Transcription
1PM101: Lecture 16Decision and launchZAVANAK.com Eric Woodcock 2020
2The typical project life cycleDefinitionDeciding what todo and whyProgressionPlanningClosing down, andlearning for next timeWorking out how to do it,who will do it and whenDeliveryGetting the customer toaccept itDecisionProductionGetting approval to goaheadCreating and testing theproduct or service,controlling progressZAVANAK.com Eric Woodcock 2020
3The actual project life rogressionApproval to spend Approval to beginresources onfull scaleplanningproductionZAVANAK.comAcceptance thatthe output issatisfactory Eric Woodcock 2020
4Is this how it works?‘Let’s go to the moon!’‘Here’s the outline plan.’‘That’s nice; do a proper plan.’‘Here’s a proper plan.’‘That makes sense. Off you go!’ZAVANAK.comPhoto: NASA Public Domain Eric Woodcock 2020
5Or, is this how it works?‘Let’s go to the WaitingPleadingRe-planning‘That’s a plan I am prepared to support.Produce what I have agreed to.’ZAVANAK.comPhoto: NASA Public Domain Eric Woodcock 2020
Project management is selling!6Selling is persuading someone tobuy something in return for apayment.People buy things tosatisfy their perceived selfinterest.Selling a project is typically a complexsale – there are several decisionmakers.ZAVANAK.comMiller, R. & Heiman, S. (1993). Strategic selling. London: Kogan Page, p62; Peters, T. (1999).The Project 50. New York: Knopf. Photo: Allison Shirreffs, Tom Peters.com Eric Woodcock 2020
7The complex saleDecisionmakers through a personal ‘win’for each decision maker?K?L?K?K?LWe sell theproject asa route totheoutcome naldecisionMiller, R. & Heiman, S. (1989). Strategic selling. London: Kogan Page, p62; Miller & Heiman(1993). Face-to-face selling, p27. Eric Woodcock 2020
What are we selling?CredibilityWe have proved we havethe ability to carry out com8We have the right skills,knowledge andexperience.We will stick withthis project evenwhen things getdifficult.We can be trusted tohandle this projectprofessionally.Photo: ThisIsEngineering from Pexels Eric Woodcock 2020
9The elevator pitchSummarising the project to a decision maker in one minute. 150 words A strong ‘hook’ Paint a picture of the future Promise benefits Explain the logic Induce a sense of urgency Describe the pathway of the project Make it simple to understand Ask for executive support Have the full story readyZAVANAK.comPhoto: Creative Commons, CC Zero-CC0 Eric Woodcock 2020
10Making the decision tangibleModelMock-upEarly prototypeTrials omPhoto: Jim Abeles, Creative Commons, Attribution-NonCommercial-NoDerivs 2.0Generic (CC BY-NC-ND 2.0) Eric Woodcock 2020
11How project firms do thisThought leadership - encouraging clients to take action urgentlyPromotional materials – web-site, brochures, etc.Reference sites – where satisfied clients recount their experiencesWar stories – short tales of how projects solved client problemsSales planning systems – which track marketing and sales developmentBid teams – staffed to produce compelling responses to clients seeking helpZAVANAK.comImages: Company websites Eric Woodcock 2020
12Project documentationProject brief – Defines the goal and requirements of the project,the outline business case, and customer’s quality expectationsBusiness case– justifying theproject as thebest way toattain thestrategic goalsProject activityplan –specification,scope, tasks,time scales,costs, resources,risks, etc.Projectmanagementplan – how theproject will bedesigned,conducted andoverseenContracts –arrangementswith suppliersfor projectwork,assigning risksProject planTime, cost and resource estimatesRisk management planStakeholder engagement planCommunications planEnvironmental management planZAVANAK.comProject organisationProject governanceMonitoring and reportingQuality assurance arrangementsChange control procedures Eric Woodcock 2020
13What does a contract do? It defines the relationship and the responsibilities of the supplier and thecustomer, including what is to be supplied and when. This includes thequality expectations of the customer. It defines how the supplier will be paid, including how stage payments willwork. The contract may contain incentives so that if the supplier exceedscertain targets they get an extra reward. It defines which side bears which risks. Risks should be borne by those bestable to bear them and should be allocated so that they are motivational. It specifies what remedies there are if either the supplier or the customer doesnot perform as promised. This might include penalties. It might define what bonds and insurances have to be taken out by thesupplier. It might specify how much money the customer can retain until they aresatisfied that the project output is working as promised.ZAVANAK.com Eric Woodcock 2020
