Effective Project Management of Team Based Business Improvement Projects

Transcription

1 Improving Organizational Capability Effective Project Management of Team Based Business Improvement Projects IQA North London Branch Meeting Thursday 15th February 2007 Terry Rose, Quality Advantage Ltd. All Improvement takes place Project by Project and in no other way J. M. Juran

2 Your Input Please How many of you are directly or indirectly involved with projects? What types of project? What size of projects? Terry Rose, Quality Advantage Ltd. 2

3 What Can Wrong With Projects? In your experience, what s the typical success rate of projects? A project can be said to be successful if the outcome(s) fully satisfy the stakeholder needs for which the project was undertaken Why do projects fail? Don t know but it s not my fault! Terry Rose, Quality Advantage Ltd. 3

4 Success Rate of Projects Few Six Sigma projects are truly successful (Six Sigma Group) Only a minority of organisations are getting the most out of their project investments (Standish Group). Of projects completed: 53% were on average 189% over budget Average time overrun was 222% Typically up to 30% of IT projects get cancelled. Of the remaining, approx 66% fail to deliver the planned benefits (based on research by Pelicam Project Assurance) 85% of Corporate Business Improvement Projects under $20M failed to meet expectations (TLIR Consulting Group) Process Re-engineering projects are quoted as having the highest failure rates (up to 90%) Some evidence to indicate that the larger the project the greater the failure rate Terry Rose, Quality Advantage Ltd. 4

5 Why do (Improvement) Projects Fail? Project Pitfalls: Projects not aligned to what s important in the business (business goals) Poor appreciation of customer issues Lack of involvement of stakeholders Lack of involvement by project sponsor Project poorly defined / too big Project deliverables are undefined Poor (continuous) communication Senior management impatient for results Other Issues Wrong team for the job People assigned to projects are not trained in project management * Team members working on numerous projects No repeatable process / methodology in place for teams to follow Lessons learned or pitfalls to prevent mistakes being repeated are not captured Wheelwright & Clark Based on research & data from the Harvard Business School and MIT Huge performance differences between companies/ organisations within the same industry/sector 2x to 3x differences in project success rates Best performing companies/organizations had similar traits: 1. Active senior management/stakeholder involvement in the early planning part of a project & during on-going reviews Ensures alignment, better definition of deliverables, and less likelihood of having conflicting projects 2. Have a project methodology / framework available for teams to follow (company / organisation wide) Gives an ability to integrate projects across functions/depts. 3. A commitment, and a mechanism, to learn and improve with every project 4. Able to reliably select the right projects * Project management is the accidental profession Terry Rose, Quality Advantage Ltd. 5

6 Use of Generic (Companywide) BI Processes underpin Effective Management of Business Improvement Teams An emphasis on the process not the tools Use the most appropriate tool(s) for any given step in an improvement process Generic Business Improvement Processes Structured Problem Solving (7-Steps) DMAIC (Six Sigma Projects) Project Planning & Implementation Voice of the Customer (VOC) Process Standardisation (SDCA) Root Cause Analysis Basic Tools Brainstorming Run Chart Process (Control) Chart (VOP) Process Flow Diagram / Process Map / SIPOC Pareto Diagrams Cause & Effect Diagram Scatter Diagram All work is a process* - Methodology - Plan - steps to follow - Road map Management & Planning Tools Kano Model Language Processing Tree Diagram (WBS) Matrix Diagram Process Decision Program Chart Activity Network Diagram Project Management Tools & Techniques * If you can t describe what you are doing as a process you don t know what you re W. E. Deming doing Terry Rose, Quality Advantage Ltd. 6

7 What are the Benefits of Using Generic Business Improvement Processes? Guide and assist the work of teams Tried and tested methodologies No need to reinvent the wheel A much greater likelihood of a successful outcome Vehicles for Continual Improvement If no process (plan, steps) to follow, then little or no opportunity to learn and identify best practice The more you use a process, the more skilful and successful you become at using it Improved Organisational Capability Creates a common methodology, language and skill base throughout an organisation What s the Alternative? Winging it Making it up as you go Hoping for the best Reinventing the wheel Terry Rose, Quality Advantage Ltd. 7

8 Team Based Business Improvement Projects Type of Improvement Project 1 Improving the performance of existing processes 2 Introducing (Standardising) a New Process Defined Business Improvement Process (framework) Structured Problem Solving (PDCA / 7-Steps) DMAIC (Six Sigma) Root Cause Analysis Voice of the Customer (VOC) Standardise, Do, Check, Act (SDCA) Voice of the Process (VOP) Who gets Involved on BI Teams? Varies from a few Specialists to high staff involvement - depending on company policy Typical Number of Projects Typically 1 or 2 per department / function at any one time Specialist Teams Small number 3 One-time tasks or initiatives (Opportunity projects) Project Planning & Implementation process Anyone in the Company / Organisation Potentially many projects at any one time Provides core project management skills that can be used by any business improvement team Terry Rose, Quality Advantage Ltd. 8

