Introduction to Consulting and Strategic Project Management March 16, 2011 This information is confidential and was prepared by RAS & Associates solely

Introduction to Consulting and Strategic Project Management

March 16, 2011

This information is confidential and was prepared by RAS & Associates solely for the use of our client; it is not to be relied on by any 3rd party without prior written consent.

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Project Management Approach

Agenda

Sample Deliverables

Introduction to Consulting

Q&A

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RAS & Associates is based in Denver, Colorado and focuses on the development of long-term strategic relationships with its clients

ServicesWe provide management consulting services to our clients across the value chain

Business Strategy / M&A

Asset Analysis / Disposition

Market Analysis

Organizational Transformation and Design

Business Process Mapping and Optimization

Procurement & Supply Chain Management

Product Strategies

B2B / B2C Lift

Pricing

Customer Management

Channel Development

Marketing Strategy

Procurement & Supply Chain Management

Areas of Expertise

Organizational Transformation and Design

Business Process Mapping and Optimization

SummaryRAS & Associates is a Denver, Colorado based management consulting firm whose services are retained by large and middle market companies

Staff CredentialsOur professionals bring former Big 5 and boutique strategy consulting experience to every client relationshipOur people have worked with clients in multiple industries including Banking, Telecommunications, Retail, Aerospace & Defense, High Tech, Financial Services, and Not-for-ProfitOur team has a diverse background that includes Tier 1 MBA education, large systems implementation experience, procurement transformation initiative leadership and strategy development and execution

MissionPartner with our clients to develop and deliver critical initiatives that address their most difficult challenges and build the capability to improve their top and bottom lines

CommunityAs a firm, we are actively engaged with university programs teaching and leveraging our relationships to benefit studentsWe are working directly with Mile High United Way and have provided numerous gift-in-kind projects to the organization, working with the senior leadership team on a number of internal and public-facing initiativesAdditionally, our Associates are committed to community involvement and are personally engaged in multiple community organizations

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Management and Technology Consulting firms offer clients a variety of service offerings, rate structures and value propositions

# Firm Type Sample Firms Service Offerings Value Proposition Lifestyle

1 Strategy

• McKinsey & Co.• Bain• BCG• Booz & Co• Monitor

• Corporate Finance• Operations• Organizational Structure• Strategy

• Hardcore analytical skills• Typically, broad based capabilities with

advanced degree from Tier 1 global universities

• Strong CXO experience / relationships

• Significant hours and travel• Extremely challenging work• Ample internal projects• Hyper- competitive environment

2Large / Former

Big 5

• Accenture• Deloitte• IBM GS• CSC• TaTa

• Consulting• Technology• Outsourcing• PMO

• Gigantic bench strength• Leverage industry knowledge, service-

offering expertise and technology capabilities

• Identify new business and technology trends and develop solutions to help clients around the world

• Significant hours and travel• Engagements often center

around technology implementation

• Extremely broad range of services provides opportunity for project diversity

3Middle Market

Down

• RAS & Associates• North Highland• Slalom Consulting• CIBER• MANY others

• Consulting• Technology• Staff Augmentation• PMO

• Flexibility• Similar value propositions to Firm Types

1 & 2, though on a smaller scale• Less overhead / levels• Rate advantage, sometimes

• Varies• Can be centered around work-

life balance• More project exposure• Typically, experienced hires

4Software Vendors

• SAP• Siebel• Cognos• Oracle

• Implementation• Data Structure• Architecture• PMO

• Optimization of business operations• Leverage technology to reduce cost• Business transformation

• Significant travel• Focus on SDLC• Often based on Go Live /

Release Schedules

*Sources:• RAS & Associates research and proprietary information• A variety of firm sites were researched and incorporated into our analysis• ConsultingMagazine.com• Vault.com

Consulting Industry Summary*

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Consulting economics are fairly straight forward, however, when you blend rate, utilization, client budget and competition it gets complex

Consulting Economics Summary

► Professional services have three fundamental measures to gauge economic performance:

1. Actual Engagement Rate

2. Actual Consultant Cost

3. Utilization/Chargeability (How often a consultant is actually earning their rate)

► Firms within the industry are focused on:

1. Obtaining the highest rate

2. At the lowest cost

3. For the longest period possible

4. The problem is, it never works that way

5. No revenue and no pipeline = bad

► Given how fragmented consulting is, pragmatism, interpersonal skills and the desire to compete means anything goes:

► Selling is different than delivery

► Client budget is a limiter

#Firm Type

Rate, Cost, Utilization Limiters

1 Strategy

• Rate: Very High• Cost: Very High• Utilization :Relatively Lower

• Demand for strategy work is limited

• Extremely high cost• Often 1 and done

2Large / Former Big 5

• Rate: Low to High• Cost: Low to High• Utilization :Higher

• Extremely large projects sought to staff extremely large teams needed

• Clients get tired of being sold the kitchen sink at every opportunity

3Middle Market Down

• Rate: Low to High• Cost: Low to Medium• Utilization :Highly Variable

• If aggressive or high rates, client’s may perceive as Strategy / or Big 5 “I thought you guys were different?”

