Study Project in Global Business General Guidelines

Study Project in Global Business

General Guidelines

Choosing a Global Business Topic

Limit your scope

Something that interests you

The topic be academic or practical◦Scholar style◦Business project style

State your topic June 4th

Philosophical considerations

Note the university plagiarism policy

Failure is ok◦ In business situations usually better to state why an idea would not work than

to continue to pursue the idea◦ Creative ideas typically come after lots of dead ends◦ You will be evaluated on how well explain your position

Follow the anomalies◦ Data that does not fit often leads to rewarding avenues◦ Experts often overlook the unexpected◦ Reputations and fortunes have been made from spotting anomalies and

following them

Stay in scope

Make a plan

Any project will consist of manageable pieces◦Set intermediate goals◦Applies to individual projects as well as

enterprise projects

Stick to your milestones and deliverables

Mountains are climbed one goal at a time

Suggested milestone dates

Group A Group B

Monday 25 June◦ Plan for source data

Monday 9 July◦ Data organization

Monday 30 July◦ Draft of finding or bus plan

Monday 13 August◦ Draft of Report

Monday 20 August◦ Draft presentation

Wednesday 27 JuneWednesday 11 JulyWednesday 1 AugustWednesday 15 AugustWednesday 22 August

Effective Project ManagementStructure of large organizations

Large organizations evolve away from transactions orientation ◦Routine tasks are outsourced◦Typical transactions functions

Repetitive Low skill Low pay

Move toward project orientation◦May have internal consulting organizations◦Other staff may form teams for the duration of a project,

or for parts of a project◦Traditional staff functions like marketing or finance

become project oriented

Effective Project ManagementProject lifecycle

1. Identify a need◦Request for proposal (RFP)

Written by customer Contractors respond with

◦How they might solve the problem◦Costs and schedule for the work

◦Informally - needs defined in meetings or by management Typically handed off to internal project team Important to correctly define the need (very often

management will have only a vague idea) Very common for entire departments to be project oriented

(example are FP&A or internal consulting)


2. Develop a solution◦Proposal to customer

Contractors submit proposals and bids◦Develop approaches to a solution◦Estimating types and amounts of resources needed◦Estimate of time to design and implement the solution

Internal team responds to management or team defined need or request◦Work will be preformed by internal staff◦Often parts are contracted out for specialized expertise

Effort in this phase is from contractors or internal project staff

◦Negotiate and sign a contract (note internal teams often have written agreement)


3. Perform the Project◦Detailed planning

◦Implement the plan to accomplish the objective

◦Accomplish the objective Project complete when it is accepted by the

customer◦Customer obligation to review or validate results◦This is where careful wording of contracts is important

Quality, budget, time

Effective Project Management Project lifecycle

4. Terminating the project◦Confirming all deliverables accepted by

customer

◦Confirming invoices sent to customer and paid (internal projects often transfer priced)

◦Evaluate performance of the project Customer feedback Team feedback

Effective Project ManagementImportance of Planning

Establish a baseline plan◦Define project objective◦Divide the project into major packages ◦Define the specific activities for each work package◦Portray the activities in a network diagram

Sequences Interdependencies

◦Make time estimates for each activity◦Make cost (resource) estimates for each activity◦Calculate a project schedule and budget

Adjust scope, time estimates, or resources if necessary Baseline plan is critical to success of any project


◦Elements of a baseline plan Start and completion dates for each activity Amounts of resources for each time period Budget for each time period and cumulative budget

through each period

◦Monitoring progress through the project Compare to planned progress Must know which activities have been started or completed When the activities began and ended How much money has been spent or committed

◦Take corrective action as needed


◦Earned Value Percent complete for each work package

◦Subjective estimates◦Honesty is critical (avoid overconfidence)◦Smaller work packages are better

Multiply percent complete against Total Budgeted Cost=EV Compare with Cumulative Actual Cost to see if value of work

performed is keeping up with cost. Cost performance index (CPI)= CEV/CAC

◦Earned value divided by actual cost◦Use this to estimate forecast cost at completion◦Forecast cost to completion = Total budget cost/CPI◦Method assumes continuing efficiencies or inefficiencies