9 Some Examples of Opportunity Projects (some of the many projects that anyone can get involved with) Setting up and running a Senior Management Strategy Workshop Establish the existing Sales Forecast process in Asia Achieve perfect installation of Product X (a new product) within 1 day for a new customer in Taiwan Develop an Employee Health & Safety Roadmap for use as an input into the Corporate Planning Process Achieve ISO 9000 Registration Establish a standardized Customer Service training program Develop a set of job rotation tools to guide Production teams Renovate a Calibration Laboratory Create & Implement a Home Working policy Amalgamate all existing UK company pension schemes Organise the official opening of a new office/facility Introduce a 5S Visual Workplace Breaking into new customer account Preparing for an external audit Do you have any examples? Terry Rose, Quality Advantage Ltd. 9

10 Characteristics of Opportunity Projects A one-time effort to achieve a specific result (related to improving or strengthening the enterprise) It has not been done before (by you) or there is no process (Steps) to follow Typically staffed by a part time cross functional team Not appropriate for a dedicated full time team using a heavyweight project management structure (PRINCE 2, PMI) Real work that if successfully implemented will improve the business and improve the knowledge, skills and morale of those involved Teamwork gets results Yes Terry Rose, Quality Advantage Ltd. 10

11 Improving Organizational Capability 9-Steps to Project Success Introducing a Lightweight Project Planning & Implementation Process for Improving the Success Rate of Team Based Business Opportunity Projects StepWise Project Planning & Implementation Process Guidelines

12 Here s the simple but effective StepWise Project Planning & Implementation Process Here s the Logic Plan Relevant PRINCE 2 / PMI Process INITIATE SCOPE PLAN Step 1 Describe the Project Objective Step 2 Put the project into Context Step 3 Identify Project Boundaries & Success Criteria Step 4 Develop Project Milestones, Timeline & Deliverables Step 5 Develop a High Level Plan and Assess the Risks Begin with the end in mind Understand the bigger picture (360 o ) What s the Scope of the project and how will success be judged Determine the roadmap (game plan) to achieve the project objective Decide how best to achieve each milestone, allocate responsibilities, and understand the risks (What ifs) Step 6 Develop a Detailed Project Plan Develop a 4W1H+C plan for each Milestone / Deliverable Do EXECUTE Step 7 Execute, Monitor & Control the Detailed Project Plan Manage the project - and the risks. Make it happen! Check CLOSE Step 8 Evaluate Project Results Act Step 9 Capture Lessons Learned How successful was the project? (measured against the Success Criteria) Lessons Learned from this project Although depicted as an orderly sequence of steps, in practice this process is often highly iterative that s why it s important to understand the logic Terry Rose, Quality Advantage Ltd. 12

13 Project Management Process Some Useful Tools & Techniques PRINCE 2 / PMI Process StepWise Step 1 Describe the Project Objective Useful Tools Single sentence ( Give it to me in one line ) SCOPE PLAN EXECUTE CLOSE Step 2 Put the Project into context. Step 3 Identify Project Boundaries & Success Criteria Step 4 Develop Project Milestones, Timeline & Deliverables Step 5 Develop a High Level Plan and assess the risks Step 6 Develop a Detailed Project Plan Step 7 Execute, Monitor & Control the Detailed Project Plan Step 8 Evaluate Project Results Step 9 Capture Lessons Learned Relation diagram Triple Constraint Stakeholder Criteria Matrix Milestone / Deliverables Diagram Obstacles & Countermeasures Matrix, PDPC, 3 Point Estimates GANTT Chart, Critical Path Analysis, 4W1H+C Action Plan Project Meetings & Sponsor Reviews Completed Success Criteria matrix Brainstorm Strengths & Weaknesses Terry Rose, Quality Advantage Ltd. 13

14 Improving Organizational Capability Let s Review Some of the Simple but Effective Planning Tools Relation Diagram Triple Constraint 3 Point Estimate 4W1H Action Plan

15 STEP 2 - Relation Diagram (Used to put project essentials into context & Identify Priorities) Step 2: Put the project into context To status this year s Step Function Improvement goals Because it is important to status this year s performance improvement initiatives Because it is important to status this year s results PRIORITY # 2 To communicate the overall direction and goals of the company & divisions Because it will ensure that all employees understand the goals for the company and their division Because it is important that everyone understand the direction of the company Because it is an opportunity to deliver to all employees the most important issues within the company PRIORITY # 3 PRIORITY # 1 Why is it important to: Deploy a Business Goals presentation to all employees? D To communicate the importance of our Improvement Principles Because it communicates that our core performance improvement principles are alive and well It indicates a sense of continuation and evolution of the improvement program It communicates the element of continuous improvement It will develop a common understanding of terms we use Because it will help ensure a common language among all employees Because it is an opportunity to define the jargon that we all take for granted It requires senior management attention Because it helps senior management to think about how best to communicate what s important to the business Because it shows senior management walking the talk in front of all employees Terry Rose, Quality Advantage Ltd. 15

