Project Management Basics PDF

Project Management Basics Ranjith Soman Marian Bosch-Rekveldt 1 CT3101 – Lecture 1: Introduction Today’s class ▪ Introduction ▪ Learning Goals ▪ Course Setup and Organisation ▪ What is a project? ▪ The strap-tower ▪ Why Projects? ▪ Wrap up CT3101 – Lectur...

Project Management Basics Ranjith Soman Marian Bosch-Rekveldt 1 CT3101 – Lecture 1: Introduction Today’s class ▪ Introduction ▪ Learning Goals ▪ Course Setup and Organisation ▪ What is a project? ▪ The strap-tower ▪ Why Projects? ▪ Wrap up CT3101 – Lecture 1: Introduction 2 Introduction – Who are we? ▪ Ranjith Soman, ▪ Assistant Professor of Digital Construction ▪ Marian Bosch-Rekveldt, ▪ Associate Professor of Project Management ▪ Assistants: ▪ Yara Kharoubi, Erica Arrango 3 CT3101 – Lecture 1: Introduction Which Program are you affiliated with? MINOR PM MINOR Offshore wind Others Learning goals The course is aimed at getting to know the basics of project management and being able to apply the obtained knowledge on real life cases After following this course the student is able to: 1. Explain the difference between projects, programs and portfolio’s 2. Explain how value is developed in projects throughout the project life cycle 3. Select and reflect upon an appropriate organisation structure for a project 4. Construct a project planning using network methods 5. Create a risk register based upon qualitative risk analysis Course materials ▪ Book (Management of Engineering Projects – People are Key, Bakker/de Kleijn) ▪ MOOC Management of engineering projects – preparing for success ▪ Lecture slides on BrightSpace CT3101 ▪ Link to academia through several research examples Book ▪ Management of engineering Projects – People are Key ▪ Can be bought at CEG 6.49 (pay with pin) within Office hours until 20th September ▪ And some extra papers through BrightSpace MOOC Onlinecourses.tudelft.nl – MEP101x ▪ We will add all CT3101 students enrolled in Brightspace to the course: you will get an invite via e-mail to join later this week (on your student.tudelft.nl e-mail) ▪ Starts Sept 9th ▪ New modules available from 08:00 on Mondays ▪ There are weekly quizzes that are supposed to be done individually to test your understanding of the material studied Project Management Basics - Overview 2023/2024 Lecturer Type Content Book chapter Submissions Ranjith Soman/Marian 1 02/Sep Lecture Bosch-Rekveldt Introduction to the course / game 1 2 05/Sep Ranjith Soman Lecture Introducing stakeholders & portfolio management 2 3 09/Sep Ranjith Soman Q&A MOOC MOOC Wk 0 and Wk 1: project success 09/Sep Assistants Group Work Assignment ASSIGNMENT 1: PROJECT SUCCESS & STAKEHOLDER MANAGEMENT 4 12/Sep Marian Bosch-Rekveldt Lecture Project organization & project manager 3, 4 5 16/Sep NA Self Learning MOOC Wk2: organizing the team 16/Sep Assistants Group Work Assignment ASSIGNMENT 2: THE PEOPLE SIDE OF PROJECTS 18/Sep NA NA NA NA Assignment 1 & 2 Submission 6 19/Sep Marian Bosch-Rekveldt Lecture Project definition & risk management 6, 8 7 23/Sep Ranjith Soman Q&A MOOC MOOC Wk3: opportunity framing & risks 23/Sep Assistants Group Work Assignment ASSIGNMENT 3: RISK REGISTER 8 26/Sep Ranjith Soman Lecture Write a plan & project assurance and governance 5, 7 9 30/Sep Ranjith Soman Q&A MOOC MOOC Wk4: assuring value 30/Sep Assistants Group Work Assignment ASSIGNMENT 4: BRIEF PROJECT PLAN - part 1 02/Oct NA NA NA NA Assignment 3 & 4 Submission 10 03/Oct Ranjith Soman Lecture Project activities 9 11 07/Oct Marian Bosch-Rekveldt Q&A MOOC MOOC Wk5: contracting Ch. 6 thesis Prap 07/Oct Assistants Group Work Assignment ASSIGNMENT 5: THE CONTRACTING QUILT 12 10/Oct Ranjith Soman Lecture Cost and schedule 10 13 14/Oct Ranjith Soman Q&A MOOC MOOC Wk6: cost and schedule estimates 14/Oct Assistants Group Work Assignment ASSIGNMENT 6: EARNED VALUE 16/Oct NA NA NA NA Assignment 5 & 6 Submission 14 17/Oct Marian Bosch-Rekveldt Lecture Guest lecture SSH Delft, finalising project execution plan, trends 13, 14 15 21/Oct Ranjith Soman Q&A MOOC MOOC Wk7: bringing it together / Business case / PEP 21/Oct Assistants Group Work Assignment ASSIGNMENT 7: BRIEF PROJECT PLAN - part 2 23/Oct NA NA NA NA Assignment 7 Submission 16 24/Oct Ranjith Soman Lecture Wrap up ALL Course overview ▪ This week: Introduction today and ‘normal’ lecture on Thursday ▪ As of week 2: MOOC =self study Monday Wednesday Thursday (with live Q&A possibility) Lecture MOOC Groupwork Assignment Assignment Deadline 17:00 Weekly assignments Group composition ▪ Groups of 3 students. If applicable: use minor teams and split ▪ PM_minor_X_a / PM_minor_X_b ▪ OW_minor_X ▪ Other_X ▪ Enrollment will open Monday Sept 9, after PM minor groups have been created (but before the lecture in the afternoon) Weekly assignments Practicalities Dates Content Submission ▪ Assignments are posted on BrightSpace ASSIGNMENT 1: PROJECT SUCCESS & Thursday every week 1700 Hrs. 09/09/2024 STAKEHOLDER MANAGEMENT 16/09/2024 ASSIGNMENT 2: THE PEOPLE SIDE OF PROJECTS ▪ Assignments are briefly introduced in the Assignment 1 & 2 class on Thursday. 18/09/2024 Submission ▪ A scheduled room is available to do the 23/09/2024 ASSIGNMENT 3: RISK REGISTER assignment – bring your own laptop! 30/09/2024 ASSIGNMENT 4: BRIEF PROJECT PLAN - part 1 Assignment 3 & 4 ▪ Deadline assignment hand-in alternate 02/10/2024 Submission Wednesdays 17.00, use BrightSpace! 07/10/2024 ASSIGNMENT 5: THE CONTRACTING QUILT 14/10/2024 ASSIGNMENT 6: EARNED VALUE ▪ Some plenary feedback on following Assignment 5 & 6 Monday’s groupwork session (15.45) 16/10/2024 Submission 21/10/2024 ASSIGNMENT 6: EARNED VALUE ▪ Specific feedbacks through BrightSpace 23/10/2024 Assignment 7 Submission (score of 0 or 1). ▪ Late submission possible once, only after request before deadline ▪ All (7) assignments should be passed in order to get a final grade for this course Written exam ▪ Exam: November 5, 18.30-21.30 ▪ 50/50 Knowledge and Insights ▪ Case study ▪ Lectures give a good indication of importance of topics ▪ Examples will follow via Brightspace (retake Jan 2024) (Passed assignments last year? OK, no need to redo, but please contact the lecturer) Final grade ▪ Final grade only in case ALL assignments are sufficient ▪ Individual exam grade should be sufficient. ▪ Assignments are graded: ▪ Pass ▪ Fail  Any questions during the course? Please E-mail to: [email protected] Please refer to CT3101 – group nr – topic in the subject field! Or just ask during or after lectures! Questions??? 16 CT3101 – Lecture 1: Introduction 17 CT3101 – Lecture 1: Introduction This lecture WHAT IS A PROJECT? WHY PROJECT MANAGEMENT? What is a project? Definition of a Project Turner 1999 What is a project? Three key-characteristics ▪ Unique ▪ No routines ▪ Uncertainty ▪ Only long-term feedback ▪ Novel: few learning opportunities ▪ Temporary ▪ It has a beginning and an end ▪ Requires a group of people ▪ Some sense of urgency (“deadline”) ▪ Focused ▪ Delivers a product, service or result ▪ Boundaries (schedule, cost & quality) Phases in the Project Life Cycle Is this a project? 