Don't Commit before you Define - a Two Stage approach to Project - PowerPoint PPT Presentation

Don't Commit before you Define - a Two Stage approach to Project Management Martin Davis MBA, BSc, PMP Vice President of IT, J. D. Irving Ltd Don Moore MBA, BSc, BEd, PMP Project Manager, J. D. Irving Ltd Don’t Commit before you Define – A Two Stage approach to Project Management President, PMI-NB Martin Davis & Don Moore  1

Key Learning Points Introduce the two stage approach to Project 1 Management Encourage increased accuracy of project 2 estimates for timing and cost Provide examples of the approach 3 Don’t Commit before you Define – A Two Stage approach to Project Management Martin Davis & Don Moore  2

Why should I care? Why should I care? You would not build a house without getting it designed properly? So why do we guess at IT project cost and timing before designing the solution? Don’t Commit before you Define – A Two Stage approach to Project Management Martin Davis & Don Moore  3

What do we do? We guess! (educated guess maybe?) Are IT people optimistic or pessimistic? Don’t Commit before you Define – A Two Stage approach to Project Management Martin Davis & Don Moore  4  4

No Stage Approach Large Datacentre move (US Telecomms company) - Scope was mostly known… but not well understood - Schedule and Cost changed several times – Installation Date changed, difficult to plan resources - Risks and Issues all over the place - Several Change Requests by the Project Team Don’t Commit before you Define – A Two Stage approach to Project Management Martin Davis & Don Moore  5

What usually happens? (and why it all goes wrong!) • High level analysis • Best guess at project cost and timing • We get the go ahead, and start the project COMMITMENT • We are surprised when it costs more money and takes longer then we thought!! PROBLEM Don’t Commit before you Define – A Two Stage approach to Project Management Martin Davis & Don Moore  6

Are we mad? Why don’t we change? Don’t Commit before you Define – A Two Stage approach to Project Management Martin Davis & Don Moore  7

So… What can we do differently? • Follow the lead from house building • Architect things before you estimate • Do not make commitments until after you have designed the solution • Sound simple enough? Don’t Commit before you Define – A Two Stage approach to Project Management Martin Davis & Don Moore  8  8

Two-Stage Approach to PM Introducing the Concept High Require- Stage 1 Analysis Level ments Design Detailed Build / Stage 2 Test Implement Design Configure Don’t Commit before you Define – A Two Stage approach to Project Management Martin Davis & Don Moore  9

Why is this approach different? • Stage 1 project exists to get ready for Stage 2 • Stage 1 project on its own is easier to estimate • Stage 1 project can be easily managed • Provides more accurate estimates for Stage 2 • Allows proper evaluation of the business case • Avoids the guesses and disappointment! Don’t Commit before you Define – A Two Stage approach to Project Management Martin Davis & Don Moore  10

Stage 1 Keys to success • Understand the business needs and requirements • Define your “to - be” business processes • Complete a high level solution design • Estimate more accurately the cost and timing for Stage 2 • Build a full business case • Evaluate whether Stage 2 should go ahead • Get ready for Stage 2 Don’t Commit before you Define – A Two Stage approach to Project Management Martin Davis & Don Moore  11  11

Stage 1 Example IT Portfolio and Maintenance tool design and refresh (Large US Telecomms Company) - Total Scope not known - Too difficult to estimate Time and Cost - Complexity of Effort not known - Many Stakeholders to Satisfy - Spend small $$$ to understand what Stage 2 would involve Don’t Commit before you Define – A Two Stage approach to Project Management Martin Davis & Don Moore  12

Stage 2 Keys to success • Builds on the Stage 1 Deliverables • Stage 2 becomes a lot easier, less ambiguous • Undertake the normal development activities: – Detailed Design – Build / Configure – Test – Implement Don’t Commit before you Define – A Two Stage approach to Project Management Martin Davis & Don Moore  13  13

Stage 2 Example Telecomms Company example from earlier - Stage 1 allowed for the Preparation of Stage 2 - Scope now understood / defined - Schedule & Cost planned from Stage 1 - Opportunity to not proceed if unrealistic - Risks reduced because of smaller Funnel of Uncertainty Don’t Commit before you Define – A Two Stage approach to Project Management Martin Davis & Don Moore  14

Tips for Success Avoid insanity! Align Senior Management to the new approach – they must buy-in Needs a different mindset Golden Rule: “No Stage 2 time or cost to be quoted until the Stage 1 project is completed” Don’t Commit before you Define – A Two Stage approach to Project Management Martin Davis & Don Moore  15

Tips for Success Avoid insanity! Stage 2 Stage 1 Be prepared to cancel projects after the Stage 1 is completed – once Budget for small you know more! up-front Stage 1 projects Don’t Commit before you Define – A Two Stage approach to Project Management Martin Davis & Don Moore  16

Benefits of the 2-Stage Approach Improves the reputation of  Better control of both projects the IT team!!  More accurate Stage 1 Stage 2 time and cost Project Project estimation  Stage 1 projects can be used pre-  Removes budgeting, with ambiguity from Stage 2 in the Stage 2 new budget year Don’t Commit before you Define – A Two Stage approach to Project Management Martin Davis & Don Moore  17

Key Learning Points Introduce the two stage approach to Project 1 Management Encourage increased accuracy of project 2 estimates for timing and cost Provide examples of the approach 3 Don’t Commit before you Define – A Two Stage approach to Project Management Martin Davis & Don Moore  18

Q&A For further information: Twitter: @mcdavis10 Blog: http://martindavis01.wordpress.com/ Don’t Commit before you Define – A Two Stage approach to Project Management Martin Davis & Don Moore  19