20087:10:59PM ManagingProjectDeliveryAgreedRejectscopeIdentifyscopescopeDeliveredchangechangescopeNotOKChallengeDefinedandscopetrackedscopeOKAgreeRejectchangeAssessscopechangeimpactValuecontrolValuedeliveryFigure4-14ScopemanagementprocessCriticaltoquality(CTQ)treeACTQtreeisadiagrammaticrepresentationofthelinkbetweencriticalfeaturesandscope.Acriticalfeatureisafeaturewhichthebusinessusestoassessprojectsuccessandisgeneratedthroughtheconsiderationofthebenefitswhicharerequiredbythebusiness.WorkbreakdownstructureAwaytosegmentthescopeintoboundedactivitiesanddeliverablesandusuallycombinedwiththedefinitionofCSFs.QualitymatrixAwaytodefineinterimdeliverablessothatquality,quantityandfunctionalityaredefined.ActivityplanAwaytoformallyalignprojectactivitieswithCSFsdefiningquality,quantityandfunctionalityaswellasinternaldependenciesbetweenactivities.FromProjectBenefitsManagement(Meltonetal.,2008):CriticaltoQualityCTQScopeDefinitionToolThisisatoolwhichtabulatesaCTQtreeandineffectprovidessimultaneousscopedefinitionandchallenge.Ifthereisnolinkfromabenefittoacriticalfeaturetoanareaofscopetoadeliverable(Figure4-13),thenthedeliverableand/orscopeisnotapartoftheprojectvalueproposition.Hierarchyofobjectivesadiagrammaticwaytolinkabenefitsmaptoaprojectscope.Itallowsthelinkageofprojectobjectivestobusinessobjectives.Eachcanbeusedasthebasisforassessingscopedeliveryprogressandthereforethebasisforscopechangeassessment.ChallengescopeEachproposedchangeofscopeshouldbesubjectedtoanobjectivechallengewhichlinksbacktothevaluepropositionfortheproject.Inotherwords,Withoutthescopechange,canallcriticalfeaturesbedelivered?Noscopeshouldbeadded,deletedormodifiedsuchthatthebenefitscaseisnotcapableofbeingdeliveredinfull.TheScopeTracker(Table4-7)addressesthischallenge.116111_H8515_Ch04.indd1161_H8515_Ch04.indd116111/25/20087:11:00PM1/25/20087:11:00PM Set-upplandeliveryAssessscopeimpactEachvalue-addscopechangeneedstobedeliveredwithinaprojectwhichisalreadyinprogress,thereforetheimpactofthechangeneedstobeassessedandtherisktotheprojectoutcomeidentified.Itmaybethatthescopechangeisrequiredinordertodeliverthecompletevaluebutitsdeliverywouldcausetoomuchrisktootherelementsofthevaluedelivery.Inotherwords,Withthescopechange,isthedeliveryofanycriticalfeatureadverselyimpacted?Again,theScopeTracker(Table4-7)addressesthischallenge.RejectscopechangeScopechangeswhichhavenovalueoraretoodisruptivetoimplementshouldberejected.Communicationoftheserejectionsneedstobeclearasscopechangescantypicallyinvolvealotofstakeholderswithvaryinglevelsofinfluenceandpower.ValuedeliveryDuringprojectdeliveryvalueisrealizedcontinuouslyasthescopequantity,qualityandfunctionalityisdeliveredthroughcompletionofactivities,interimandfinaldeliverables.TheprocessforvaluedeliveryisshownintherighthandsideofFigure4-14:DefinedandtrackedscopeAllthescopedefinitiontoolslistedonpage111canbeusedtotracktheprogressofscopedelivery.Forexample:CSFdeliverycanbetrackedagainstmilestoneswithintheprojectroadmap.Deliverablescanbetrackedagainstthestagesofdevelopmentasdefinedwithinthequalitymatrix.DeliveredscopeAsscopeisdeliveredandfinaldeliverablesarecompleted,benefitsrealizationshouldbeenabled.Thisisdonethroughthedeliveryofcriticalfeaturesoftheproject.ScopechangeChangestoprojectscopehappenviatworoutes:externallythroughcustomer,supplierorenvironmentaleffectsandinternallythroughtheProjectTeam.Scopechangescomeinthreegeneraltypes:Requirementschange.Costchange.Scopecreep.RequirementschangeIncertaincircumstances,achangeinrequirementsisnecessaryforprojectsuccess.Forexample,amanufacturingplantmayneedanadditional10%capacitytocopewithemergingmarketforecastsalesforanewproduct.117111_H8515_Ch04.indd1171_H8515_Ch04.indd117111/25/20087:11:01PM1/25/20087:11:01PM ManagingProjectDeliveryAchangeinrequirementsisgenerallyoneoftheeasierscopechangesthattheProjectManagerdealswith(assumingthattherequirementsareadequatelydefinedinthefirstplace).Theyaregenerallyclearandmoreeasilyallowofaformalassessmentoftheimpactonthedeliverables.Theyareoftenpresentedintermsofthebusinesscasebyseniorstakeholdersandthereforefrequentlyhaveaccesstotheadditionalresourcesneeded(funds,people,assets).CostchangeToooften,achangeinthecostofaprojectisnecessaryforprojectsuccess.Forexample,achangeintheexternalmarketmaychangethebusinesscaseleadingtoreducedfundsavailablefortheproject.Scopechangesdrivenbycostconsiderationscanhaveamajorimpactontheprojectunlessthechangeisobjectivelychallengedagainstthecriticalfeaturesoftheproject.Inthisscenario,theProjectManagermustensurethatthestakeholdersbuy-intothechangeinvaluedelivery(asimpactedbythereductioninfunding).Toooftenprojectfundingiscutbutexpectationofprojectoutputremainsthesame.ScopecreepScopecreepisanextremelycommoncauseofscopechange.Thisistheincrementalchangeofscopeovertime,typicallyoccurringinanadhocmanner.ForexampleProjectTeammembers,customersandotherstakeholderssuggestorimplychangeinalow-keymanner:Whydontwealso?Projectscopecreepcanthreatentheprojectsabilitytodeliverandcomesinthreemaintypes:Requirementscreepusuallywheretheinitialrequirementsareaddedtoinapiecemealway.Forexample,acustomermayfillintheblankswithadditionalrequirementsthatwerenotclearintheoriginalscope.Theonlywaytomitigatethissituationistoensurethatthescopeisfullydefinedinthefirstplaceandthatdeliverydoesnotcommenceuntilthescopehasbeenchallengedagainstthevalueproposition.Featurecreepoftenassociatedwithsoftwareprojects,butalsooccursinmanytechnologyleadactivities.WheretheProjectTeamaddsfunctionswhichwerenotexplicitlyaskedfor,butareseenasuseful,willbeneededorjustincase.Themostappropriatewaytomitigatethissituationistochallengeeachadditionalfunctionagainstthecriticalfeaturesoftheproject.Instructioncreepassociatedwithchangeorproceduralprojects,where,forexample,theinitialsimplificationofbusinessinstructionsismademorecomplextocaterforunforeseeneventualities(analogoustotheideaofacamelbeingahorsedesignedbyacommittee).ManagementandminimizationofthistypeofscopecreepisentirelyduetogoodstakeholdermanagementonthepartoftheProjectManager,sponsorandtheProjectTeam.Shortcasestudy–featurecreepInthemid-1990s,AppleComputerswaslookingtoreplacetheoperatingsystemforitsMaccomputerswithanupdatedversionunderaprojectcodenamedCopland.ThiswastobearadicalupdateoftheexistingSystem7.5,withbackwardcompatibilityandahostofnewfeaturesincludingnativesupportforanewchipset.AsthisprojectgatheredmomentumwithinAppleandbecameapriority,existingprojectsanddevelopmentteamsbegantoaddtothescopeofCoplandtoensurethattheymaintainedtheirexistence.Inaddition,whenexternaldeveloperssawearlyversionsofCopland,therewaspressuretoaddyetmorefunctionality.Theprojectbecameevermorecomplex,andthenewoperatingsystemsdeliverydatecontinuedtoslip.By1997,itwasobvious118111_H8515_Ch04.indd1181_H8515_Ch04.indd118111/25/20087:11:01PM1/25/20087:11:01PM Set-upplandeliverythattheprojectinitscurrentformcouldnotdeliverastableproduct,anditwascancelled.ApplesubsequentlyacquiredNeXTandusedthatcompanystechnologytocreatetheMacOSXoperatingsystem.Inthisexample,theprojectpaidtheultimatepricefornotmanagingthefeaturecreep;itwasstoppedandsubstituted.Tool:ScopeTrackerTheCTQScopeDefinitionToolintroducedinProjectBenefitsManagement(Meltonetal.,2008)isthebasisfortheScopeTracker(Table4-7),whichisusedtoidentify,challenge,assessandtrackscopechanges.Changestoprojectscopearemosteasilyidentifiablethroughchangesindeliverables,andthistoollinksthedeliverablestotheprojectscopeandthentothecriticalfeaturesandfinallythebenefits.Table4-7TheScopeTrackerexplainedDeliveryToolkit–ScopeTrackerProject:ProjectManager:Date:Page:<1of1>DeliverableChange?ScopeImpact?CriticalImpactBenefitImpactfeaturecriteriaofscopeorprojectCTQfeaturetheproject>modify>theCTQdeliverablechangebenefit>changeonfeature>onscope>onCTQbenefit>feature>ScopechangesummaryDeliverableAnyscopechangewhetherbyrequirementchange,costorscopewillhaveanimpactonprojectdeliverables.Deliverableswhicharetochangeduetothescopechangeshouldbelistedhere.ChangeTheagreeddeliverablesfortheprojectshouldbeassessedandthenatureofthechangeidentified;eitheranadditionaldeliverableorthemodification/removalofanexistingone.ScopeTheoriginalscopeareawhichthedeliverablewaslinkedtoshouldbeidentifiedhere.119111_H8515_Ch04.indd1191_H8515_Ch04.indd119111/25/20087:11:01PM1/25/20087:11:01PM ManagingProjectDeliveryImpact(onscope)Achangeddeliverablewillhaveanimpactonthescope,andthisiswherethefirstassessmentofthescopeimpactwillbeidentified.Ifthedeliverablechanges,whatistheimpactonthescopearea?CriticalfeatureTheoriginalcriticalfeaturewhichthescopeislinkedtoshouldbeidentifiedhere.Impact(oncriticalfeature)Thechangeinscopewillhaveanimpactonacriticalfeature,andatthispoint,theassessmentprocesswillbeabletoidentifywhatthechangeis.Scopecreep,inparticular,canbeidentifiedatthispoint,usuallythroughthefactthatthescopechangehasnoimpactonexistingcriticalfeatures(butmayaddnewones).BenefitcriteriaTheoriginalbenefitfeaturewhichthecriticalfeatureislinkedtoshouldbeidentifiedhere.Impact(onbenefitcriteria)Thefinalpartofthetrackerassessesthechangetocriticalfeaturesagainsttheagreedprojectbenefits.Usuallythecriticalfeatureswillbelinkedtogeneralcategoriesofbenefitsratherthanspecificbenefitsmetrics.Often,itrequiresanumberofprojectdeliverablestoenableasetofspecifiedbenefitsinanyonecategoryorcriteria.ShortcasestudyDuringanoperationalimprovementproject,twokeydeliverablesareassessedforchangeduringdeliveryinordertocheckprogressofthescopeandhencevaluedelivery(Table4-8).Thebusinesshadindicatedthatpreviouslyapprovedfundswereunlikelytobereleasedduetoareprioritizationofbusinessneeds.TheprojectscopewasdefinedasthechangeinaspecificproductionareatoreduceoperatingcostsandreliedontwoCSFs:CSF1changedwaysofworking.Forexample,changingthewaythattheoperatorsinteractedwiththeproductionprocess;howtheymovedaroundtheplansothatpeoplewereusedmoreeffectively.CSF2changedproductionprocess.Forexample,changingtheproductionequipmentitselfsothattheprocesswasmoreeffective.TheScopeTracker(Table4-8)identifiedthatthebusinesscasehadchanged(lesscostavailablesolessbenefittoberealized)andthatifthechangeinscopewastobeaccepted,thenthesponsorhadtoacceptthechangeinthebusinesscaseandchampionthatwithotherseniorstakeholders.Inaddition,thepathofCSFshadalteredalongwiththeoverallvalueproposition.120111_H8515_Ch04.indd1201_H8515_Ch04.indd120111/25/20087:11:01PM1/25/20087:11:01PM