Project_Methodology_Maturity

Table of Contents Executive Summary 3 Introduction 4 Project Plan 5 Overview 5 Objectives and key success criteria 6 General approach 7 Contractual aspects 8 Schedule 9 Costs 10 Personnel requirements 11 Risk Management 11 Lessons Learned 14 Conclusion 14 References 15 Appendix A 16 Appendix B 17 Executive Summary This document presents a report of an outline project plan for how Energy Tomorrow can reach Level 3 - Singular methodology project maturity within two years. It follows the feasibility review dated 1 September 2008 of moving Energy Tomorrow’s maturity from Level 1 – Common language to Level 3 using Dr Harold Kerzner’s Project Management Maturity Model – Kerzner (PMMM – Kerzner) (Kerzner 2001). A similar successful maturity project was recently completed for Country Energy using PMMM-Kerzner. The model provides an assessment framework that enables Energy Tomorrow to compare its project delivery with best practice or against competitors, ultimately defining a structured route to improvement. The plan considers project activities required for maturity progression notably: objectives, schedule, general approach, contractual aspects, costs and risks. Internal and external personnel requirements and their skills set have been listed. Some risks identified include “lack of executive support” and “staff resistance.” Risk mitigation includes “well structured plan - identify tangible and intangible benefits” and “high quality communications strategies”. Lessons Learned recognizes project documentation counts as well as documentation of knowledge gained. Lessons learned will be captured from the beginning using designated forms. The final documentation will assist on present and future projects on what worked well, not so well and how to mitigate or execute certain tasks or activities based on past experience. Introduction This report will describe an outline project plan on how Energy Tomorrow (ET) can reach Level 3 - Singular methodology project maturity within the next two years. The structure of this report largely follows activities required to attain Level 3 maturity using project plan elements. Apart from project start and close, this report addresses pivotal business and technical issues first in order to minimize expense, time and risk. The limitations of this report are to: 1. Present an outline project plan in how to reach Level 3 maturity; 2. Structure the report using the nine project plan elements; 3. Address each assessment criteria listed in Assignment 2 instruction sheet. Before outlining the project plan it is necessary to define what is meant by project plan. A project plan is defined, according to Kerzner H 2006, a guideline for the lifetime of the project; it contains a description of all phases of a project and should be revised periodically during the project. There are different suggested project plan formats. The plan in this report is based on the format described by Meredith J and Mantel S (2006, pp. 241-243) and utilises nine project plan elements. Project Plan The following are nine plan elements used for ET to reach Level 3 project maturity. Overview The project plan has been prepared for ET’s Regional Services Manager (RSM). Project start is tentatively set for October 2008. The scope focuses on three areas: 1. Project methodology/business processes; 2. Technology solution; 3. Implementation. Project objectives are: 1. Cultivate visible executive support; 2. Foster organisation wide communication; 3. Develop corporate understanding of project management; 4. Deliver ET’s project maturity within budget. Corporate objectives aligned with the plan are: 1. Streamline business processes; 2. Improve administration of resources and assets through planning, budget monitoring and control; 3. Develop a career path for project and functional staff; 4. Create knowledge based systems and staff. To consider costs and ET’s business nature, training will be conducted in-house utilising the primary office’s training room. A certified Project Management Professional trainer will conduct multiple three day (project and functional staff) and one day (Executive team) training courses. Advanced project management training, competency and knowledge based assessments are not included in the scope. The core project team will comprise of four people - one project manager, two business analysts and one trainer. An ET executive sponsor will be required to drive and communicate the project to ET staff. Each will perform specific roles during the project and will be based in the primary office. During specific parts of the project, ET’s Human Resources (HR) and Information Technology (IT) sections will be required. Major Milestones Project Start 20 October 2008 Resource procurement 21 October 2008 Training 3 November 2008 Business Processes/Methodology 4 November 2008 Software Implementation 1 June 2009 Project Close 31 August 2009 Objectives and key success criteria As mentioned above, objectives are to progress to Level 3 project maturity, streamline business processes and develop corporate understanding of project management. The review dated 1 September 2008 identified cultural resistance and lack of executive support as two risks impeding project success. The key success criteria and how to measure the accomplishment of the project objectives will be if staff complete the training, defining of “To Be” business processes, the level of cultural co-operation and morale, visible executive support, repeated use of a singular project methodology (Kerzner H, 2001 p. 77), speed with which project management benefits can be realised, review of estimated costs versus actual costs, completing the project on time and taking on board past and present Lessons Learned. General approach The project activities will be allocated between project members. Each person or team will have specific activities relevant to their area of expertise. A project manager will be appointed to manage and control the project. One project management trainer to perform in-house training and two business analysts for documenting business processes, surveying, interviewing, workshopping and pre and post implementation. HR, IT, RSM and executive sponsor