Value-Driven Project Leadership (VDPL) Panel Presentation C-SPIN Meeting, February 3, 2005 Moderated...

Value-DrivenProject Leadership (VDPL)

Panel PresentationC-SPIN Meeting, February 3, 2005

Moderated by:Gezinus HiddingAssociate ProfessorLoyola University [email protected]

mailto:[email protected]

Objectives of This Presentation

Offer: A New Way of Thinking About Project Management

Focused on Medium-sized IT Projects Background Overview Real-life Experiences

Enable You To: Reduce Project Failures

Our Request

Brief Presentations - Then Discussion Presented Concepts Are Interrelated Let Us Paint Whole Picture First

Request: Please Hold Questions for Q/A

Please Fill Out Survey (Green Forms) Return to Panel Moderator

Background: Why VDPL?

High I.T. Project Failure Rates (for Decades)Standish Group - Chaos 2002

23% of Projects Fail Altogether 49% of Projects Over Budget, and/or Late 28% of Projects Succeed

Department of Defense Software Projects 29% - Paid for, but not delivered 46% - Delivered, but not successfully used 20% - Used, but extensively reworked or abandoned 3% - Used after changes 2% - Used as delivered

KPMG study 62% of IT projects overran budget by more than 30%

Single-loop Learning Improve Towards Same Objective(s)

Focus of Traditional

Project Management:

Double-loop Learning Improve by Modifying Objective(s)

Focus of VDPL:

VDPL = New Way Of Thinking!

Background:Single-loop v. Double-loop Learning*

BudgetSchedule

Business Value AddedPeople-to-People Relations

Architecture

* Chris Argyris “On Organizational Learning”, Blackwell Publishing, Cambridge, MA 1994.

Overview:What Are VDPL’s Key Aspects?

Traditional Project Management Necessary, but Not Sufficient

VDPL Emphasizes: Value

Focus on Adding Business Value, Not Activities Leadership

Manage More People Relationships, Less Activities Architecture

Structure Project Plan from Structure of the System

Real-life Experiences:Who Is Involved?

Today’s Panel Presenters: Gezinus Hidding - Founder, Moderator Mark Bills - Value Bob McMurray - Leadership Paul Tedesco - Architecture

Previous C-SPIN presenter

An Additional 14 Seasoned Professionals Including Scott Stribrny: C-SPIN leader

Total of “Centuries of Experience” ;-)

Panel Members’ Contact Info

Mark Bills CEO Darwin Corporation [email protected]

Bob McMurray Chief Technology Officer, 3 Olive Solutions, LLC [email protected]

Paul A. Tedesco President, Tedesco & Associates Author of “Intrapreneurial Project Management” [email protected] (312) 560-7806


Value is the Best Project Metric

Presented by:Mark BillsCEODarwin [email protected]


Value is the Best Metric for

Making Management

Decisions Along the Way


Making Management

Decisions Along the Way

Value is the Best Metric for Determining & Demonstrating

Project Success

Value is the Best Metric for Determining & Demonstrating

Project Success


Selecting Among

InvestmentAlternatives


Selecting Among

InvestmentAlternatives

Companies UndertakeProjects to Create ValueFocus on Value Creation From Beginning to End

Project SelectionProject

SelectionProject

ManagementProject

ManagementProject ReviewProject Review

Copyright © 2005, Darwin Corporation. All rights reserved.

A: Add programmers.

Financial Model Can Be Used to Make Trade-Offs Along the Way

Q: Add 15 contract programmers at a total cost of $450K and maintain schedule or slip schedule by 3 months?

Financial Model of Project


Rules of Thumb

Rules of Thumb

• Lose $300K in value for each month that the rollout is delayed.

• Lose $100K in value for each percent of cost overrun.

• Gain $250K in value for each percent of additional revenue.




Cost: $450K

Benefit: Additional $900K in revenue

Back

A: Do not add feature.Q: Add feature that will increase revenue 1% but increase cost by 1% and delay rollout by 1 month?

Cost: $100K (overrun) +$300K (delay) = $400K

Benefit: $250K in additional revenue

Financial Model Can Be Used to Make Trade-Offs Along the Way



Rules of Thumb

Rules of Thumb







Back


Leadership

Presented by:Bob McMurrayChief Technology Offier3 Olive Solutions, [email protected]


Leadership – Apply it every day

Parachute Metaphor Imagine…you’re in a new setting Seeing things from a different perspective is the

equivalent to “parachuting in” Continually assess your situation

Project leadership - your set of tools you have as you “parachute in” Finding common ground Integrity Warm, human approach to relationships Courage Inspiration to others

Copyright © 2005, 3 Olive Solutions, All rights reserved.

Leadership – Vignettes from my experience

Key Business Partner is not following your process Internal customer over-promised and is now requesting

impossible functionality in an impossible time frame

Lead Development effort for start up Software Product (Software as a Service model) Balance Marketing driven needs with Development

capability and desire for elegance within intense time and cost constraints

Customer needs service Need never goes away – this is a good thing be happy


Leadership – Finding Common Ground

Experience: Key Business Partner is not following your process Automating Sales Programs – Requests came

from Sales and Marketing Hard Due Dates promised to (external) customer

without input from IT Convoluted designs of Sales Programs Requests come to IT way too late


Leadership – Finding Common Ground

Common Ground There’s always something in common Made commitment to not saying ‘No’ to scope but,

instead, ‘No’ to bad process I say “When” you say “What” – use business

language Be able to estimate with integrity and meet the

new commitment Be patient – be appreciative of their efforts

Post script Later on, after a few successes, the business

asked for design guidelines!Copyright © 2005, 3 Olive Solutions, All rights reserved.