◦Hazard of becoming PM mid-project = false % complete

Effective Project ManagementManaging the Project

◦ Cumulative actual cost (CAV) Total amount spent at a point in time Could be low or high due to % completion

◦ Cumulative budget cost (CBC) Amount budgeted to a given point in time Assumes work is on schedule

◦ Cumulative earned value (CEV) Value of work actually performed so far Adjusts the budget amount for % completion

◦ Cost Variance = CEV – CAC ($ gap between work performed and actual cost)

◦ Assuming budgeted efficiency going forward: FCAC=CAC + (TBC-CEV) Actual cost so far plus total budgeted minus earned value Implies any efficiencies or inefficiencies so far will go away Contrast with TBC/CPI approach (continues efficiencies or inefficiencies)

Project Manager Responsibilities

Plans, organizes and controls the work to accomplish the project objective

Assures that the customer is satisfied that objectives are achieved◦On time◦In budget◦Right quality

Develops plans or leads others to develop◦Reviews with the customer◦Sets up a tracking mechanism

Organizes the work◦Gets commitments or signs contracts◦Assigns accountability

Tracks actual progress against plan

Skills of a Project Manager

Ability to handle stress◦ Conditions change constantly

Conflicts Technical problems Customer requests

◦ The PM has to be calm◦ Help project team handle their stress

Problem-solving◦ Early identification of problems

Accurate information Open communication

◦ Analytical skills◦ Big picture view

Effective time management◦ Self-disciplined◦ Organized◦ Willing to delegate

Managing change

Changes can be caused by◦ Customer◦ Project team◦ Unexpected events◦ User of the project results

Change later in a project has greater impactCreate procedures for documenting and authorizing

changes◦ Communication between PM and customer◦ Communication between PM and project staff◦ Always put changes in writing◦ Avoid doing slight enhancements for free

Managing end-user change (procedures)◦ Often very difficult◦ Time and patience to overcome resistance to change◦ Work with end-users during project design

Delegation defined

Delegation is assigning responsibility and giving authority to make decisions

Successful delegation requires establishing accountability◦PM defines tasks and desired results

Scope Quality Budget Schedule Expected product

◦Clearly communicating expectations◦Tracking systems◦Regular meetings

Degrees of Delegation

1= least delegation. 6 = most delegation.

1 Investigate the problem. Give me all the facts, and I’ll decide what to do and who will do it.

2 Investigate the problem. Let me know possible alternatives and recommend one. I’ll decide.

3 Investigate the problem. Let me know what action you prefer to take. Wait for my approval.

4 Investigate the problem. Let me know what action you will take. Do it unless I say no.

5 Investigate and take action. Tell me what you did.

6 Investigate and take action. You decide if you need to tell me.

Delegation Issues

Allocate sufficient resources◦ Match skills to the task◦ Empower individuals to decide how to use budgeted resources◦ Stretch assignments develop people (look at potential)

Do not tell people how to do the job◦ They will feel PM lacks confidence in them◦ They will be less committed to the result◦ Effective management requires showing confidence in people◦ People will be more creative when they can decide

Avoid criticizing◦ Fear of failure causes paralysis◦ Fear will cause people to ask the manager to approve everything

Establish accountability◦ Clearly define expectations◦ Project management information system◦ Reporting system◦ Measure and evaluate progress relative to plan

Elements of a Successful Project

Select the right project◦Fits the business◦Look at alternatives (such as incremental changes)

Find the right people for the projectSelect the right contractors when employees lack

expertise◦Use employees as leaders ◦Or customer employees as leaders

Use off-the-shelf products where possibleSchedule regular progress meetingsEstablish control mechanisms

◦Keep project within scope◦Keep project on schedule and on budget

Leading a project

Make things happenLet things happenWonder what happened

Set a positive example◦ Work late if that is required◦ Project a positive attitude – enjoying the work◦ Focus on ways to get the job done◦ Reward milestones