Set-upplandeliveryTable4-8ExampleScopeTrackerDeliveryToolkit–ScopeTrackerProject:OperationimprovementProjectManager:PeterPiperDate:Week5Page:1of1DeliverableChange?ScopeImpact?CriticalImpactBenefitImpactfeaturecriteriaCell-basedNoneImprovetheNoneReduceNoneReduceReductionoperationprocesscyclenumberofoperatingwillnolayouttimeoperatingcostsperlongermeetNewpersonnelunitoutputtarget,standardbenefitsoperatingcaseneedsproceduretobereassessed.ThebenefitsareonlypossibleiftheequipmentandchangedWoWareBOTHdelivered.NewCancelImprovetheNoDecreaseWasteequipmentoncostrobustnessofchangeinwastewillbeitemAgroundstheprocessrobustnessfromtheunchangedpossibleoperationScopechangesummaryChangetoscopetoreduceprojectcostsaccepted,butbusinesscasenowneedstobereevaluatedtoconfirmthattheprojectisviableValue-addedscopeIntheexampleinTable4-8,theimpactandthechallengeprocessisrelativelysimple.Formoresubtlechanges,aformalprocessaroundtheconceptofvalueandleanscopeisrequired.Oneoftheprimarygoalsofanyleandeliverableistoputintotheprojectonlywhatisneededtomeettherequirements.Anythingelseisregardedaswaste.Oncethescopechangehasbeenidentified,itcanthenbechallengedusingsevenwastes(Table4-9).Thesevenwastesareadescriptionofthesevenareaswherewastecanbegeneratedinanytypeofprocess.However,Table4-9specificallyidentifieswastedefinitionwithinthescopemanagementprocessspecificallyscopechange.Eachtimeanareaofscopeischanged,itshouldbechallengedagainstthesevenwastesinordertoensurethatvalueisbeingappropriatelymanaged.Oncethescopehasbeenchallenged,ifaccepted,theappropriatepartsofthescopetrackershouldbeupdatedtoshowthenewscope.Atthispoint,itmaybenecessarytoworkwiththeprojectstakeholdersandotherstoensurethatthescopechangeisconsideredacceptableinthewiderprojectsense.121111_H8515_Ch04.indd1211_H8515_Ch04.indd121111/25/20087:11:02PM1/25/20087:11:02PM ManagingProjectDeliveryTable4-9ScopechallengeusingsevenwastesWasteareaScopechangeimpactExampleWaitingChangecandelaydecisionsorincreaseAnewcontrolsystemcouldhaveanadditionaldependenciesbetweenscopeitemsinterfaceaddedforlinkingtoabusinesssystem.Thenewinterfacewilldelaythecompletionofthecontrolsystempartoftheprojectandcreatealinktothebusinesssystemupdateproject.TransportChangecanrequiredeliverablestobeAmanufacturerforaskid-mountedpieceofmovedexcessivedistancestobeworkedonequipmentcouldbegivenresponsibilityforintegrationwithanotherpackage.Thiswillrequiretheskidequipmenttobemovedtoastaginglocationinadditiontothecustomersite.InventoryChangecanincreasethenumberofAsoftwareprojectcouldaddareportingfeaturetodeliverables,butnotchangethecriticalallowtheusertogeneratead-hocreportsinthefuturefeaturesorbenefitsOverprocessingChangecanincreasetheneedforhandling,ApharmaceuticalmanufacturerrequiresadditionalreviewingandapprovingdeliverablescommissioningdocumentationtobeproducedtosupporttheirinternalprocessesbeyondthatagreedintheprojectplanMotionChangecanrequireProjectTeamAchangetosourcingtechnologyforaprojectmemberstorelocate/movewithindifferentrequirestechnicalexpertstotraveltoIndiafrequentlylocationsDefectsChangecanincreasetheopportunityforAventilationsystempackageforaplantcouldbeerrorsorrequirereworkchangedfromoff-the-shelftobespokedesignandbuild,thusincreasingtheriskoferrorsOverproductionChangecanoffernobenefittotheprojectThechangeinabusinessprocessmaydelivernoadditionalbenefits122111_H8515_Ch04.indd1221_H8515_Ch04.indd122111/25/20087:11:02PM1/25/20087:11:02PM Set-upplandeliverySet-upplandeliverycasestudy–purchasingbusinessprocessimprovementToillustratethekeypointsfromthischapter,thedeliveryphaseofabusinessprocessimprovementprojectfollows.Itfocusesonthedeliveryoftheset-upplanasoutlinedinRealProjectPlanning(Melton,2008).SituationArecentreviewofanorganizationsabilitytopurchasekeyservicesorequipmenthasbeencompleted,andthemetricsdemonstratethatsignificantimprovementisnecessary.Itcantakeextendedperiodstoselectasupplierandthenevenlongertogetapurchasingcontractagreed.Thepurchasingteamhasgrown,butthisismakinglittleimpactonthebacklogofpurchasecontractsyettobecompleted.Thenumberofcontractsthathaveexpiredisincreasing.InitialprojectapprovalThebusinesscasedevelopmentprovedthatunlessthebusinessprocesswasimproved,theorganizationwouldbeunlikelytodemonstrateappropriatecontrolsofitsexternalspend(abudgetofapproximately$100million/year).AProjectManagerwasassignedandaskedtodeliverthebusinesscaseassummarizedbythebenefitshierarchy(Figure4-15).BenefitcriteriaWhyarewedoingtheMeetdivisionalproject?budgetBusinesscaseCost/benefitanalysisjustifyingtheprojectAchievegreaterfinancialcontrolofwithquantifiableandbudgetandimprovecostmeasurablebenefitcompetitivenessmetricsdefinedProjectscopeWhatweneedthePurchasingbusinessprocessimprovementprojecttodeliverinDesignandimplementationofthepurchasingorderforthebenefitsvaluestreamtoberealizedUnderstandthereasonswhythecurrentprocessisnotincontrol,whyitProjectobjectivesWhatwemeasuretotakessolongtopurchaseequipmentandservicesandwhysomuchprovedeliveryoftheresourceisneededtodotheseactivities.projectDesignandimplementanewbusinessprocessfrompurchaseneedidentificationtodeliveryofequipmentorserviceBenefitmetricsWhatwemeasuretoDecreasedpurchasingcycletime.proverealizationofImprovedeffectivenessofpurchasingresources(andpotentialreduction).thebenefitsIncreasedcostsavingsfrommoreeffectivepurchases.Figure4-15Benefitshierarchy–purchasingbusinessprocessimprovement123111_H8515_Ch04.indd1231_H8515_Ch04.indd123111/25/20087:11:02PM1/25/20087:11:02PM ManagingProjectDeliveryThebenefitsrequiredthedeliveryofanewbusinessprocesswhichwouldaddadditionalvaluetothebusinessinthreedistinctways:Getbetteratdoingdeals.Dothedealsfaster.Spendlesseffortindoingdeals.Itwas,therefore,seenasachallengingprojectrequiringanewapproachwithinafast-tracktimescale:benefitsneededtobedeliveredwithin6monthstosupporttheachievementoftheendofyearbudgettargetsandothernon-financialobjectives.Projectset-upplandevelopmentTheProjectManagerhadnotcompletedaprojectwithinapurchasingenvironmentpreviously;however,shefeltthatherbackgroundingenericbusinesschangeprojectswassufficienttocopewiththechallenge.Inaddition,shewastrainedintheuseofleanSixSigma(LSS)techniques,andbasedonthedatapresentedinthebusinesscase,shefeltthattheuseofsuchtechniqueswouldbecrucialinquicklyidentifyingandimplementingtheappropriatebusinessprocesschanges.Followingassignmenttotheproject,shequicklysetaboutformingateamandstartedtoplanthedeliveryoftheproject.Forthisreason,sheusedthedevelopmentofaset-upplanasastructureforeffectiveprojectlaunch.Theset-upplanoutlinedtheprojectorganization(Figure4-16)andfollowedthetraditionalroadmapforabusinesschangeproject(Figure4-17).Bothweredesignedtominimizetheuseofresourcessothatoperationofbusinessasusual(BAU)wasminimallyimpactedbytheearlystagesoftheproject.Teammemberswereselectedaccordingtoasetofcriteriawhichaimedtomaximizesustainablesuccess.SeniorStakeholdersCorporateProjectSponsorDivisionalLeadershipTeamPurchasingDivisionalHeadBarryJonesCorporatePurchasingManagersDirectorCoreTeamProjectManagerJoSmithDivisionalPurchasingCoreTeamDeputyProjectManagerRepresentativess(2)KaizenTeamElevenmembersfromwithinthedivisionandcorporatepurchasing.Capabilityprofiletocoveralltypesofprocurement(R&D,engineering,etc.),differentcontractsandexperienceswithintheorganizationFigure4-16Projectorganization–purchasingbusinessprocessimprovement124111_H8515_Ch04.indd1241_H8515_Ch04.indd124111/25/20087:11:02PM1/25/20087:11:02PM Set-upplandelivery51342CheckiftheBusinesscaseDelivertheDeliverthePlanningchangeisdevelopmentdesignchangerobust12345Go/GoLaterGo/ReplanGo/RedesignHandover/DonotRobust/NotFigure4-17Projectroadmap–purchasingbusinessprocessimprovementSet-upplandeliveryThedeliveryoftheprojectthroughstages2,3and4(Figure4-17)generallyproceededaccordingtoplan,althoughkeyissueswereseen:ProjectroadmapThedeliveryapproachproposedwasnoveltoallteammembersexcepttheProjectManager.ProjectorganizationThepressuresofmaintainingBAUanddeliveringtheprojectwereseenasissuesbyteammembers(regardinghavingsufficientcapabilityandcapacitytodeliversuchanovelproject).ScopemanagementThemanagementofavarietyofstakeholdersrequiredaclearandcommunicatedfocusontheCTQscopeandassociatedcriticalfeatures.NogeneralissueswereseenwiththemanagementoffinanceastheprojectwasfundedthroughthedivisionalrevenuebudgetandonlyrequiredtheProjectManagertofollowusualapprovalprocessesforthisfunding:DeveloparesourceplanwhichhighlightsanylosstothebusinessthroughnothavingtheresourceavailableforBAU.Developanexpenseplanlinkedtothelogisticsofrunningaweek-longworkshop.Onceapproved(throughasystemofallocatingapprovedfundstodifferentcostcodes)theProjectManagerhadauthoritytocommitfundinginlinewiththeplan.ProjectroadmapUponapprovalofstagegate2(Figure4-17),theProjectManagercommencedthedesignstage.Intermsofthekaizenapproach(Figure4-18),thismeantcompletionofthedesignofthekaizeneventandgainingapprovalfromallstakeholdersthattheeventshouldgoahead.Akaizeneventisaresource-intensivebutshort-time-scalemethodologywhichrequiresstakeholderandsponsorinvolvementattheendofeachdayinaweek-longprogramme(formaldecision-making)ineffect,therearestagegatesattheendofeachdaywhichcollatetoformthefinalapprovaloftheoutput.125111_H8515_Ch04.indd1251_H8515_Ch04.indd125111/25/20087:11:03PM1/25/20087:11:03PM ManagingProjectDeliveryDesignkaizen(6weeks)BenefitsrealizationDeliverkaizen(3weeks)PostkaizenPreparationforkaizenKaizenweekconsolidationDatarequestsissuedFivedaysfulltimeforaCollatekaizenoutputTeamformationdedicatedteamfromTrackkaizenactionsLinktopurchasingnetworkacrosstheorganizationCompletekaizenactionsLogisticsforkaizenweekDesignandimplement(additionaldesignand/orTeamtrainingchange(DMAIC)implement)Coreteampart-timewithDailysponsorandTrackbenefitsremainderofteamcollectingdatastakeholdersummaryRegularsponsorupdatesasapartof‘dayjob’ReadyYesApproveYesforkaizenkaizenplanNodelayFigure4-18Deliveryroadmap–purchasingbusinessprocessimprovementAsthemajorityoftheprojectcostanddisruptiontoBAUoccurredduringthekaizenweek,thisapprovalpre-kaizenwasseenasthemostcrucial.Apre-kaizenchecklistwasgeneratedtoensurethatthisstagegatewouldbeachieved(Table4-10).Thechecklistfocusedonthepeople,scopeandset-uprisksasidentifiedinthePathofSuccess.Asaresult,thekaizenwentaheadasoriginallyscheduled.ProjectorganizationAsthekaizenchecklistwasbeingcompletedduringweek6oftheproject,aseriesofadditionalteam-effectivenessreviewswereconducted:ProjectteameffectivenessviareviewofcriticalpartsoftheProjectRACI(Table4-11).Thisdemonstratedthattheteamwereoperatingasintended;usingthepurchasingbusinessexpertisewhereapplicableandusingthebusinessimprovementexpertisewhereapplicable.Projectteameffectivenessviaateamaudit(Table4-12)conductedbytheProjectManager.Thisdemonstratedthattheteamwerefindingitdifficulttobeinvolvedpart-timeintheleaduptothekaizenandwerescepticalofthiseventintermsofwhatcouldbeachievedinonlyaweek.ThetrackingRACIdemonstratedthatdataandteamcapabilitywillcontinuetobethemajorchallengesduringthekaizenweek.Inaddition,thefeedbackfromtheteamandtheseniorstakeholdersdemonstratedthatexpectationshadbeenraisedsubstantiallyevenifpeopleinthebusinessremainedsceptical.ManagingsuchraisedexpectationsbecameapriorityfortheProjectManagerasshepreparedforanddeliveredthekaizenweek.126111_H8515_Ch04.indd1261_H8515_Ch04.indd126111/25/20087:11:04PM1/25/20087:11:04PM