16 STEP 3 - The Triple Constraint (Used to balance Stakeholder needs and expectations) Product Scope / requirements Step 3: Identify project boundaries and success criteria Project Schedule Project Resources / Costs Terry Rose, Quality Advantage Ltd. 16

17 Triple Constraint Strategy / Tradeoff Questions Stakeholder Project Schedule Product Scope Project Cost/Resource Jim Betty Jennifer Tom SCORE Voting: 1 = 5 pts 2 = 3 pts 3 = 1 pt How would you balance this project? Stakeholder Priority Matrix Stakeholder Project Schedule Product Scope Project Cost/Resource Big Boss Fast Good Cheap Terry Rose, Quality Advantage Ltd. 17

18 STEP 5-3 Point Estimate (Uncovers risks & makes for better estimates) Step 5: Develop a high level plan and assess risks At some stage in every project you re going to have to estimate either time or cost or both So what is a good Estimate? Oxford Dictionary Estimate: Approximate judgement (of number, amount, etc.) Terry Rose, Quality Advantage Ltd. 18

19 What is a Good Estimate? It s a range of likely results - based on experience It means identifying risk It requires that we think in terms of the range of possible outcomes It s not a guess, not a single figure, not a guarantee If possible, it has been validated using historical data Global warming: Estimated temperature increase by the year 2100: Most likely 4C Pessimistic 6.4C (if CO2 emissions continue to rise at present rate) Optimistic 2C (if CO2 emissions are held to pre 2001 levels) If only I had mitigated the risk 2007 Report from Intergovernmental Panel on Climate Change (IPCC) Terry Rose, Quality Advantage Ltd. 19

20 3 pt Estimate: Time to Complete a project Activity: Normal (most likely): 6 working days Fastest (optimistic): 3 working days Longest (pessimistic): 12 working days Assumptions / Risks: Optimistic: No interruptions Pessimistic: Some interruptions plus trip to Milan to attend conference Which figure would you put into the plan (commit to) The Expected Value goes into the plan = ( ) / 3 = 7 working days Approx. 60% chance of achieving Brings deadline pressure into play Have to mitigate (manage) the risks A higher figure would typically result in lost time Little deadline pressure & contingency gets wasted (Theory of Constraints) Terry Rose, Quality Advantage Ltd. 20

21 STEP 6-4W1H+C Action Plan Step 6: Develop a detailed project plan Probably the simplest and most effective planning tool WHAT WHO WHEN WHERE HOW Check Terry Rose, Quality Advantage Ltd. 21

22 Improving Organizational Capability Business Improvement Structures Support Infrastructure for The Effective Management of Team Based Business Improvement

23 Typical Structure for Team Based Business Improvement Projects Selects / outlines the project Has overall responsibility for the work of the team Owns the business goal to which the team is aligned Regularly reviews the work of the team but not involved on a day-today basis Removes roadblocks Sponsor Leader Member Member Member Member Member Core Team As required Coach / Facilitator Specialists Project Planning & Implementation Workshop As required Training Business Improvement Process(s) being used Structured Problem Solving Project Planning & Implementation Process Terry Rose, Quality Advantage Ltd. 23

24 Organise for Improvement The infrastructure that leads, develops, manages, deploys and sustains Business Improvement Facilitators Change Management Office A Heavyweight BI Structure What improvement infrastructure do we need to support the aims of our business? Terry Rose, Quality Advantage Ltd. 24

25 CQI North London Branch Project Example STEP 1: Describe the Project Project Statement: Increase the number of attendees at NL Branch Meetings during 2007 Background Information: Average number of attendees during 2006 was 12 (was 14.1 for 2005) Numbers ranged from 6 to 22 Benchmarking shows that the average CQI Branch attendance is 21.2 Best in class (Thames Valley Branch) averages over 30 attendees All meetings held at the Ramada Jarvis Hotel Speakers present at each meeting Etc. STEP 2: Put the Project into Context Why is it important to increase the number of attendees at NL Branch Meetings during 2007 Use labels to develop a Relation Diagram select priorities Figures are fictitious Terry Rose, Quality Advantage Ltd. 25

26 Presentation Summary Participating on project teams is a significant part of business life Not everyone s experience of working on projects is positive Evidence suggests that approximately 30% of projects are aborted, and of the remainder, less than one third are truly successful Perhaps not surprising given that few people are given any training or guidance in how to plan and implement a project Just go do it mentality But there is a better way. q Use defined business improvement processes q Train teams in lightweight project planning & implementation methods q Ensure projects are aligned to business / organisation goals q Put in place a suitable support structure for BI project teams q Have a commitment, and a mechanism, to learn and improve with every project Terry Rose, Quality Advantage Ltd. 26

27 The End Project Planning & Implementation Process Workshops and facilitation available for all the Improvement Processes and tools mentioned in this presentation Terry Rose, Quality Advantage Ltd. 27