Project Assurance

Terje M. SæbøPartner, Considium Consulting Group

Make sure your projects deliver as expected

Project Assurance:- building the organization's capability to identify and resolve issuesto improve predictability and results in project execution.

• Lack of accountability and ownership for project goals and milestones in project team

• Weak alignment and interaction between project and organisation, customer, partners, suppliers and within sub-projects

• Do not look ahead and/or reacts to slow or to weak to remove barriers or to exploit opportunities

• Reporting process is backward looking and characterized by explaining deviations

• Steering and learning are separate processes

– Too little learning between project managers causes same problems in several projects

• Project Execution Models too complex, bureaucratic and detailed

– Based on control paradigm, fear of failing

– Kills accountability, speed, flexibility and use of professional knowledge

• Projects in trouble get “management help” that does not add value, but adds to the burden

– Extra reviews and reporting, audits, task forces

• Steering comities overlaps established management structures – who takes the required decisions?

Why do projects struggle to meet result expectations

Project Status Reporting: Explaining past and status

FuturePast

Activities

“It’s like being in a courtroom where you are judged on past actions and events”(quote from a Project Manager)

ResultsWhyareyoubehind?

Project Assurance– from reporting and explanations to steering and actions/decisions

Future

ProjectGoals

Past

Results

Whatdoesittaketoachievemilestonesandgoals?

Activities

Purpose:To make sure the project(s) have control and will be successful

Deviations,risks&opportunities

Actions&decisions

Mile-stone

Mile-stone

Mile-stone

Both large projects & portfolios

Focusonresultsonprojectandportfoliolevel• Willtheportfoliodeliverasexpected?• Willtheprojectsdeliverasexpected?• Dependencies&prioritieswithinportfolio• Participants:ProjectManagers,PortfolioManager,

Linemanagement

Focusonresult&milestonesonworkpackage/sub-projectlevel• Willyoudeliveryourworkpackage’scriticalmilestonesandgoals?• Dependencies&prioritieswithintheproject• Participants:ProjectManagementTeam

ProjectAssuranceofProjects&Portfolio

Portfoliox

ProjectAssurancesub-projects/workpackages,

responsibilityareas

ProjectA ProjectB ProjectB

Comment:Portfoliomanageristhepersonresponsiblefortheportfolioresults.Insomeorganisations calledprogrammanagerorareamanager.

ProjectExecution

Two main elements

1. Steering platform• Setclearandcommittedgoals• DefinetheCriticalMilestonesasateameffort• Values&GroundRules

ProjectExecution

2. Project Assurance Meeting• Resultevaluationfuturecriticalmilestones&goals• Dynamicevaluationofrisks&opportunities• Getfeedbackandadvicefrommanagementand

colleagues• Actionsanddecisionstoresolvecriticalissues&

exploitopportunities

Project Dashboard – Project X (tailored for each client)

Goalachievement

Contribution forecast

Currentcontractvalue

Current LDexposure

LDcap[MNOK/%]

Risks[MNOK]

Opportunities[MNOK]

PotentialVORcontr.[MNOK]

Contingency[MNOK]

Deviation/Barrier/Opportunity Consequence Have done Will do/decisions needed Resp Due Date

Keyissuesthatneedstobeaddressed:

Keyfigures

Contribution:Target

Contribution:StretchTarget

OnTimeDelivery Quality Project

teamCustomerrelations

YES, will achieve goalYES, will achieve goal but currently behind or major risks presentNO, Will not achieve goal, decision required

Visual project managementEach project creates a critical milestone schedule

• Foreachnewproject:ProjectManagementteamdefineupcomingcriticalmilestones

• The milestone schedule is established as a joint effort by the Project Management team to build commitment and accountability

• The milestones are selected based on criticality, depending on contract, scope and customer

• Schedule should be updated every 6-12 months – depending on project need

Milestoneschedule Illustration

www.considium.no

<Project>, Critical Milestones (month, year)

Eng

inee

ring

Sup

ply

chai

n M

ater

ials

and

su

bcon

tract

ors

Man

u-

fact

urin

g

Milestone)E1)dd-mm-yy)

Ok) dd-mm-yy)

Milestone)E2)dd-mm-yy)

Ok) dd-mm-yy)

Milestone)S1)29-09-11)

Ok) dd-mm-yy)

Milestone)S2)dd-mm-yy)

dd-mm-yy)

MS)S4)dd-mm-yy)

dd-mm-yy)

