Kerzner - Microsoft PDF

By
Dr. Harold Kerzner

2007 International Institute for Learning, Inc.
2007 Dr. Harold Kerzner
Version 1.1
Copyright
Most of the material in this presentation has been taken
from two sources; Advanced Project Management: Best
Practices on Implementation, 2nd Edition, 2004, and
Project Management Best Practices: Achieving Global
Excellence, 3rd Edition, 2006, both by Harold Kerzner,
John Wiley & Sons Publishers.
2007 by Dr. Harold Kerzner. All rights reserved.
Material and slides cannot be copied or transmitted in
any electronic format without written permission of
Dr. Harold Kerzner.

Version 1.1
Todays View of Project Management

Today we are managing our business by
projects.
Project management has evolved into a
business process rather than a project
management process.
The project management enterprise
methodology contains business
processes.
Capturing best practices is a necessity.
Version 1.1
Benefits of Project Management (1 of 6)
Past View
Present View
Project management
will require more
people and add to the
overhead costs.
Project management
allows us to perform
more work in less time
and with less people.
Profitability may
decrease.
Profitability will
increase.

Version 1.1
Past View
Present View
Project management
will increase the
amount of scope
changes.
Project management
will provide better
control of scope
changes.
Project management
creates organizational
instability and
increases conflicts.
Project management
makes the organization
more efficient and
effective.

Version 1.1
Past View
Present View
Project management
is really eye wash
for the customers
benefit.
Project management
will allow us to work
closer with our
customers.
Project management
will create problems.
Project management
provides a means for
problem solving.

Version 1.1
Past View
Present View
Only large projects

need project
management.
All projects will benefit

from project
management.
Project management
will increase quality
problems.
Project management
improves quality.

Version 1.1
Past View
Present View
Project management
will create power and
authority problems.
Project management
will reduce the majority
of the power struggles.
Project management
focuses on
suboptimization by
looking at only the
project.
Project management
allows people to make
good company
decisions.

Version 1.1
Past View
Present View
The cost of project

management may
make us
noncompetitive.
Project management
will increase our
business and our
competitiveness.
Project management
delivers products to a
customer.
Project management
delivers solutions to a
customer.

Version 1.1
Supporting Processes for Best Practices

As project management evolved, there
appeared supporting processes aligning
themselves with project management.
Each of these supporting processes
have allowed us to capture additional
best practices related to both project
management and the supporting
processes.

Version 1.1
10
Processes Supporting Project Management
19601985
No
Allies
1985
1990
19911992
1993
1994
EmpowerTotal
Concurrent ment and
Life
ReQuality
EngineerCycle
Selfengineering
ManageCosting
ing
directed
ment
Teams
Increasing Support
Version 1.1
11
1995
1996
Scope
Risk
Change Management
Control
19971998
Project
Offices
and
COEs
1999
2000
Co-Located Multi-National
Teams
Teams
Increasing Support
Version 1.1
12
2001
2002
2003
2005
2006
Six
Sigma
Project
Mgt.
Virtual
Project
Teams
2004
Strategic
Intranet Capacity
Maturity
Planning
Status Planning
Models for Project
Reports Models
Management
Increasing Support
Version 1.1
13
2007
Enter.
Project
Mgt.
2008
2009
Knowledge
Internal
Libraries
Certification
for Project
as well as
Management by PMI
2010
2011
2012
???
???
???
Increasing Support
Microsoft

Version 1.1
Best Practices Questions
14
VALIDATION
DEFINITION
DISCOVERY
MANAGEMENT
CLASSIFICATION
REVALIDATION
PUBLICATION
IMPLEMENTATION
UTILIZATION

Version 1.1
Question #1
DEFINITION
15
What is the
definition of a
best practice in
project
management?
(Past view vs.
present view)

Version 1.1
Question #2
DISCOVERY
16
How do we
discover best
practices? Where
should we look
first? Who is
responsible for
the discovery?

Version 1.1
Question #3
VALIDATION
17
How do we
validate that
something
actually is a best
practice? Who
should perform
the validation?

Version 1.1
Question #4
CLASSIFICATION
18
Are there levels or

categories of best
practices? If so,
who is ultimately
responsible for
determining the
levels?

Version 1.1
Question #5
MANAGEMENT
19
Who has the

responsibility for
the ultimate
management /
administration of
the best practice
once it is
identified?

Version 1.1
Question #6
REVALIDATION
20
Who has the

responsibility for
revalidation of
current best
practices? How is
this accomplished
and how often?