Create an environment of trust, and of high expectations

Recognize successes, avoid discouraging peopleCreate a vision for others to follow (goals and

benefits)Delegate and hold people accountable

Communication

Timely, honest and direct◦Prevents rumors◦Builds trust

Share good and bad news quicklyCreate an atmosphere that encourages open

communication◦Accept differing points of view◦Allow people to bring issue without fear◦Solicit comments and ideas, rather than dominate

High level of communication most important early in project◦Builds good working relationships◦Establishes clear expectations with the customer

Developing people

People gain knowledge and competency from the project◦Technical development◦Problem solving◦Negotiating and time management

Acknowledge that mistakes happen◦No fear of failure◦Create stretch assignments

Follow up on formal training◦Assignments◦Presentations

Barriers to team effectiveness

Unclear goals◦ PM needs to articulate vision of the goals and expected benefits from the first meeting◦ The vision needs to be said repeatedly at status review meetings throughout the project

Lack of project structure◦ Importance of establishing procedures for communication, approvals, documentation◦ Provided in written form and reinforced

Unclear definition of roles◦ Ambiguity or overlap of roles◦ Explanation of how individual roles relate to others’

Turnover◦ Small number of people working on long term is more efficient than large number working

short term Highly important concept Idea is that putting more human resources on a lagging project commonly does not bring speed

◦ Look for people with versatile skills, can contribute to multiple aspects of the project◦ Specific expertise for short time commonly contracted out

Bad behavior◦ Hostility, lack of professional comportment, disruptive behavior◦ Need to follow through with release from project if behavior continues

Lack of commitment◦ Recognize accomplishments◦ Explain importance of each project role

Ethical behavior

PM sets tone◦ Does what seems right and fair◦ Communicates the expectation◦ Written policy and training on ethics

Types of unethical behavior◦ Kickbacks on purchased materials◦ Submitting low bids with intent to raise price later◦ Dishonest time reporting◦ False travel expense reports◦ Plagiarism and taking credit for the work◦ Bribing inspectors or approving bad test results◦ Misleading the customer about project status◦ Taking supplies or equipment for personal use

Need for peer pressure against ‘trying to get away with being caught’

Unethical behavior erodes trust and entire foundation of integrity

Time management

Make weekly lists of goals for the next weekMake to-do lists at the end of each dayRead the daily to-do list first thing in the

morningControl interruptions

◦Set aside blocks of time for e-mails, returning phone calls

◦ Interruptions cause inefficiencyLearn to say no to avoid over-commitmentUse waiting timeTry to handle paperwork only onceReward yourself at the end of the week (if)

Sources of Conflicts

Work scopeResource assignments

◦Requests for more resources◦Requests for different assignments

Schedule – sequence or duration of tasksCost – who pays for overruns?Priorities

◦People work on multiple tasks◦Limited equipment resources

Organizational issues◦Ambiguous or inadequate communication◦Lack of timely decision making◦Leadership style or procedural issues

Personal differences – such as resentments

Handling conflict

Conflict can be beneficial◦Raises awareness of problems◦Can cause clarity, creativity, or problem solving

Avoid withdrawing from conflict or forcingCompromise solutions often less than bestConfront issues directly

◦Problem solving approach Places high value on outcome and relationships Open exchange of information (no-one tries to win) Requires willingness to work in good faith and understand

other points of view Honesty required

◦Manage emotions (try not to become attached to a point of view)

Problem solving – nine step approach

Develop problem statement – specific Identify possible causes of the problem Gather data and verify likely causes

◦ Distinguish symptoms from causes◦ Work on correcting causes

Identify possible solutions◦ Avoid doing the first or most obvious◦ Try creativity (brainstorming)

Evaluate alternative solutions◦ Need weighted criteria for a scorecard◦ Evaluate each viable solution against the criteria

Determine best solution◦ Scorecard is an input◦ Use expertise of the team to reach final decision

Revise the project plan◦ Will the proposed solution cause problems elsewhere?◦ Incorporate solution into the project plan

Implement the solution Determine of the problem has been solved

Documents

Study Project in Global Business General Guidelines