Rescuing Troubled Projects

Transcription

1 Rescuing Trubled Prjects A TenStep White Paper Cntact us at inf@tenstep.cm TenStep, Inc St. Davids Square Kennesaw, GA

2 Rescuing Trubled Prjects When is the last time yu wrked n a prject that was planned and executed perfectly and where yu met expectatins in terms f budget, deadline and prduct quality? Yu als had a crdial and prfessinal partnership with yur clients - n prblems at all. If yu are lucky, yu might actually be able t think f a prject that culd be a candidate - maybe even tw. It is easy t frget that many prjects actually d cmplete successfully. Althugh prbably n prject is abslutely perfect, there are many prjects that are cmpleted with a minimal amunt f prblems and stress. Althugh many prjects d end successfully, mst prject managers have als been n prjects that were less than successful. Smetimes the prject is a 100% utright disaster. Hwever, usually there are shades f gray. It is cmmn t cmplete a prject, but be ver yur deadline r ver yur budget. Other times, the client may nt get all f the features and functinality he r she was initially expecting. On sme prjects there is s much frictin between the prject team and the client that the prject leaves a bad taste in everyne s muth, even when the deliverables are finally prduced. First Things First - Is the Prject Really in Truble? When yu are lking at a "trubled" prject, the first thing t validate is whether the prject is, in fact, in truble r nt. In many cases there is the perceptin f a prblem when there really is nt ne at all. In ther cases, a prject may be in truble, but the prject manager might already have begun a prcess f damage cntrl and crrectin. Smetimes the prject has prblems, but the prblems are nt significant enugh fr the prject t be cnsidered trubled. Fr instance, if a nine-mnth prject is scheduled t cmplete a week late, yu wuld need t decide whether it really is in truble. S, first validate that yu actually have a prblem by seeing whether the prject is within acceptable tlerances. Fr mre infrmatin n tlerances, see 40.1 Prject Tlerances It is imprtant t understand yur tlerances because the prject may be trending verbudget r past the deadline, but it still may be in an acceptable ranges and nt cnsidered a trubled prject. Can the Prject be Turned Arund Quickly? If the prject is in truble, but nt yet a disaster, see if yu can determine the cause f the prblem as well as put in place a quick turnarund plan. The prject manager may already have a recvery plan in place r may need sme help. Hwever, the implicatin at this pint is that the damage is minr and that the prject can get back n track with a little mre attentin and a practive plan. Smetimes this is referred t as a "sft" rescue. In many cases a sft rescue can turn the prject arund withut any incremental impact in budget r schedule. That is, the activities assciated with the rescue will be related t things like implementing better prject management prcesses r swapping similar resurces. If the prject is t far gne fr these types f relatively minr changes, mre radical interventin will be required. Sme cmmn prject prblems and ptential slutins are described belw. Prblem #1 - Inadequate Prject Definitin and Planning Cpyright 2007 TenStep, Inc. All Rights Reserved

3 Rescuing Trubled Prjects Prblem #2 - Pr Scpe Management Prblem #3 - Nt Managing the Wrkplan Prblem #4 - Pr Cmmunicatin Prblem #5 - Pr Quality Management Defining a Trubled Prject At this pint, yu have validated that the prject is prbably in truble. Yu verified that the prject is utside f any defined tlerances that have been defined fr yur rganizatin. Yu als have dne a quick check t determine that there is nt a simple cause and remedy that can be put int place quickly. Yu shuld be able t put sme criteria in place fr what a trubled prject lks like. The fllwing criteria prvide sme examples: The prject is trending 30% r mre ver its estimated budget The prject is trending 30% r mre ver its estimated deadline (althugh this may nt be as imprtant if the budget is nt als ver by 30% r mre). The prject appears within tlerances, but nly by deferring the cmpletin f ne r mre majr deliverables. The prject appears within tlerances, but nly by cmprmising n quality t the pint that the value and integrity f the deliverable are called int questin. The client is extremely dissatisfied with the perfrmance f the prject team. If the client had t d it again, he r she wuld nt use the same prject team. The client - prject team relatinship is dysfunctinal. This culd include situatins such as the client and spnsr lsing interest in the success f the prject, majr animsity between the prject team and the client, deliberate sabtage by ne party t make the ther party lk bad, etc. All prjects shuld be funded based n delivering sme business value. Hwever, as the prject prgresses, the business justificatin gets weaker. When this happens, the prject shuld be canceled. Hwever, this is nt an example f a trubled prject, per se. That is, there is nt necessarily a prblem with the prject itself, and there is nthing that needs t be rescued. The prject may then be canceled based n a nrmal business evaluatin and nt because f its trubled prject. Similarly, the business case fr the prject may have been unsund t begin with. The prject culd end successfully, but the business value gained may nt live up t expectatins. Again, a prject in this situatin wuld nt be classified as trubled. Prject Recvery Prcess Turning arund a trubled prject is never easy, but there are appraches that can be used that will give yu a gd chance at success. (Remember that success des nt mean reaching the riginal expectatins and cmmitments. It is prbably t late fr that.) The assumptin nw is that we have a substantial prject that is in truble. It is ut f acceptable tlerances and a remedy cannt be implemented easily and simply. Fr these trubled prjects, the remedy is mre than just "fix it." The fllwing prject turnarund mdel can be used: Define and Plan Recvery Prject Assess the Trubled Prject Cpyright 2007 TenStep, Inc. All Rights Reserved