23 CT3101 – Lecture 1: Introduction Projects? 1. Building a bridge 1. Yes 2. Reorganising a department 2. Yes 3. The supply of new goods to a supermarket 3. No 4. Moving house 4. Yes 5. Flight KL 494 from Amsterdam to Paris 5. No 6. 20 billion remote oil production unit, with pipelines, harbours 6. Yes/No and refineries 7. Can you find this out about customer X, before we meet him next week? 7. Yes 8. Emergency evacuation of a chemical plant 8. Yes/No The projects we’ll discuss ▪ Technologically complex ▪ New technologies, multi-disciplinary, … ▪ Ambiguous ▪ No clear (best) solution… ▪ Multi-actor (stakeholders) ▪ Not necessarily similar interests… ▪ Dynamic ▪ Continuously changing… Project: building a tower ▪ Build me the highest tower which is able to carry a small cup ▪ Material: 50 straws & 20 paperclips per team ▪ Hand in a proposed design after which the material will be supplied to you (no other materials allowed!) ▪ Discuss the project review report (lessons learned) ▪ Project lasts 25 minutes ▪ Make adhoc teams of ~10 students  Why and when a project? Improvised work Project Work Routine work Result defined during process Result defined upfront Result is standard Fuzzy roles (creator, client) Explicit roles for pm + client No direct client contact Often implicit choice Deliberate choice Often default choice Trial and error process Planned process Standard procedures Fuzzy activities Distinguishable activities Standard activities Uncoordinated (formally) Team project leader Manager Across groups in company Across/within groups Within department No time, cost constraints Integral time cost quality Standards for TQC Completely unique Unique elements No unique elements Why projects? Why is our world “projectified”? Current need for Project Management ▪ Expansion of available knowledge ▪ More complex products ▪ Globalisation ▪ Growing competition ▪ Shorter time-to-market ▪ (Mega) large endeavours Why project management? Why project management? What would project management bring us? ▪ Better control, more focus ▪ Better customer relations ▪ Probably an increase in Return On Investment (ROI) ▪ Shorter development time ▪ Lower costs, higher profit margins ▪ Higher quality and reliability ▪ More result-driven ▪ Higher worker morale! more pride, more fun The downside of project management But it’s not all that positive… ▪ Greater organisational complexity ▪ Likelihood that organisational policy will be violated ▪ More management difficulties ▪ Low personnel utilisation ▪ Higher costs…? “Big projects fail at an astonishing rate” Matta & Ashkenas, 2003 ▪ Inadequately trained and/or inexperienced project managers ▪ Failure to set and manage expectations ▪ Scoping and requirements problems ▪ Poor planning and effort estimation / impossibility of doing so ▪ Risk: execution risk, integration risk, residual risk ▪ Cultural / ethical / location / communication misalignment between project members or between project team and client ▪ Leadership: wishful thinking, not taking hard go / no-go decisions ▪ Mis/Abused methods: should it be a project at all? Definition of a Project Turner 1999 Project management Purpose Scope Organi sation Time Quality constraints Cost [Turner, 1999] Historical development of PM ▪ Three generations project management ▪ Pre 1957 – none ▪ 1958 – 1979 1st: tool development etc ▪ 1980 – 1994 2nd: standardisation ▪ 1994 - now 3rd: professionalisation / contingency approaches 4th generation: more flexible and adaptive methods …….? Evolution of Project Management Y2K 1957 1980 1994 PM standards – PMBoK (7th) The Project Management Body of Knowledge (PM-BOK) is: ▪ delivered by the Project Management Institute (PMI) ▪ an international standard PM standards – PRINCE2 PRojects IN Controlled Environments Edited and published by British Office of Government Commerce ▪ Continued business justification ▪ Learn from experience ▪ Defined roles and responsibilities ▪ Manage by stages ▪ Manage by exception ▪ Focus on products ▪ Tailor to suit the project environment Comparing these standards … complementary…? PRINCE2 PM-BOK A project management method Broad collection of ‘good practices’ for project management Prescriptive Non-prescriptive Integrated set of processes and themes Each topic area can be referred to in isolation of others Covers all project management roles Targeted at Project Managers Does not cover interpersonal skills Covers interpersonal skills References techniques Describes techniques Project management in practice Characteristics ▪ No unified theoretical basis: multi-disciplinary ▪ Lots of handbooks ▪ Rather practitioner based, professionalization still a theme ▪ In a way PM is about managing change (and conflicts) Wrap-up ▪ Chapter 1, Management of Engineering Projects ▪ Next lecture: Thursday! ▪ Remind buying the book! ▪ Now @CEG 6.49 ▪ Until Sept 20 during office hours 43 CT3101 – Lecture 1: Introduction Project Management Basics CT3101 – Lecture 2: Portfolio mgmt., Stakeholders 2 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Project Management Basics - Overview 2023/2024 Lecturer Type Content Book chapter Submissions Ranjith Soman/Marian 1 02/Sep Lecture Bosch-Rekveldt Introduction to the course / game 1 2 05/Sep Ranjith Soman Lecture Introducing stakeholders & portfolio management 2 3 09/Sep Ranjith Soman Q&A MOOC MOOC Wk 0 and Wk 1: project success 09/Sep Assistants Group Work Assignment ASSIGNMENT 1: PROJECT SUCCESS & STAKEHOLDER MANAGEMENT 4 12/Sep Marian Bosch-Rekveldt Lecture Project organization & project manager 3, 4 5 16/Sep NA Self Learning MOOC Wk2: organizing the team 16/Sep Assistants Group Work Assignment ASSIGNMENT 2: THE PEOPLE SIDE OF PROJECTS 18/Sep NA NA NA NA Assignment 1 & 2 Submission 6 19/Sep Marian Bosch-Rekveldt Lecture Project definition & risk management 6, 8 7 23/Sep Ranjith Soman Q&A MOOC MOOC Wk3: opportunity framing & risks 23/Sep Assistants Group Work Assignment ASSIGNMENT 3: RISK REGISTER 8 26/Sep Ranjith Soman Lecture Write a plan & project assurance and governance 5, 7 9 30/Sep Ranjith Soman Q&A MOOC MOOC Wk4: assuring value 30/Sep Assistants Group Work Assignment ASSIGNMENT 4: BRIEF PROJECT PLAN - part 1 02/Oct NA NA NA NA Assignment 3 & 4 Submission 10 03/Oct Ranjith Soman Lecture Project activities 9 11 07/Oct Marian Bosch-Rekveldt Q&A MOOC MOOC Wk5: contracting Ch. 6 thesis Prap 07/Oct Assistants Group Work Assignment ASSIGNMENT 5: THE CONTRACTING QUILT 12 10/Oct Ranjith Soman Lecture Cost and schedule 10 13 14/Oct Ranjith Soman Q&A MOOC MOOC Wk6: cost and schedule estimates 14/Oct Assistants Group Work Assignment ASSIGNMENT 6: EARNED VALUE 16/Oct NA NA NA NA Assignment 5 & 6 Submission 14 17/Oct Marian Bosch-Rekveldt Lecture Guest lecture SSH Delft, finalising project execution plan, trends 13, 14 15 21/Oct Ranjith Soman Q&A MOOC MOOC Wk7: bringing it together / Business case / PEP 21/Oct Assistants Group Work Assignment ASSIGNMENT 7: BRIEF PROJECT PLAN - part 2 23/Oct NA NA NA NA Assignment 7 Submission 16 24/Oct Ranjith Soman Lecture Wrap up ALL 3 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Book ▪ Management of engineering Projects – People are Key ▪ Can be bought at CEG 6.49 (pay with pin) within Office hours until 20th September ▪ And some extra papers through BrightSpace 4 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders The MOOC ▪ All enrolled in Brightspace will be added to the course: you will be notified by e-mail (TU-delft) ▪ Please enrol in Brightspace latest by 1600hrs today ▪ You can work on it starting Monday morning. Support is available 13:45-15:30 (both in class and online). 