MS)M1)dd-mm-yy)

dd-mm-yy)

MS)S3)dd-mm-yy)

Ok dd-mm-yy)

Start)Manufact.)dd-mm-yy)

dd-mm-yy)

MS)M3)dd-mm-yy)

dd-mm-yy)

Complete(dd-mm-yy)

dd-mm-yy)

MS)E3)dd-mm-yy)

dd-mm-yy)

MS)E4)dd-mm-yy)

dd-mm-yy)

Descrip@on)Pl.)date)

Forecast)

Be prepared and know your situation and outlook

Preparation

ProjectAssuranceMeeting

What are the key issues I need advice or decision on to achieve agreed results?What do I need to get out of the meeting?

Milestoneschedule

Progress&costreports

Projectgoals

Situationalassessment(engageyourteam)

Resultandrisk&opportunityevaluation.Proposeactions&

decisions www.considium.no

<Project>, Critical Milestones (month, year)

Eng

inee

ring

Sup

ply

chai

n M

ater

ials

and

su

bcon

tract

ors

Man

u-

fact

urin

g

Milestone)E1)dd-mm-yy)

Ok) dd-mm-yy)

Milestone)E2)dd-mm-yy)

Ok) dd-mm-yy)

Milestone)S1)29-09-11)

Ok) dd-mm-yy)

Milestone)S2)dd-mm-yy)

dd-mm-yy)

MS)S4)dd-mm-yy)

dd-mm-yy)

MS)M1)dd-mm-yy)

dd-mm-yy)

MS)S3)dd-mm-yy)

Ok dd-mm-yy)

Start)Manufact.)dd-mm-yy)

dd-mm-yy)

MS)M3)dd-mm-yy)

dd-mm-yy)

Complete(dd-mm-yy)

dd-mm-yy)

MS)E3)dd-mm-yy)

dd-mm-yy)

MS)E4)dd-mm-yy)

dd-mm-yy)

Descrip@on)Pl.)date)

Forecast)

www.considium.no

Project Dashboard - <project name> Goal%achievement%

Current%contract%value%

Current%LD%exposure%[MNOK]%

LD%cap%[MNOK/%]%

Risks%[MNOK]%

Opportuni@es%[MNOK]%

Poten@al%VOR%contr.%[MNOK]%

Con@ngency%[MNOK]%

7.7# 7.7#

Deviation/Risk/Opportunity Have done Will do/decisions needed Resp Due Date

Top%issues%that%need%to%be%addressed:%

Key%figures%

Contribu@on:%Forecast%

Contribu@on:%Stretch%Target%

Contract%Delivery%

Current%Delivery% Quality% HSE% Customer%

rela@ons%

[MNOK/%]# [MNK/%]# dd.mm.yy# dd.mm.yy# Customer#Acceptance# Zero#Accidents# Sa>sfied#

customer#

YES, will achieve goal

YES, will achieve goal but currently behind or major risks present NO, Will not achieve goal, decision required

The Project Assurance Meeting– early warning of bad news is second best to good

– milestones and/or results will NOT be achieved as agreed or not within time• What do you intend to do about it – and what decisions need to be taken?• What risks and opportunities do you see ahead – and what actions do these

require?• Do we as a team agree with the situation assessment?• Do you need help? How can the team contribute to find new solutions?

YES

NO

Will you achieve your results and milestones within time?

– milestones and results will be achieved within time• What risks and opportunities do you see ahead – and what actions do these

require?• Do we as a team agree with the situation assessment and the mitigating actions? If

not, put it on the table

Strict agenda stimulates feedback, learning and decisions

CheckoutYes/No PresentationofDashboardandfeedback Agendaitemsanddecisions

CheckoutYESorNO – "Willyouachieveyourresultsandmilestoneswithintime?"

• Write up answers on whiteboard

The goal of the meeting is to use the teams collective knowledge to make the required decisions that will turn a NO into a YES

• If YES, focus on risk

Eachprojectgoesthroughcriticalmilestonesanddashboardwithproposedactions/decisions(10min.)