• “Who are you again?”

4Software Vendors

• Rate: Low to High• Cost: Low to High• Utilization :Higher

• Technology implementations are intrusive, expensive and large ones often under achieve expectations

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Agenda


Sample Deliverables

Introduction, Background, and Objectives

Q&A

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The ability to effectively manage projects is vital to career progression

Background• You have a real-world Conoco Phillips case study that you are already working to tackle• You’re excited about challenging yourself in the workplace after graduation• Effective project management can help in both instances

Meeting Objectives

1. Discuss the critical components of effective project management

2. Present a practical approach that works

Takeaway Goals• Learn a thought process you can use immediately• Get advice you won’t find in your text books

Use the Conoco Phillips case study as an opportunity to build your project management skills

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Project management skills are a key component to maximizing your potential as a consultant

• Long-term corporate viability depends on effective project management1. Corporate strategy defines what the company needs to be to in the future to be successful

2. To accomplish the corporate strategy, many initiatives/projects must be completed

3. Failed or marginally successful projects can derail the corporate strategy

• Effective project management unifies and motivates the workforce to accomplish more than otherwise would have been possible

• Differentiate yourself; the world is full of people who “do stuff”, but there is a shortage of those that take the initiative required to successfully drive projects to completion

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• Identify project team in addition to list of key stakeholders

• Create relationship management plan

• Determine primary project goal(s)

• Define detailed project requirements

• Create detailed project plan

Chronologically, there are a number of key activities that should be performed throughout a project’s lifecycle

Define Implement Present & Transition Goals

Objective

KeyActivities

Key Exit Criteria

1. Build or maintain a competitive advantage, or reduce a competitor’s advantage

2. Build relationship capital with key stakeholders

• The project has a clear purpose

• The project team has been defined

• All key stakeholders have been identified and relationship development plans are in place

• Detailed project requirements have been defined and a project plan has been created

Determine project goals and create detailed project plan

Execute project plan while building unified support

Communicate project completion and transition as

necessary

• Update and communicate project task plan

• Identify and mitigate issues

• Perform quality checks on key tasks and deliverables

• Communicate progress and escalate issues

• Transition ongoing support if applicable

• Make project completion presentation to sponsor

• Always look for additional opportunities that were uncovered during project execution

• Execute relationship management plan

• All project tasks have been completed and validated for quality purposes

• Critical risks to project budget and timeline were identified and proactively mitigated

• Ongoing support team is positioned for success

• Official approval has been received from the project sponsor

• Related additional opportunities have been reviewed for operational and financial viability

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2 3

We are going to dig into the details in three parts: 1 2 3Relationship Development Project Planning

Project Execution

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Understanding and accommodating for the human element is invaluable

Project Management

Project Planning Project Execution

Illustrate how the strategic objective will be accomplished, step by step

Manage the execution of the plan while mitigating risks and issues

Purpose

Why This Matters

Relationship Management

Planning

• The best plan in the world won’t work if the people don’t understand it, don’t buy into it, or don’t trust you

• Relationship capital is the ace up your sleeve that enables you to escalate issues and request additional support when needed

• This will raise your game and awareness

Build the relationships needed to gather the required information and support/buy-in

Internally Managed Externally Managed1 2 3

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Building strong relationships with key stakeholders enables you to collect difficult to find information, attain buy-in, and escalate issues


Identify all Key Stakeholders

Define the Role and Perspective

of each Key Stakeholder

Create Relationship Management

Plan

PurposeIdentifies the list of people that hold keys to the project’s ultimate success

Defines how each key player contributes to project dynamics

Details the steps necessary to build each key relationship

Overview: Relationship Management Planning

Having an separate plan for managing relationships may seem like overkill, but in practice it may be the most important planning you can do

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Sample questions to identify key stakeholders:

1. Who are the key advisors to the decision maker? Who are their advisors?

2. What types of hard-to-get information might I need? Who has access to this data?

3. If critical issues arise, who might I need in my corner to offer advice, additional resources, executive support, etc.?