5 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Weekly assignments Group composition ▪ Groups of 3 students. If applicable: use minor teams and split ▪ PM_minor_X_a / PM_minor_X_b ▪ OW_minor_X ▪ Other_X Only for PM Minor ▪ Do not forget to signup for the SIMULTRAIN group tomorrow. ▪ Link available in Integration Course Brightspace. 7 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders 8 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders  QUESTIONS? ▪ 9 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Today’s class ▪ Project portfolio management ▪ Stakeholder management 10 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders What is the difference between Project, programme and a portfolio? 11 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Definitions ▪ A project - (Turner) an endeavour in which human, financial and material resources are organised in a novel way to undertake a unique scope of work, of given specification, within constraints of cost and time, so as to achieve beneficial change defined by quantitative and qualitative objectives. ▪ A programme - a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. ▪ A portfolio - (PMI, 2006) a collection of projects and/or programmes and other work that are grouped together to facilitate the effective management of that work to meet strategic business objectives 12 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Projects, programmes and portfolios 13 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Can you give examples of Project, programme and portfolio? 14 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Examples Projects – programmes - portfolios ▪ Specific car – all electric cars of a brand – overall fleet ▪ Single house – area development – all initiatives of a company ▪ Specific software product – digitalisation of processes – all initiatives 15 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Rapid adoption of project management ▪ Nowadays challenge is: ▪ How to tie projects to organization’s goals and strategy? ▪ How to handle the growing number of ongoing projects? ▪ How to increase business success? ▪ Required: ▪ Development of multi-project management expertise ▪ How to select projects for implementation ▪ How to handle uncertainty or risk ▪ In other words: “strategic project management” 16 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders What are the right projects? 17 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Main characteristics of project portfolio ▪ Portfolio includes all projects executed by a company ▪ Portfolio management aims at achieving strategic business objectives ▪ Portfolio is an effectively managed collection of projects ▪ Components of portfolio are quantifiable (resources, finances, time, etc) 18 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Why manage project portfolios? ▪ It identifies projects that meet strategic needs ▪ supports multiple goals ▪ directs organizational improvement ▪ It prioritises potential projects ▪ limits on-going projects to a manageable level ▪ identifies risk-intensive efforts ▪ balances short, medium, long-term returns ▪ It prevents projects from getting in via “Backdoor” 19 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Five key questions of PPM Are we investing in the right things? How well are Are we we executing? optimising our capacity? Successful PPM Can we absorb all Are we realising the the changes? promised benefits? [Source: Pennypacker and Retna, 2009, p.5] 20 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Portfolio management and resources ▪ Portfolio management is about making decisions about allocation of resources or choosing between different alternatives. ▪ Therefore, resource availability is a crucial item in portfolio management, because: ▪ projects should be prioritised within the pool of available resources, ▪ once projects have been selected, resources should be shared between them, ▪ if projects are sharing data and technology, they may become linked, particularly if one project produces inputs for another. 21 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Essence of portfolio management Portfolio management is about doing the right projects in the right way 22 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Crucial aspects of portfolio management There are three crucial aspects of portfolio management that should be considered: 1) Strategic fit 2) Value added 3) Portfolio risks 23 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Strategic fit ▪ Project Portfolio Management is an important way to implement the corporate strategy. ▪ This means that projects in a portfolio should be in line with the corporate strategy, which is often not the case. ▪ A lack of strategic fit negatively influences project success (Scholten and Mooi, 2010) 24 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Value of portfolio through business cases In the end an organization is interested in the value of the project portfolio. This is determined through the business case of the projects. What should be included in a business case of a project? A business case contains: Management summary Description of the project (scope, timing, resources) Reasons for the project (the “Why” question) Expected benefits (quantitative and qualitative) Expected costs or negative benefits Business risks Recommendation (with strategic scenario’s) 25 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Portfolio & risks: two types 1. Portfolio risks – these risks are related to the uncertainties around the strategic developments of an organization such as market conditions, the political situation and the labour market. These risks can be seen as a given and the organization needs to be sure it can take the risks. The risks are outside the control of the organization. 