EG5067/77 Project Management Session 2

John Cavanagh School of Engineering

Overview of Session 2
2.1 Teams 2.2 Projects within an organisational context 2.3 The Project Process

EG5067/77 Project Management Session 2.1 Teams

Group Discussion
So how did the Teambuilding go?

My Enemys Enemy is my friend?

Group Discussion
So how did the Teambuilding go?

Bruce Tuckman

Forming
Individual behaviour is driven by a desire to be accepted by the others

Serious issues and feelings are avoided Focus on being busy with routines
team organisation, who does what, when to meet, etc.

Individuals are gathering information and impressions

about each other about the scope of the task how to approach it.

Forming
A comfortable stage but Not much gets done.

Storming
Individuals can only remain nice for so long Minor confrontations will arise over the work or roles and responsibilities Quickly dealt with or glossed over. Some will observe that it's good to be getting into the real issues
others will wish to remain in the comfort and security of stage 1.

The conflict will be more or less suppressed but it'll be there, under the surface.

Individuals may feel they are winning or losing battles

will look for structural clarity and rules to prevent the conflict persisting.

Norming
Calm follows the storm
"rules of engagement established

Norming
Having had their arguments individuals.....
Understand each other better Appreciate each other's skills and experience. Listen to each other.

Individuals have had to work hard to get here They may resist any pressure to change, especially from the outside for fear that the group will break up, or revert to a storm.

Performing
Not all groups reach this stage Characterised by interdependence and flexibility Everyone knows each other well enough to be able to work together Trust each other enough to allow independent activity Roles and responsibilities change according to need in a seamless way. Group identity, loyalty and morale are all high Everyone is equally task-orientated and people-orientated. This high degree of comfort means that all the energy of the group can be directed towards the task(s) in hand

Adjourning
Completion and disengagement
From the tasks From the group members.

Individuals will be
proud of achievements glad to have been part of the team

Need to recognise achievements and consciously move on. "Deforming and Mourning

Five Dysfunctions of a Team

Patrick Lencioni

Conflict in teams
Major/normal causes: 1. Misunderstandings 2. Dishonesty 3. Negligence 4. Self agenda promotion 5. Overstepping accepted behavioural boundaries 6. Hidden agendas

GOOD or BAD?

Conflict in teams
Functional conflict The problem is solved People experience growth and change as a result of the conflict People become actively involved in resolving the problem People closer/stronger after the conflict Dysfunctional conflict The problem remains unsolved and festers People are diverted away from the team goals and aims Team ripped apart Lasting bad feelings and negative consequences

The Deadweight syndrome

Someone/people within a team or group do not pull their weight
Increasing stress amongst other team members increasing potential/inevitable conflict

Can be due to the fact of perceived less visibility

Necessary for clearly defined roles, responsibilities, and accountabilities

Other team members need to have no tolerance for this type of behaviour

EG5067/77 Project Management Session 2.2

Projects within an organisational Context

Group Discussion
How does an organisation decide which projects to do?

Competitive Advantage

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Business Planning
Where are we now?

What do we need to do

Where do we want to be?

How do we get there?

One Project

Two Projects

More Projects

More Projects

Aligned!

Why is Programme Management necessary

The Pressures
Tightening budgets Need for greater returns Pressure to achieve competitive advantage faster

The problem
<10% of strategies are effectively executed (Fortune magazine) 60% of organisations do not link their programmes and projects to the strategy (Forbes magazine)

Take a break!

Whilst We Move Rooms

Examples
Apollo Space Programme
What was the Outcome What were the projects

United Nations
Development programme Word food programme

Low Carbon buildings Programme UK Climate Change programme

We propose to accelerate the development of the appropriate lunar space craft. We propose to develop alternate liquid and solid fuel boosters, much larger than any now being developed, until certain which is superior. We propose additional funds for other engine development and for unmanned explorations-explorations which are particularly important for one purpose which this nation will never overlook: the survival of the man who first makes this daring flight.

Projects vs. Programme

Projects Definite start and end date Predetermined output Clear path start to end Changes to operations and services Benefits accrue after the end Programmes Strategic vision of the desired end goal About managing change Uncertainty is acknowledged Changes to culture of work practices Co-ordinates a set of projects to realise benefits

Projects vs. Programme

Projects

Outputs Outcomes

Portfolios/Programme

Translating and Delivering

Portfolio
Strategy

Programme Projects

Delivery

Projects vs. Programme

Programme management differs fundamentally from the management of projects as it is concerned with doing the right projects not just doing projects right.

Selection

Delivery

Question
What are the key benefits of programme management?

The Case for Programme Management

Alignment with Strategy Delivery of real business benefits Delivery of Change More effective as changes can be planned and implemented in an integrated way Management support Keeping focused on business change allows senior managers to direct and manage the change

The Case for Programme Management

Series of outcomes Resource Management More efficient use of scarce resources by providing mechanism for project prioritisation and project integration

Identifying and exploiting opportunities for sharing

e.g. scaffolding

Risk management Better management as wider context is understood and acknowledged

The Case for Programme Management

Budgetary Control Complete picture Different time horizons Consistency (Those darn interfaces!)