4 Rescuing Trubled Prjects Develp a Recvery Plan Activate the Recvery Plan Measure and Mnitr the Recvery Plan Prject Tlerances Yu have all read the stries abut the large number f prjects that fail. Depending n the reprt yu read, half r mre f all prjects fail - perhaps as many as 80%! Accrding t the reprts, the larger the prject, the greater the chance is that it will be a failure. Hwever, as yu lk at the prjects in yur cmpany, wuld yu really say that 80% f them are failures? Wuld even 50% be cnsidered failures? There is n dubt that sme prjects are abslute failures. They either crash and burn, and are canceled, r they finish dramatically verbudget, ver deadline, and under expectatins. Hwever, are there really 50%-80% that meet this definitin? Tlerances T answer the questin f hw many failed prjects there are, yu first need t understand the definitin f a failed prject. The cncept that plays a key rle is the idea f tlerances. If yu estimate that a prject will cst $230,000, is yur prject a failure if the actual cst is $230,500? Yu missed yur budget, right? Yes, but this gets int the cncept f tlerances. If yu delivered within $500 n a $230,000 budget, yu shuld be lifted n the grup's shulders and paraded arund the cmpany as a her. Yur cmpany needs t establish the tlerance level that it cnsiders t be reasnable fr prjects. At sme cmpanies, fr instance, the tlerance level is set at -10% t +5%. That is, if yu delivered the prject fr 5% ver budget, it was still cnsidered a success. Fr ur $230,000 prject, this means we culd have gne verbudget by $11,500 and still been cnsidered successful. On the ther side, if the final cst was under budget by mre than 10%, that wuld als have been a prblem. In this case, the prblem is that the cmpany wants t deliver prjects within expectatins. If the spnsr had knwn that the prject actually csts a lt less than estimated, they may have been able t make ther decisins with the unused budget. The cst estimate shuld als include any frmally apprved scpe changes. If yur riginal budget was $200,000, and the client apprved an additinal $30,000 in scpe changes, then the final $230,000 is the number that yu get held accuntable fr, plus yur tlerances. Nrmally there is rm fr tlerances with yur deadline as well. If yu estimate a prject at six mnths, and it is cmpleted in six mnths and ne week, that is nrmally acceptable. Yur riginal deadline must als be extended if scpe changes have been apprved. Of curse, nt all prjects have that flexibility. The YR2K sftware prjects, fr instance, typically had t be cmpleted by December 31, A week late was nt ging t wrk. Declaring Success frm a Prject Perspective Once yu understand what yur tlerances are (if any), yu can start t evaluate the success f the prject. Generally, the prject team members can declare success if: 1. The prject is delivered within the estimated cst, plus r minus the tlerance. 2. The prject was delivered within its deadline, plus r minus the tlerance. Cpyright 2007 TenStep, Inc. All Rights Reserved

5 Rescuing Trubled Prjects 3. All f the majr deliverables were cmpleted. (Sme minr nes, r minr functinalities, might nt be delivered.) 4. The verall quality is acceptable. (It des nt have t be perfect.) Sme cmpanies als lk at whether the prject team was easy t d business with. That is, did the client and the prject team wrk well tgether? Fr instance, was there gd cmmunicatin? If the client had anther prject (and a chice), wuld they ask yu t wrk n it again? Declaring Success frm a Cmpany Perspective Declaring success frm a prject perspective is nrmally what the prject team is asked t be accuntable fr. Hwever, frm a cmpany perspective, success is als based n whether the cmpany received the value that was prmised frm the initial ROI calculatins. If the prject was a failure frm a "prject" perspective, it is nrmally a failure frm a cmpany perspective as well. (Althugh this is nt always the case; sme prjects are delivered way ver their budget and deadline, yet the slutin is still cnsidered an verall business success.) Hwever, there are als many examples f prjects that were successfully delivered, yet are nt delivering the value prmised. If the prject team delivered successfully within tlerances, there is usually nthing else that can be dne frm their perspective. Hwever, it is pssible that the return n investment (ROI) calculatins were faulty, r the marketplace was misjudged by the client and the spnsr. It is als pssible that this prject was part f a larger initiative. Althugh yur prject may be successful, the verall, larger initiative may be a failure. Every rganizatin shuld have sme general rules abut hw t declare the verall prject a success r failure. Yur prject isn t a failure if yu miss the budget by a dllar and deliver a day late. Nrmally, a prject will still be cnsidered successful if it delivers within cst and deadline tlerances, and delivers all majr deliverables with an acceptable quality. Hwever, frm an verall business perspective, anther set f questins shuld als be answered as t whether the business value was achieved as prmised. Prject Prblem #1 Inadequate Prject Definitin and Planning Have yu ever attended an end-fprject meeting n a prject that had majr prblems? If yu have, chances are that ne f the majr themes yu will hear is that we shuld have spent mre time planning. Many prject managers think that they need t jump right int the prject by gathering business requirements. They think that if they d a gd jb gathering the business requirements, they are ready t run n the prject. That is nt true. In fact there is a definitin and planning prcess that needs t happen befre yu ever start gathering the business requirements. Befre the prject wrk begins, the prject manager must make sure that the wrk is prperly understd and agreed t by the prject spnsr and key stakehlders. The prject manager wrks with the spnsr and stakehlders t ensure that there is a cmmn perceptin f what the prject will deliver, when it will be cmpleted, what it will cst, wh will d the wrk, hw the wrk will be dne, and what the benefits will be. The larger the prject, the mre imprtant it is that this infrmatin be mapped ut frmally and explicitly. All prjects shuld start with this type f upfrnt Cpyright 2007 TenStep, Inc. All Rights Reserved