2. Project risks – these risks are related to uncertainties in the projects of a portfolio. Typically, the organization can take charge in these risks 26 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders  QUESTIONS? ▪ 27 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders How would you recommend to select projects? 28 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Portfolio selection methods ▪ Ad hoc approaches, including “the Sacred Cow” ▪ Operational necessity ▪ Comparative approaches, ranking ▪ Scoring models ▪ Portfolio matrices and bubble diagrams ▪ Mathematical models like optimization, Monte Carlo and real option models 29 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders  Evaluating portfolio with 2x2 matrices Example: https://www.youtube.com/watch?v=ERWZ9OceGAw 30 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders  Evaluating portfolios with bubble diagrams Size of bubble = annual resources (Cooper, 2001) 31 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Example: R&D projects at Bayer Technology 32 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Portfolio Management Process An organization needs some kind of process to be capable of dealing with its portfolio. Drivers for the portfolio management process: 1.Business strategy 2.The (project) Stage Gate process 3.The portfolio review (typically bi-annually) 33 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Example of a Portfolio Management Process A Portfolio Management Process should cover both prioritizing and monitoring and control aspects. An example is (Turner, 2009): 1. Maintain a list of all current projects in a project database; 2. Prioritise and select projects through a transparent system maintained centrally; 3. Plan and assign resources on all projects centrally; 4. Report the status of all projects 5. Evaluate the business benefits of all projects pre- and post-completion 34 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders The portfolio funnel 35 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Project funnel ▪ Generate more ideas than ever will be applied versus focus up-front ▪ Selection at stage gates Initiation Design Execution Delivery 36 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Another example of PPM 1. Establish a project council 2. Identify project categories and criteria 3. Collect project data 4. Assess resource availability 5. Reduce the project and criteria set 6. Prioritize the projects within the categories 7. Select the projects to be funded (and to be held in reserve) 8. Implement the process 37 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders  Portfolio decisions: criteria ▪ Fit with business strategy (qualitative: low, medium, high), ▪ Benefits (NPV, ROI, IRR, payback, etc) ▪ Durability of competitive advantage (short, medium, long-term) ▪ Competitive impact on technologies (base, key, pacing and embryonic technologies) ▪ Time to completion ▪ Investments (R&D costs, marketing, operational costs, etc.) ▪ Market or market type (old or new market) ▪ Project type (new products or enhancements, fundamental research, etc) ▪ Risk profile 38 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Human aspects of portfolio management ▪ The whole process of portfolio management and selection can be tedious for various reasons: Complexity Subjectivity Politics, prejudices Weighing different aspects (“hard” and “soft”) The convincing power of mathematical models Not accepting the consequences of choices 39 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Portfolio organization 40 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders The main roles in portfolio management ▪ The Portfolio Sponsor - the senior manager responsible for the portfolio (representing the highest layers of an organisation) ▪ Portfolio manager - person responsible for the organisation of the portfolio management (not for the decisions) ▪ Portfolio analyst - provides the strategic overviews of the portfolio ▪ Clearly, also other senior managers, but certainly also program managers and project managers play an important role in managing the whole portfolio of projects. 41 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Conclusions ▪ Portfolio management is about doing the right projects in the right way ▪ Three crucial aspects of portfolio management are the strategic fit, the value added and the portfolio risks ▪ There are numerous ways to select a portfolio ▪ Portfolio management is a highly complex process because it has many interactions with many layers of the organization 42 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders 43 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders  QUESTIONS? ▪ 44 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders  BREAK ▪ 45 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Today ▪ Project portfolio management ▪ Stakeholder management 46 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Stakeholders ▪ Those who can influence or are influenced by the project; those who have a “stake” in a project ▪ Internal ▪ External to the organization ▪ Position based on influence (power), interest & support (attitude) ▪ Based on position: action! (stakeholder management) (don’t confuse with shareholders: what is the difference?) 47 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Who are stakeholders? ▪ Discuss with your neighbour: 1. For a building project 2. For an ICT project 3. For a very different kind of project (first select which) 48 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Power interest grid ▪ Classification on two dimensions 49 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders  Example Stakeholder map (2) high Project team Neighbours Influence / Power Company staff Support low Negative low Interest high Neutral Positive 50 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Managing stakeholders ▪ What options do you have? ▪ And what would be the best timing? 51 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders  Example Stakeholder map (3) 52 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Stakeholders ▪ One of the reasons for disappointing project performance ▪ So rather involve them! 53 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Stakeholders’ involvement M&E = Monitoring and Evaluation [Maylor] 54 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders  QUESTIONS? ▪ 55 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Assignment 1 ▪ The central case in this assignment is the Notre Dame Cathredal Restoration project. ▪ Limited case description provided. You may use additional information you can find about this project on the Internet. ▪ Your tasks: 1. Who are the most important stakeholders in the Notre-Dame Cathedral Restoration project? Please mention at least 10 stakeholders. Ensure these 10 stakeholders are from at least 5 different groups/categories. 