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The row about the cost of the 2012 Olympic Games goes on. Today a report by the Public Accounts Committee (click here for the full 40 page report) criticises the government for the escalating costs of the games.
Costs have risen from a bid price of just over £4 billion to a revised estimate (March 2008) of £9.325 billion! Now my guess is that the arguments around the true cost of the games will continue for many years up to and beyond the games themselves.
I am not going to try and argue which side is correct or who made big errors, if any have been made, I want to use this as an example of what can happen if your estimates are wrong - time, money or resources.
We work with many professional staff who in their words estimate poorly or use guestimates. So what can be done to ensure you have more accurate estimates?
*break it down - on our courses we stress the need to break down the overall project into manageable chunks. We encourage people to use work breakdown or product breakdown techniques. If you are going to put estimates against an activity the activity needs to be small enough to put an estimate against e.g. if you are carrying out all of the administration for a conference it is easier to estimate how long it will take to hire 4 projectors compared to organising the whole conference.
*who has the skills to provide you with the knowledge of what is involved in the project and how long each task will take. Use financial experts to help you identify the financial estimates.
*you are not alone - sometimes you are working on a project which someone within your organisation has worked on before. Ask them how long the project took. Ask them for the work breakdown; look at the cost estimates and actuals.
*documentation - the above point highlights the need for project documentation. Keep up to date records
*post project review and project meetings including lessons learned reports - these should include the level of accuracy of your estimates (of all your estimates - money, time, resources), what you have learned while working on the project. Share this information with others.
Make sure you spend more time estimating. Avoid the poor publicity or the consequences of spending too much money, delivering late with the wrong results.
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This shows a simple linear structure with the project board at the top and the project team at the bottom of the tree. At first site this look fine until you realise there are 15 members on the Project Board! Before anyone tells me this is impossible I have to say we frequently find this number on Boards This is far too many and people say to us that the large numbers are stopping a key activity of the board i.e. making decisions.
Project Boards should be around 5 people. So who are these other 10? We have investigated this with a number of project managers and discovered:
*they are stakeholders who represent key groups either in the business or are in partner organisations
*they are people who want to be involved but actually are hindering project progress - in actual fact they have no interest and will not be impacted by the project. Our questions here to project managers is why are these people involved?
Can the person who represents the function or group make decisions? Our researches (questioning of people who talk about this) suggest not! What they tell us that the person says something like:
*I will need to go back and check with my Director we can do this. Or maybe...
*I am unsure how we can deal with this. Let me get back to you once we have consulted in our organisation
In both cases, this does not help in the management of the project. These people are actually stopping project progress by having to go back to the various bodies they come from; say the internal finance or marketing department or the partner organisation providing say a design service.
So, what should be done! Have a simpler project management structure. Something that takes out from the project board people who are clearly stakeholders. When working with project teams we have identified around 4 or 5 stakeholder groups and suggested these people liaise directly with the project manager.
The results? Much quicker decision making by the project board which is based on input from the key stakeholders. Plus, continuity. Project managers reported a huge issue with project boards never having the same 15 people - "I cannot go to this meeting so I want you to go" was quoted several times.
So, keep it simple...please!
Not a great headline from The Times newspaper here in the UK this morning. Who would be a BA or a BAA executive?
For those that do not know after 19 years of planning and building (much of this was in getting planning permission to build the terminal) the 5th Terminal at Heathrow opened yesterday and by the end of the day:
10,00 passengers were affected by a series of cancellations
33 flights were cancelled
4 hours delay for luggage on incoming flights
188 departures planned for terminal 5 yesterday
31,000 passengers due to be handled yesterday
The debate will go on for a while to establish EXACTLY what went wrong however some issues have already surfaced:
* signage in the new terminal is not very clear
* staff handling baggage etc were delayed by security checks
* security workers could not park
* baggage handlers were unable to log on to computers
So, what are the lessons for all of us involved in the running of projects (as big as Terminal 5)?
a)trial, trial and trial again. This week there was TV programme showing how they built and tested the new airport. Obviously not enough
b) how about one persons suggestion in the papers "have a a gradual move across to terminal 5 rather than a big bang… "
c)training: when things go wrong, you need well trained staff to cope! The papers are full of quotes from unhappy passengers however one quote from a staff member (if its true) does little to inspire confidence “this is what happens with a new terminal”. Train, train and train again. If you do this the chances of the problems and issues happening are reduced and if something does go wrong well trained staff do try and inspire confidence in its customers...somehow
d)put in robust quality checking processes. These quality checks would have identified potential problems and potential risks
e)PR - what a disaster for BAA, BA and for the UK. Many of the post from on-line newspapers were incredibly scathing about this countries poor project management record.
