3 rd IEEE TMC Workshop: Telecommunication Project and Quality Management

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1 3 rd IEEE TMC Workshop: Telecommunication Project and Quality Management Quality Improvement for Processes and Systems through Standardization in Project Management Think forward Annegret Loeser Bonn, 11 th of April 2008 Member of

2 Good-quality Project Processes Page 1

3 Content 1. Objective of Presentation 2. PM Standardization through Human Resource Development 3. Standardized Project Management Organization 4. Standard Processes, Procedures and Methodology 5. Mandatory Usage of Tools 6. Setup of Standard Organizational Interfaces 7. Benefits 8. Challenge 9. Conclusion Page 2

4 1. Objective of Presentation The objective is to show, that standardization of project management systems within companies results in benefits for the entire project life cycle and the company. existence of project management standards common knowledge, acceptance and usage of PM standards focus on project subject and project results Page 3

5 2. PM Standardization through Human Resource Development Human resource development has to support the implementation of a company specific common project management language and understanding. Standard definitions and wording Standardization of know-how transfer Organized exchange of experiences Standardization of PM education and training Page 4 the basis for Common project management language and understanding Certified PM professionals

6 2. PM Standardization through Human Resource Development Common project management language and understanding can be achieved by establishing a few concrete measures. Decide on the usage of a widely accepted standard project management framework, e.g. PMI, IPMA-GPM, PRINCE2. If necessary, customize framework to company specific needs. Define a project management career model for different levels of expertise (e.g. junior project leader, project leader, senior project leader. Train new and existing staff accordingly. Establish communication platform for the exchange of project management know-how and experience between company staff. Define processes to maintain the platform. Set up a cross-company project management expert team as the nucleus of an efficient project management network. Team should offer organized know-how transfer and sharing of experience. Support staff in achieving project management certifications and graduations (according to the chosen standard project management framework). Page 5 Common project management language and understanding Improvement of education and communication processes

7 3. Standardized Project Management Organization A company which has set its focus on project based functions needs to build appropriate operational and organizational structures for project management. Internals of Project Outside Edge of Project Improvement of Organizational Structure Set up of steering committee Clarify project client, project sponsor Set up program with projects / sub projects. Set up projects with sub projects and work packages Set up program office / project office Define all relevant project roles Set up competence center / expert team for project management guideline competence for PM topics ( Perform projects the right way. ) Set up of a project portfolio management team decision on start, continuation, modification, cancellation of projects ( Perform the right projects. ) Improvement of Operational Structure Define project internal processes (initiating processes, planning processes, executing processes, monitoring and controlling processes, closing processes) Define standard procedures for communication, escalation, risk management, reporting,. Page 6 Define approval procedures for projects, assignment process for project leader Define process to ensure alignment of projects with the company s strategic goals Define auditing processes for projects Define coaching processes for project leaders and project team members

8 4. Standard Processes, Procedures and Methodology IPMA, PMI and PRINCE2 provide only PM frameworks which have to be detailed and specified precisely for the needs of the company s business. Processes Procedures Methodology Adapt processes according to project type (innovation, ICT, branchspecific, organization) Adapt processes according to complexity of projects (small, short running projects may require different or less processes than big, long running projects or programs) Page 7 Detail reporting procedures Detail escalation procedures Specify purchasing procedures Specify acceptance procedures / acceptance tests Determine test methodology (e.g. for IT projects) Define methodology for project reviews, project audits Define methods to measure progress of projects (earned value, project balanced scorecard, KPI) As few standards as possible, as much standards as necessary efficient processes and procedures

9 4. Standard Processes, Procedures and Methodology To define and maintain the project portfolio of a company or for parts of the company, approval and evaluation rules need to be determined. How to generate project ideas How to approve project ideas and develop a project order How to prioritize programs / projects How to ensure continuous alignment with company strategy How to calculate business case for programs / projects How to allocate resources (personnel, finance, materials) to programs / projects How to cancel programs / projects due to different business strategy, different priorities How to handle changes of program scope / project scope How to report progress of project portfolio Page 8