2. What are the key success criteria for the Notre-Dame Cathedral Restoration for the main client once the project is completed in 2024? Explain your answer. How have these criteria evolved over time, if it did? 3. How have the stakeholders evolved: what were their key goals, power positions, and attitudes at the beginning of the project (2019) and what are their goals by the end (2024)? Make a table of stakeholders, their goals, power, and attitude at the beginning (2019) and in 2024. Explain the entries in your table. 4. If you were the project manager of the Notre-Dame Cathedral Restoration, how (differently) would you manage the different stakeholders? Please also indicate how your approach would differ throughout the years. 56 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders Wrap-up ▪ Read more in chapter 2 Project portfolio management and project selection ▪ Next week the MOOC starts (Monday 9th) ▪ Lecture Thursday next week: project organization and the project manager (Ch. 3/4) 57 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders  Thank you for your attention Name 58 CT3101 – Lecture 2: Portfolio mgmt., Stakeholders  Project Management Basics CT3101 – Lecture 4: Organisation and the project manager 1 CT3101 – Lecture 4: Organisation and the project manager Book ▪ Management of engineering Projects – People are Key ▪ Can be bought at CEG 6.49 (pay with pin) within Office hours until 20th September ▪ And some extra papers through BrightSpace CT3101 – Lecture 4: Organisation and the project manager 2 CAPM event ▪ PM certification for students by PMI ▪ Information session October 10 ▪ 16:00-18:00 3 CT3101 – Lecture 4: Organisation and the project manager Project Management Basics - Overview 2023/2024 Lecturer Type Content Book chapter Submissions Ranjith Soman/Marian 1 02/Sep Lecture Bosch-Rekveldt Introduction to the course / game 1 2 05/Sep Ranjith Soman Lecture Introducing stakeholders & portfolio management 2 3 09/Sep Ranjith Soman Q&A MOOC MOOC Wk 0 and Wk 1: project success 09/Sep Assistants Group Work Assignment ASSIGNMENT 1: PROJECT SUCCESS & STAKEHOLDER MANAGEMENT 4 12/Sep Marian Bosch-Rekveldt Lecture Project organization & project manager 3, 4 5 16/Sep NA Self Learning MOOC Wk2: organizing the team 16/Sep Assistants Group Work Assignment ASSIGNMENT 2: THE PEOPLE SIDE OF PROJECTS 18/Sep NA NA NA NA Assignment 1 & 2 Submission 6 19/Sep Marian Bosch-Rekveldt Lecture Project definition & risk management 6, 8 7 23/Sep Ranjith Soman Q&A MOOC MOOC Wk3: opportunity framing & risks 23/Sep Assistants Group Work Assignment ASSIGNMENT 3: RISK REGISTER 8 26/Sep Ranjith Soman Lecture Write a plan & project assurance and governance 5, 7 9 30/Sep Ranjith Soman Q&A MOOC MOOC Wk4: assuring value 30/Sep Assistants Group Work Assignment ASSIGNMENT 4: BRIEF PROJECT PLAN - part 1 02/Oct NA NA NA NA Assignment 3 & 4 Submission 10 03/Oct Ranjith Soman Lecture Project activities 9 11 07/Oct Marian Bosch-Rekveldt Q&A MOOC MOOC Wk5: contracting Ch. 6 thesis Prap 07/Oct Assistants Group Work Assignment ASSIGNMENT 5: THE CONTRACTING QUILT 12 10/Oct Ranjith Soman Lecture Cost and schedule 10 13 14/Oct Ranjith Soman Q&A MOOC MOOC Wk6: cost and schedule estimates 14/Oct Assistants Group Work Assignment ASSIGNMENT 6: EARNED VALUE 16/Oct NA NA NA NA Assignment 5 & 6 Submission 14 17/Oct Marian Bosch-Rekveldt Lecture Guest lecture SSH Delft, finalising project execution plan, trends 13, 14 15 21/Oct Ranjith Soman Q&A MOOC MOOC Wk7: bringing it together / Business case / PEP 21/Oct Assistants Group Work Assignment ASSIGNMENT 7: BRIEF PROJECT PLAN - part 2 23/Oct NA NA NA NA Assignment 7 Submission 16 24/Oct Ranjith Soman Lecture Wrap up ALL 4 CT3101 – Lecture 4: Organisation and the project manager Today ▪ The project manager & the project organization BREAK ▪ Building and leading the team ▪ Assignment 2 5 CT3101 – Lecture 4: Organisation and the project manager The task of a project manager ▪ “To lead the team in executing all activities to transfer an opportunity for capital investment into a project with a defined and agreed scope and deliverables and its implementation within agreed budget and schedule.” Stage gate Stage gate Stage gate Stage gate Project review point review point review point review point review Appraise Select Define Build Operate 6 CT3101 – Lecture 4: Organisation and the project manager The project manager ▪ The functional manager vs. the project manager ▪ Functional managers are usually specialists, analytically oriented and they know the details of each operation for which they are responsible ▪ Project managers must be generalists that can oversee many functional areas and have the ability to put the pieces of a task together to form a coherent whole 7 CT3101 – Lecture 4: Organisation and the project manager The spider in the web… Corporate or programme management Project Board Executive (business) Senior User Senior Supplier Project Assurance Project Manager Legend Project From the customer Support From the supplier(s) Team Manager Team Manager Assurance responsibilities Team Manager Lines of guidance / advice Lines of authority CT3101 – Lecture 4: Organisation and the project manager 8 CT3101: PM Basics 9 Striking a balance Planning and Delivering Cost and Time Technology and People Entrepreneur and Liquidator Structure and Agility Customer and Team CT3101 – Lecture 4: Organisation and the project manager 10 Project manager’s competences? Go to VEVOX.app 196-104-822 CT3101 – Lecture 4: Organisation and the project manager 11 Project manager’s competences CT3101 – Lecture 4: Organisation and the project manager 12 CT3101 – Lecture 4: Organisation and the project manager 13 Selecting the project manager ▪ Some key attributes, skills, and qualities that have been sought in PM are: ▪ Enthusiasm: drive to complete the task! ▪ Experience in several different functions ▪ Mature and calm ▪ Someone on good terms with senior executives ▪ Knows how to keep a team focused and inspired ▪ A person “who can walk on (or part) the waters” ▪ Realism & courage to say NO 14 CT3101 – Lecture 4: Organisation and the project manager Throughout the project life cycle? From creativity to “cut the crap” ? From problem seeking to problem solving ? 