have been allocated tasks relevant to their functional areas. Access to ET’s computer network, corporate/business plans, Annual Report, manuals, procedures, position descriptions and previous project documents will be required. The use of training and meeting rooms will be required by the project manager, trainer and business analysts. Training and review of business processes are scheduled to commence at the beginning of the project. The earlier the development of processes and methodologies, the earlier they can be included as part of the training. Staff undergoing training will be able to see clearly how processes/methodologies use the basic concepts of project management (Kerzner 2001, p. 73). Researching project management software commences at the start of the project to enable evaluation at process implementation stage. Contractual aspects Reporting Requirements All project members will report the status of their assigned activities at scheduled meetings conducted by the Project Manager (PM). During the first half of the project, there will be weekly meetings, during the second half fortnightly meetings. The trainer will provide a training report after each training session. Contingency has been built into the last phase of the project if ad-hoc meetings are required. At any stage of the project, any critical issue should be reported as soon as possible and should not wait until the next meeting. Management agreements Recruitment agency contracts will need to be signed for engaging two business analysts (BA). Agencies listed on the State government’s procurement list will ensure contract guarantees and cost efficiencies. ET may wish to take advantage of these pre-negotiated efficiencies as set out by Dept of Commerce’s website (2008). A contract will also need to be signed for engaging a trainer to provide on-site training. The use of HR and IT personnel will need to be negotiated with respective functional managers. Review procedures The main aspects that should be periodically reviewed are the time and cost of the project. The project status will be reviewed monthly by the PM. The project budget should be analysed (estimated cost versus the actual cost) to check if the project is on track and also review the estimated time versus the actual time of the project. Reviewing these aspects, the PM will be able to take corrective actions if some tasks are running over time or budget. In critical circumstances, for example if the project runs out of time or money, the project may be terminated. Technical Deliverables A list of enterprise project management software needs to be researched in the first half of the project. The software should be compatible with ET’s business needs and existing network infrastructure. Results can be evaluated at implementation stage, complementing three earlier activities: training, business process review and survey/interview results. Schedule A hierarchical planning system defined by Meredith J & Mantel S (2006, p. 247) has been used to create the project schedule. The definition of main activities begins at level 1. After defining level 1 activities, a top down approach is used to iteratively create the work breakdown structure. Level 1 is broken down into two or more tasks to become level 2. These new tasks can be broken down to create levels 3, 4 and so on. Tasks are detailed until they are implicit to estimate time and cost. The schedule and Gantt chart are located in Appendix A. There are three main activities: methodology/business processes, technology solution and implementation. Sub tasks have been defined detailing their predecessors. Resources have been assigned to each task. The tenure of the BA’s and trainer are accounted for. If there are time overruns on any task, contingency has been incorporated into tasks. The critical path has been identified - beginning at documenting the new business processes until final Executive sign off. Assumptions 1. Project will be communicated to all staff in primary and field depots; 2. Project team members will be co-located in the primary office; 3. Staff will be made available for training, survey and interviewing; 4. Office equipment, business/corporate plans etc will be made available. Costs A bottom-up method has been adopted to allow the cost of each task following the work breakdown structure. Project costs have been made in relation to resources ie. hours worked and materials (Meredith J & Mantel S 2006, p. 332). The estimated costs are: |Operating Cost |Cost |Due Date |Comments | |Training |$14,700 |28 Jan 2009 |3 day course @ $1,500/day x 3 | | | | |1 day course @ $1,200/day x 1 | |2 x Business Analysts |$99,200 |Weekly invoices until project close |$400/day x 124 days x 2 | |Software solution |$2,100 |20 Jun 2009 |Estimate - Enterprise licensing | |Training/Meeting Rooms |$0 |N/A |Corporate resource | |Subtotal |$116,000 | | | + Contingency |$23,200 |+20% contingency budget | |Total Cost |$139,200 | | The software solution is based on current enterprise pricing. BA’s will submit weekly timesheets to the PM. The trainer’s fee is built into the cost of the training. PM, HR, IT, RSM and executive sponsor are salaried staff. Due dates are based on the Gantt chart, allowing for 7, 14 or 30 day invoices. The costs will be monitored when they are due. The costs will be controlled by monitoring the estimated cost versus the actual cost. Twenty percent is factored in for possible contingencies. Personnel requirements The project team will be composed of one project manager from Project Services, two business analysts and one trainer. Along with an ET executive sponsor and RSM, short term use of HR at the beginning and IT towards the final stage will be required. Each member will be specialists in their area. The BA’s will need to have strong demonstrated experience in business process review and implementation, possess exceptional communication, listening, speaking, interpersonal, written, negotiating, technical writing, researching, problem solving and applied technology skills. The PM will need to possess excellent organisational, communication, interpersonal and managerial skills. Project members will be in regular contact with ET executive, management and staff