6 Rescuing Trubled Prjects planning t prevent future prblems caused by differing viewpints n the basic terms f the prject. Cmmn Planning Prblems If yu have pr up-frnt definitin and planning, it will cause prblems in many areas later in the prject. These prblems include: Lack f business supprt. If yu d nt define the majr characteristics f a prject up-frnt, it is very cmmn t have differences in expectatins amng the majr stakehlders. This is true even if yu take all f yur initial directin frm the spnsr. As a prject gets larger, even the spnsr may nt have a ttally cmplete picture f what needs t happen fr the prject t be successful. Other times, the spnsr has a visin, but there are ther visins that may be better r mre viable. These cmpeting ideas end up surfacing later in the prject and causing cnfusin and rewrk. Pr estimates. Usually a prject needs t have a budget and deadline befre the business requirements are cmpleted. In many cases, if the definitin and planning is nt dne ahead f time, the prject team starts ff with inadequate resurces and time, and yu dn t realize it until the prject is already in prgress. Many prjects that culd be successful are viewed as failures because they versht their budget and deadline. This situatin is ften caused by the prject manager cmmitting t numbers that are t lw, the result f a lack f up-frnt planning. Pr scpe cntrl. One f the majr aspects f defining a prject is defining the high-level scpe. If yu d nt define and gain agreement n scpe, yu will find it very difficult t manage scpe effectively thrughut the prject. Hw t Avid the Mistake Spending time n a gd definitin and planning ends up taking much less time and effrt than having t crrect prblems while the prject is underway. It shuld nt be surprising, then, that the best way t avid this prblem is t d a gd jb f defining and planning the prject up-frnt. This includes: Defining. Befre the actual wrk f the prject begins, make sure yu have spent the time t define the prject bjectives, scpe, assumptins, risks, budget, timeline, rganizatin and verall apprach. The prject manager may think that they knw all f this already. Hwever, the purpse f this wrk is t ensure that there is a cnsensus between the prject manager, prject spnsr and all ther stakehlders. Even if the prject manager and the spnsr are in agreement, there may be ther majr stakehlders that have ther ideas. Differences f pinin need between the majr stakehlders needs t be reslved befre the prject starts nt while yu are in the middle. Planning. The prject manager shuld create an verall prject wrkplan befre the prject starts. This will help yu estimate the ttal prject effrt and duratin. The prject manager als needs t ensure that he r she has the detailed wrk mapped ut ver the next few mnths t ensure that the prject resurces are assigned the right wrk nce the prject actually begins. In additin, it is very helpful t have an agreed upn set f Prject Cpyright 2007 TenStep, Inc. All Rights Reserved

7 Rescuing Trubled Prjects Management Prcedures that are used t manage the prject. These will include hw the prject manager will manage scpe, issues, risks, cmmunicatin, the wrkplan, etc. Again, the key is t define these all upfrnt t better manage expectatins. Fr instance, if yu define and get agreement n the prcedure fr apprving scpe change requests, yu shuld have a much easier time managing change nce the prject begins. What if Yu Are Already Int the Prject? Of curse, the best way t slve a prblem is t prevent it t begin with. Hwever, what if yu d nt have that ptin? Let s say yu are int a prject, and yu start t see sme f the prblem areas described abve. Fr instance, yu start t see stakehlders cming frward with different ideas fr what the prject shuld accmplish, but yu are already well dwn the path t the prir visin. If yu are having truble with ne r tw aspects f the definitin prcess, yu may be able t reslve it with a mini-definitin prcess. Fr instance, if yu find that yu cannt cntrl scpe because yu did nt define it t begin with, yu can take the time t frmally define and gain agreement n the scpe. This invlves ging back t the spnsr and majr stakehlders t gain the cnsensus and apprval that yu did nt get earlier. If yu start t see differing visins as t what the prject shuld achieve, yu may need t actually cmplete the entire definitin prcess while the prject is in prgress. This is very difficult and painful, but it can be dne. Yu need t take a step back and define bjectives, scpe, rles, risks, etc. Yu might need t actually stp wrk n the prject until this definitin prcess is cmpleted, althugh in many cases this is nt practical. As painful as it is t define the prject while it is in prgress, it is still preferable t ignring the prblem. The first ptin may end up causing rewrk, resulting in additinal cst and a later delivery date. Hwever, ignring the prblem may end up making the entire slutin irrelevant r bslete as sn as it is delivered. Prject Prblem #2 Pr Scpe Management Defining scpe is perhaps the mst imprtant part f the upfrnt prcess f defining a prject. In fact, if yu dn't knw fr sure what yu are delivering and what the bundaries f the prject are, yu have n chance f success. Managing scpe is ne f the mst critical aspects f managing a prject. Hwever, if yu have nt dne a gd jb f defining scpe, managing scpe will be almst impssible. The purpse f defining scpe is t clearly describe and gain agreement n the lgical bundaries f yur prject. Scpe statements are used t define what is within the bundaries f the prject and what is utside thse bundaries. The mre aspects f scpe yu can identify, the better ff yur prject will be. The fllwing types f infrmatin can be helpful: The types f deliverables that are in scpe and ut f scpe. (Business Requirements, Current State Assessment) The majr life-cycle prcesses that are in scpe and ut f scpe. (analysis, design, testing) The types f data that are in scpe and ut f scpe. (financial, sales, emplyee) Cpyright 2007 TenStep, Inc. All Rights Reserved

8 Rescuing Trubled Prjects The data surces (r databases) that are in scpe and ut f scpe. (Billing, General Ledger, Payrll) The rganizatins that are in scpe and ut f scpe. (Human Resurces, Manufacturing, vendrs) The majr functinality that is in scpe and ut f scpe. (decisin supprt, data entry, management reprting) Have a Viable Scpe Change Prcess in Place The prject manager and prject team must realize that there is nthing wrng with scpe change. That is, changing scpe while a prject is underway is nt an evil prpsitin. In fact, in many cases it is a gd thing. First, the client typically cannt identify every requirement and feature that will be required fr the final slutin. Secnd, even if they did, the business changes ver time, and therefre the requirements f the prject may change as well. If yu cannt accmmdate change, the final slutin may be less valuable than it shuld be, r it may, in fact, be unusable. Therefre, yu want the client t have the ability t make changes during the prject when needed. The prblem cmes when the prject manager des nt practively manage change n the prject. Every prject shuld have a prcess in place t manage change effectively. The prcess shuld include identifying the change, determining the business value f the change, determining the impact n the prject and then taking the resulting infrmatin t the prject spnsr fr his/her evaluatin. The spnsr can determine if the change shuld be included. If it is included, the spnsr shuld als understand the impact n the prject and allcate the additinal budget and time needed t include the change. Cmmn Prblems with Scpe Change Management There are a number f cmmn prblems that prject teams encunter with scpe change management. Scpe creep. Many prject managers recgnize large scpe changes, but are nt as diligent abut smaller changes. There is a tendency t just g ahead and add the additinal wrk withut t much thught. Scpe creep refers t what happens when a prject accepts a large number f small changes. When all f these small changes are cmbined, the team realizes that they have taken n t much extra wrk and can n lnger meet their budget and deadline cmmitments. N spnsr apprval. Many times a prject manager will receive requests fr changes frm end users, stakehlders r client managers. Since these are all peple in the client rganizatin, there is a tendency t think that they shuld be accepted. Again, this is a mistake. The end users usually surface scpe change requests, but they cannt apprve them. Even a client manager cannt apprve scpe change requests. The nly persn that can is the spnsr (unless the spnsr has delegated this authrity t thers). Many prjects get in truble because the team thinks they are getting apprval t prceed with scpe changes, but discver later that the persn that really cunts, the spnsr, has nt agreed. Prject team accuntability. Since the prject team members can have a lt f interactin with the client, they are the nes that field scpe change requests the Cpyright 2007 TenStep, Inc. All Rights Reserved