15 CT3101 – Lecture 4: Organisation and the project manager Selecting the project manager ▪ Ideally: Based on project characteristics (such as complexity) ▪ But you might get….someone who is currently available ▪ The best PMs are always occupied 16 CT3101 – Lecture 4: Organisation and the project manager Technical knowledge of the PM ▪ There is general disagreement on how much technical knowledge a PM needs ▪ What do you think? Advantages much knowledge Advantages little knowledge 17 CT3101 – Lecture 4: Organisation and the project manager Project management career paths ▪ Growth as a project manager by ▪ On-the-job (growth environment for future executives) ▪ Project management seminars and workshops ▪ Participation in the programs of PM bodies (PMI, IPMA) ▪ Formal education in degree/certificate programs (MSc in Project Management) ▪ More and more, project management is seen as a separate career path 18 CT3101 – Lecture 4: Organisation and the project manager Typical career path Senior Project Director 19 CT3101 – Lecture 4: Organisation and the project manager Professionalising project management ▪ NASA space programs 1960s ▪ NASA Academy of Programme/Project & Engineering Leadership => 1988 ▪ Shell Project Academy => 2006 ▪ Neerlands diep http://neerlandsdiep.nl/ 20 CT3101 – Lecture 4: Organisation and the project manager Moving forward - The Peter principle “In a hierachy, any one will be promoted to their level of incompetence” …. Might also apply in project management! 21 CT3101 – Lecture 4: Organisation and the project manager What makes a good project manager? Go to VEVOX 196-104-822 22 CT3101 – Lecture 4: Organisation and the project manager What makes a good project manager? ▪ Know what you do not know ▪ Fit for purpose: situational leadership ▪ Build a complementary team 23 CT3101 – Lecture 4: Organisation and the project manager Types of project organisations ▪ There are two fundamentally different ways of organising projects within the parent organisation ▪ The project as a sub-unit within the functional unit ▪ The project as a pure/dedicated unit of the parent organisation ▪ A third type, called a matrix organisation is a hybrid of the two main types 24 CT3101 – Lecture 4: Organisation and the project manager A functional project organisation CEO VP Customer VP Engineering VP Manufacturing VP IT Support Staff Staff Staff Staff Project A Project B Project C Project D CT3101 – Lecture 4: Organisation and the project manager 25 Advantages functional project organisation ▪ Maximum flexibility in the use of staff ▪ Individual experts can be utilized by many different projects ▪ Specialists in the division can be grouped to share knowledge and experience ▪ The functional division also serves as a base of technological continuity when individuals choose to leave the project ▪ The functional division contains the normal path of advancement for individuals whose expertise is in the functional area 26 CT3101 – Lecture 4: Organisation and the project manager Disadvantages functional project organisation ▪ The client is not the focus of activity and concern ▪ Often too functional oriented toward the activities particular to its function ▪ Occasionally, no individual is given full responsibility for the project ▪ There are often several layers of management between the project and the client ▪ There is a tendency to sub-optimize the project ▪ Motivation of people in project team tends to be weak ▪ Hardly able to respond to multi-discipline system engineering 27 CT3101 – Lecture 4: Organisation and the project manager Pure project organisation Board of Directors Project Board A Project Board B Project Board C Project Board D Project Employed by Manager A the company Brought in Contractors as needed [Maylor] CT3101 – Lecture 4: Organisation and the project manager 28 Advantages of pure project organisation ▪ Project manager full line authority over the project ▪ Team members directly responsible to the project manager ▪ Shorter lines of communication ▪ Strong and separate identity of the project team - a high level of commitment from its members ▪ Centralised authority enhances swift decisions ▪ Unity of command exists ▪ Structurally simple and flexible - relatively easy to understand and implement ▪ Organizational structure supports a holistic approach to the project 29 CT3101 – Lecture 4: Organisation and the project manager Disadvantages of pure project organizations ▪ Each project fully staffed: a duplication of effort in every area ▪ Project managers to “reserve” equipment and technical assistance ▪ Combining the upper two: very expensive ▪ Specialists loose contact with technical expertise area ▪ Inconsistency in the way in which policies/procedures are carried out ▪ Project gets a life of its own: “projectitis” ▪ Concern among team members about “life after the project ends” 30 CT3101 – Lecture 4: Organisation and the project manager The matrix organisation ▪ Rather than being a stand alone organisation, like the pure project, the matrix organisation is not separated from the parent organisation: CEO VP Technical VP Engineering VP Manufacturing VP IT Support Department Department Department Department Project Manager Staff Staff Staff Staff Project A Project Manager Project B Project Manager Project C Project C needs: 1½ staff members of Engineering , 2 of Manufacturing, 3 of IT and 1 of Technical Support Department CT3101 – Lecture 4: Organisation and the project manager 31 The matrix organisation ▪ The matrix organisation is a combination of functional and pure project, with variants: ▪ “Project” or “strong” matrix organisation most resembles the pure project organisation “heavyweight” matrix ▪ The “coordination” or “functional” or “weak” matrix most resembles the functional form “lightweight” matrix ▪ The “balanced” matrix lies in between the others 32 CT3101 – Lecture 4: Organisation and the project manager Advantages ▪ The project is the point of emphasis ▪ Project has reasonable access to the reservoir of technology in all areas ▪ Less anxiety about what happens when the project is completed ▪ Response to client’s needs is as rapid as in the pure project organisation ▪ Gives good access to representatives from the administrative units of the parent ▪ Better company-wide balance of resources to achieve goals ▪ Flexibility in precisely how the project is organised within the matrix 33 CT3101 – Lecture 4: Organisation and the project manager Disadvantages ▪ The balance of power is very delicate: PM responsible for when and what people do Functional manager responsible who will work for the project ▪ Sub-optimise project results rather than company results ▪ Project takes on a life of its own: “projectitis” ▪ The division of authority and responsibility is complex: needs negotiation skills ▪ Violates the management principle of unity of command: two bosses, the functional head and the project manager 34 CT3101 – Lecture 4: Organisation and the project manager Mixed organisational systems ▪ Pure functional and pure project organizations may co-exist in a firm: President Project M Finance Engineering Project Z Manufacturing CT3101 – Lecture 4: Organisation and the project manager 35 Let’s check your current understanding…. Go to VEVOX 196-104-822 36 CT3101 – Lecture 4: Organisation and the project manager Examples of