Project Management and SAP

Introduction to Project Management

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(M1)

Maria Maddalena Ruggini, PMP

CC ERP Roma

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Introduction to project management

1. 2. 3. 4.

Introduction Definition of project 3 Whats project management Stakeholders Management

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Introduction Project success

Project success is a multifaceted term. It requires careful planning and control of scope, quality, time and cost. It involves management of information and reference baselines and, of course, the effective and efficient deployment of the creative work involved.

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Introduction Famous examples of failure in projects

CHANNEL TUNNEL (1994)
Budget: $ 7 billions - Actual: $ 13 billions

EURODISNEY (1992)
Budget: $ 2,25 billions - Actual: $ 4 billions

CONCORDE (1976)
Technological success and a commercial disaster Sales forecasts: 250 units - Sold: 12 unit (16 built) Forecast of production cost: $ 6 millions - Actual: $ 100 millions Expected construction time of the first model : 6 years - Actual: 16 years

SIDNEY OPERA HOUSE (1973)

Budget: $ 7 millions - Actual: $ 102 millions Expected construction time : 6 years - Actual: 16 years The final design does not allow enough space for an orchestra scene at full strength
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Introduction
A recent Report claimed that unqualified project successes are well below 50 percent, and sometimes as low as a third of all projects tracked. Projects that simply have time problems, cost problems or poor execution can make up as much as half of all IT projects per year. These numbers are bad news. Now more than ever, the world depends on IT but IT and the people who run it dont always have a dependable record. This leads to the simple but vexing question of ..
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Introduction

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Introduction 10 Reasons That Projects Fail Scope Creep

Egos (Big Ones) Bad Language (poor communication)

Bad Budgets
Over allocated Resources Forgotten Users (stakeholders) The Missing Bigwig (management buy-in) Lack of Planning Unsupported Project Culture and/or The Accidental Project Manager Good Old Force Majeure (Or no Risk Management?)
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Introduction 10 Reasons That Projects Fail

The causes that can lead to the failure of a project are wide nature and related to all the factors involved in the management of the life cycle of a project or product. But first we must determine what is meant by failure of a project.

Failure happens when the expectations of the stakeholders are not met
The discipline of Project Management was created with the aim of containing such an eventuality in a context (the project) where there are several potential elements of conflict related to the different expectations of the various stakeholders, the multiple reporting lines of the team members, and where organizational support is not always adequate.

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Introduction 10 Reasons That Projects Fail

The failure of a project inevitably produces an impact that can be measured in terms of:

Cost and time;

Motivational; individual and organizational stress;

destruction of value and corporate reputation.

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Definition of project

What is a project?
A project is a temporary endeavor undertaken to create a unique

product, service or result ".

Where do projects come from?

Someone, somewhere has a vision of how things might be changed. So projects are about "change".

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Whats project management

Project management is a management technique for getting things done faster and the things done right, more cost-effectively.

managing the project is not the same thing as managing the technology embedded in the project.

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Whats project management

Managing the project is similar for all types of project, but Managing the technology is very different for each technological domain.

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Whats project management

On top, in blue, the diagram shows the sequence of:

Inputting resources

Creating the product, and

Outputting a product or service.

It also shows the inevitable waste, in effort and materials.

If this is a unique initiative, we call this a project.

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Whats project management

Behind this top layer, in yellow, is the sequence of managing the project to the best advantage, that is:

Effectively in the selection, development and planning, and Efficiently in reaching the final outcome.

First we determine:

The scope of the product, (product scope) to meet specific requirements, and hence

The extent of work involved.

Then we decide on:

The quality grade for the product.

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Whats project management

This information is assembled into a project plan that we use to steer the project through the process.
From this plan we can also estimate:

The time and effort the project will take, and

What it will cost.

We call this project management.

Unfortunately, where projects are concerned, there is always the possibility that things will not work out. This is the risk involved.
The green circle in the background shows the opportunity environment with its associated risk environment fading to red.

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Whats project management

Project management is emerging as a distinct management discipline. Increasingly, government and private companies are turning to project management approaches to encourage innovation, improve efficiency, solve problems and manage scarce resources.

PM's job is to focus the project's available resources on delivering results.

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Whats project management

Project management is the application of knowledge, skills and techniques to execute projects effectively and efficiently. Its a strategic competency for organizations, enabling them to tie project results to business goals and thus, better compete in their markets. It has always been practiced informally but began to emerge as a distinct profession in the mid-20th century.

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Whats project management

PMIs A Guide to the Project Management Body of Knowledge (PMBOK Guide) identifies its recurring elements:

Project management 47 processes fall into five groups:

Initiating, Planning, Executing, Monitoring and Controlling and Closing.

