INSTITUTE OF MANAGEMENT CONSULTANTS
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News and Views

In this issue:

"Improving Enterprise Project Success Starts with Senior Executives"
by Charles W. Perry and Pamela A. Singletary

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Member Spotlights

Ethel Cook of Corporate Improvement Group is the recipient of a certificate in Professional Coaching from the University of New Hampshire.

Jane Hilburt-Davis of Key Resources had her article (co-authored with Gibb Dyer) entitled "Special Challenges of Consulting to Family Businesses" appear in the OD Practitioner 35(1) 2003.

Allan B. Haberman, Ph.D. of Haberman Associates gave a presentation on "Biotechnology and the Future of the Pharmaceutical Industry" at the BIO IT Coalition second annual conference, "Partnering: Catalysts for Growth", April 29-30, McLean, Virginia. He was also quoted in an article in the April 28 issue of Mass High Tech, "Bioinformatics’ promise meets with plenty of resistance at local biotechnology companies".

Charles Perry of Insight Management Group recently co-authored an article that was posted on the web site of Top Consultant. The article is entitled "Improving Enterprise Project Success Starts with Senior Executives." The article offers executives 6 questions they should ask to ensure that every project gets started on a solid foundation. You can read this article by scrolling down on this page, or by clicking here.

Isn't it your turn to be in the spotlight? Send your name, your business name and 1) recent awards/distinctions/professional certifications you've received; 2) public speaking engagements; and 3) published articles. (Be sure to include key facts, such as when, where and for whom.) You must be an IMC member or affiliate to be featured. them to Ethel Cook, Subject: IMCNE spotlight.

The CMC Corner

Our congratulations to our new CMCs —

Bonni Carson DiMatteo
Dick Dauphinais

If you are a new CMC and have not been acknowledged in News & Views, please let us know and we'd be happy to share this news with your fellow members. Ethel Cook, Subject: CMC. If you'd like to learn more about the CMC designation, click here.

An invitation to IMCNE CMC members — This section is dedicated to you. If you have commentary you'd like to share, here is a forum for you. Send your commentary to editor Ethel Cook for consideration. Ethel Cook, Subject: CMC Commentary.

Top-Consultant.com
Global Opportunities in Consulting
Improving Enterprise Project Success
Starts with Senior Executives

By Charles W. Perry and Pamela A. Singletary

One of the questions that echoes throughout the boardrooms of Corporations is "How can we improve the success rate of corporate projects?"

Many projects fail — or at least fail to meet expectations. Do they fail at the end or were they doomed to failure from the beginning? In virtually all organizations, there is an unquenchable thirst for development which means demand is always greater than available corporate resources. The best place for the executive to add value is at the starting point, by making a thoughtful "go / no-go" decision before allowing the project entry into the enterprise portfolio.

Prior to approving your next project, include these questions in your review. The first three address the viability of the project and the last three address your readiness to start the project. With confidence in your staff's abilities, decisions can be made while remaining at a high level of detail. While answering may take a few iterations initially, your staff will anticipate the questions and become increasingly prepared to provide you the information you need to make an informed decision.

It's up to you, the senior executive, to ensure that each project is started on a solid foundation by consistently asking these questions in the beginning. Approval without these answers is sowing seeds of failure in the project and the portfolio.

Questions that address project viability:

1. Is the priority of the project aligned with corporate goals and mission?
Management of all affected business units should be on the same wavelength regarding how this initiative will contribute to corporate goals and objectives.

Most organizations do not have the fortitude to do true prioritization because it requires objective analysis. Unfortunately, priority for many is about "politics" or "pet projects", not goal alignment. It's too easy to relent and sanction a lot of high priority projects and attempt to do them all, but that approach takes up management bandwidth and introduces risk to all of the projects.

To have real prioritization, (rank them from 1 to n) requires a lot of effort and teamwork. To successfully build the corporate project portfolio, a ranking and filtering process based on goal alignment and risk ensures that the most important projects get first dibs on key resources and that the enterprise is not taking on more projects than can be realistically achieved. This process separates the good projects from the great projects. The ones that survive will be those that are aligned with corporate strategies and are within acceptable risk limits.

2. Have all Business Units impacted by this project signed off on the scope and the project plan?
Every project should have a business sponsor with an understanding of what 'ownership' means and who has a stake in achieving results and promoting the initiative. In addition, having all key executives signoff on important corporate projects is a critical step in reducing risk and creating corporate commitment. Signoff should ensure that the project scope is clear and comprehensive, identifying what is not included as well as what is. More importantly, it affirms that these key executives are accountable to support the sponsor and help the enterprise achieve success.

The bottom line - don't let a project be approved without "all" the stakeholders signing off.