As I type this note, there are calls for heads to roll (sackings)- I wonder....
No doubt there will be further information coming from the sad experience of those who tried to travel in yesterday.
Why do we use so many templates in project management? Great question isn't it? You can name many project templates:
business case
risk log
lessons learned log
communications chart
PID
etc, etc
But why oh why do I say it’s all in the head? On two recent project management programmes participants have said that this is where they keep information! They try and manage large complex projects without writing anything down, A few people said they had very little in terms of project files - on line or in hard copy. This is a risk; a huge risk for project managers and their sponsors.
So let’s come back to the question; why do we use so many templates in project management? There are many reasons; the list is extensive. Let’s take a look at some of these:
* its a record of what you are doing. Ever needed to go back and check that what you are doing is what you should be doing? It’s a reference point for you
* a key group of people in projects are your stakeholders (those with an interest or who will be affected by the project). These can be the trade unions, maybe a key customer group or maybe an internal department such as marketing and accounting. They will certainly be interested in your project and the forms will help in the overall communications process
* the forms can be used to measure project progress. For example; the business case should be checked regularly by the project sponsor (the person who has ultimate responsibility for its successful delivery) to ensure it is still meeting its original rational. The risk log should be checked regularly by the project manager and the team, the same with the communications chart
* version control; my admin manager tells me that I need to tighten up on my version control; and you know what, she is correct. Each time you complete or amend a template you need to check that the version of the form is updated. Too many times people are working on old versions of templates. Version control can help in the smooth management of the project.
* milestones; many projects are managed by milestones. Use of project management templates can help the team know where they should be; where they are.
* monitoring: a key part of the project management life cycle is to ensure that the project is delivering what it set out to deliver. The forms can help enormously to pin point where the project is; whether it is on schedule or off it. Use of the highlight report can actually save time as you only report on key highlights of the project since you last reported and the report is only 1 or 2 pages long
* approval: one of the issues project managers face is not knowing who is responsible for signing off (agreeing) some of the documents. This person (or maybe it is a project board) receives the document and approves it or otherwise. Use of these documents helps cement the approvals process
*communications; I mentioned earlier on that use of these forms can aid communications in projects. Use of the communications template or the PID can really smooth the path for your project
There are of more reasons however I hope that this has convinced you of the need for using written documents.
If you want to get some FREE project management templates then click here or go to www.projectagency.co.uk/word/templates.pdf
Don't forget; put what's in your head onto paper and it can contribute greatly to project success
How many times do we read that we must learn from our mistakes (I would also add from our successes!)? We encourage all of our clients to:
However, our experience shows that few projects use both of the above with some using learning logs - though very loosely.
I came across an interesting article in Computer Weekly headed “Litany of errors plagued Housing Corp IT project” The article goes into some detail about the errors and gives information published from firm of Consultants - click here for details of the report. The key findings are shown below:
*The Corporation lacked the the expertise to manage the project. As a result managers relied too heavily on technical advice from a single freelance IT consultant, despite warnings that this posed a risk
*The business case was "inconsistent" and "incomplete". It contained misleading assumptions and contradictory data
*Managers did not challenge the technical solution, despite reservations from independent advisors
*Executives gave repeated but mistaken assurances that the project was under control, despite difficult pilots
*Business users had little input into the design of the system, which suffered from technical problems and did not meet their needs
Now, an important point. I do not write this to embarrass The Housing Corporation: far from it! I write this to see what we can all learn from it
How does your organisation go about identifying and sharing learning - both positive and not so positive? How many times must the same mistakes be made before senior managers realise there is a pattern going on? Do you hold meetings where real learning is identified and acted upon? If no, you should and you need to action this now!
Do you need really bad PR/publicity before your organisation takes measures to deal with learning and project management generally
BEWARE: You don’t want to be the next headline.
* words to a song http://www.volcano.net/~jackmearl/songs/wsongs/where_have_all_the_flowers_gone.html by Pete Seeger