1. 1. Why Your Projects are Late (and How to Prevent Them from Being So) ViewPoint CCPM 1
2. 2. Projects True? Its hard to get a project team to work together Projects will be better if our resources are fully utilized Start the project sooner, youll finish it sooner Planning is the key to project success 2
3. 3. What I Want to Share Successful projects are rare The core reasons why A path forward 3
4. 4. Project Failures are Commonplace 4 A staggering 39% of projects with budgets over $10 million USD failed.
5. 5. 5 PricewaterhouseCoopers reviewed 10,640 projects from 200 companies in 30 countries and across various industries Only 2.5% of the companies successfully completed 100% of their projects
6. 6. 6 Harvard Business Review Study of 1.471 IT projects The average overrun was 27%, but one in six projects had a cost overrun of 200% on average and a schedule overrun of almost 70%
7. 7. 7 Projects often fail because organizations put more emphasis on rational factors than on employees' psychological engagement -- and the cost to organizations is enormous
8. 8. When the emphasis is on procedures, compliance becomes a substitute for results. 8
9. 9. Dont Forget 9
10. 10. 10
11. 11. You are the new Director of Engineering - What is the status of the project work? 11
12. 12. Project Teams Cannot See 12 Where are we? Where is the path?
13. 13. Three Keys 13
14. 14. Project teams dont work together. Is this collaboration? Protecting reputations Defending original delivery promises Giving reasons for why things havent quite worked out Talking about the past 14
15. 15. Project Team Members have Different Goals Resource utilization? Earned hours? Budget compliance? Get promoted? Avoid punishment? 15
16. 16. It Doesnt Have to be Lose-Lose Resource utilization? Earned hours? Budget compliance? Get promoted? Avoid punishment? 16
17. 17. 17
18. 18. To finish early, one should start early. 18
19. 19. But, everyone starts early! 19 Heres the project manager
20. 20. Too much work creates confusion and loss of capacity. 20
21. 21. Confusion Breeds Multitasking 21
22. 22. Lets Play a Game! Well play two rounds. You just need a piece of paper and a pen. First round: Write MULTITASKING Then write 1234567890 Note the time Second round: Switch between letters and numbers: Letter number letter number Note the time Check quality 22
23. 23. Multitasking Adds Excess Time 23 Day 42 Day 28 Task 1 Task 2 Task 3 12 days 12 days 12 days Setup Setup Setup Task 2 Task 3 Task 1 7 days 7 days 7 days 7 days Setup Task 1 Setup Setup Setup Task 2 7 days Setup Task 3 7 days Setup Day 35
24. 24. Conventional Approach to Projects 24 Make a Good Plan Execute the Plan Success
25. 25. Youre taking a trip. Which comes first? 25
26. 26. Heres your car! 26
27. 27. Build the Vehicle First Get control of the work Focus on execution behaviors Use the team (or structure) that already exists to make room for proper planning 27 Get Control Execute Well Release Capacity Success
28. 28. 3 Keys 28
29. 29. Improve Visibility 1. Improve Teamwork and Collaboration during execution 29
30. 30. Align the Team 2. Establish a common goal for the team 30
31. 31. Manage the Flow 3. Control the amount of work in the system 31
32. 32. The First Step 32
33. 33. Collaboration During Execution Provide visibility Focus on the future Stop blaming and get moving Focus on the right things Bust the bottlenecks Establish common goals Solving the teams problems 33
34. 34. Building Collaboration Accurate / shared assessment of the situation The right people in the room Acting to achieve the goal 34
35. 35. The Situation Must Be Obvious Accuracy Where are we now? Shared Do we agree on it? 35
36. 36. 36 Make it Visible Like This
37. 37. OrLike This. 37
38. 38. Focus on the Future 38
39. 39. 39 Accelerate Flow Project X Project YY Project XX Project Z Project Y Estimate Select Engineering Procurement Stopped!
40. 40. The Second Step 40
41. 41. Completing Projects is Behavior How to create the right behavior to drive the project in the right direction? 41
42. 42. Behavior is a Function of Consequences You have everything you need to understand people What is the behavior? What are the consequences of that behavior? 42
43. 43. Show me how you measure me, Ill show you how Ill behave ("If you measure me in an irrational way, don't complain about irrational behavior.") 43 Eli Goldratt
44. 44. People do what they do because of what happens to them when they do it Aubrey Daniels 44
45. 45. What do we want our people to do? Move the project to completion (as fast as possible) 45
46. 46. Match Behaviors To Metrics 46
47. 47. Metrics Tied to Governance 47 0 2 4 6 8 10 12 14 Jan Total Feb Total March Total April Total May Total TPCounts Throughput T4-T6-T8 by Month Higher is be er More Projects Completed Should I act? Escalation of Work Stoppages Where to act? Getting More Done in LessTime Should I act?
48. 48. The Third Step 48
49. 49. The Objective of the System? 49
50. 50. Control the work in the system The Constraint sets the rate for the entire system. 50
51. 51. To Increase the Rate, Eliminate the Bottlenecks 51 Create process momentum during execution Focused efforts to increase velocity
52. 52. Making a difference 52
53. 53. Youre taking a trip. Which comes first? 53
54. 54. Project Execution Maturity Model 54 Date Mgmnt. Schedule Risk Delivery Promising Managing Bottleneck s Remote Collaboration Priority Control Collaborative Execution Control WIP Functional Alignment Probabilistic Planning Subcontractor Management Capacity Management More Mature Less Mature
55. 55. Basic Collaboration The work before you Near term The team before you The process you own 55 Priority Control Collaborative Execution Control WIP Functional Alignment More Mature Less Mature
56. 56. Improved Coordination Other teams Emphasize Velocity Deliver on Time Medium Term 56 Date Mgmnt. Schedule Risk Delivery Promising Managing Bottleneck s Remote Collaboration More Mature Less Mature
57. 57. Integrated Planning & Execution CCPM / Buffer Management Detailed task management Finite resource planning Life of project, full portfolio 57 Probabilistic Planning Subcontractor Management Capacity Management More Mature Less Mature
58. 58. Business Value by Maturity 58 Delivery Excellence Developing Average Performance Basic Collaboration Improved Coordination Integrated Planning & Execution
59. 59. ViewPoint Critical Chain Results 433% increase in effective capacity 326% increase in units shipped Lead-time reduced from 31 to 8 days Revenue increased $47MM 59
60. 60. Datu Case - Collaboration 60
61. 61. BP Case - Savings Project throughput increased 24% in 6 months $12,000,000 cost reduction 61
62. 62. Why does project performance suffer? Lack of Collaboration Too Much Work in Process Conflicting Goals 62
63. 63. 3 Steps to Deliver More Projects On Time 1. Visual Execution to facilitate collaboration 2. Common Purpose / Alignment on the team 3. Control the amount of work in the system to maximize flow 63 Were not driving cars, were managing traffic
64. 64. Next Execution Maturity Benchmarking 64
65. 65. Horace Wilcox 65
66. 66. 66