Identifying and analyzing the key players is more art than scienceRelationship Management





Plan

• Identify all stakeholders that can have a significant impact on project success– To the good and the bad

• Identify not only decision makers, but also key influencers– Sometimes the most influential on a given

project aren’t the highest on the ladder

• Understand what each stakeholder cares about– Work expectations– Personal values

Key Activities Practical Advice

Refer to appendix for Stakeholder Analysis template

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• Gain credibility by taking initiative where other people make excuses

• Any time you raise an issue, have an opinion on how it can be fixed

• Collaborate frequently to expand on your ideas and build support

• Present yourself appropriately – dress for the job you want

Win the support of key stakeholders by having a plan and staying on top of it


• Set a relationship goal for each stakeholder– Be realistic, and know the minimum

requirement

• Account for where you currently stand to assess relationship gaps– Again, be realistic

• Define the steps required to build each desired relationship– Usually these revolve around demonstrating

capability, building rapport, and getting things done


Refer to appendix for Relationship Management Plan template





Plan

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A project plan is the proof-of-concept that you will use to gain support and motivate the team

Project Management


• Turns a complicated project into a set of smaller, more manageable pieces

• Provides the roadmap to build and maintain buy-in from project team and extended stakeholders

• Done well, the plan provides meaningful opportunities for others, offering personal growth and increasing their commitment



Purpose

Why This Matters


Planning



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Project PlanningA good project planning process ensure that you not only create a technically sound task plan, but that it makes sense to others

Purpose The overriding purpose of the project, often tying directly to a strategic initiative

Breaks a complex project into a set of smaller, more manageable components

Sets a series of small objectives that in aggregate accomplish the primary goal(s)

Identifies current capabilities and/or progress relative to requirements

Define Primary Project Goal(s)

Create Project High-Level Milestones

Define Detailed Requirements

Assess Current State

Create Project Task Plan to

bridge the Gaps

Details, step by step, how gaps between current state and future requirements will be met

Overview: Project Planning Process

A good project plan is the proof you need to sell your approach

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Defining a primary project goal is critical in not only ensuring the proper direction, but also in motivating and unifying the project team

Project Planning






bridge the Gaps

• Have a comprehensive understanding of the goal and how it should improve the company’s efficiency, intelligence, return on invested capital, market share, compliance, etc.

• Be prepared to effectively communicate this message to the project team and leadership

• For projects directly tied to the corporate strategy, the goal should be obvious– Be realistic, and know the minimum

requirement

• For projects not on the strategic radar, define the expected business benefits– Make sure your project doesn’t conflict with

the corporate strategy


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By breaking a complicated project into it’s key subcomponents, you can more easily define requirements for overall project success

Project Planning

• This is your biggest opportunity to simplify the project… simple is good

• Break the overall goal into its various components (top-down approach)

– Incorporate the project team to get their valuable insight and build commitment

• Perform a sanity check on your diagram to ensure that all endpoints sum to the primary goal (bottoms-up approach)

– Again, leverage others







bridge the Gaps

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Once a diagram is in place, defining future requirements relative to current state identifies project gaps

Project Planning

• Goals should be very specific and date oriented, otherwise it may be difficult to know whether its been achieved

• Don’t take guesses – work with subject matter experts to define requirements

– Having good relationships here is crucial

• Set goals for each component of the project diagram

– Define what “done” looks like

• Define the requirements necessary to reach each component’s goal

• Assess current state in relation to each future requirement

– This identifies the gaps the project plan will need to address







bridge the Gaps

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A task plan is used to show how each goal/requirement will be met, who is responsible for its completion, and when its due

Project Planning

Tips for building task accountability:

• Build strong executive sponsorship

• Sell the importance of each due date

• Offer your help… most people will not need it but will appreciate knowing it’s there

• Create a fair balance of work for each team member

• Provide growth opportunities for others through task assignment

• Assess the gaps identified from the previous step

• For each gap, define all steps required to achieve the requirements

• Assign an owner for each task

• Explicitly define start and due date for each task

– Account for dependencies and their impact on project schedule


Refer to appendix for Task Plan template






bridge the Gaps

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A good idea without good execution is a waste of time

Project Management


• Maintains the sense of urgency and importance

• Identifies risks and issues early so they can be assigned, escalated, or otherwise mitigated

• Serves as a platform to complement and reward to maintain morale and incent desired behavior