9 Rescuing Trubled Prjects mst ften. Therefre, the entire prject team must understand the imprtance f scpe change management. All f them must detect scpe changes when they ccur and funnel them back t the prject manager. If they take n the extra wrk themselves, there is a gd likelihd their activities will be cmpleted late and jepardize the entire prject. It s Never T Late t Start If yu find that yur prject is starting t trend ver its budget and schedule, try t find the cause. In many cases, yu will find that yu are simply taking n mre wrk than yu riginally agreed t. The best time t define a scpe change management prcess is befre the prject begins (as a part f the Prject Management Prcedures). Hwever, if yu d nt have a gd prcess in place, it is never t late t start. The prject manager must call a quick time-ut and wrk with the client n a prcess fr detecting and apprving scpe change requests. Then, everyne must be educated in the new prcess. If there is a gd side f this effrt, it is that the team and the client can see first hand the impact f nt cntrlling scpe because the prject is already in truble. They shuld be better able t understand the purpse f scpe change management and be mre willing t fllw the mre rigrus prcess in the future. Prject Prblem #3 Nt Managing the Wrkplan During the first part f the prject, the prject manager must spend the time required t define and plan the prject. The result f defining a prject is the cmpletin f a Prject Definitin (als called a Prject Charter and / r Prject Scpe Statement). The result f planning the prject is the prject wrkplan. The wrkplan is a vital tl t ensure that the prject manager and prject team knw what they need t d t cmplete the prject. Different appraches shuld be taken in this step accrding t the size f the prject. The wrkplan fr small prjects can be built withut a lt f frmality. Larger prjects usually require a wrkplan built by using a previus wrkplan frm a similar prject r by building a wrkplan frm scratch using the Wrk Breakdwn Structure (WBS) technique. The WBS is a technique fr lking at the prject at a high level, and then subsequently breaking the wrk int smaller and smaller pieces until yu can get the full picture f the ttality f wrk that needs t be perfrmed. The Warning Signs Many prject managers think that the creatin f the riginal prject wrkplan is the end f the effrt. There are a cuple signs that the wrkplan is nt being updated. The prject manager cannt tell yu exactly what wrk is remaining t cmplete the prject. The prject manager is unsure whether the prject will be cmplete n-time and within budget. The prject manager des nt knw the critical path f activities. Team members are nt sure f what wrk they need t start next (r even what they shuld be wrking n nw). The general sign that a prject is in truble is that the prject manager has a wrkplan, but des nt really understand the prgress made t date and hw much wrk is remaining. When this happens, the prject team is nt utilized efficiently n the mst critical activities. Ultimately, the Cpyright 2007 TenStep, Inc. All Rights Reserved

10 Rescuing Trubled Prjects prject team gets tward the end f the prject and realizes that they have much mre wrk n their plate that anticipated, since earlier scheduled wrk is nt yet cmpleted. The team may als discver that they have rewrk t d, since earlier required steps were nt cmpleted. Other Cmmn Mistakes When Managing the Wrkplan The biggest mistake prject managers make is that they d nt update the wrkplan at all nce the prject cmpletes. Hwever, there are a number f ther cmmn prblems that ccur. Infrequent updates. Smetimes the prject manager updates the wrkplan, but at lengthy intervals - fr instance, every tw mnths n a six mnth prject. The prblem is that by the time yu make a frmal update, yu may have already missed sme activities. In additin, if yu are behind schedule r verbudget, it takes t lng t ntice, and yu may be t far behind t make up the difference. Managing by percent cmplete. All activities shuld have a due date. If the activity is cmpleted n time, everything is great. If the activity is nt cmpleted, a cmmn questin t ask is what percentage f the wrk is cmpleted. The percent cmplete is very subjective. The better questin t ask is simply when will the wrk be dne? This is really the mst imprtant infrmatin t let yu knw if yur prject is in any jepardy. Assigning activities that are t large. If yu assign a team member an activity that is due by the end f the week, yu knw if the wrk is n-track when the week is ver. Hwever, if yu assign smene an activity that des nt need t be cmpleted in fur weeks, yu have a lng time t g befre yu knw if the wrk is really n schedule. Sure, the persn assigned can tell yu it is 25% cmplete r 50% cmplete, but this is a highly subjective respnse. The nly time yu knw fr sure if yu are n schedule is if the wrk is actually cmpleted in fur weeks. That is t much time fr uncertainty. In general, if yu have a large prject, try t keep the wrk activities t tw weeks r less. If the prject is smaller, this threshld might be better if set at ne week. That way, yu can find ut quickly if anything is running behind schedule. Hw D Yu Get Back n Track? Hpefully yu will never be in a situatin where the wrkplan is ut f date and yu are nt exactly sure where the prject stands. If yu are, the first thing t d is take a step back and get the wrkplan back up t date. This includes: Accunting fr all f the wrk dne t date. Determining the wrk that is inprgress and understanding when each f the activities will be cmpleted. Wrking with the team t reidentify all f the wrk remaining n the prject, as well as the estimated effrt. In essence, yu can use the current wrkplan as a starting pint, but revalidate that all the remaining wrk is identified t cmplete the prject. Reschedule the prject t determine whether yu can still meet yur cmmitments fr budget and deadline. If yu cannt, yu need t wrk with yur clients n Cpyright 2007 TenStep, Inc. All Rights Reserved