Version 1.1
Question #7
UTILIZATION
21
How are best

practices
commonly used by
companies once
they are validated
and / or
revalidated?

Version 1.1
Question #8
PUBLICATION
22
What techniques
are available by
which best
practices can be
effectively
communicated to
the employees
within a company?

Version 1.1
Question #9
IMPLEMENTATION
23
How do we get
employees to use
a best practice?
How do we
validate that it is
used properly?

Version 1.1
24
Evaluation of a Best Practice (1 of 2)

Best Practice Characteristics
Yes
No
Measurable Metric
Measurable Efficiency
Measurable Effectiveness
Adds Value to the Company
Adds Value to Our Customers
Transferability to Other Projects
Has Potential for Longevity
Applicability to Multiple Users
Differentiates Us from Competitors

Version 1.1
25
Evaluation of a Best Practice (2 of 2)

Best Practice
Identification
Training
Required
Governance Proprietary
Required
Knowledge
1.
2.
3.
4.
5.
6.
7.
8.
Version 1.1
26
Levels of Best Practices

Three levels of best practice maturity
have been defined with minimum
requirements for an associate best
practice, best practice, and mastery
best practice.
(EDS)

Version 1.1
27
Levels of Best Practices
Note: Each level contains a percentage

of the ideal characteristics or drivers.
Characteristics
or Drivers of
the Ideal Best
Practice
Wish List
___________
___________
___________
___________
___________
___________
___________
___________
___________
___________
___________
___________
Level 4:
Level 3:
Level 2:
Level 1:

> 60%
40 % - 60%
20 % - 40%
0 % - 20%
Version 1.1
28
Project Management and Sales (1 of 2)

When asked about his vision for
Ericsson into the 21st century, Robert
Shepherd believes that there will be:
a stronger tie to sales where the project
manager supports the sales phase to ensure
successful proposal generation and project
implementation to meet the customers
contractual requirements, which leads to
customer satisfaction.

Version 1.1
29
Project Management and Sales (2 of 2)

According to Jim Triompo, Group
Senior Vice President at ABB:
Project management is being introduced into
areas that traditionally havent used project
managers. Project management in a sales
organization has proven to be critical and
should be made a central part of the sales
process.

Version 1.1
30
Best Practices and the Sales Force

How do we get salespeople to discuss
best practices with the clients? (both
internal and external clients)
The salespeople must know the best
practice and what value / benefit can
be achieved with it.
The salespeople must make the best

practice easy for the customer to
understand.
Version 1.1
31
Need for a Best Practices Library
Every new project should directly build

on the learning from any similar project
undertaken anywhere else in the
world.
Bill Gates in Business @ the Speed of Thought

Version 1.1
32
Best Practices Library

Effectiveness and
Efficiency
Future Business
Technology
Advances
Satisfaction
CONTINUOUS IMPROVEMENTS
Project Management

Version 1.1
33
Computer Associates (Before 2005 Update)
(3)
(32)
(6)
(136)

Version 1.1
34
Quantity of Information
Growth of Knowledge Management
Integration of Business
Processes into the EPM
Methodology
PM Best
Practices
PM Best
Practices
Libraries
Project Knowledge
Base or Technology
Knowledge Base
(PKB or TKB)
Knowledge
Repositories
(PM and
Business
Knowledge)
Time
Version 1.1
35
Growth of Enterprise Project Management
Functional Project Management (Products)
Enterprise Project Management (Solutions)

Suppliers
Customers
Extended Enterprise Project Mgt. (Partnerships)

Version 1.1
36
Engagement Project Management

Engagement project management
describes the steps that must be
accomplished to successfully leverage
your project management skills
(including best practices) to attract new
customers and receive follow-on work
from existing customers.

Version 1.1
37

What are you selling?
Solutions generated by your EPM system
Sharing of best practices and lessons learned
including Six Sigma expertise

Continuous flow of information from the EPM
system to the customer (perhaps EPM to EPM
systems)
In exchange for this, you want the customer
to treat you as a long-term partner, not just a
contractor
Version 1.1
38

Factors
Conventional Selling
Engagement Selling
Project Focus
Project Completion
Long-Term
Relationships
Approach
Single Sale
Follow-On Work
Customer Contact
When Required
Continuous /
Structured
Selling Emphasis
Product Features
Customer Value
Deliverables
Products / Services
Solutions
Time Horizon
Short-Term
Long-Term
Customer Service
Low Importance
High Importance
Quality Concern
Product Quality
Solution Quality

