Managing Complex Outsourced Projects

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1 New Book Published by H Incorporated Managing omplex Outsourced Projects By: regory. arrett, PM, PMP Winner of PMI s Project Management xcellence ward

2 Quick Results urvey Question #1 Which of the following organizations do You work for: U.. Federal ovt. erospace/defense ontractor Other ovt. gency ontractor ommercial Business

3 Quick Results urvey Question #2 Increasingly, the projects I am involved with are complex, including multi-parties, requiring the integration of hardware, software, and/or professional services! True False

4 Quick Results urvey Question #3 Increasingly, my customers are setting higher expectations for on-time-delivery, technical performance, quality products, services, and solutions using demanding performance based contracts! True False

5 Managing omplex Outsourced Projects Key Topics of Discussion The World We ive In Integrated Project Management (IPM) ife-ycle IPM Model The Five Project lements: Tools & Techniques ummary

6 The World We ive In! ccording to the enter for Business Practices - urvey = 1,000+ Project Management Professionals from Manufacturing, Health care, and Information Technology said: 51.7% of the projects surveyed were considered complex or highly complex 44.6% of the companies surveyed had established a Project Management Office or PM enter of xcellence 65.3% of the companies surveyed had a low level of project portfolio management maturity *urvey Results of enter for Business Practices (BP), 2003, PM olutions, Havertown, P

7 The BP 2003 urvey Results Project hallenges The Three Most ignificant Project Management hallenges 23.9% ack of a consistent approach to managing projects 19.7% ack of qualified people to manage large complex projects 16.9% Poor resource allocation

8 The BP 2003 urvey Results Most ommon Improvement reas The Three Most ommon Improvement reas 77.9% oftware tools 69.1% Methodology development 69.0% taff Training

9 Human Resource Technical Integrated Project Management Team (ample) (omplex Outsourced Projects) Human Resource Technical Financial (Principal upplier) (ustomer) Financial ales/ccount Project Project Purchasing or upply-hain apture or Proposal (Principal upplier) egal dvisor ontracts upply hain Other/ 3 rd Party upplier ontracts egal dvisor Vendor Project Team Vendor B Project Team (ower Tiers) P M N Vendor Project Team M F F O H R O N T R T P M N M F F O H R ubcontractor 1 ubcontractor 2 ubcontractor 3 O N T R T P M N M F F O H R O N T R T (Figure 5)

10 Integrated Project Management (IPM) ife-ycle (5 Phases) wakening Phase wareness of Need for PM eadership Involvement (hampion) Form ore Team or Project Management Office (PMO) Implementing Phase Process Development PM taffing PM training Focus on Key Projects Professionalizing Phase PM Rigid- Flexibility Widespread PM pplication Focus on PM ertification haring PM Best Practices nterprising Phase tandardization of RP Database inked to other Processes PM Health hecks Integrating Phase Multi-parties ustomer Principal (Prime) uppliers/ontractor upply-hain or partners (ubcontractors) Integrated Project Management Project Practices Project Tools and Techniques Project Training Project eadership

11 Integrated Project Management (IPM) Model ustomer Needs & oals People Quality Products, ervices & olutions Key Performance reas & Metrics Training Project ommunications People Information Technology Tools Organization Options Training Integrated Project Management ustomer oyalty Discipline People Roles & Responsibilities eadership Development Training Project Teamwork People ustomer Relationship Management & Information ystems Outsourcing and upply-hain Management Training

12 First Project lement: ustomer Needs & oals Process Inputs ustomer Needs & oals Quality Products Quality ervices Integrated olutions Best Value Deal On-Time-Delivery Reduced ycle- Time ervices/upport User atisfaction People Key Performance reas & Metrics Training Tools & Techniques Project Requirements hecklist of ttributes of ffective Project Requirements hecklist of Project Requirements Best Practices Work Decomposition Work Breakdown tructure (WB) Vee Model inking RFP to Proposal ompliance Matrix olution inkage Matrix ustomer Requirements ustomer Requirements & Project Deliverables hecklist ustomer Requirements ummary Performance Metrics hecklist of ustomer and upplier Key Performance reas & Metrics Test/cceptance/ign-off Test and cceptance Plan Outline ustomer cceptance Process ustomer ign-off Form Outputs Well-defined Performance-Based ustomer Needs (Requirements) Mutually agreed to joint Performance reas & Metrics Positive & Professional ustomer Relationship

13 The Opportunity & Risk Management Process Inputs People lements of Opportunity lements of Risk orporate ulture (Risk-Taking) vs. (Risk-dverse) Training Tools & Techniques Opportunity and Risk Management (ORM) Model Idea eneration (ORM: Tools & Techniques) ummary Profitability Measurement (ORM) (Tools & Techniques) ummary Project omplexity ssessment Tool hecklist of oftware Risks oftware ngineering Risk Tables Project Risk Management Plan Outline Project Risk Mitigation Form Types of ontracts Risk haring Tools Project Doability nalysis Form Project Bid/No Bid ssessment Tool Project Phases and ontrol ates ORM Decision-upport oftware Matrix Outputs uccessful Projects Maximize Opportunities Mitigate Risks Obtain Follow-on Projects

14 Third Project lement: Project ommunication Process Inputs People ustomer (Needs & oals) upplier (Value-hain) Information Technology Tools Organization Options Training Tools & Techniques Plans/Meetings/Reports Project ommunications Plan Project tatus Meetings Project tatus Reports Taking ction Jeopardy/scalation Process ction Item Register ontract hange Management hecklist of Tips ontract hange Request Form ontract hange og ontract hanges lause Information Technology Face-to-Face Meetings onference Bridges ollaboration oftware Video/Web onferences Interactive hat Project War Rooms Intranet Website Project essons earned Outputs ffective Project ommunications Honest Timely ccurate omplete ppropriate

15 Fourth Project lement: Project Teamwork Process Inputs People ustomer (Needs & oals) upplier (Value-hain) eadership Development Roles & Responsibilities Training Tools & Techniques Business onduct Project harter Outline ode of onduct ccountability & Responsibility Responsibility ssignment Matrix (RM) Multi-Party Participation Matrix Team Member ssessments Project Team Member Objectives & ssessment Tool Value-In-People (VIP) Project Team Member(s) urvey Rewards & Recognition Recognition & Rewards Program and Nomination Forms eadership Development Talk the Talk Walk the Talk Build eaders at very evel Make a Difference Outputs Highly ffective Project Team xceeds ustomer Needs Obtains Positive ustomer Feedback nsures On-Time-Delivery Provides Quality Products & ervices xhibits xcellent Teamwork Delivers On-Budget

16 ummary njoy the Book! The New Book Managing omplex Outsourced Projects contains: IPM ife-ycle and Model 400+ PM Best Practices 40+ Forms & hecklists 20+ ase tudies from eading ompanies Worldwide Numerous unique tools & techniques xpansive glossary of terms User-friendly Index for asy References

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