Failure is Not an Option Managing Project Recovery Presented to PMI-GTISLIG March 20, 2008 Romeo Mitchell Senior Program Manager romeo.mitchell@hp.com Dhanu Kothari & Romeo Mitchell Slide 1
The Universe is hostile to the success of your project, and the journey to a successful recovery begins with accepting that the project is in trouble. Dhanu Kothari & Romeo Mitchell Slide 2
Presentation Objectives In the context of practical experience & lessons learned 1. Troubled Projects How do we get there? 2. Dealing with the Challenge 3. The Ten Steps to Win AIM Methodology -A10 Process Model for Recovery 4. Profile of a Recovery Manager Based on From Ratholes to Rainbows: Managing Project Recovery Dhanu Kothari & Romeo Mitchell Slide 3
IT Project Management - Failure Analysis Classic Mistakes % of Projects 1. Poor estimation and/or scheduling Process 54% 2. Ineffective stakeholder management People 51% 3. Insufficient risk management Process 47% 4. Insufficient planning Process 39% 5. Shortchanged quality assurance Process 37% 6. Weak personnel and/or team issues People 37% 7. Insufficient project sponsorship People 36% 8. Poor requirements determination Process 31% 9. Inattention to politics People 29% 10. Lack of user involvement People 29% 11. Unrealistic expectations People 27% 12. Undermined motivation People 26% * Prof. Ryan Nelson, Univ. of Virginia (7 yr study, 74 org. & 99 projects) Dhanu Kothari & Romeo Mitchell Slide 4
What s s a Troubled Project? Continued and sustained pattern of failure with respect to meeting the client s expectations A project is in trouble when variances are beyond the acceptable tolerances and less than extreme values. Dhanu Kothari & Romeo Mitchell Slide 5
Project Recovery Zone Fouled Up Beyond Repair (FUBR) Exit or Terminate RECOVERY MGT. RECOVERY ZONE Fouled Up Beyond Belief (FUBB) NORMAL PROJECT MGT. Managing Client s Expectations RECOVERY MGT. RECOVERY ZONE Fouled Up Beyond Belief (FUBB) Fouled Up Beyond Repair (FUBR) Exit or Terminate Is your project just in trouble or Is it really a troubled project? Dhanu Kothari & Romeo Mitchell Slide 6
The Recovery Spectrum Bring it under control Establish Confidence Coach PM & Team Stabilize the Project Transition to PM Partial Recovery Total Recovery Program Recovery Change in Business Value New Focus New Technology Different Architecture Change in Strategy, Objectives, Goals & Organization Culture Program Governance Short Term Turnaround 1-44 weeks 2-44 months 6-99 months 9-12 months Dhanu Kothari & Romeo Mitchell Slide 7
High Dealing with Troubled Projects 2x2 Decision Matrix Complexity and Cost of Recovery Exit Reprioritize Transform Salvage Low Low Business Value of the Project to the Organization High Dhanu Kothari & Romeo Mitchell Slide 8
Project Recovery Process AIM Methodology for Recovery A I M Phase 1 Phase 2 Phase 3 Audit & Implement Manage Plan the Plan Transition 1. Accept 2. Assess 3. Adapt Recovery Processes 4. Assign 5. Achieve 6. Act 7. Advance 8. Accomplish 9. Alter 10. Align Dhanu Kothari & Romeo Mitchell Slide 9
Project Recovery - The A 10 Model Accept Align Assess Alter Accomplish Project Recovery Process Adapt Assign Advance Act Achieve Dhanu Kothari & Romeo Mitchell Slide 10
A1 Accept the Fact It s s in trouble! Psychology of Denial Filtering Info. Shoot the Messenger Psychology of Denial Willful Deception & Wishful Thinking Org. Culture Acceptance Indicators Belief in Objectivity Willingness to Listen Open Mindset Sense of Urgency Failure to Speak Up Suppress Bad News Stakeholder Acknowledgement Active Listening No Blame Game/ Witch Hunt Dhanu Kothari & Romeo Mitchell Slide 11
Project Recovery - The A 10 Model A2 Assess the Project Conduct Project Health-Check Compare against Best Practices Conduct Initial Deep Dive into specific aspects Project Organization & Players Client s s Interest & Expectations Stakeholders information needs Team Morale & Confidence Solution & Alternatives (Egos!) It s s not about people; it s s about the project Do a Root Cause Analysis PCQS SCQS BCQS Dhanu Kothari & Romeo Mitchell Slide 12