14Fixed price contractBest for projects where technology is well understood, environment is familiar andmanagement is straightforward.ZAVANAK.com Eric Woodcock 2020
15Cost plus contractBest for projects where technology is new, environment is unfamiliar andmanagement and stakeholder relationships may be complex and timeconsuming. Customer must be capable of managing this type of contract.ZAVANAK.com Eric Woodcock 2020
16Through life contractsDesign-build-maintain-operate (DBMO) and build-own-operate-transfer (BOOT) areexamples of this type of contract. Customer must understand the financialconsequences of what they are getting into.ZAVANAK.com Eric Woodcock 2020
The contract evolves as the project evolvesChange to plansChange to contract17Change to project The contract must not be developed inisolation from the project planning The contract is a living document thatmust evolve as the project evolves Never agree to anything substantialwithout referring to the legal advisorZAVANAK.com Eric Woodcock 2020
So: are we ready?18 Confirmed the scope? Confirmed the specification? Confirmed the time scale and the budget? Confirmed the processes, procedures etc to follow? Confirmed the milestones? Confirmed the measures of success? Confirmed sponsorship and governance arrangements? Confirmed all contracts in place? Appointed the project manager?ZAVANAK.com Eric Woodcock 2020
19Getting ready for launchOffice and site arrangements– where people will work isready for occupationNecessary equipment –available, checked, ready to goTravel and accommodation –how people will get to theirwork site and where they willstayZAVANAK.comIT systems – installed,licensed, de-bugged. Interoperability checked. Back upin place.Security – physical andsystems security set up.Working capital – timing andflow of cash into the projectconfirmedPhoto: Cadeau Mastro from PexelsTelecoms – land-lines andmobile devices all functioning,data transfer capacity tested,social media and web-sitefunctioning.Transport – vehicles deliveredand ready to use.Contingency plans – actionsshould major risks occurdefined Eric Woodcock 2020
20Project launchGive the project a nameAnnounce who is the project manager andconfirm their authority to manage theprojectHold inaugural project board meetingDeclare key project milestones and financialtargetsHave a project kick-off meetingCommunicate the existence of the projectand its scope throughout the organisationZAVANAK.comRun project launch events – forming andstormingPhoto: ISCA from Pexels Eric Woodcock 2020
21Decision and launch: core ideasGetting decision makers to agree to doing the project is a complex process thatneeds special skill.It is about working to align their interests with the interests of the project sothat they approve it.Various tools may be used, from a short elevator pitch through to a full-sizemock-up of the proposed output.Project firms are very good at this aspect of projects, selling their capabilitiesand providing lots of evidence of their expertise.Contracts are a core part of the suite of documents that define the project.Contracts essentially define who is responsible for what in the project, whobears the risks, and what should happen if things go wrong. Changes to theproject must be reflected in the contracts.Different types of project require different kinds of contract.Careful preparation must be made to have everything in place to enable theProduction phase to begin smoothly.Project launch into the Production phase should be treated as a major event.ZAVANAK.com Eric Woodcock 2020
Miller, R. & Heiman, S. (1993). Strategic selling. London: Kogan Page, p62; Peters, T. (1999). The Project 50. New York: Knopf. Photo: Allison Shirreffs, Tom Peters.com Selling is persuading someone to buy something in return for a payment. People buy things to satisfy their perceived self-interest. Selling a project is typically a complex sale .