Set-upplandeliveryTable4-10Pre-kaizenchecklist–purchasingbusinessprocessimprovementCSFTarget–Pre-kaizenStatus–Pre-kaizen1RobustdataAbilitytodemonstratethebaselineAMBERperformanceintermsoftheoperationoftheNotalldataisavailablebutsufficienttobaselinepurchasingbusinessprocesscurrentperformance2Capable90%involvedincurrentpurchasingbusinessGREENProjectTeamprocessAllteammembershaveclearedtheirdiariesforAllcommittedtobeingatthekaizenweekthekaizenweek,completedtheiractions(such100%ofthetimeaskeepingatimediaryastheyhavegoneaboutAlldeliveredtheirpre-kaizenactionsBAUintheperiodleadinguptothekaizen)andareAllshowingbehavioursindicatingthattheyareexcitedabouttheupcomingevent.readyandcapableofchangeSomenaturalscepticismatwhetherthekaizencanAllteammembershaveabasicleveloftoolsdeliverallithaspromised.skillsasneededforthekaizenweekCSFTarget–Pre-kaizenStatus–Pre-kaizen3SuccessfulAlllogisticsinplaceAMBERkaizenweekAllkaizenweeksuccesscriteriaagreedSomedatagapsbutalllogisticsinplaceincluding(criticalfeaturesagreed)accesstootherfacilitatorswithbusinessDatacollectioncompleteimprovementcapabilityPre-kaizendataanalysiscomplete4AcapableThefullprojectdeliveryisinplaceandinuseGREENProjectThepre-kaizenweektargetshavebeenEverythinginplaceasplanned.ManagerachievedFeedbackfromteamthattheyarehappywiththeKaizentoolstraininghasbeencompletedsupportandthesupportmechanismsputinplace.Kaizenweekdesignedandfacilitationorganized5EngagedAllactiveinsupportingthemethodologyGREENprojectActiveinsupportingtheresourcereleaseandEveryoneissupportive,ifalittlesceptical.sponsoranddatacollection.ResourcesreleasedandadditionalfundstotakestakeholdersCommittedtoattendingthekaizendailyoutteamoutforamealattheendofthekaizenweek.briefs,inparticularthefinaldayGoodcommitmenttoattendanceateachdailyoutbrief.6AnCommunicationstopre-kaizencompletedandAMBERorganizationsuccessfullyreceivedTheresistanceseenduringteamselectionisstillreadyforThoseimpactedaresupportiveofthechangearoundandneedstobemanaged.change(releasedata,askforinformation,committedIngeneralotherpeopleinBAUteamareinterestedtoattendingatleastonekaizendailyoutandarepleasedwiththeopeninvitationtocomebriefs)andhavealookatwhatweredoing.DecisionCommentsGoOveralltheprojectpre-kaizenisassessedasAMBER.Thisisanacceptablelevelofriskconsideringwheretheamberrisksareandthemitigationplansinplace.Theconclusionpre-kaizenwasthattheteamwasaswellpreparedastheycouldbeconsideringthattheyhaveneverdoneanythinglikethisbefore.Asthekaizeneventproceeded,allteammemberswereamazedatthewaythisacceleratedwayofworkingengagedthemandprogressedtheprojectintermsofdesigninganewpurchasingbusinessprocess.127111_H8515_Ch04.indd1271_H8515_Ch04.indd127111/25/20087:11:04PM1/25/20087:11:04PM ManagingProjectDeliveryTable4-11CompletedTrackingRACI–purchasingbusinessprocessimprovementDeliveryToolkit–TrackingRACIProject:PurchasingbusinessprocessimprovementSponsor:BarryJonesDate:Week6ProjectManagerJoSmithActivitytrackingActivityRY/NAY/NCY/NIY/NGapanalysis(responsible)(accountable)(consulted)(informed)DataKaizenteamYesProjectYesCoreteamYesKaizenYesNonecollectionManagerteampre-kaizenUsingpurchasingexpertiseappropriatelyDataCoreteamNoProjectYesKaizenteamYesKaizenNoProjectManagerdidanalysisManagerteambulkofdataanalysispre-kaizenduetolackofexperienceincoreteam.Informingthewiderteampre-kaizenwasnotappropriateKaizenProjectYesSponsorYesCoreteamYesKaizenYesNonechecklistManagerteamandseniorBAUteamUsingprojectandbusinesschangemanagementexpertiseappropriatelyAttendKaizenteamYesProjectYesCoreteamYesSponsorYesAlthougheveryonekaizentoolManagerwentthroughthetrainingtrainingitwasclearthatthebaselinecapabilitywaslowerthanexpectedPre-kaizenProjectYesSponsorYesCoreteamYesSponsorYesThistookmoretimestakeholderManagerthananticipated,managementandattimesconsultationwiththecoreteamwasnotpossibleActionplanReviewof4keypre-kaizenactivitieshighlightedthenovelnatureofthisprojectapproachandthesupportthatwillbeneededduringthekaizenweekintermsoffacilitationanddataanalysis.Additionalfacilitatorshavebeenobtainedtosupportuseofthebusinessimprovementtoolsandmitigatecapabilityrisks.128111_H8515_Ch04.indd1281_H8515_Ch04.indd128111/25/20087:11:05PM1/25/20087:11:05PM Set-upplandeliveryTable4-12CompletedProjectTeamAuditTool–purchasingbusinessprocessimprovementDeliveryToolkit–ProjectTeamAuditToolProject:PurchasingbusinessprocessimprovementSponsor:BarryJonesDate:Week6ProjectManagerJoSmithTeamchecklistCheckResponseCommentIsteammanagementappropriate?YesUsingthepurchasingrepsinthecoreteam(Figure4-16)Isteamcommunicationappropriate?YesTryingnottooverloadtheteamwithtoomuchnewinformationIstheteamworkingarea(officeorNotyetTheteamaremeetinginfrequentlyandhavenoteamarea.virtualenvironment)supportiveofThiswillbesolvedoncewekickoffthekaizenweekaswesuccess?willquicklygenerateateamworkingarea.IsteammoralesupportiveofsuccessMainlyTeamarerespondingwelltoadifficultchangesituation(howtheteambehaves,itsvalues)?(analyzingtheirownjobsandtosomeextenttheirperformance).Theyaremanagingquerieswellfromco-workersandfacingresistancewithmaturity.Istheteambeingmanagedeffectively?YesThecoreteamhavebeenfundamentaltoeffectivemanagementpre-kaizenastheProjectManagerisnotinvolvedfulltimeinthepurchasingdepartmentIstheteamperforming(achievingitsMainlyWheredataisavailable,theteamhavecollecteditgoals)?althoughthereissomequestioningastowhyspecificdataisnecessary.Thereisanaturalchallengetodatacollectiontheteamarenotusedtomeasuringperformanceinthisway.Isthereconflictintheteam?NoThereisthehintofpossibleconflictbetweensometeammembersandanindividualco-workerthisneedsmonitoringIstheteamworkingeffectivelyYesAswellascanbeexpectedpre-kaizen,withonlyalow(individualperformance,clarityofrolelevelofactivityfrommostteammembers(asplanned)andWoW)?TeamactionplanThekaizenteamandthecoreteamareworkingaswellascanbeexpected.Theyareateamalreadybecauseallareworkinginthepurchasingdepartment,however,theywillonlyformasakaizenteamduringthekaizenweek.ThegoalfortheProjectManageristohaveahighenergyday1thatassiststheteamtoquicklymovetobeinghighlyperformingthisispossible.ScopemanagementanddeliveryThescopeoftheproject,asdefinedintheset-upplan,wastheimprovementofthepurchasingbusinessprocess(Figure4-19)throughusingaLeanSixSigma(LSS)methodology(viaakaizenevent).Thefinaldeliverablesweredefinedas:129111_H8515_Ch04.indd1291_H8515_Ch04.indd129111/25/20087:11:06PM1/25/20087:11:06PM