Project Objectives Lack of Business to Project Communication Lack of discipline Unclear roles & responsibilities Lack of clear Don t t know Why, What & How Culture of Fear No criteria for Success Success & communication Lack people skills Barriers to Success Overhead/ added work Lack of recognition/ reward Lack of internal Lack of responsibility Completion Completion Lack of SMART objectives Project alignment Lack of clear expectations Lack of follow up Project Selling Lack Gating & checkpoints Changing Priorities Don t t believe in Project Management Don t t know how New flavour flavour of the month Lack critical Org. culture resources Lack of empowerment No Don t Measures No focus want it Project Processes Lack of approval No Don t t follow PM processes consequences Methodology Lack of ownership Don t t see PMM benefits Lack of basic PM Methods & Processes Project Recovery - Root Cause Analysis Lack of buy-in/ mgt. commitment Override due to Too rigid or Too lax urgency Lack of Control Lack training, Scope Cost Quality support & coaching Can t get it Project Resources Dhanu Kothari & Romeo Mitchell Slide 13
Project Recovery - The A 10 Model A3 Adapt Project Objectives to Business Needs Sole purpose satisfy a business need. Alignment of Project Charter Common understanding of the business needs For the target recovery: Adjust scope, if necessary and define Map out organizational process where required Develop a WBS Produce an achievable schedule Rebuild the project team Establish and exercise communication strategy Resolve project issues Negotiate and update project plan baseline Reestablish stakeholder confidence in the project Dhanu Kothari & Romeo Mitchell Slide 14
Project Recovery - The A 10 Model A4 Assign Responsibilities and Delegate Authority of the Recovery PM is clear & explicit Get it Under Control Match skills to requirements No joint responsibilities or co-project Mgt. Responsibilities are delegated Commitments are accepted Connect delegation & acceptance through deliverables Connect assignment responsibility to relevant Business Process Develop a communication matrix (RACI/RAM Chart) Dhanu Kothari & Romeo Mitchell Slide 15
Organizing for Project Recovery Recovery Steering Committee Executive Sponsor Recovery Management Ongoing Project Management Recovery Project Mgr. Project Stakeholders Project Manager Client Manager Client Organization Project Team Dhanu Kothari & Romeo Mitchell Slide 16
Project Recovery - The A 10 Model A5 Achieve Goals by Setting Realistic Targets Generate confidence by delivering quick results Conduct team sessions Strive for consensus Establish milestones 2-32 3 weeks apart Focus on the Critical Path Associate deliverables with milestones Get signoff for each deliverable Need Micro-Managing Managing initially with an Inch-stone Plan to gain confidence Dhanu Kothari & Romeo Mitchell Slide 17
Project Recovery Roadmap Start Do an Initial Quick Scan Draft Terms of Ref. Prepare Recovery Charter Validate Recovery Criteria Meet with Exec Sponsor Outcomes Recovery Charter Project Compliance Scan Standards Compliance Scan Perform Compliance Reviews Audit Compliance Scan Business Compliance Scan Design Health Check Questions Conduct Interviews Conduct Health Check Evaluate re Best Practices Perform Gap Analysis Deep Dives Subject Area 1 N1 Conduct Detailed Assessment Summarize Findings Compliance Assessment Detailed Approved Findings Plan Assessment Recovery Summary Report Plan Coaching Establish New Milestones Project Baseline. Quick Wins Communication Enhance PM Mgt. of Change Governance & Inch-Stone Plan Processes PM Process Risk Mgt. Coach Project Mgr. PM Transition Prepare Recovery Execute the Recovery Plan Deliver Quick Wins Recovery Stabilize Project & Scope Processes Objectives Organization Implement Roles & Corrective & Responsibilities Preventive Measures Signoff on Quick Wins & Stable Processes Transi- tion to Ongoing Project Project Mgr. Mgt. Recovery Review & Signoff Revised Baseline Formal Transition Dhanu Kothari & Romeo Mitchell Slide 18
Project Recovery - The A 10 Model A6 Act Consistently and Decisively Set up a consistent process for decision-making Focus on key problems to be resolved Follow a sound problem-solving approach Act decisively on goals set Focus on Moving Forward Validate schedule to ensure that it continues to be realistic and achievable Communicate decisions Own responsibility for the decisions Dhanu Kothari & Romeo Mitchell Slide 19
