Project Value The System Dynamics of Project Management Based on work done by W.J. Ledet Jr., as...

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Project Value The System Dynamics of Project Management Based on work done by W.J. Ledet Jr., as published on www.practicefields.com

Transcript of Project Value The System Dynamics of Project Management Based on work done by W.J. Ledet Jr., as...

Page 1: Project Value The System Dynamics of Project Management Based on work done by W.J. Ledet Jr., as published on .

Project ValueThe System Dynamics of Project

ManagementBased on work done by W.J. Ledet Jr., as published

on www.practicefields.com

Page 2: Project Value The System Dynamics of Project Management Based on work done by W.J. Ledet Jr., as published on .

All rights reserved. Colm Toolan, Business Architect. 2002 2

Projekt Management Fakten• 35% aller Projekten werden gar nicht

fertiggestellt Oracle Inc

• 84% alle Projekte werden nicht innerhalb der vorgegebenen Zeit- und Budgetrahmen fertiggestellt Standish Group

• Obwohl• 1 502 Projektmanagement Kurse angeboten werden

www.seminarmarkt.de (22/11/02)

• 520 Traininganbieter sich mit der Thema beschäftigen www.seminarmarkt.de (22/11/02)

• 2 000 000 Kopien von MS Project installiert sind Microsoft (Stand: Project 98)

Page 3: Project Value The System Dynamics of Project Management Based on work done by W.J. Ledet Jr., as published on .

All rights reserved. Colm Toolan, Business Architect. 2002 3

Cobb’s Paradox

“We know why projects fail, we know how to prevent their failure – so why do they still fail?”

Martin CobbTreasury Board of Canada Secretariat

Page 4: Project Value The System Dynamics of Project Management Based on work done by W.J. Ledet Jr., as published on .

All rights reserved. Colm Toolan, Business Architect. 2002 4

These• Das Projektmanagement Prozess ist ein

System• Dieses System ist komplex• Dieses System ist dynamisch

• Projektmanagement unterliegt die Regeln des System Dynamics

Page 5: Project Value The System Dynamics of Project Management Based on work done by W.J. Ledet Jr., as published on .

All rights reserved. Colm Toolan, Business Architect. 2002 5

System Dynamics• Wissenschaftliches Disziplin• Entwickelt Ende der 50er von Prof Jay

Forrester, an der MIT (SEHA wg. Artikel: Mass Institute of Tech)

• Analyse, Modellierung und Simulation von komplexen Systeme und deren dynamischen Zusammenhänge

• Überall verwendbar• Intellektuell anspruchsvoll• (Nur) Bedingt nachvollziehbar für Laie

Page 6: Project Value The System Dynamics of Project Management Based on work done by W.J. Ledet Jr., as published on .

All rights reserved. Colm Toolan, Business Architect. 2002 6

System Dynamics Example

Legend

Cause or Effect

Decision Point

Delay

A and B move in same directionAn Increase in A leads toIncrease in B

A and B move in opposite directionsAn Increase in A leads to Decrease in B and vice versa

Balancing Loop

Reinforcing Loop(Snowball effect)

Legend

Cause or Effect

Decision Point

Delay

A and B move in same directionAn Increase in A leads toIncrease in B

A and B move in opposite directionsAn Increase in A leads to Decrease in B and vice versa

Balancing Loop

Reinforcing Loop(Snowball effect)

Title

Decision

Delay

A B

A B

SymptomaticSolution

Problem Symptom

"Quick Fix"

FundamentalSolution

"Long Term Fix"Delay

Side Effect

"Side Effect"

Decision

Page 7: Project Value The System Dynamics of Project Management Based on work done by W.J. Ledet Jr., as published on .

All rights reserved. Colm Toolan, Business Architect. 2002 7

Quality, Errors and Re-Work

ErrorGeneration

CumulativeErrors

Error Ratefrom PoorPre-Work

ErrorReductionActivities

ScheduleAdherence

Quality Standard

Time spent onAlignment

"Testing & Re-Work"

Total Error Rate

"Building on a faultyFoundation"

Decision

"No Time for Error Work"

DecisionErrorsfrom poorAlingment

WorkingError Rate

NormalError Rate

RequiredCommunication

Team Size

Decision

"No Timeto Align"

Page 8: Project Value The System Dynamics of Project Management Based on work done by W.J. Ledet Jr., as published on .

All rights reserved. Colm Toolan, Business Architect. 2002 8

Overview of Project Dynamics

Project Parameters

End Product Attributes of the end product - what scope was delivered?

Error Density - how many bugs are there?

Delivery Date - did we hit the window of opportunity?

Project Cost

Project Parameters

End Product Attributes of the end product - what scope was delivered?

Error Density - how many bugs are there?

Delivery Date - did we hit the window of opportunity?

Project Cost

Other Project& Priorities

User andSponsorNeeds

Sponsor / UserCommunication

Scope Evaluation

Planning& Control

Work tobe Done

WorkCompletion

Scope Evolves

Sponsor SupportFluctuates

Decision

UnanticipatedRe-Work

Errors /Re-Work

Risk Managementand Consequences

Work PoliciesDependicies & ParallelismStaffing / Training & OvertimeRisk Assessment & Management

Value of Product toUsers / Sponsors

Project Cost

Ongoing Cost of Product Usage

Overall Project Value

Overall Project Value

Page 9: Project Value The System Dynamics of Project Management Based on work done by W.J. Ledet Jr., as published on .

All rights reserved. Colm Toolan, Business Architect. 2002 9

Getting Work Done

Scope

Work to be Done

Activities assigned to Resources

Decision

Activity Completion

“Getting Work Done”

ResourceLevel

Decision

ProjectSchedule &

BudgetDecision

Constraints

“Staffing”

Page 10: Project Value The System Dynamics of Project Management Based on work done by W.J. Ledet Jr., as published on .

All rights reserved. Colm Toolan, Business Architect. 2002 10

Scope Evolution

Potential forTeam, User, SponsorCommunication

Clarity ofNeeds, DependenciesConstraints

Changes inScope

"Cost of Scope Change"

Work Completed"ImprovingUnderstanding"

Scope andRe-Work

Work tobe Done

Schedule andBudget Adherance

"No Change Pressure"

"Deaf Ear"

Decision

Page 11: Project Value The System Dynamics of Project Management Based on work done by W.J. Ledet Jr., as published on .

All rights reserved. Colm Toolan, Business Architect. 2002 11

Poor Risk Management

Risk Sources

Risk Identification

Efforts

Risk Mitigatio

n Efforts

"Risk Management"

Reaction to Risk

Time for Risk

Management

"Quick Fixes" "Dependence on Quick Fix"

Page 12: Project Value The System Dynamics of Project Management Based on work done by W.J. Ledet Jr., as published on .

All rights reserved. Colm Toolan, Business Architect. 2002 12

Balancing Projects and Other Organizational Needs

Work to be Done

Resourcingto Project Decision

Activity Completion

"Getting Work Done"

ProjectSchedule & Budget

Decision

RelativeValue ofProject

OpportunityCost ofProject

Performanceof otherPriorities

Resources Remaining forOther Needs

"Opportunity Cost Pressure"

Page 13: Project Value The System Dynamics of Project Management Based on work done by W.J. Ledet Jr., as published on .

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