appropriate structures [Maylor] CT3101 – Lecture 4: Organisation and the project manager 37 The Project Management Office (PMO) A PMO is an organisational entity that gives support to the PM. The PMO’s purposes are to: ▪ Establish good PM processes/system ▪ Transfer Lessons Learned ▪ Consolidate and simplify project data ▪ Provide consistent data on project progress The PMO is supportive; an enabler/facilitator 38 CT3101 – Lecture 4: Organisation and the project manager Typical tasks of PMO ▪ Procedures for bidding ▪ Risk analysis ▪ Project controls ▪ Progress reports ▪ Executing contracts ▪ Select software ▪ Enterprise PM system ▪ Consulting services ▪ Legal aspects of projects ▪ Etc. 39 CT3101 – Lecture 4: Organisation and the project manager Choosing an Organizational Form ▪ choice is determined by the situation, but is also partly intuitive ▪ make the best compromise based on: ▪ the characteristics of the potential projects, ▪ the characteristics of the various organization options, ▪ the advantages and disadvantages of each, ▪ the cultural preferences of the parent organization. 40 CT3101 – Lecture 4: Organisation and the project manager Examples ▪ What could be the suitable project organization for: a. Development of a new product (new smartphone)? b. Upgrading the BrightSpace system? c. Building an artificial island? 41 CT3101 – Lecture 4: Organisation and the project manager BREAK 42 CT3101 – Lecture 4: Organisation and the project manager Teamwork 43 CT3101: PM Basics 43  People are Key Today and Tomorrow CT3101 – Lecture 4: Organisation and the project manager 44 Teams ▪ Team: “a group of people who work together towards a joint goal” ▪ Joint approach ▪ Unique roles for team members ▪ Specific abilities required ▪ Performance criteria adopted ▪ Group is collection of people, but for a team: ▪ Output of the team >  output individuals ▪ Exploiting differences in individual thought processes 45 CT3101 – Lecture 4: Organisation and the project manager Types of teams CT3101 – Lecture 4: Organisation and the project manager 46 Basic drives for team work ▪ In the end: managing projects is about managing people in your project team (and beyond)! ▪ Drives ▪ Security effect of cooperation ▪ Performance effect of cooperation ▪ Socialisation effect of cooperation ▪ Rewarding effect of cooperation ▪ Learning effect of cooperation 47 CT3101 – Lecture 4: Organisation and the project manager Teamwork ▪ …as such is not that efficient...! ▪ But needed for solving multidisciplinary problems ▪ Remember: ▪ Project professionals tend to be perfectionists ▪ Project manager is there to manage the process (e.g. timely deliver) ▪ Working with professionals: involve the team in decision making -> team empowerment 48 CT3101 – Lecture 4: Organisation and the project manager Team empowerment ▪ Participative management (in contrast to micromanagement), e.g. setting goals and not methods ▪ Ability of team members to adjust tasks ▪ Responsibility & accountability for team members ▪ Synergistic solutions (1+1= 3) ▪ Feedback individual performance & team performance ▪ Ideally, put the authority there where the knowledge is….. 49 CT3101 – Lecture 4: Organisation and the project manager Responsibilities of a PM ▪ Responsibility to the Parent Organization ▪ Responsibility to the Client ▪ Responsibility to the Team Members ▪ Above all, the PM must never allow senior management to be surprised - be prepared to give “bad news” 50 CT3101 – Lecture 4: Organisation and the project manager Responsibilities to the Parent Organisation ▪ Conservation of resources ▪ Timely and accurate project communications ▪ Careful, competent management of the project ▪ Protect the firm from high risk ▪ Accurate reporting of project status with regard to budget and schedule 51 CT3101 – Lecture 4: Organisation and the project manager Responsibilities to the client ▪ The PM is a representative of the company vis-à-vis the client ▪ Preserve integrity of the project ▪ Resolve conflict among interested parties ▪ Ensure performance, budgets, and deadlines are met 52 CT3101 – Lecture 4: Organisation and the project manager Responsibilities to project team members ▪ Manage the team: create team spirit ▪ Fairness, consistency, respect, honesty ▪ Concern for members’ future after the project 53 CT3101 – Lecture 4: Organisation and the project manager How the team can be organised CT3101 – Lecture 4: Organisation and the project manager 54 How the team can be organised CT3101 – Lecture 4: Organisation and the project manager 55 RACI chart ROLES ▪ coordination through formal guidelines Responsible Accountable Consulted Informed TASKS FROM WBS 56 CT3101 – Lecture 4: Organisation and the project manager Managerial leadership From ▪ Qualities or traits approach Task oriented ▪ Functional or group approach ▪ Leadership as a behavioral category ▪ Styles of leadership ▪ Situational approach and contingency models ▪ Transformational leadership Relation oriented To ▪ Inspirational leadership 57 CT3101 – Lecture 4: Organisation and the project manager Leadership style - developments ▪ Directive style ▪ “I tell you what to do” ▪ Participative style ▪ “Let’s do it together / what is your opinion” ▪ Delegative style ▪ “You can do this part, please inform me” 58 CT3101 – Lecture 4: Organisation and the project manager Winning teams ▪ Dutch national hockey teams...? ▪ Dutch female soccer team …? ▪ Motivation theory ▪ Challenging ▪ Rewarding ▪ Instructive 59 CT3101 – Lecture 4: Organisation and the project manager Effective teamwork requires ▪ Clear elevating goal ▪ Results-driven structure ▪ Competent team members ▪ Unified commitment ▪ Collaborative climate ▪ Standards of excellence ▪ External support and recognition ▪ Principled leadership ▪ Affective trust, shared objectives, openness, no blame attitude (Suprapto, et al., 2014) PM has influence on these soft matters! (leadership, social interaction, rewards and recognition) 60 CT3101 – Lecture 4: Organisation and the project manager Effectiveness profile team lifecycle [Tuckman] 61 CT3101 – Lecture 4: Organisation and the project manager Intra-team conflicts ▪ To some extent: (constructive) conflicts are required! ▪ “Absence of conflicts is not harmony, it is apathy” 62 CT3101 – Lecture 4: Organisation and the project manager Inter-team conflicts – team culture 63 CT3101 – Lecture 4: Organisation and the project manager Belbin’s team roles - Diversity [Belbin, 1993] 64 CT3101 – Lecture 4: Organisation and the project manager Interaction style: Leary 65 CT3101 – Lecture 4: Organisation and the project manager Team members abroad – virtual teams ▪ Challenging, in more respects: which? ▪ Setting priorities ▪ Language & cultural differences ▪ Time zones ▪ Standards ▪ What to do to avoid problems? ▪ Formal start-up / kick-off ▪ Face-to-face meetings ▪ Skype / video