Tools for Decision Making Business intelligence Key Stakeholders Expectations Management Choices Intelligence Tools Cash Flow Analysis Cause & Effect PEST Analysis Porter s s Five Forces Risk Analysis SWOT Analysis Systems Relationships Value Analysis Intelligence Intelligence Activity Activity Choice Activity Choice Tools Decision Decision Activity Activity Risk Assessment & Risk Tolerance Consequence assessment and risk Planning Execution Planning Decision Tools Cost Benefit Analysis Decision Trees Force Field Analysis Grid Analysis Paired Comparison Pareto Analysis PMI Six Thinking Hats Dhanu Kothari & Romeo Mitchell Slide 20
A7 Project Recovery - The A 10 Model Advance the Project through Communications Manage Expectations Continually sell the project Execute, Monitor & Control Communicate Select communication tools Keep everyone informed Based on assessed communication needs During Assessment, Planning & Execution Validate Communication for Success Manage Risks Identify, Evaluate, Strategize, Manage Tools recommended; TIMO Dhanu Kothari & Romeo Mitchell Slide 21
A8 Accomplish Stability for Transitioning Focus on stabilizing the project Quality concepts built into Recovery Recovery Vs. Ongoing project team Consistent & predictable PM process Validating team readiness for transition Coaching the existing PM Dhanu Kothari & Romeo Mitchell Slide 22
Avoiding the Need for Recovery The STEALTH Debrief S Set Time, Location, Prep T Tone Nameless, Rankless Execution Vs. Objectives Recount Sequence of Events Did We Accomplish the Mission Objectives? Analyze Execution Execution Error/ Success Cause of Each Error/ Success Identify Root Causes Lessons Learned Prominent/Recurring Root Cause Transfer Lessons Learned *** Accelerate Experience; Improve Future Execution High Note Positive Simulation Brief and Debrief every single time! Ref: Flawless Execution by James Murphy Dhanu Kothari & Romeo Mitchell Slide 23
Project Recovery - The A10 Model A9 Alter the project direction through effective transition Ensure Management of Change Formalize effective Handshake through a Transition meeting Develop a Transition Checklist Transition the recovered project to the Project Team Action: Ongoing PM accepts responsibility Recovery PM provides ongoing Coaching re Communication, Process and Tools Dhanu Kothari & Romeo Mitchell Slide 24
Management of Change Initiate, Internalize, Implement Implement Implement the Change Change Management of Change Initiate Initiate the the Change Change Internalize the Change 1. Build Trust 5. Alter the Environment 4. Promote Persistence Coaching Cycle 2. Inspire Commitment 3. Grow Project Mgt. Skills Dhanu Kothari & Romeo Mitchell Slide 25
Project Recovery - The A10 Model A10 Align for on-going project execution Institute or re-align: Project Governance across organization Project Portfolio Management Policies, Procedures, Priorities Project Management Office (EPMO) Project Management Methodology Process for Continuous Quality Improvement Dhanu Kothari & Romeo Mitchell Slide 26
Recovery Manager - Skills & Competencies Breadth and Depth of PM Experience Consultative and Decision Making Skills In In-depth knowledge of Best Practices Outstanding Coach, Mentor and Influencer Bias towards Action Project Management Language Walk the Talk The Big Picture Picture Alternatives Alternatives Constraints Constraints Capability Capability Skills/ Skills/ Resources Resources Expertise Expertise Technology Language Know the Talk Mediator Facilitator Implementer Change Agent Recovery Recovery Goals Goals Business Business Strategy Strategy Exec. Exec. Sponsorship Sponsorship Project Project Alignment Alignment Mgt. Mgt. of of Change Change Org. Org. Culture Culture Business Business Value Value Business/ User s s Language Follow the Talk Dhanu Kothari & Romeo Mitchell Slide 27
Project Recovery - The A 10 Model Accept Align Assess Alter Accomplish Project Recovery Process Adapt Assign Advance Act Achieve Dhanu Kothari & Romeo Mitchell Slide 28
For further information: info@d2i.ca Dhanu Kothari & Romeo Mitchell Slide 29