Feedback and advice from the other participants

• Agree/disagree with assessment & proposed actions

• Suggestions on what to do (not questions)

• Take quick decisions

Issuesthatrequireamorethoroughdiscussionbeforedecisioniswrittenup

Prioritizeandgothroughtheagendapointstomakesuretherequireddecisionsaretaken

Summarizekeyactionsanddecisions

Evaluatemeeting

1 2 3

1

2

3

Issuefromprojectx

Crossprojectissue

www.considium.no

Project Dashboard - <project name> Goal%achievement%

Current%contract%value%

Current%LD%exposure%[MNOK]%

LD%cap%[MNOK/%]%

Risks%[MNOK]%

Opportuni@es%[MNOK]%

Poten@al%VOR%contr.%[MNOK]%

Con@ngency%[MNOK]%

7.7# 7.7#

Deviation/Risk/Opportunity Have done Will do/decisions needed Resp Due Date

Top%issues%that%need%to%be%addressed:%

Key%figures%

Contribu@on:%Forecast%

Contribu@on:%Stretch%Target%

Contract%Delivery%

Current%Delivery% Quality% HSE% Customer%

rela@ons%

[MNOK/%]# [MNK/%]# dd.mm.yy# dd.mm.yy# Customer#Acceptance# Zero#Accidents# Sa>sfied#

customer#

YES, will achieve goal

YES, will achieve goal but currently behind or major risks present NO, Will not achieve goal, decision required

www.considium.no

The Project Assurance Meeting

– milestones and/or results will NOT be achieved as agreed or not within time!•  What do you intend to do about it – and what decisions need to be taken?!•  What risks and opportunities do you see ahead – and what actions do these

require?!•  Do we as a team agree with the situation assessment?!•  Do you need help? How can the team contribute to find new solutions?

YES

NO

Will you achieve your results and milestones within time?

– milestones and results will be achieved within time!•  What risks and opportunities do you see ahead – and what actions do these

require?!•  Do we as a team agree with the situation assessment and the mitigating actions? If

not, put it on the table

Why are you behind?Why did/didn’t you …?

What does it take to get back on track?What might we do?

Future

DefensivenessBlamingCover your backFrustration

ProactivityInitiativeResponsibilityMotivation

Results&MilestonesRisks&PossibilitiesActions&Decisions

ActivitiesProblemsExplanations

Create forward focus by asking the right questions

Past

• During the project assurance meeting the leader must avoid taking the responsibility and initiative away from his team-members.

• Follow-up meetings are often focused on what the manager considers as necessary actions – while the team-members who actually should be followed up, are given the role as listeners.

• The consequence is that the delegated responsibility has been withdrawn.

• The persons who are followed up must act as a chairman during their own presentation and ensure that necessary decisions are taken!

Keep responsibility where it belongs

Meeting rules

Do Don’t

Specifytheproblemtobesolved Submittostorytelling andproblemexplanation

Makecommitmentswithcriticalstakeholders ontheirpartinresolvingtheproblem

Makesuperficialpreparations/establish unclearprerequisites

Haveatleastonesuggestedway toresolvetheproblem Justpresenttheproblemoronlyaskingquestions

Demonstrateproblemsolvingbehaviorandwhatittakestoresolvetheissue Sit onthebalconyarguingwhytheproblemisinsolvable

• As project manager you need to have full attention on your project– Make sure the project deliver as promised– Transparent and open about deviations, risks & opportunities as early as possible

• As a business manager you are accountable to the overall success of the business– Make sure WE AS A TEAM deliver as promised– Help your colleagues to succeed by providing feedback and suggestions to resolve issues– Compensate for losses or overspending in other projects

• So…– Think both unit and unity– Challenge yourself and the others– Invite the others to challenge you

Like race horses, project managers need to wear blinders..... but, not all the time. You are also a business manager

Project Assurance is about moving from reporting to steering

Project Assurance is about making sure the project will be successfulü Improved predictability of execution and results

- early warning, early actions/decisionsü Increased accountability and commitment to project goalsü Increased commercial focus in Project Management Teamü Better handling of dependencies between Work Packages (on project

level) and between projects (on portfolio level)

ü Improved alignment and interaction between projects and line organization

ü Clear identification of bottlenecks in organizational setup and processes

Monthly meetings the main arena for Project Assurance• The Project Assurance meeting is a decision meeting,

not a status meeting

• Project Managers report on goal and achievement (not status) and related critical issues

• Projects Managers come prepared with proposed required actions and decisions to:

• Handle deviations• Remove barriers• Exploit opportunities

• Meeting provides feedback, support and makes decisions – Focus on what it takes to achieve goals

Project Assurance to ensure forward looking... ... by focusing on future milestones/goals

Will you achieve your results and

milestones within time?

Yes

NoFuture

ProjectGoals

Past

Results

Activities

Deviations,risks&opportunities

Actions&decisions

M1 M2 M15