throughout the project via telephone, face to face or email. The trainer will need to be accredited under a recognised body such as Australian Institute of Project Management or Project Management Institute. Onsite training is scheduled between November 2008 - January 2009 with no training between Christmas and New Year. Risk Management Risk, according to Kerzner 2006, is a measure of the probability and consequence of not achieving a defined project goal. The risk has two main components: likelihood (probability) and impact (consequence). The following table represents the risk analysis matrix. Identified risks fall in one area of the matrix. Risks that are in the black shaded areas have more risk than the ones in the grey area. Risks in the white area have low or medium impact and low or medium likelihood meaning less risk is involved (GBAT9101, Unit 3, pp. 32-33). | |Likelihood of event | |Risk Analysis Matrix | | | |Low |Medium |High | | |High |1, 3, 6, 8, 13 |4,7, 11, 12, 15 | | |Impact | | | | | | |Medium |2, 9 |5, 10,14 | | | |Low | | | | Risks identified for the project are: |ID |Risk |Likelihood |Impact | |1 |Staff do not attend training |L |H | |2 |Training room unavailable |L |M | |3 |Turnover of staff |L |H | |4 |Lack of executive support |M |H | |5 |Conflict within project team |M |M | |6 |Union – industrial action |L |H | |7 |Computer system failure |M |H | |8 |Unable to obtain corporate documentation |L |H | |9 |Change in business analysts |L |M | |10 |Project member falls ill |M |M | |11 |Staff resistance |M |H | |12 |Staff placed onto emergency projects/not available |M |H | |13 |ET incorporated with another energy firm |L |H | |14 |Functional units not willing to provide assistance |M |M | |15 |Inadequate interview and survey results |M |H | Mitigating Risks The Risk Analysis Matrix identifies five main risks - ID 4, 7, 11, 12 and 15. The following table prioritises each risk, which project objective is affected and its mitigation. Appendix B references each objective number. |ID |Risk |Objective |Mitigation | |4 |Lack of executive support |1 -11 |►Well structured plan, identifying tangible and intangible benefits | | | | |including cost savings, process improvement, less turnover of staff, | | | | |schedule and budget predictability, increased productivity. | | | | |►Excellent project negotiation & communication. | |11 |Staff resistance |1, 10, 11 |►Strong Executive communication & visible sponsorship. | | | | |►High quality communication strategies, before, during & after project.| |12 |Staff placed onto emergency projects/not |1, 7, 10, 11 |►Strong Executive communication & visible sponsorship. | | |available | |►Negotiate with functional managers. | |15 |Inadequate interview and survey results |1, 2, 8, 11 |►Review & re-examine all corporate documentation | | | | |►Clear communication, interpersonal, listening skills. | | | | |►Re-examine survey & interview questions. | |7 |Computer system failure |1, 2, 7, 11 |►ET actions business continuity plan. | | | | |►ET hires equipment. | | | | |►Project members use own equipment. | Lessons Learned The intent of Lessons Learned is to gain insight and learn from projects past and present. It is to be aware of successes and failures (Fithen R, 2003 p. 25) by repeating what worked well, avoiding what did not work well and efficient ways to handle specific tasks. The PM can keep a closer handle on project quality, cost and schedule from reviewing past and present Lessons Learned. Specific forms and procedures will be issued at the first project meeting to document Lessons Learned for the duration of the project. Documenting items such as but not limited to: corrective actions; mistakes; risks – what was a risk, how it was mitigated; successful project management processes; what process could have worked better; how a task was performed really well and team dynamics (GBAT9101, Unit 12, p. 29). Completed forms will be brought to and reviewed at each project meeting. These will become part of the final documentation collated by the PM. Conclusion Initiating Kerzner-PMMM is an effective methodology for establishing a baseline maturity and providing a drive for organisational change. It allows for the setting of an organisational specific maturity goal. The model is able to implement improvements in a staged approach at a rate that is logical for ET. The continual monitoring of organisational maturity, effective communication strategies, revision of the plan and visible executive support will provide the base for ET to reach Level 3 – Singular methodology. The plan to meet ET’s maturity goal is planned, resourced, funded and aligned to corporate objectives. References Department of Commerce, 2008, http://www.contractservices.nswp.commerce.nsw.gov.au/Contract+Information+and+User+Guides/Recruitment+and+Labour+Hire/Recruitment+and+Labour+Hire.htm [Accessed 8 October 2008] Fithen R, 2003, ‘IT project closure’, Risk Management, vol. 50, no. 10, pp. 22-25 Kerzner H, 2001, Strategic planning for project management using a project management maturity model, 6th edn, John Wiley & Sons, Inc, NY Kerzner H, 2006, Project Management: A Systems Approach to Planning, Scheduling and Controlling, 9th edn, John Wiley & Sons, Inc., NY Meredith J & Mantel S, 2006, Project Management: A Managerial Approach, 6th edn, John Wiley & Sons, Inc., Hoboken, NJ Project Management, GBAT9101, 2008, Master of Business and Technology Study Guide, The University of New South Wales, Semester 2 2008 Appendix A [pic] Appendix B Objectives referenced for Risk Mitigation on page 13. |ID |Area |Objective | |1 | |Project methodology/business processes | | | | | | |Scope | | |2 | |Technology solution | |3 | |Implementation | |4 | |Cultivate visible executive support | | | | | | | | | | |Project | | |5 | |Foster organisation wide communication | |6 | |Develop corporate understanding of project management | |7 | |Deliver ET’s project maturity within budget | |8 | |Streamline business processes | | | | | | | | | | |Corporate | | |9 | |Improve administration of resources and assets through planning, budget monitoring and control | |10 | |Develop a career path for project and functional staff | |11 | |Create knowledge based systems and staff |