Version 1.1
39
The Hexagon of Excellence

Integrated
Processes
Behavioral
Excellence
Culture
Informal
Project
Mgmt.
Management
Support
Training
and
Education
Version 1.1
40
Integrated
Processes

Version 1.1
41
Integrated Processes for the 21st Century

Project Management
Concurrent
Engineering
Total Quality
Management
And Six
Sigma
Change
Management
Risk
Management
Version 1.1
42
Integrated Processes (Past, Present, and

Future)
Yrs: 1990-2000
Integrated
Processes
Project
management
Current
Integrated
Processes
Yrs: 2001-2010
Integrated
Processes
Supply chain
management
Total quality
management
Business
processes
Concurrent
engineering
Feasibility studies
Scope change
management
Cost-benefit
analyses (ROI)
Risk management
Capital budgeting
Version 1.1
43
Culture

Version 1.1
44
Management
Support

Version 1.1
45
The Executive Interface

IMMATURITY
MATURITY
Executive is actively
involved in projects
Executive involvement is
passive
Executive acts as the project

champion
Executive acts as the project

sponsor
Executive questions the

project managers decisions
Executive trusts the project

managers decisions
Priority shifting occurs

frequently
Priority shifting is avoided

(if possible!!)
Executive views project

management as a necessary
evil
Executives view project

management as beneficial
(for the company)
Very little project

management support
Visible, ongoing support

Version 1.1
46
The Project-Line Interface

IMMATURITY
MATURITY
Project manager is vested

with power/authority over
the line managers
Project and line managers

share authority and power
Project manager negotiates

for best people
Project manager negotiates

for deliverables
Project manager works

directly with functional
employees
Project manager works

through line managers
Project manager has no

input into employee
performance evaluations
Project manager makes

recommendations to the line
managers
Project manager-centered
leadership
Team-centered leadership

Version 1.1
47
Training
and
Education
Version 1.1
48
Informal
Project
Mgmt.

Version 1.1
49
Behavioral
Excellence

Version 1.1
50
The Five Levels of Maturity

Level 5
Continuous
Improvement
Level 4
Benchmarking
Level 3
Singular
Methodology
Feedback
Level 2
Common
Process
Level 1
Common
Language
Version 1.1
The Project Office (PO) or the Project

Management Office (PMO)

Version 1.1
52
Governance Issues
Poor alignment between project
objectives and broader business goals
Poor business case development
resulting in the go-ahead of projects
that provide limited or no value
Badly specified project outcomes
measured in real business terms
(QA)
Version 1.1
53
The Project Office (COE)

Benefits
(1 of 6)
Benefits
A strategic planning
focal point for the
project management
process
An organization
dedicated to
benchmarking for
project management
An organization
dedicated to continuous
improvement and cost
reduction
Organizational
mentorship for
inexperienced project
managers

Version 1.1
54

Benefits
(2 of 6)
Benefits
Centralized lessons
learned files on
completed projects
An organization for
sharing ideas and
experiences
A hot line for

problems without
involvement senior
management
An organization for
creating project
management standards

Version 1.1
55

Benefits
(3 of 6)
Benefits
Assist Human Resources

in the creation of a
project management
career path ladder or
competency model
Assist Human Resources

in the creation of a
project management
curriculum and course
content
Centralized project
planning and scheduling
Centralized cost control

and reporting

Version 1.1
56
The Project Office (COE) (4 of 6)

Benefits
Benefits
Development of
project management
templates
Identification of best
practices, internal and
external
Assessing risks
Planning for disaster

recovery

Version 1.1
57

Benefits
(5 of 6)
Benefits
Globalization and
training on EPM
Customer relations
management
Establishing metrics
Multilingual tools
especially for
networked PMOs

Version 1.1
58
Benefits
(6 of 6)
Benefits
Development of a
corporate capacity
planning model
Maintain project
management
information systems
Stakeholder
management
The guardian of project

management
intellectual property

Version 1.1
59
Companies are now struggling with

the organizational reporting location
for the Project Office/COE.

Version 1.1
60
Types of Project Offices

Functional Project Office: Resource
Management
Corporate Project Office: Strategic and
Operational Issues
Customer Focus Project Office:
Customer Management

Version 1.1
61
Project Office Growth

According to Jim Triompo, Group Senior Vice
President at ABB:
The project office does not deliver projects.