Planning Delivery Standards Working practices

NewCall CallCentre Centre New

Planning Phase Go/No go
Private Private Public Public

Delivery Phase Go/No go

Committed Committed

Acceptance Go/No go

ITProgram Program(Technology (TechnologyAcquisition Acquisition&&Implementation) Implementation) IT

Software selection & implementation Software selection & implementation Hardware Selection & Installation Hardware Selection & Installation

Project Management Methodologies, e.g. APM/PMI/PRINCE

Site Acquisition Site Acquisition

Telecoms Selection & Installation Telecoms Selection & Installation

FacilitiesProgram Program(Building (BuildingaaCall CallCentre CentreFacility) Facility) Facilities

Build Facility Build Facility

Initiative Program Project Initiative status

Marketing Program (Promoting the Call Centre) Marketing Program (Promoting the Call Centre)
Marketing & Promotion Marketing & Promotion

PersonnelProgram Program(Acquiring (Acquiring&&Training TrainingCall CallCentre CentreStaff) Staff) Personnel

Staff Training Staff Training

EG5067/77 Project Management Session 2.3

The Project (Stage-Gate) Process

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Activity
Imagine you are a project manager working within one of

the oil and gas majors such as BP or Shell. You are busy playing Tetris and chatting with your mates one day when you boss walks in and says he has a new project for you to manage.

Great you say, tell me about it.

Your boss explains that he wants a new oil and gas facility

in West Africa. He goes on explains how big it needs to be and when it is required to be on stream by. it up for you in a jiffy!.

You say great, Just give me 2 billion dollars and I will have

Activity
Next day you are reassigned to

your new role stacking shelves in the local supermarket.

Your new job gives you time to think. What did I do wrong? In your teams discuss what problems the approach you took might have caused you as project manager and/or your former employer.

Activity - Discussion
Is delivery to cost, time and quality even possible? If it is, what compromises and/or risks are involved? Is it better to have tried and failed than not to have tried at all ???

Deliver on your promise.

Activity - Discussion
How do we measure success?
More importantly how do the stakeholders measure it?

What are the givens

things which cannot be changed?

What are the assumptions

maybe these can be challenged?

What are the options?

which is preferred? Why?

What are the risks?

How will these be managed?

Preparing a detailed estimate is costly

How does the business know its even worth the time and effort?

Activity - Discussion
What is the financial case
how does it fit with other investment opportunities?

What organisation do I need? Do I have the resources? What technology options? What Environmental, health and safety issues? What about government permits etc Who will construct? Who will manage?

Activity - Discussion
What is the contract strategy? Any critical intermediate or final milestones that must be achieved? Who will operate the facility What about logistics Do we even have customers?
What specifications/requirements do they have?

Activity - Discussion
We need a process for getting it right The company will demand such a process! A Project management process

Even on fast track projects!

A Gate

A Stage Gate
Activities
Deliverables / Requirements

Stage 1

Stage 2

Decision
Go / No Go Recycle / Rework More Information No return!

Example - Car purchase

You list down your requirements and selection criteria.
Hopefully, ensuring you have considered other key stakeholders (such as your family)

You identify potential alternatives and select one or more which you prefer (based on the section criteria) You estimate the detailed costs , make your choice and decide when and how you want to purchase it You purchase it You drive and hopefully enjoy!
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5

Car purchase

Approvals

Open Discussion
What stages might you have for a project

Stage

Activity

Activities Issues Deliverables

Phase 1 - Frame the Opportunity/Frame the problem

Phase 1 - Frame the Opportunity/Frame the problem

Identify the prize Understand the givens, assumptions and constraints Understand and agree the Boundary Conditions Identify the stakeholders Define a successful outcome Perform a preliminary assessment of
cost potential return associated risks.

Phase 2 Review alternatives & select preferred option

Generate a wide range of potential alternatives and risks facing the project. The Project Manager uses a wide variety of techniques including expert knowledge Cast the net wide Assess these alternatives against the project value measures, and select the preferred alternative.

Phase 3 Fully Define Scope

Fully define the scope of the preferred alternative(s) Develop detailed execution plans.

Verify the value of the project meets the business objectives. Refine estimates and economic analysis to meet funding requirements. Carry out project sensitivities and outcome ranges.

Phase 3 Fully Define Scope

This phase culminates in the generation of
A sanction grade design package A sanction grade estimate and programme.

A project execution strategy document A business proposal

Sometimes referred to as a Front End Engineering Design (FEED) stage

Phase 4 Execute

Delivery of the Promise

Phase 4 Execute
Engineer, Procure and Construct (EPC)

Complete detailed design Implement execution plan This phase is about delivery of a frozen or firm design Important to carefully manage changes

Phase 5 - Operate and Look Back

Involves some kind of handover of responsibility
precise timing (pre-or post commissioning) depends on the size of the job and local custom and practice.

The project team often required to demonstrate that the equipment performs as promised before final handover to the operating team. Benchmark the asset performance against business objectives and competitors Share results and lessons learned. Continue performance assessment, and identify new opportunities.

Impact/Cost of Decisions

Is it all worth it?

Your Projects
Reminder on timing
Project Start 12 Oct 2012 Framing Doc (Optional) 19 October 2012 Hand in proposal Noon 5 Dec 2012 Presentations (Campus Only) 10 Dec 2012

Teams and team sign-up Teams for distance learners Project titles