11 Rescuing Trubled Prjects ways t get the wrk dne within expectatins. If that cannt be dne, yu will need t reset expectatins based n the newly revised wrkplan. There is never a gd way t catch up a wrkplan nce the prject is underway. Typically, by the time yu realize yu need t update the wrkplan, yur prject is already in truble. Updating the wrkplan at that pint nly shws hw much truble yu are in. The much better apprach is t update the wrkplan n a regular basis. Weekly updates are best, but can perhaps be stretched t every tw weeks n a large prject. Prject Prblem #4 Pr Prject Cmmunicatin Many years ag, a gd prject manager might have gtten away with being a pr cmmunicatr. The business clients typically didn t like it, but as lng as the prject manager culd deliver the gds, the client may have been inclined t let him r her d his/her wn thing. In tday s wrld, hwever, prjects need t be undertaken in partnership with the business, and this partnership abslutely requires slid cmmunicatin. In fact, many f the prblems that surface n a prject are actually the result f pr cmmunicatin. Pr cmmunicatin can lead t the fllwing truble areas. Differences in expectatins. Prject managers need t strive t ensure that everyne assciated with the prject has a cmmn set f expectatins in terms f what is being delivered, when and at what cst. The place t initially set these expectatins is with the Prject Definitin dcument. Hwever, many prject managers d nt keep key stakehlders up-t-date as expectatins get changed. Perhaps it is as simple as sme stakehlders thinking that the prject is ging t be cmpleted n December 31, when it has been extended until March 31. Peple make decisins based n the best infrmatin they have at the time, and if the prject manager des nt keep everyne under a cmmn set f expectatins, things can start t get ut-f-sync fast. Peple are surprised. If peple are nt kept infrmed abut what is ging n, they will be surprised when changes ccur. Fr instance, if yu are nt ging t be able t make yur deadline date, yu want t make sure peple dn t read it suddenly in a status reprt. Practive cmmunicatin means that yu raise the ptential f missing yur deadline as sn as it becmes a risk. Then yu cntinue t keep peple up-t-date n the status. If yu have t declare that yu cannt meet yur date, peple are prepared. Peple get angry and frustrated when they find ut bad news at the last minute. N ne knws what the state f the prject is. On sme prjects, peple are nt really sure what the status is. The cmmunicatin n these prjects is shrt and des nt give the reader a real sense f what is ging n. Again, peple cannt make the best decisins if they d nt have gd infrmatin. If they are nt sure abut what is ging n, they have t spend extra time fllwing up fr further infrmatin. In fact, if yu send updates t stakehlders and they cntinually fllw up with yu fr mre infrmatin, it can be a sign that yur cmmunicatins are nt targeted crrectly. Peple are impacted by the prject at the last minute. This Cpyright 2007 TenStep, Inc. All Rights Reserved

12 Rescuing Trubled Prjects is a prime cause f prblems. In this situatin, the prject manager des nt cmmunicate practively with ther peple abut things that will impact them. When the cmmunicatin des ccur, it is at the last minute and everything is rush-rush. Fr example, this happens when the prject manager des nt tell resurce managers that team members are becming available until the day they are released. Or it culd include the prject manager that knws fr three mnths that a specialist is needed, but nly asks fr the persn the week befre. In each case, the ther party is surprised by the last minute request and des nt have time t adequately prepare. Team members dn t knw what is expected f them. In the prir prblem situatins, cmmunicatin prblems surfaced between the team and utside parties. Hwever, pr cmmunicatin als ccurs within a prject team. Sme prject managers d a pr jb f talking with their wn team t explain what they are expected t d. Smetimes, the prject manager is nt clear n when assignments are due. Smetimes the prject manager has a visin f what a deliverable lks like, but des nt cmmunicate that t the persn assigned until the first attempt cmes back wrng. Smetimes the prject manager des nt cmmunicate clearly and team members spend time n wrk that is nt necessary. Again, all f this causes extra wrk and extra frustratin n the part f the prject manager and team members alike. What s the Slutin? Sme prject managers are just pr cmmunicatrs t begin with. If yu think yu are in this grup, yu shuld lk fr training r mentring pprtunities t becme better skilled. Hwever, in mst cases, the prblem with cmmunicatin is nt a lack f skills, but a lack f fcus. Many prject managers see cmmunicating practively n the bttm f their pririty list. When they d cmmunicate, it tends t be shrt and cryptic, as if they are trying t get by with the minimum effrt pssible. The key t cmmunicating is t keep the receiver the fcal pint nt the sender. Try t think abut what the receiver f the cmmunicatin needs and the infrmatin that will be mst helpful t him r her. If yu are creating a status reprt, put in all the infrmatin necessary fr the reader t understand the true status f the prject, including accmplishments, issues, risks, scpe changes, etc. If yu are ging t need a resurce in the future, cmmunicate practively with the resurce manager as early as pssible. Then, keep reminding him r her f the need as the time gets clser. Fr the mst part, if yu ever surprise smene, it is a sign that yu are nt cmmunicating effectively. (The nly exceptin is when the prject manager is als surprised.) The prject manager shuld als cmmunicate clearly with their team. If yu find peple are cnfused abut their end-dates r if they are ding wrk they dn t need t d, think abut whether yu cmmunicated with them effectively. Many prjects have prblems. Pr cmmunicatin can cause many prblems and aggravate thers. On the ther hand, practive cmmunicatin can help vercme many ther mistakes. Dn t cnsider cmmunicatin t be a necessary evil. Instead, use it t yur advantage t Cpyright 2007 TenStep, Inc. All Rights Reserved