10 5. Mandatory Usage of Tools The mandatory usage of project management tools can comprehend high-sophisticated project management software as well as templates in Word, Powerpoint and Excel. Calculation tools for: business cases, budget monitoring, personnel expenditure, earned value analysis, plan/actual comparison,. Templates in Word, Powerpoint, Excel for: project order, project scope, PSP, controlling reports, risk management, communication plan, stakeholder analysis, organization chart, Project manual (framework for documentation of all relevant project topics, to be filled out for every project; contains templates and structures) What is a must? Project management reference book (guideline for project management company specific) Project management software (e.g. Microsoft Project, Primavera, Projektron BCS, Graneda, Artemis) Page 9 What is nice to have? Streamlining / Customizing of processes

11 6. Setup of Standard Organizational Interfaces Usually, parts of a company are not involved directly in projects, but have to deal with the outcome of the projects. Standard interfaces must be defined to avoid friction losses. Workers Council Finance & Controlling Legal Department Human Resource Corporate Development Marketing Communications Page 10 standard definition of interface between company departments and project IT Operations Internal Auditing Purchasing Department

12 6. Setup of Standard Organizational Interfaces Projects with significant impact on companies, communities, parties outside the company need clearly defined communication interfaces on management and working level. Project Issues External Partners Purchasing of material, personnel Purchasing Department Supplier Contracts Legal Department (together with Purchasing Department) Supplier Project results, e.g. new products Marketing Communication, Press Officer Customers, Suppliers, Public Planned projects, e.g. mergers & acquisitions Project issues necessary to provide project results Page 11 Marketing Communication, Press Officer, CEO Project Team Members Customers, Suppliers, Public, Public Authorities Suppliers, Team members of supplier

13 7. Benefits If standardization in project management is effectively implemented within an organization, the resulting benefits are significant. Benefits For employees: Reduced misunderstandings / friction losses due to common project management language Accelerated integration of new project team members due to organized know-how transfer Time savings due to precise predefined guidelines For the company: Time savings and financial savings during initiating project processes due to given standards (no re-inventing of the wheel) due to defined communication processes (everybody knows who is responsible for what) due to accelerated integration of internal and external staff because of shortened start-up of new projects due to transparency and re-identification of project documentation because of cancellation of projects not longer in line with business strategy due to optimization of contribution to business value via prioritization of the right projects Page 12

14 7. Benefits Examples for financial savings. Benefits - Examples Two team members of project office define the framework for a new project (e.g.: project manual with templates and structures, reporting procedures, escalation procedures, controlling methods); framework will be reviewed with all relevant partners, modified, finally reviewed and approved. Costs: 2 FTE / 1000 per day / 8 days each = Project to implement a web application was developed until pilot operation phase, but never set to production due to unknown (misunderstood?) change of business strategy Page 13 Total costs of project: 18 Mio.

15 8. Challenge Standardization in project management to improve quality for processes and systems is nothing really innovative, but obviously still a relevant topic. Why? Challenge No. 1 Challenge No. 2 Challenge No. 3 Personalize project management standardization: assign a master/ mistress of project management Set up an expert team, a competence center Avoid the pursuit of a 100% approach for project management standardization: Staff tend to perfect specifications instead of living with a 80% solution Lacking sustainability in implementation of project management standards should be appropriately dealt with (management by objectives) Page 14 The mastering of these challenges is a critical success factor for effective implementation of project management standards and processes.

16 9. Conclusion The sustained implementation of project management standards is a desirable objective resulting in significant time and financial savings. Companies often don t face the challenges of implementation of PM standards with the necessary emphasis and therefore don t realize the profit of PM standardization. Page 15 Objective: Reusability of PM know-how and experience to increase efficiency in project processing

17 Thank you for your attention! Annegret Loeser Detecon International GmbH Competence Practice Information Technology Page 16 Frankfurter Str Eschborn (Germany) Phone: Fax: Mobile:

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