Leadership – VDPL Principles

Focus on Person-to-Person RelationshipsBuild Agreement along the wayUtilize your Imagination

Find common ground to resolve conflict See others’ perspective Anticipate issues/problems Plan contingencies from the beginning

Prepare organization for change



Why Architecture?

Presented by:Paul TedescoPresidentTedesco & [email protected](312) 560-7806

The 20/80 Rule

With a Proper Architecture:

20% of the Code

80% of the Requirements

Produces

Copyright © 2005, Tedesco and Associates, Inc.. All rights reserved.

This is What all Program Do

Setup

Take Input Data

Transform the Data

Produce Output

Clean up


Creating New Opportunities / Unearned Value

Business Goals

Technology Architecture

Creation and Negotiation

IdentifiedOpportunities

Implemented

New Business Value/ Unearned Benefit

Figure 1-2 Creating New Business ValueCopyright © 2005, Tedesco and Associates, Inc.. All rights reserved.

Business Goals

Business BenefitsBusiness Requirements

Technical GoalsTechnical Requirements

Tying Business Goals andTechnical Requirements to

make it work

Business InspirationDriven by Technical

Functions

Technical InspirationDriven by Business

Functions

New Goals

Figure 1-3 Combined Business and Technical FunctionsCopyright © 2005, Tedesco and Associates, Inc.. All rights reserved.

Business Design

Technical Design

Business/TechnicalNegotiation

Technical Proof ofConcept

Technical ProblemsDebugged

Business Functionality Tested

Business TechnicalAlternatives Tested

ImplementationPlan

Training Plan

Training and Implementation

Continuous and Iterative Designing, Analysis, Testing, and Debugging

Start End Month 1

End Month 2

End Month 3

End Month 4

End Month 5

End Month 6

Figure 1-4 Combined Business and Technology Tasks


Managing Innovation Through Projects

Determine Project Requirements

Select Best Alternatives

Requirements Analysis

Design and Implement

Determine Identify Business / Technology Alternatives

Determine Project Participants

Determine Business Department Personnel

Determine Senior Management Involved

Determine Customer Benefits

Select Immediate Implementation

Determine Reuse

Determine Critical to Business / Technology

Determine Benefits to the Business

Determine Benefits of Technology (Architecture)

Determine Benefits of each alternative

Integration of Business and Technology Issues

Determine and Describe Benefits of the Combines Business and Technology

Determine Specification Needs from Phase 2 Alternatives

Describe Requirements for Combined Business and Technology (Architecture)

Begin Description of System Parts

Write Use Cases for the Selected Items

Determine possible reuse

Write the Specifications

Determine the Potential Problems

Determine How to Test

Write User Documentation

Test the System (all levels)

Implement the System

Operate the System

Figure 1-1 Managing Innovation Through ProjectsCopyright © 2005, Tedesco and Associates, Inc.. All rights reserved.

Potential Architectures

Matrix Control Project Management and Derivatives Decision Table ProcessorsChart of Accounts ProcessorsContract Based ProcessorsScenario DescriptionTransaction ProcessorsAI Based Proactive Monitoring ProcessesFull AI Control Processor


VDPL - Next Steps

Analyze Your Feedback Hand In Survey Before You Leave

Approach Other Audiences Executives, Middle Management

Develop More Details

Appendix

Matrix Control

Uses Matrix Input Control

n by m

n is the set of conditions to be tested

m is the actions that need to happen

Has an ability to handle most important actions only

Input Data

Fill specified conditions

Output

Based upon specified processesCopyright © 2005, Tedesco and Associates, Inc.. All rights reserved.

Architecture

Project Management and Derivatives

Use:

Control the Manufacture of Large Manufacturing Plants

Handles

Accounting Transactions

Purchasing Transactions

Step Completion Information

Foretasted Completion Time and Cost


Architecture

Decision Table Processor

Questions (A)

Questions the current state of required processing

Answers (B)

Sets identifiers to select actions based on current state

Actions (C)

Defines processes that need to occur

Required Actions (D)

Runs actions based on current state


Architecture

Chart of Accounts Processor

All Accounting is Based Upon the Chart

Defines required and valid information for each item

Defines required action to take

Engine Uses these Rules to Control Processing


Architecture

Contract Based Processors

Uses Legal Contract Clauses to Control Processing

Contract clauses direct the required actions

Matches type of data to contract clauses

Input is Data Needing Processing

Output is Results from Processing


Architecture

Scenario Based

Uses Strings of Control Forming a Process ScenarioInput Matches a Basic ScenarioActions Controlled

validationdata manipulationdatabase update

Output Sidestandardized sequenced reportsselection of data


Architecture

Transaction Control

There are Sets of Processing RulesInputs Match a Set of Process RulesThe Processor

Follows the processing rules validates handles required data manipulation handles specific output


Architecture

AI Controlled Processing

Uses Heuristic Based AI Control RulesReceives InputInput Triggers Controlled Processing1)Determines which actions most need to be performed2)Performs the actions as required3)Alters its state to repeat process at 1)

Alters Rules Based on Feedback (genetic)Alters the importance of each of its rulesAlters the rules


Architecture

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