13 Rescuing Trubled Prjects help yur prject g smthly with less frustratin, less uncertainty and n surprises. Prject Prblem #5 Pr Quality Management The first thing t understand abut quality is that it is nt defined by the prject manager r prject team. Quality is determined by the prject spnsr and yur client. Smetimes there is a tendency t think that 'quality' means the best material, the best equipment and abslutely zer defects. Hwever, in mst cases, the client des nt expect, and cannt affrd, a perfect slutin. On the ther hand, a flawlessly designed, defectfree slutin that des nt meet the client's needs is nt cnsidered high quality. The purpse f quality management is t first understand the expectatins f the client in terms f quality, and then put a practive plan and prcess in place t meet r exceed thse expectatins. Like the ther cmmn prject management mistakes, prblems with quality shw up in a number f areas. Fr instance: Rewrk. This is the primary prblem caused by pr quality wrk during a prject. Rewrk means that yu have t d the same wrk twice because the riginal effrt was nt satisfactry. Let s lk at a sftware cmpnent in a large applicatin. Cmpnent walkthrughs r peer reviews are nt cnsidered rewrk, since they are part f building the cmpnent the first time. When yu say the cmpnent is cmplete, the hpe is that n mre wrk is needed. Hwever, if there are subsequent errrs when yur cmpnent is tied int the larger applicatin, rewrk is required. This is wrk that is required because the riginal cnstructin and testing prcess was nt thrugh enugh and errrs still exist in the deliverable. Higher maintenance and supprt csts. If errrs are caught within the develpment prcess, there is a cst assciated with rewrk. Hwever, many times quality prblems surface after the prject deliverables are cmpleted and in prductin. This situatin just hands the prblem ff t the supprt rganizatin. High supprt csts frm a pr quality slutin are a sign that the team willingly delivered a less than acceptable slutin, r else they did nt realize the pr quality because their testing prcess was als inadequate. Client dissatisfactin. If a slutin is f pr quality, the client will nt be happy. Again, sme f this unhappiness may be transferred t the supprt rganizatin. Hwever, if the client has a chice, they may nt buy frm yu again at a later date. Missed deadlines and budget. In many cases, prjects that d nt manage quality well end up with a lt f rewrk, which in turn leads them t miss their deadlines and exceed their budget. This can cause the business value t be delayed, r it may change the value prpsitin fr the entire prject. Pr mrale. N ne likes t wrk fr an rganizatin that has pr prcesses r prduces pr quality slutins. N ne likes t wrk n prjects that are missing their deadlines because f rewrk. Peple tend t find excitement and challenge in building a slutin. Hwever, their mtivatin level ges dwn when they have t cntinually repair and rewrk Cpyright 2007 TenStep, Inc. All Rights Reserved

14 Rescuing Trubled Prjects deliverables that dn t wrk crrectly. In additin t pr mrale in general, specific csts can include increased absenteeism, higher turnver and less prductivity frm the staff. What Can be Dne? Quality management is nt an event that yu cnsider nce in a while. Quality management is an nging prcess that the team needs t fcus n thrughut the prject. When the prject begins, the prject manager shuld prepare an verall Quality Plan cntaining three majr cmpnents. 1. Cmpleteness and crrectness criteria. Remember that quality is determined by the client nt the prject manager. That might make the prject manager uneasy, since he r she may nt be sure f the client's expectatins. That is where cmpleteness and crrectness criteria cme in. The prject team and client then have a cmmn expectatin f what is required fr each deliverable t be accepted. 2. Quality cntrl prcess. Quality cntrl refers t the nging activities that the prject team will perfrm t ensure that the deliverables are f high-quality. This can include deliverable walkthrughs, testing f subcmpnents, cmpleteness checklists, etc. 3. Quality assurance prcess. These are the activities designed t ensure that the verall prcesses used t create the deliverables are f high quality. These types f activities include third party audits, checklists t ensure that all parts f a prcess were cmpleted, deliverable apprvals, etc. Everyne n the team needs t have a quality mindset t ensure that wrk is cmpleted with a minimum amunt f errrs the first time. The prject manager and team need t understand that the first gal f quality management is t prduce deliverables with n errrs. The secnd gal is t catch any remaining errrs as early as pssible. Frm a practical standpint, if yu can build the deliverables with as few errrs as pssible, and then find thse remaining errrs as early as pssible, yur verall prject will have much fewer prblems. Quality prblems tend t shw up late in the prject usually during the testing prcess. Hwever, if yu have a gd quality prcess in place, testing shuld nly cnfirm that everything is wrking crrectly. Then yu can wrk quickly tward final apprvals, implementatin and a smth prductin cycle. Define and Plan the Recvery Prject When a prject is trubled, usually an utside party is brught in t help with the recvery. This des nt have t be a persn frm an utside cmpany, just smene that is utside f the prject already. An utsider is brught in because the prblems n the prject are usually bigger than the current prject manager realizes, r they are bigger than the current prject manager can handle. After all, if the prject manager culd slve the prblem r had ideas t turn the prject arund, he r she shuld have dne s already. Ptential Results f the Recvery By definitin, trubled prjects have majr prblems. In fact, the prblems may be t severe t vercme. There are a number f ptential scenaris that will result frm trying t remedy a trubled prject. Cpyright 2007 TenStep, Inc. All Rights Reserved

15 Rescuing Trubled Prjects The prject is turned arund and cmpletes successfully (within tlerances). This is the best case, but it is nrmally nt pssible. If yu take ver a trubled prject that is trending 50% ver budget, fr instance, yu are nt nrmally ging t be able t turn it arund t a pint where yu finish in budget (within yur tlerances). New expectatins are set and met. This is a cmmn result f taking ver a trubled prject. New estimates and expectatins are set, and then the team strives t meet the new expectatins. New expectatins are set and missed. This is als a cmmn utcme if the rt causes f the riginal prblems are nt identified and reslved. This is actually the wrst-case scenari, since the cmpany is n better ff after the interventin than they were befrehand. It culd be that the mney spent since the riginal interventin will be wasted. The prject will be cancelled. Many trubled prjects are just cancelled and the mney already spent is basically written ff. This can ccur at the pint the prject is validated t be in truble r after the new expectatins are set. The business value btained by the riginal prject estimate may nt be there at a higher cst. Of curse, there are ther permutatins. Fr instance, the prject expectatins may get reset and missed, and then reset again. The prject may be mandatry and need t be cmpleted regardless f the number f missed expectatins. Plan, Then Act The nrmal tendency fr a persn arriving n a trubled prject is t jump in with bth feet t determine causes and plans fr a turnarund. If the prject is small, yu may be able t d just that. Hwever, if a prject is small, yu are nt typically ging t g thrugh the effrt f a prject turnarund. Let's assume that the prject is big enugh t require a frmal prject turnarund. Rather than just jumping in, the first thing that needs t happen is t recgnize that the wrk t recver the trubled prject is itself a prject. The recvery prject has a start and an end, resurces, deliverables, etc. It fits all f the classic definitins f a prject. Since it is a prject, the first thing that needs t happen is a definitin and planning prcess, just as described in the TenStep Prject Management Prcess in steps 1 and 2. Just as with a nrmal prject, yu need t lk at the characteristics f the recvery prject t determine the level f effrt required. If the recvery prject is a medium-sized prject, an Abbreviated Prject Definitin and a shrt wrkplan may be perfectly fine. Hwever, if the prject is tens f millins f dllars, the recvery prject itself may be substantial and a full Prject Definitin and wrkplan shuld be develped and apprved. Just as with a regular prject, the definitin and planning prcess gives yu a chance t validate: The purpse f the recvery prject (verview and bjectives) The deliverables t be prduced (scpe) The ther aspects f scpe including validating the rganizatins, the prtins f the prject t recver, etc. The spnsr, prject manager and ther key stakehlders f the Cpyright 2007 TenStep, Inc. All Rights Reserved