ManagingProjectDeliveryPurchasingprocessesCustomerasksforPurchasepurchaseofPurchaseCustomercontractserviceorspecificationreceivespurchasedevelopmentequipmentContractSuppliernegotiationandselectionagreementContractContractmanagementrenewalFigure4-19PurchasingbusinessprocessAnewpurchasingbusinessprocess.Asetofroledescriptionsandperformancemeasures.Abusinesschangeplanchangingfromcurrenttofuturewaysofworking(WoW).Inordertodelivertheseoutcomes,theCSFsneededtobeachieved,requiringrobustprojectandbusinesschangemanagement.However,thebusinessprocessdesignworkwasmainlyconductedduringthekaizenweek.Successinthelatterwasseenbythedeliveryofcriticalfeatureswhichtheseniorstakeholdersandbusinessownerexpectedtoseeattheendoftheproject(Figure4-20).Thescopecanthereforebeconsideredintwoareas:processandcontent.ProcessscopeTheteamusedtheworkbreakdownstructurewhichwasdevelopedbyfirstbrainstormingalltheactivitiesrequiredtoachieveeachCSF.Thiswastrackedusinganactivityplanwhichdefinedquantity,qualityandfunctionalityofeachitemintheworkbreakdownstructure(activity).Theteamalsomanagedthedependenciesbetweenitems.Processscopeactivitiesincludedthedesignofthekaizenevent,themanagementofstakeholdersandcommunication.ContentscopeThebasisforcontentscopeistheCTQTree(Figure4-20),andthissupportedthedevelopmentofthedesignactivitieswhichwereperformedduringthekaizenevent(Table4-13).Effectively,thecontentscopeisdividedintothreeareasofdesignasdefinedwithintheCTQTree:Purchasingprocess,measuresandroles.Purchasingorganizationaldesign.Implementation.AnexampleoftheoutputsiscollatedinFigure4-21.ThekaizenweekdeliveredtheintendedscopeasdefinedbytheCTQTree(Figure4-20)andgainedapprovalforthreelevelsofbusinesschange(Table4-14):1.JDIPhaseJustDoItimmediatechangesassoonasthekaizenweekfinished.2.Phase1finalizingthebusinessprocessandmeasurechanges(designcompletionandimplementation).3.Phase2finalizingthereorganization(design,approvalandimplementation).130111_H8515_Ch04.indd1301_H8515_Ch04.indd130111/25/20087:11:06PM1/25/20087:11:06PM Set-upplandeliveryBenefitCriticalfeaturesContentscopeDeliverablesReductioninQuickerpurchasingdecision-variationandmakingAll‘deals’cycletimePurchasingdevelopedtheProcessredesignpositioningmodelsamewayReductionin(1)StandardizationduplicationPurchasingprocess(FlowchartandSOPs)ReductioninDoingquickerRoleredesignpurchasingFinancial‘deals’resourceper/savingPurchasingrolecontractoutlinesmanagementDoingbetter(2)Betterbudget‘deals’OrganizationalIncreasedcomplianceredesignPurchasingorganizationchartIncreasedImprovedLessefforttodoMeasuresPurchasingperformancebudgetcontrolgood‘deals’redesigndashboardvisibilityofresources(3)EffectiveuseChangeplanImplementationStakeholderPracticalplanningandengagementsolutionschangeimplementationBusinesschange(4)ImplementableFigure4-20CTQTree–kaizensuccesscriteria–purchasingbusinessprocessimprovementTable4-13Contentscope–purchasingbusinessprocessimprovementDayDay1Day2Day3Day4Day5ActivitiesDatamappingRootcauseProcessdesignDetailedChangeimpactProcessanalysisProblemprocessdesignanalysis(forcemappingTime-valueeliminationProcessfieldandriskVisioningmappingBenefitssimulationanalyses)DataanalysisspecificationRoledesignDeliverablesCurrentstateDetailedPurchasingPurchasingPurchasingmapproblembusinessbusinessbusinessVisionofstatementsprocessprocess(SOPschangeplansuccessWastelist(flowchart)androlePurchasingPurchasingCurrentNewmeasuresoutline)organizationmodelmeasureschart131111_H8515_Ch04.indd1311_H8515_Ch04.indd131111/25/20087:11:06PM1/25/20087:11:06PM 111_H8515_Ch04.indd1321_H8515_132ManagingProjectDeliveryCh04.indd132Day1mappingthecurrentstateDay2identifyingrootcausesDay3mappingthefuturestateOver100issuesidentifiedAllissueswereanalyzedusingacombinationIdentificationofstagesandstagegatesAveragetimeforsupplierselection1yearof‘fivewhys?’,fishboneandwhat-if?techniquesLinkedtoapurchasingmodelwithfourAveragetimetospecify3monthscategoriesDay4designandtestingDay5implementationplanningPost-kaizenProcesssimulatedforarecentpurchasingDevelopingabusinesschangeplantotakeMonitorimplementedchangesprojectandbenefitsidentifiedintermsofthebusinessfromthecurrentstatetotheImplementfurtherchangesreducedcycletimeandresource‘effort’futurestateConductanengagementsurveyMeasuresandrolesdevelopedSomeareasofthedesignwereimplementedstoppingwastefulactivitiesFigure4-21Kaizenphotos–purchasingbusinessprocessimprovement111/25/20087:11:08PM1/25/20087:11:08PM 111_H8515_Ch04.indd1331_H8515_Ch04Table4-14CompletedScopeTracker–purchasingbusinessprocessimprovement.indd13DeliveryToolkit–ScopeTracker3Project:PurchasingbusinessprocessimprovementSponsor:BarryJonesDate:Week6ProjectManagerJoSmithDeliverableChange?ScopeImpact?CriticalfeatureImpactBenefitcriteriaImpactAgreedoutputAdd,AgreedscopetoImpactofACTQfeatureImpactofInsertorganizationalorprojectImpactofCTQfromthedelete,delivertheCTQchangetochangeonCTQbenefitfeaturechangeprojectmodifyfeaturedeliverableonfeatureonbenefitscopePurchasingNoneProcessNone(1)Standardization;None(a)ReductioninpurchasingNonemodelredesign(2)Betterbudgetvariationandcycletime;(b)managementFinancialsavings;(c)Reductioninpurchasingresource/contract;(d)IncreasedcompliancePurchasingNoneProcessNone(1)StandardizationNoneNoneflowchartredesignPurchasingModifyProcessReduction(1)Standardization;NonethisisaBenefitreducedSOPsredesignindetail(2)Betterbudgettimingchangeuntilphase1completedmanagement;(3)EffectivecompletionduringkaizenuseofresourcesPurchasingNoneRoleredesignNone(1)Standardization;None(e)Reductioninduplication;(f)Noneroleoutlines(2)BetterbudgetQuickerdecision-makingmanagement;(3)EffectiveuseofresourcesPurchasingNoneMeasuresNone(1)Standardization;None(g)Improvedcontrolofbudget;(h)Nonedashboardredesign(2)BetterbudgetIncreasedperformancevisibilitymanagementBusinessModifyImplementationOnlyathirdin(1)Standardization;(2)Nonethisisa(i)StakeholderengagementinallBenefitreducedchangeplanplanningandkaizenscopeBetterbudgetcontrol;(3)timingchangechangesuntilphase2implementationEffectiveuseofresourcescompletionSet-upplandeliveryOrganizationModifyOrganizationalRemovedfrom(3)BetterbudgetNonethisisa(g)ImprovedcontrolofbudgetBenefitreducedchartredesignkaizenscopemanagementtimingchangeuntilphase2completionScopechangesummary111/25/20087:11:09PM1/25133Allscopechangeswereacceptedalthoughitwasrecognizedthatthesechangeswouldreducesomeoftheimmediateimpactofthekaizen.However,duetootherorganizational/20changesgoingoninthebusinessitwastherightdecisiontonotfullyredesignthepurchasingdepartmentwithinthekaizen.Inanyevent,thereductionofscopegavetheteam08moretimetospendonthemainareasofscopetheprocessredesign.7:11:09PM ManagingProjectDeliveryThefourkeyconceptsunderpinningthescopeofthebusinesschangeweredeliveredandarediscussedbelow:PurchasingpositioningThesegmentationofpurchasing(andthensupplierassociatedwiththatpurchase)isnowaccordingtoriskandpurchaselevel.Thisallowsprioritizationofpurchasingresourceandappropriatevalue-addmanagementofsuppliers.Forexample,asupplierwhoisdeliveringahighlycritical,highcostproductorservicewouldbemanagedquitedifferentlyfromoneprovidingsimple,lowcostconsumables.StandardizationThegenerationofastandardsetofprocesses(withassociateddocumentsandmeasures)basedonbestpracticeinthenetwork,withlinkstopurchasingpositioningsoastobestandardizationwithcommonsense.ValuestreamapproachThisapproachreferstothegenerationofaflowofvalueforthebusinessfromthedecisiontobuy,throughtocontractimplementationandrenewaluntilthedecisionnottobuy.Thisisthefoundationforthebusinessprocesses,thecultureandtheorganizationalstructure/roles,butdoesnotdefineanyofthesethreewithoutconsiderationoftheotherkeyconcepts.Avaluestreamapproachaimsto:Minimizetransitionsandhandovers,eliminatingfunctionalsilos,concentratingonthedecreaseincycletimeandinventory,theincreaseinpurchasingeffectivenessandthereductioninvariation.Impacttheorganizationaldesignsothatrolescrossovertraditionalpurchasingboundariesinthecompany.MeasuresThegenerationofappropriatemeasuresdrivenbythethreepreviousconcepts:Thepurchasingpositioningdrivespurchasingcategorymeasures,whichdriveappropriatebehavioursineachcategory.Standardizationdrivesthedevelopmentofadashboardapproachtofocusonkeymeasures.Thevaluestreamdrivesoverallmeasuresofcycletime,inventoryandthroughput(intermsofgettingcontractsimplementedandrealizingbenefits)andalsovariation.Measuresweredividedintothosemeasuringtheprocessandthosemeasuringvaluegeneration.ConclusionsOverall,theprojectdeliverytook9weeksasscheduled;6weekspre-kaizenand3weeksforthekaizenandpost-kaizenscope.Attheclose-outreview,thefollowingachievementswereacknowledged:Reducedcycletime(fromdecisiontobuytoanimplementedcontract)potentiallyfrom1218monthsto3months.Reducedcycle-timevariationpotentiallyfromrandomto2standarddeviations.134111_H8515_Ch04.indd1341_H8515_Ch04.indd134111/25/20087:11:09PM1/25/20087:11:09PM Set-upplandeliveryReducedworkinprogress(purchasingcontractsnotyetcompleted).Reducedamountofpurchasingresourceneededduetoincreasedeffectivenessandefficiency(asmeasuredbyreductionintotalresource/contract).Savingstothebusinessreleasedearlieranimplementedcontractmaysavemoneyforthebusiness.Ifthiscanbeachievedearlier,theneachdayearlierrepresentsfinancialsavingsforthebusiness.Improvedpurchasingteamdevelopmentduetoallhavingclearrolesandassociateddevelopmenttargets.Thekaizenwasaverydynamicandinspirationalwaytodesignandimplementchange,butitrequiredstrongleadershipsupportandeffectivecommunicationtothoseimpactedbythechanges.TheProjectManagerunderstoodtherisksofthisapproachandensuredthattheyweremanagedwithinthecontrolplan.Inordertosustainthebusinessbenefits,thepurchasingteamneedtobeengagedinthechange,andFigure4-22demonstratesthatthisisgrowing.StatusofengagementAtoriginalstatePartwaythereNearlythereReacheddesiredstateFigure4-22Teamengagement–post-project–purchasingbusinessprocessimprovementInaddition,theteamconfirmedthefollowing:Theprojectoutcomeshavechangedpersonaldecision-makingonwhatitisappropriatetospendtimeonthisisgeneratingaconsistentapproachacrosstheUK.Thevalue-streamapproachisdrivingpositivebehaviourswhichsupportvalueforthebusinessreducingduplicationofeffort.Itsgreattohavesomenewmeasures.Expectnoisethisisachangeprojectandsomenoiseisexpectednoteveryonewentthroughthekaizenexperience.KeypointsTheaimofusingthiscasestudywastodemonstratethat:Deliveryoftheset-upplanwasfundamentaltosuccessbecausepeopleandscopewereattheheartofthisproject.GettingtherightmixofcapabilitieswithintheProjectTeamiscriticaltoprojectsuccess.Aprojectcantakemanydifferentroutes,andagoodProjectManagerwilldefinethedirectionandthekeydecisionpointsalongthejourneythisisthevalueofaprojectroadmap.135111_H8515_Ch04.indd1351_H8515_Ch04.indd135111/25/20087:11:10PM1/25/20087:11:10PM