conferencing ▪ Expectation management… 66 CT3101 – Lecture 4: Organisation and the project manager Professional attitude of PM ▪ Spider in the web; protecting the team ▪ Can deliberately choose ▪ To create disorder in the team disclosing all information ▪ To aim at stable team by hiding some information ▪ Pick your battles! ▪ Take the lead in developing the team 67 CT3101 – Lecture 4: Organisation and the project manager Wrap-up ▪ Chapter 3 Management of Engineering Projects: “The project manager” ▪ Chapter 4 Management of Engineering Projects: “Building & leading the team” ▪ Monday: MOOC & Assignment (next slide) ▪ Next Thursday: Project Definition and Risk Management (Chapters 6 & 8) 68 CT3101 – Lecture 4: Organisation and the project manager Assignment 2 - Tasks The central case in this assignment is the Structure of the Formula E teams. Limited case description provided. You may use additional information you can find about this project on the Internet. Your tasks: 1. What is the appropriate type of project organization for a Formula E team from the owner’s perspective and why? Please draw the organizational chart. 2. What is the appropriate type of the (client) project organization for the Factory Team in a Formula E team? Please draw this organizational chart as well and explain your choices. 3. According to your answer to question 2, please draw a brief project organization chart (including the different parties/departments involved) for a Formula E team. 4. From the viewpoint of the team owner, what are the top-5 competencies of the potential project manager for the overall Formula E annual project? Please explain why those five competencies are important for managing such a project. 5. Given the importance of leadership for project success, what top-3 actions would you propose as a Project Manager to develop the Formula E team? 69 CT3101 – Lecture 4: Organisation and the project manager Assignment 2 - Deadline Groupwork time : 16 September 2024, 15:45-17.30 Deadline: Wednesday September 18th, 17:00 hrs 70 CT3101 – Lecture 4: Organisation and the project manager CAPM event Buy the book 71 CT3101 – Lecture 4: Organisation and the project manager  Questions? 72 CT3101 – Lecture 4: Organisation and the project  Project Management Basics CT3101 – Lecture 6: Opportunity framing and risk management 1 Project Management Basics - Overview 2 Practicalities ▪ Enrol in Osiris for the exam! ▪ Remind slight schedule ‘change’: ▪ Lecture October 3th  October 7th, 3/4 hour ▪ Buy the book, only possible this week! ▪ CEG 6.49 (pay with pin) 3 Today Opportunity Opportunity framing statement Scope & Risk change management 4 Opportunity framing ▪ “Structured approach to understanding and defining an opportunity” ▪ Define project scope ▪ Involve stakeholders ▪ Define when the project will be succesful ▪ Create value drivers ▪ Identify risks (threats & opportunities) ▪ Should be input for the business case ▪ Premature convergence: if solution is chosen too early in the process 5 The essence of Opportunity Framing 6  Deliverables Opportunity Framing 1. Agreed Opportunity Statement 2. Stakeholder Mapping and Analysis 3. Value Drivers and critical success Factors 4. Beginning of a risk register 5. Definition of Success 6. Decision Hierarchy 7. Decision-Based ROADMAP 7 What is Opportunity Framing? Grounding Presentation SUCCESS The Project Challenge Decision Hierarchy Definition of Success DECISIONS High New World: complex project WHAT Givens: facts, assumptions and in new venture Reference Date Frontier Project : location, e.g: change in size & Camisea in Peru. Project Size/Complexity complexity for existing company, e.g : Troll in Norway or CSF’s in all aspects. decisions already made and taken as Schiehallion in Expro, given for this opportunity Innovation CSF’s in complexity / size. New Venture : Focus Decisions: major focus Definition of Success standard project of familiar decisions to be addressed by the team. Repeat Project : scope in a new venture Critical Success Factors extrapolate current location, e.g: Syrian JV. performance & CSF’s in New Venture. Low practice Tactics: secondary decisions that are Mature Project Location Immature supporting decisions and/or can be decided later Opportunity Statement Measures of Success WHY Statement That Defines Strategic Fit What The Opportunity Is IDENTIFY & SELECT DEFINE EXECUTE OPERATE PLAN Sponsor: Framing Team: ASSESS PLAN Company strategy This opportunity Facilitator: Date: Venture strategy supports Strategic Fit Division strategy This opportunity does Stakeholder Analysis Stakeholder Analysis WHO not support High *Development IDENTIFY SELECT DEFINE EXECUTE OPERATE *Contractors / suppliers Team ASSESS *Project X *Partner B *Unions *STV/STEPS/SGS *Partner A e Power P1 S S to engag S of Veto P2 Need Interest & Support *Employees S S C1 *Media *Shell Group Shared *Landowners *Gas C2 Transport Control *NGO’s *Local Residents *Ministry C3 *Competitors *Provincie *Min Env S Shaper / I1 *Local council * Influencer I2 S Key change points Low Low High Influence Value Drivers and CSFs VALUE Value Drivers CSF’s Action Plan Plus / Delta + ∆ ACTION Issue Brainstorm What? Who? When? Key Risks (issues): Threats & Opportunities - Organisational Resources, competencies, knowledge management, systems, procedures, etc. Ref. Issue Threat Driver Opportunity Driver 1 UNCERTAINTIES 2 3 4 5 6 7 8 8 9 10 What is Opportunity Framing? Grounding Presentation SUCCESS The Project Challenge Decision Hierarchy Definition of Success DECISIONS High New World: complex project WHAT Givens: facts, assumptions and in new venture Reference Date Frontier Project : location, e.g: change in size & Camisea in Peru. Project Size/Complexity complexity for existing company, e.g : Troll in Norway or CSF’s in all aspects. decisions already made and taken as Schiehallion in Expro, given for this opportunity Innovation CSF’s in complexity / size. New Venture : Focus Decisions: major focus Definition of Success standard project of familiar decisions to be addressed by the team. Repeat Project : scope in a new venture Critical Success Factors extrapolate current location, e.g: Syrian JV. performance & CSF’s in New Venture. Low practice Tactics: secondary decisions that are Mature Project Location Immature supporting decisions and/or can be decided later Opportunity Statement Measures of Success WHY Statement That Defines What The Opportunity Is IDENTIFY & SELECT DEFINE EXECUTE OPERATE Not an Audit Strategic Fit Not a Review PLAN Sponsor: Framing Team: ASSESS PLAN Company strategy This opportunity Facilitator: Date: Venture strategy supports Strategic Fit Division strategy This opportunity does Stakeholder Analysis Stakeholder Analysis WHO not support High *Development IDENTIFY SELECT DEFINE EXECUTE OPERATE *Contractors / suppliers Team ASSESS