16 Rescuing Trubled Prjects recvery prject (prject rganizatin) The estimated duratin and cst f the recvery prject The assumptins and risks assciated with the recvery prject, and hw the risks will be managed Wh will be invlved in the recvery prject (prject rganizatin) Hw the current prject will prceed (r will it?) while the recvery prject is underway (apprach) Once the recvery prject has been defined and planned, the spnsr and apprpriate stakehlders shuld apprve the Prject Definitin. The prject manager then needs t manage the recvery prject tightly using steps 3-10 f the TenStep Prject Management Prcess. The prject manager must fcus n the agreed upn wrk and ensure that the expectatins are met. The entire situatin will be exacerbated if the recvery prject itself is nt cmpleted successfully. Assess the Trubled Prject Once the recvery prject has been defined and planned (and apprved) the first step is an assessment f the trubled prject. This wuld be equivalent t the Analysis Phase that is typically dne at the start f a prject. Verify the Backgrund and Facts The persn perfrming the assessment may r may nt have any backgrund n the prject. In many cases, he r she is an utside party that has gd assessment and recvery skills, but he r she may nt have any specific backgrund n the prject itself. When yu are perfrming the assessment, n initial assumptin is safe frm scrutiny. Everything abut the prject shuld first be validated. As a part f the initial briefing, yu are likely t talk with the spnsr r ther senir managers. They will certainly brief yu n the backgrund and the prblems. Hwever, they are just ne vice that yu will need t listen t. Even infrmatin that cmes frm the spnsr shuld be validated and cnfirmed by thers befre the assessrs make any decisins. Cnsult with All Relevant Stakehlders Sme recveries fcus n the prject team t determine where the prblems lie. Hwever, that is t narrw f a grup fr the assessment. The prject team typically des nt see the entire picture, and they may be biased in their understanding f the causes f the truble. T be effective, the assessment must include: Prject team Spnsr Client managers Users Vendrs, suppliers and ther third parties that have a high degree f invlvement Assessing all the majr stakehlders will nt nly allw yu t see a mre balanced view f the prject, but will als help yu in implementing the recvery plan. Peple tend t respnd better t adversity and change if they think they have been cnsulted and had input int the recvery prcess. Perfrm the Assessment Yu shuld have a plan f attack fr cnducting the assessment. The verall apprach fr the assessment shuld have been laid ut in the Prject Definitin fr the prject rescue, and an initial wrkplan shuld be in place. Cpyright 2007 TenStep, Inc. All Rights Reserved

17 Rescuing Trubled Prjects Hwever, the assessment is ging t utilize cmmunicatin skills and prblem slving skills. Yu can review mre infrmatin abut the cmmunicatin skills required in the LifecycleStep Prject Lifecycle Prcess at entselicitatin.htm. The recvery plan will als take gd prblem slving skills. It is imprtant t identify the rt causes f prblems. If there are multiple prblems (and there usually are), yu need t determine which prblems are the mst urgent t reslve. Yu can review mre abut prblem slving techniques at: Manage Issues / Cause and Effect Analysis Manage Issues / Rt Cause Analysis Manage Issues / Paret Analysis Cmmn Causes It is true that every prject is unique, with a set f unique circumstances that cause prblems. Hwever, it is als true that there are sme generalities that can be used t guide the assessment in the search fr rt causes. They are as fllws: Up-frnt Prject Definitin Unclear and differing expectatins fr the bjectives f the prject Unclear r differing expectatins f the scpe and deliverables f the prject Majr risks were missed r were thught t be initial assumptins Lack f strng and clear wnership and spnsrship f the prject Nt including all f the majr stakehlders in the prject Making the prject t large r t cmplex thrugh its definitin instead f breaking it int smaller pieces Pr upfrnt estimates fr cst and duratin Prject wrkplan Prject activities are nt brken dwn int a finite enugh level The critical path is nt identified and managed The prject team desn't always knw what t wrk n Wrk is assigned t team members that d nt have the prper level f experience and skills Onging prject management Generally nt fllwing gd prject management and lifecycle prcesses The wrkplan is nt being managed Scpe is nt being managed effectively Issues are nt being reslved in a timely manner and the delay is adversely impacting the prject Cmmunicatin between the client and prject team has brken dwn r is inadequate Prject risks are nt being managed Prject risks are nt being reevaluated The prject is nt fllwing rganizatinal standards, guidelines and plicies Cpyright 2007 TenStep, Inc. All Rights Reserved