Project management knowledge draws on ten areas

Integration Cost Human Resources Stakeholder Management Scope Quality Communication Time Risk Procurement

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Whats project management

Managing a project typically includes:

identifying requirements; addressing the various needs, concerns and expectations of the stakeholders in planning and executing the project; setting up, maintaining, and carry out communications among stakeholders; managing stakeholders towards meeting project requirements and creating project deliverables;

balancing the competing project constraints, including: Scope, Quality Schedule Budget Resources and Risk

The specific project characteristics and circumstances can influence the constrains on which the project management team needs to focus.

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Whats project management

balancing the competing project constraints?

Changing one of the constraints implies a change of the others.
For example, if we increase the scope - because of additionally required features of the product then we obviously have to increase the necessary time and amount of money. Similarly, in order to shorten the time we could reduce the scope and consequently reduce the budget of that project. We also could shorten the time by involving more resources and thus, increasing the budget. Changing the project requirements or objectives may create additional risks.

The project team needs to be able to assess the situation, balance the demands and maintain proactive communication with stakeholders in order to deliver a success project .

Stakeholder Management
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Stakeholder Management Who is the stakeholder?

The people who have a vested interest in the outcome of the project.
OR

Specific people or groups who have a stake in the outcome of the project. Normally stakeholders are from within the company, and could include internal customers, management, employees, administrators, etc. A project may also have external stakeholders, including suppliers, investors, community groups and government organization.

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Stakeholder Management Who is the stakeholder?

When tackling stakeholder management ask yourself what you are trying to achieve with stakeholder management.

The bottom line is that you are trying to improve the project's chance of success.
And you are doing it through analyzing and understanding stakeholder needs, which may become either requirements or constraints, and communicating them effectively back to the project team (and sponsor.)

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Stakeholder Management How to find your stakeholders

Key questions that can help you understand your stakeholders are: What financial or emotional interest do they have in the outcome of your work? Is it positive or negative? What motivates them most of all? What information do they want from you? How do they want to receive information from you? What is the best way of communicating your message to them? What is their current opinion of your work? Is it based on good information? Who influences their opinions generally, and who influences their opinion of you? Do some of these influencers therefore become important stakeholders in their own right? If they are not likely to be positive, what will win them around to support your project? If you don't think you will be able to win them around, how will you manage their opposition? Who else might be influenced by their opinions? Do these people become stakeholders in their own right?
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Stakeholder Management Stakeholder types

Colleagues. They rely on or use the work you produce for
example, your manager is a stakeholder and other departments who benefits from the result of the project or that supply resources to the project are stakeholders. External people and organizations outside your organization. They may be customers, clients, suppliers and other key individuals or organizations who take an interest in or are affected by your work. Interface stakeholders who function both internally and externally for example, an organization with a large trade union presence or shareholders who are also employees.

Sponsor, customer, project team, suppliers, end users, senior managerand the PM himself
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Stakeholder Management Role of the Sponsor (1/4)

Your project sponsor is the key link between the project management team and the organization's executive management. An effective sponsor "owns" the project and has the ultimate responsibility for seeing that the intended benefits are realized to create the value forecast in the business case. A good project sponsor will not interfere in the day-to-day running of the project -- that's the role of the project manager. But, the sponsor should help the project manager facilitate the necessary organizational support needed to make strategic decisions and create a successful project.

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Stakeholder Management Role of the Sponsor (2/4)

With respect to the project, effective sponsors should: Create alignment. The sponsor helps keep the project aligned with business and cultural goals.
Communicate on behalf of the project, particularly with other stakeholder groups in senior management. The sponsor also communicates his or her personal commitment to the project's success on multiple occasions. Gain commitment. The sponsor is a key advocate for the project. He or she "walks the talk" and gains commitment from other key stakeholders. Arrange resources. The sponsor ensures the project's benefits are fully realized by arranging the resources necessary to initiate and sustain the change within the organization. Facilitate problem solving. The sponsor ensures issues escalated from the project are solved effectively at the organizational level. This includes decisions on changes, risks, conflicting objectives and any other issue that is outside of the project manager's designated authority. M1_Introduction to project management www.eng.it 26

Stakeholder Management Role of the Sponsor (3/4)

Support the project manager. The sponsor offers mentoring, coaching and leadership when dealing with business and operational matters. Build durability. The sponsor ensures that the project's outputs will be sustained by ensuring that people and processes are in place to maintain it once the project completes its handover.

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Stakeholder Management Role of the Sponsor (4/4)

If you have a good sponsor, look after him or her. If your sponsor does not understand the role or is unwilling to fulfill the role, however, you need to speak up. Carrying on without an effective sponsor raises the probability of project failure and you as the project manager will be held accountable for that failing. It's important to flag the lack of effective sponsorship as a key risk to the project. It may not make you popular, but you have an ethical responsibility to clearly define risks that need management attention.
Ultimately the organization's executive management is responsible for training and appointing effective sponsors. If this has not happened, as project managers, all we can do is help those sponsors who are willing to be helped and flag a risk or issue for those that are missing or unwilling to support "their project."
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Whats project management

CHANGE CONTROL THE CHANGE

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