3. How will the risks associated with the project be managed?
Risk management should always be a part of the project plan and a crucial area for the executive to explore at approval time. All the factors that could adversely impact the project need to be identified. Opportunities to reduce risk should be identified early so contingency plans may be put in place. Project team members and executives must be assigned responsibility to manage the various areas of risk identified below:

Financial risks are the more obvious ones that executives usually discuss. The points that need to be addressed up-front include the quality of the cost estimate as well as any estimates relating to benefits. Having the finance area review all cost benefit analyses will provide an objective 'reality check'.

Newness can be the Achilles heel of a project. If new organizational units, processes, functionality and/or technology are introduced then additional steps may be needed to mitigate the level of risk. When new technology is introduced, ensure the proper due diligence is done to examine the success rate of all of the vendors with other customers of comparable size.

Resource requirements are more than an FTE count. Having the right skill levels available to the project is a difficult task. Usually the best people are in demand and may be assigned to higher priority projects or can't be made available. When the right skills are not available or can't be acquired, then delaying the project may be the best tactic to ensure success.

Project duration is often the biggest risk factor. The likelihood of failure geometrically increases the longer the project takes. Changing business requirements, new technology, and staff changes are just a few of the factors that make long duration projects more risky. Project duration of six months to one year is preferable. Attempt to break up projects lasting more than one year into smaller efforts that each deliver benefits. Be careful when approving projects of long duration.

When all affected business units endorse the project, accept accountability, agree on its priority, understand and manage the risks, then the project has passed the first test of viability. Too often, the process stops here and the sponsor is given the go ahead to start. Let's hold off and ask a few more questions to determine if we are ready to start this project.

4. Is the Project Manager's experience level appropriate for the size and complexity of this project?
Project Management skills are assets in short supply in most organizations. An experienced Project Manager should be named for every key corporate initiative. Organizations will invest millions of dollars in a project yet allow it to be managed by someone with little or no experience.

Having knowledge about the industry and product functionality is valuable, but specific training and experience in running large projects is equally important and a key ingredient in reducing project risk. Usually the people with these skills are busy, and often a project manager is picked based on "being available". Insist on having a person with proven success that will be available full time to manage key corporate initiatives. If a strong Project Manager is not available internally, hire an experienced consultant or delay the start of the project.

5. Is there a project plan that provides clear information about the work to be accomplished and identifies those responsible for that work?
An implementation plan with task accountability should be developed in order to establish an acceptable level of confidence that the project is achievable. The plan should identify when it will start and the best sequence in which activities should be executed, who will deliver what and how long it will take. Until a plan and schedule are developed, stakeholder sign off should be tentative.

Ensure that five to ten key specific deliverables that occur throughout the life of the project have been identified as milestones and measured against a baseline. These checkpoints ensure that the business case is still viable, and that the project is on track in terms of status and risk. It's hard to overstate the importance of proper planning. Project failures can often be traced back to deficiencies in the planning process. If the project is extremely complex, this is an excellent opportunity to have an independent assessment of the plan and budget by the Project Management Office or another third party.

6. How and when will the project's progress and issues be communicated?
A clear plan for communications should be developed as part of the Project Plan. Those accountable for risk management and those who have signed off on the project should be required to communicate back according to an agreed schedule. Consider monthly written and quarterly face-to-face progress reports. Executives must understand that they have a responsibility to monitor the project once it starts and not walk away after initial approval is given.

High-level metrics should be agreed upon as part of status reporting to help management monitor multiple large projects. Reporting to the executive group should tie these metrics to milestones.

Often, the Project Management Office is an effective "set of objective eyes" and communication vehicle to allow senior management to stay strategic.

With an experienced project manager, a solid plan, and a monitoring / communications program in place the project can be given final approval.

In summary, a project should not be given approval without clear business alignment and priority, well-defined scope and a management plan. Asking these key questions early can increase a corporation's success rate in delivering projects by determining at the outset if the project is viable and manageable. If the project sponsor can't answer these questions, the project should be postponed.

Once the project is underway, the milestones and communication plans are the executives "headset" to stay in tune with the project. Timely identification of issues presents an opportunity to address them and periodically reevaluate the project's viability. Often, projects fall off the executive's radar screen after approval and don't show up again until it's too late to influence success. Don't be afraid to kill a project if necessary! Stopping a project that will not be successful prevents failure and will allow the corporation to re-deploy resources to other business objectives.

Both the business and technical areas must accept accountability for the project. Getting off to the right start and addressing issues as they arise improves that success rate and makes it easier to hold stakeholders accountable. An important side benefit is that increasing a projects chance of success in the beginning can dramatically improve the morale of the project team.

Many projects that were destined for failure or delay can be saved or improved by asking tough questions throughout the project life cycle. Maintaining an awareness of project progress, managing project issues and evaluating the impact to the entire portfolio are crucial to improving success. An independent group can establish a sustainable, consistent process across projects that will simplify ongoing review. If you find that this is the case in your organization, form a Project Management Office to develop and facilitate a process that would include these questions as part of project approval process.

The Authors...

Charles W. Perry, CDP, MBA
Partner
Insight Management Group Inc

Pamela A. Singletary, PMP
Consultant

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