The projects managed by the project
management office are limited to process/
tools development, implementation, and
training. The project management office is
sometimes requested to perform reviews,
participate in division-level risk reviews, and
operational reviews in various countries.
Version 1.1
62
Exels Networking PMOs

CEO
CEO
Americas
Americas
Senior
Senior
Director
Director
Solution
Solution
Design
Design
EPM
PMO Mexico
PMO
Mexico
PMO Brazil
PMO
Brazil
PMO UK/Europe
PMO
UK / Europe

PMO Asia
PMO
Asia
Version 1.1
63
Role of the PMO in Portfolio Management

Planning Recommendations
Are we working on the right projects?
Are we working on enough of the right projects?
Evaluation Recommendations
Are we doing the right projects right?
Are there projects that should be terminated so that
the resources can be applied elsewhere?

Version 1.1
64
Evaluate
projects
then evaluated using a

standard business case
Ideas are generated

throughout the entire
organization
Opportunity options
Resource requirements
Refined project costs
Business
Case
Filter
Refined savings
Benefits (financial,
strategic, payback)
Project metrics
Benefits realization
Risks
Exit strategies
Refined people, process,
technology impacts
Schedule / milestones
Complexity
Standard technology?
NON-VALUE ADDED
BUSINESS CASES
non-value added opportunities & projects
are eliminated

Version 1.1
65
Cost Savings Due to Software

Typical cost per meeting = $550
As a result of the new software, meetings
eliminated per week = 4
Total annual savings = ($550/meeting) x
(4 meetings/week) x ( 52 weeks/year) =
$114,400 per year.

Version 1.1
66
Cost Savings Due to Software

Current average number of meetings required per
project schedule approval = 10
Expected average number after organization
begins using software = 5
Average number of attendees/meeting = 10

Average duration of a meeting = 1.25 hours
Fully burdened labor rate = $70/hour
Total annual savings = (204 projects) x

(5 meetings/project) x (10 people) x
(1.25 hours/meeting) x ($70/hr.) = $892,500

Version 1.1
Project Management Software
95 % of Todays Software
INITIATION
PLANNING
EXECUTION
CONTROLLING
CLOSURE
Areas of Deficiency
Portfolio management
Benefit-cost analyses
Feasibility studies
Criteria definition
Assumptions defined
Evaluation criteria
Risk management
Behavioral software
Portfolio Management
Lessons learned
Best practices library
Failure analyses

Kerzner - Microsoft PDF

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Kerzner - Microsoft PDF

Uploaded by

Copyright:

Available Formats

By

Dr. Harold Kerzner

2007 International Institute for Learning, Inc.

Todays View of Project Management

Benefits of Project Management (1 of 6)

2007 International Institute for Learning, Inc.

Benefits of Project Management (2 of 6)

2007 International Institute for Learning, Inc.

Benefits of Project Management (3 of 6)

2007 International Institute for Learning, Inc.

Benefits of Project Management (4 of 6)

Only large projects

All projects will benefit

2007 International Institute for Learning, Inc.

Benefits of Project Management (5 of 6)

2007 International Institute for Learning, Inc.

Benefits of Project Management (6 of 6)

The cost of project

2007 International Institute for Learning, Inc.

Supporting Processes for Best Practices

2007 International Institute for Learning, Inc.

Processes Supporting Project Management

Processes Supporting Project Management

Processes Supporting Project Management

Processes Supporting Project Management

2007 International Institute for Learning, Inc.

Best Practices Questions

2007 International Institute for Learning, Inc.

2007 International Institute for Learning, Inc.

2007 International Institute for Learning, Inc.

2007 International Institute for Learning, Inc.

Are there levels or

2007 International Institute for Learning, Inc.

Who has the

2007 International Institute for Learning, Inc.

Who has the

2007 International Institute for Learning, Inc.

How are best

2007 International Institute for Learning, Inc.

2007 International Institute for Learning, Inc.

2007 International Institute for Learning, Inc.

Evaluation of a Best Practice (1 of 2)

Differentiates Us from Competitors

Evaluation of a Best Practice (2 of 2)

Levels of Best Practices

2007 International Institute for Learning, Inc.

Levels of Best Practices

Note: Each level contains a percentage

2007 International Institute for Learning, Inc.

Project Management and Sales (1 of 2)

2007 International Institute for Learning, Inc.

Project Management and Sales (2 of 2)

2007 International Institute for Learning, Inc.

Best Practices and the Sales Force

The salespeople must make the best

Need for a Best Practices Library

Every new project should directly build

Bill Gates in Business @ the Speed of Thought

2007 International Institute for Learning, Inc.

Best Practices Library

2007 International Institute for Learning, Inc.

Computer Associates (Before 2005 Update)