Purpose

Why This Matters


Planning



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Proactive day-to-day management is required to properly execute a task plan and ultimately drive successful project completion

Update & Communicate Project Task

Plan

Identify and Manage Risk

Perform Quality Checks

Communicate Progress

Purpose

Keep project plan current and communicate task expectations to ensure all task owners are explicitly aware of what is required

Effectively identifying and managing risks ensures that project tasks are completed accurately, on time, and within budget

Validating the accurate completion of critical tasks is critical in upholding a consistent standard of quality throughout a project

Communicate how the project is progressing – keeping leadership and the project team aware of progress, successes, and risks/issues

Ongoing Project Management – Parallel Activities

Project Execution

Advice

Prevent people from using the excuses:•“I didn’t know I was responsible for that”•“I didn’t know when it was due”

• Use a structured risk and issues process

• Know when to escalate risks/issues

• Procrastination is the surest way to turn risks into issues… start strong and maintain momentum

• Effectively communicate quality expectations, this will increase their quality of work

• Be constructive with feedback

• Be concise in readouts• Have an opinion with

executives – “kinda” doesn’t cut it

• Learn when and how to give callouts (good and bad) to incent behavior

Refer to appendix for Risks & Issues Log templates

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Agenda

Sample Deliverables

Introduction, Background, and Objectives

Q&A

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Appendix: Stakeholder Analysis template

Key Stakeholder Role How are they measured? Other insights

VP Procurement Executive Sponsor Overall operational performance Under pressure from COO to reduce inventory levels to improve liquidity

Supply Chain Manager Requestor of new functionality

Material cost, quality, and timeliness Tasked by VP to cut inventory levels in half by Q4 2010

FP&A Manager Primary FP&A contact

Accurately and quickly perform data collection, forecasts, and calculations

Very limited knowledge of supply chain best practices and current supply chain functionality

IT Manager In-house systems expert

Project completed on time, within budget, and meets functionality requirements

Often seems to get caught up in the “cool factor” rather than company profitability

ERP sales manager Primary ERP contact point

Sales volume Has identified the IT manager as a key proponent and they seem to sell in lock-step

Example: Company ABC is seeking to enhance supply chain capabilities through an enhancement to their currently existing Enterprise Resource Planning (ERP) system


Identify all key stakeholders

Define the role and perspective

of each key stakeholder

Create relationship

management plan

Execute plan

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Appendix: Relationship Management Plan templateRelationship Management

Identify all key stakeholders

Define the role and perspective

of each key stakeholder

Create relationship

development plan

PersonRelationship

OwnerRelationship Goal Relationship Progression Tasks

Execute plan

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Appendix: Task Plan template

Define primary project goal(s)

Create project diagram

Define detailed requirements

Assess current state

Create project task plan to

bridge the gaps

Tasks can be grouped by either the endpoints or midpoints of the project diagram

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Assigning owners creates accountability

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A simple readout of task status helps summarize progress

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Managing start and end dates help ensure the timely completion of critical tasks. Alternatively, some projects are better served using dependencies and durations.

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Task Status Start Date Due Date

Task 1 John Complete 11/15/2009 11/17/2009Task 2 Stephanie Complete 11/17/2009 11/20/2009Task 3 Karen In Progress 11/17/2009 11/30/2009Task 4 Karen In Progress 11/18/2009 12/4/2009Task 5 Steve Complete 11/17/2009 11/18/2009Task 6 Steve Complete 11/18/2009 11/25/2009

WEEK ENDING12/411/20 11/27Owner

Gantt charts are often used to graphically show task expectations

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Project Planning

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Appendix: Risk & Issues Log templatesProject Execution

RiskID

Date Entered

OpenedBy

Risk Condition & Consequence Risk Type

Probability

Impact

Exposure

Contingency(Include Triggering Event)

Mitigation Mitigation Due Date

Risk Owner Status Date Closed

123456789

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Risk Management

IssueID

Date Entered

OpenedBy

Description Resolution Severity Priority Status Assigned To DateAssigned

DateResolved

123456789

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Issues Management

Risk: A potential threat to the project that hasn’t yet occurred and may be prevented with proper, timely action

Issue: A threat to the project that is already in motion and needs to be mitigated

Basic examples of both a risk log and issues log are shown below to outline what needs to be considered to either prevent or mitigate threats to project success.

Documents

Introduction to Consulting and Strategic Project Management March 16, 2011 This information is confidential and was prepared by RAS & Associates solely