Troubleshootingset-upplandeliveryTable4-15isalistofcommonissuesassociatedwithset-upplandelivery.Table4-15Troubleshootingset-upplandeliveryTypicalsymptomsExamplerootcausesExamplesolutions1.NotfollowingtheProjectManagerhasnotengagedwiththeEnsurethattheprojecthasbeenkickedoffset-upplanProjectTeamappropriately2.PoorteamInappropriateProjectTeamselection(linkedtoReviewthecapabilitiesrequiredandworkwithperformancepoorplanning)teamlackscapabilitysponsortoselectandgetreleaseofappropriatepeoplefortheteamPoorteamorindividualmanagementProjectProjectDirectororlinemanagertomentorManagermaynothavethepeopleskillstheProjectManagerwithregardtoteammanagementPoorornoteamengagementwiththeprojectEnsurethatateamengagementplanidentifiesgoalstherightwaytoengagetheteamandkeepthemengaged.Forexample:CommunicationsKick-offMeasuresandrewardInappropriatecommunicationsEnsurethatcommunicationsplanincludestheProjectTeamasadistinctstakeholdergroupTeamofoneEnsurethattheProjectTeamisappropriatelyresourcedwitheachmemberhavingaclearlyToomanychiefsdefinedrole,responsibilityandaccountabilityToomanyIndians(RACI,resource-loadedschedule)Part-timeteammembersGainingthewrongteammembers(beinggivenWorkwiththesponsortopositionthatthisistheteammemberstogetthemoutofotherpeopleswrongpersonfortheprojectway)Identifyalow-riskactivitywheretheteammembercoulddelivervalue3.TeamconflictBreakdownofauthorityintheprojectConsiderchangingtheProjectManagerhighlyand/orconflictunlikelythatauthoritycanberegainedbyanwiththeProjectexternalinterventionManagerCulturalorpersonalityclashesConsidertheindividualsituationandindividualsinvolved.Firstresponsemaybementoring,butultimateresponsemaybetoremoveoneorbothindividualsfromtheproject.(Continued)111_H8515_Ch04.indd1361_H8515_Ch04.indd136111/25/20087:11:11PM1/25/20087:11:11PM Set-upplandeliveryTable4-15(Continued)TypicalsymptomsExamplerootcausesExamplesolutions4.TeaminstabilityLosingteammembersbusinesswillnotUsesponsortohelpbusinesstounderstandthelotsofchangescommitpermanentmemberstotheprojectneedandbenefitofpermanentteammembershipLosingteammembersteammembersrequestEnsureaformalexitreviewsothatreasonsaretoleavefullyunderstoodandmitigatingactionscanbetakentopreventimpactonwiderteamGainingteammembersEnsureappropriatenewmemberinductionandstructuredteam-buildingevents.Considercommunicationplantolinkinwithkeyphasesinteamgrowth.5.FinanceandThereisnolinkbetweentheprojectandtheEnsurethatfinancialcontrolsalignwithbusinessprojecthavefinancialmanagementwithinthecompanyneedsbydevelopingaworkingrelationshipwithdifferentviewsonaccountantstotalspendtodate6.PressurefromDealingwithyear-endissuesmeetingcashEnsurethataneffectiverelationshipbetweenthefinancialgroupflowtargets(spenttoolittleortoomuch)projectandbusinessaccountantssothatfundsarespentatanagreedrate,inlinewithbusinessDealingwithyear-endissuesmeetingyear-endtargetsandattimestobeofmostbusinesstargetsbenefittotheorganizationasawholeCurrencyvolatility7.ScopekeepsNotdefinedwellenoughatthebeginningStopandconductafullscopereviewtoensurechangingthatscopeislinkedtocriticalneeds/benefitsYouweredoingthewrongprojectinthefirstplaceCustomerchangesscopeReviewrequiredchangesversustheoriginalbusinesscase.ConductavaluereviewexerciseManagementchangesscopetodetermineifthechangewilldeliveradditionalSupplierchangesscopevaluetothebusiness.BusinessischangingCommunicatewhythechangehasoccurredtoensurethatthescopecontinuestoalignwiththebusinessneedanddeliversappropriatevalue8.ScopecreepTheProjectTeamareoverengineeringtheEnsurethattheProjectTeamunderstandwhatisprojectcriticaltoqualityandonlychangewherethereisclearlyidentifiablevalueScopemanagementisnotrobustEnsurethatthereareappropriatedeliverablestrackingmechanismsinplacethatlinkscopetobenefits137111_H8515_Ch04.indd1371_H8515_Ch04.indd137111/25/20087:11:11PM1/25/20087:11:11PM ManagingProjectDeliveryHandyhintsProjectmanagementisallaboutpeoplemanagementBesuretospendtimeconsideringteamcultureandteammotivation.Valuemanagementneedstobeintegratedintoeveryone’swayofworkingifitistobesuccessfulUnderstandinganddeliveringvaluecanbeconfusingespeciallywithalargeteam,acomplexprojectoracustomergroupwithvaryingexpectationshaveprocessesinplaceforthecascadeofvaluemanagementsothatscopedeliveredislinkedtothebenefitsrequired.ManageorganizationalresourceswiselyThismightseemobvious,butanyProjectManagerneedstorealizethatwhenorganizationalresources(e.g.,moneyandpeople)areallocatedtohisproject,theycannotbeusedelsewhere.Ineffectanymisusebyyourepresentsawasteofresourceefficiencytothebusinesswhichcanneverberecouped.Nomatterhowsimpletheprojectorhowsimilaritmaybetoapreviousproject,defineaprojectroadmapAroadmapisacommunicationtoolforeveryoneinvolvedinaproject.Ittellsuswherewearegoingandwhatwehavetodotomovethroughsuccessivestagesofthejourney.Don’tignorefinancemanagement–thereareorganizationalandlegalimplicationsOrganizationsusuallyhaveverystrictrulesandguidelinesonhowmoneycanbespent.Thisisusuallylinkedtotheirownbusinessgovernanceaswellasaccountinglaw.Findouttherulesandmakesurethattheteamunderstandthem.Deliveringaprojectsuccessfullyneedspeople–don’tignoretheteamAkeypartofmaintainingengagementwiththeProjectTeamisinvolvingtheminappropriatedecisionsandinempoweringthemclearly.However,situationscanchange,andbesuretocommunicateeffectivelywithyourteamwhendecision-makingprocesses,authoritylimitsandoverallgoalsalterandwhy.138111_H8515_Ch04.indd1381_H8515_Ch04.indd138111/25/20087:11:11PM1/25/20087:11:11PM Set-upplandeliveryAndfinally...Effectiveset-upplandelivery:Maintainsalinkbetweenthepeoplewithintheprojectandthevaluethattheyhavetodeliver.Supportsbusinessplandelivery,ensuringthatthebusinessbenefitswillbeenabled.Ensuresthatthecontrolplanisappropriateandcapableofsupportingprojectsuccess.IsbuiltoneffectiveProjectTeammanagementandeffectivevaluedelivery.139111_H8515_Ch04.indd1391_H8515_Ch04.indd139111/25/20087:11:11PM1/25/20087:11:11PM