18 Rescuing Trubled Prjects The team is nt held accuntable fr missed deadlines The resurces t cmplete the prject successfully as defined in the Prject Definitin are nt available as needed There is nt a cmmn understanding f the acceptance criteria f the majr deliverables Peple and skills The team r client-team relatinships are dysfunctinal Interpersnal and diversity prblems amng a multicultural prject team The team r the client experiences turnver f key resurces The prject manager des nt have the skills required t manage the prject (He r she may have gd general skills, but nt fr a prject with these characteristics.) The team des nt have the right skills t cmplete wrk within expectatins (technical, prfessinal r business skills) Analysis and business requirements Failure t define the requirements is resulting in building the wrng features and functins Failure t define requirements clearly and cmpletely leaves majr gaps in meeting client expectatins. The needs f all stakehlders were nt cnsidered in the requirements, including users, management and the spnsr New requirements are nt being managed (scpe management prblems) Design and technlgy New r state f the art technlgy causing unanticipated prblems Pr slutin design causing missed requirements and rewrk Nt having the right skills n the prject Cnstructin and testing Requirements and ther aspects f scpe are nt frzen t allw the prject t drive tward cmpletin Technlgy cmpnents d nt fit tgether as designed Pr initial testing techniques cause repeated errrs and rewrk in later tests Implementatin Inadequate training f the slutin users Implementatin fails and a recvery plan is nt in place Pr verall testing causes majr errrs that keeps the prject team in place lnger than expected Of curse, there are ther causes as well - sme majr and sme minr. The assessment may pint ur ne majr rt cause f the prject being trubled, but it is mre likely that a trubled prject will have a number f majr and minr rt causes identified. Develp a Recvery Plan It is hard t describe a generic prcess fr develping a recvery plan because the recvery plan itself is based n the specific rt causes that yu cme up Cpyright 2007 TenStep, Inc. All Rights Reserved

19 Rescuing Trubled Prjects with during the assessment. If the cause has t d with pr initial estimates, the recvery plan will include re-estimating the remaining wrk. If the prblem is assciated with having the wrng skills n the team, the recvery plan will be different. Identify Alternatives and a Recmmendatin After the assessment is cmplete, a list f alternatives shuld be develped alng with a recmmendatin. The alternatives will vary greatly, depending n the causes that were uncvered during the assessment. Hwever, a cuple f alternatives will nrmally always be cnsidered: Stp the prject. If a prject is in bad enugh shape that a rescue is required, the team shuld always leave pen the pssibility that the prject shuld just be cancelled. There are many reasns that cancellatin may be the best apprach. The prduct being prduced may have missed its windw f pprtunity in the market, the team may nt have the right skills and the rganizatin may nt have the right peple available t replace them, r the spnsring rganizatin may have mre imprtant pririties nw. Of curse, a big reasn fr cancellatin is that the business prpsitin may nt be valid any mre. A prject that made sense at a certain cst may n lnger make sense if the revised cst estimate is 50% higher r mre. Smetimes there is a hesitancy t cancel a prject because f the implicatin that all f the mney spent s far will have been wasted. Hwever, yu shuld lk instead at the mney already spent as being a "sunk" cst. Sunk csts refer t mney already spent n the prject. Fr the mst part, sunk csts represent mney that yu will never get back. The questin in a trubled prject is nt s much the sunk csts as it is the remaining csts and whether the prject makes business sense if yu spend the estimated cst t cmplete the prject. If the estimated cst t cmplete the prject, plus the sunk csts, means that the prject n lnger makes business sense, the prject shuld be canceled. This is generally true even if yu have already spent 50% r mre f the revised cst. If the prject n lnger makes business sense, yu dn't want t be in a psitin f spending mre mney n it. It wuld be better t take the remaining prject csts, even if they are 50% r less, and apply that mney t an effrt that des have business value t the cmpany. Let the prject cntinue as is. In sme cases, the spnsr may determine that the cst f a prject rescue is nt wrth pursuing. Fr example, a prject may be prjected t cmplete at a budget 50% higher than estimated. Hwever, the assessment may determine that a cause is that the prject cst was underestimated. In this case, there is nt much that can "rescue" the prject. The spnsr is frced t accept the higher cst f the prject, cancel the prject r scpe back the deliverables. In anther example, a prject may take 50% lnger than riginally estimated. Hwever, the prject may have had sme delays in getting resurces n bard, meaning the prject csts are trending within tlerances. The client may decide t live with the later deadline and decline any radical interventin at this time. Cpyright 2007 TenStep, Inc. All Rights Reserved

20 Rescuing Trubled Prjects Other alternatives. There are many ther cmmn alternatives fr rescuing a trubled prject. Remember that yu may nt be trying t get the prject t cmplete within its riginal deadline and budget. At this pint, yu may have t settle fr a mre expensive final cst and a later delivery date. Adding resurces t apply extra effrt. Adding resurces may be required t cmplete the prject within a reasnable timeframe. This may well increase the prject budget. Remember that there is a diminishing return frm adding resurces. If yu have a team f five peple and then add ne mre, yu will nt get a 20% increase in wrk. There is startup time and crss-training invlved that will nt nly take the time f the new resurce, but existing team resurces as well. Yu will als find an increase in cmmunicatin, an increase in team misunderstandings, rewrk, cnfusin, etc. Obviusly yu will get sme prductive wrk dne as well, but nt t the extent yu might think. Therefre, yu may nly get a 15% increase in ttal wrk prduced. If yu added a secnd resurce t the team, the incremental gain may be nly 12%. A third resurce might gain 8%, etc. Yu will quickly cme t a pint where adding mre resurces actually ends up with the activity taking up mre time than it wuld have if fewer resurces were used. Adding resurces t apply extra skills. Yu may need t add resurces with a necessary level f expertise r skill. These peple culd be experienced cnsultants that are added fr the shrt term t cmplete sme activities that the current prject team des nt have the right level f expertise t cmplete. Paying vertime. Yu may recmmend that the current team wrk paid and unpaid vertime t meet a new deadline. If yu are paying fr the vertime, this alternative may cst the prject mre mney. Offering incentive bnuses. Yu can ffer incentives fr team members, cntractrs and suppliers t get their wrk cmpleted in a mre aggressive timeframe. Purchasing tls. Yu may need new tls t accelerate the schedule. These will usually cst mney, and yu may have t invest in a learning curve, but yu think there will be a payback ver the remaining length f the prject. Imprving prcesses. Many f the rt causes f prject prblems need t be reslved thrugh prcess imprvements. If yu are wrking n a small prject, there may nt be enugh time t make prcess imprvements befre the prject ends. Hwever, larger prjects (the kind like this ne that need t be rescued) usually have enugh time remaining t make prcess imprvements t help turn the prject arund. Building team dynamics. If yu have rt causes that pint t team chesin, yu may need t invest in team building Cpyright 2007 TenStep, Inc. All Rights Reserved