Managing the Work

What do you get when you combine SaaS with project management? The answer: a strong and flexible solution to manage projects across large organizations.

Sisters of Mercy Health System, one of the nation’s largest healthcare systems that stretches across seven-states with 37,000 employees, uses SaaS-based Daptiv PPM to manage its Enterprise Project Office (EPO). With the SaaS-based PPM tool, Mercy’s EPO has improved decision-making, optimized resource allocation and streamlined inefficient processes. All this has lead Mercy to save tremendous time and resources across each of its 26 acute care hospitals.

According to Scott Arnold, VP of EPO at Mercy, before Daptiv PPM, the organization “lacked the visibility into [its] project portfolio and struggled to allocate the right resources at the right time.” The introduction of more efficient PPM processes has allowed Mercy to uncover new resources and apply them to different departments to improve the entire organization.

Why Saas? Why Daptiv?

The ongoing debate about the future of IT in the enterprise centers on the place that SaaS solutions have in PPM and other critical processes. Mercy is among a growing group of major organizations that have made the switch to SaaS technologies rather than coping with the burden of on-premise solutions. SaaS solutions continue to provide unique abilities for easy integration, adaptability and feature that make the switch from on-premise to SaaS quick and easy.

According to Mercy’s Manager of Project Management, Jay Carter, the heathcare provider is enthusiastic about Daptiv PPM’s ease of use and flexibility to meet specific business needs. The SaaS provider teamed with Mercy to configure its PPM solution to Mercy’s specific processes for project intake, project scheduling and project management. Mercy also tapped Daptiv Work Intelligence to build real-time reports and dashboards and merge its PPM solution with existing business tools such as their time-tracking system.

The future of SaaS in the enterprise looks bright, and the applicability for PM technologies is a breath of fresh air for heathcare and nearly all other industries and departments.

Estimating project costs is one of the most fundamental components of the project management process. If inaccurately measured, the project will soon find itself riddled with budgetary constraints and mis-allocated resources. For project managers, it important to understand the best tactics for proper cost estimation and best practices to manage the work and complete the job.

Although technologies are available to streamline the cost planning process, provide real-time project feedback and collaboration efficiency, the best practices often come from those who have experienced troubled projects and can offer first-hand advice for proper budget allocation.

Think granular

According to James Stull, industrial mechanical project manager, PMs will benefit from breaking the project down to materials, equipment rentals, subcontractors and self-performed labor items. Doing so allows you to put a price tag on each item to determine project costs. PMs should then apply overhead and profit amounts before submission.

Plan through completion

PMs must differentiate between “current estimated cost” and “cost projected to completion” according to senior product manager Ben Loveday. The latter should to take into account price escalation and future market conditions, latent conditions, design error and estimates for the effects of extension of project time. Alternatively, “current estimated cost,” which are project-specific, can only be determined by a project-specific cost risk analysis, necessitate a view where the scope of the project progressively chages through design phases, including an estimate review process at planned points in the project program.

One step at a time

Boston-based Software Product Development Leader Gary Rucinski advises breaking the project down into three steps, which we translated to be broadly applicable, beyond software projects:

1. Estimate the major modules that need to be developed

• Translation: Estimate the major components of the project that need to be produced from scratch (engineering schematics, design specs, models, published materials, etc.).

2. Find existing software modules with functionality and complexity similar to the modules required for development

• Translation: Find analogous, comparable components from completed projects that have similar parameters.

3. Use historical data to find out how much the existing modules took to develop or reverse engineer the cost/effort using a software cost estimation model

• Translation: Almost the same as above – use actual cost and time information from completed project components to create a model to estimate the resources required for the planned project.

Having a cost model like this would allow you to do “what if” analysis to assess risk, changes in scope, etc.

Tap your project peers/expect setbacks

A PM that does not maximize available information from others working on the project are not only wasting time estimating costs, but are likely to witness more project setbacks than those who take advantage of the information from their peers.

Ray Sheen, instructor at Worcester Polytechnic Institute, recommends three key components to this process:

1. Outage Management: Get the most up-to-date engineering drawings and specs and then get firm quotes on everything. PMs should pre-position all equipment and material to avoid unexpected costs or schedule problems due to availability during the outage. From here, take whatever your estimated outage labor cost is and add 30% to deal with the unexpected that happens during the rush of the outage.

2. Process improvement projects: These have a tendency to grow and morph based on the root cause analysis. Set an “average cost” budget based on the past few similar projects, and as the project unfolds, the project tollgates to manage scope to fit the budget.

3. Software application projects: PMs must institute rigorous testing of any systems that integrate modules developed from multiple sources. Expect problems and build into the estimate time and money for debugging and retesting.

Think Ahead: Track Time and Put it to Use

Lesson learned from the project management office of a major health insurance provider:

Although it’s good to use status reports and the information from completed projects to estimate and re-estimate project costs, adding another layer of rigor really makes it possible to predict costs with accuracy. The project management office of a major health insurance group started tracking time within its project management software tool to make sure the hours spent by each individual involved on a project were captured and match up against status reports (automatically generated each week). With the new information, they made a leap from padding project cost estimates at nearly double the actual amount, to predicting with close to exact numbers. When estimates are so far off, it is an impediment to funding and completing projects. When estimates reflect reality, it’s immensely easier to know when to green-light projects (or can them) and proceed with confidence.

Bottom Line

Project cost dilemmas are inevitable, but proper procedures to minimize the impact and maximize accuracy are available, both in the form of technologies and through first-hand advice on best practices from veteran project managers.

Does your organization document and share its lessons learned throughout the project management process? This question was recently discussed among a highly engaged group of project managers through the Project Management Networking Group.

Information sharing is a proven essential step for improving the project management process – emphasizing the need to not only to discuss and share lessons learned, but to document valuable insight for future reference. (The PMI discussed a similar issue last year.)

According to Bill Gutches, author and producer at Opinions Are Free, “Insanity is defined as repeating the same things over and over again and expecting different results!” This post is intended to help PMs avoid such scenarios.

The PMI also posted a similar topic last year, and documented insights about collecting and implementing lessons learned to improve the project management process.

Voices on Project Management

Below is the collective insight from the community about how to most efficiently share PM lessons learned, including whether or not this is a good idea and use of resources across the organization:

• Conduct monthly PM meetings, allowing opportunities to share lessons learned for PMs across the company, department or office. The response will generally be positive and will most always generate discussion. Sharing is only part of the process…you must get your PMs to refer to lessons learned early and throughout projects.

Jo Musto, project manager at Stryker

• Organizations must “institutionalize” the lesson. Once a lesson is identified, assign a champion to make it become an organizational lesson learned.
  

William Pirkey, T Project Manager & Software Engineering Manager

• Implement and continue to revise in order to maintain the learning. What happened after implementation? Did something new crop up? Some organizations may have an intranet or document records space where this can be recorded. Or it might be simple enough to start a wiki to record all these lessons. This will allow different team members to share their experiences. The key to learning is to share, implement and then keep practicing!

Shubangi Paheerathan, Customized training in project management, written & verbal communication

• Lessons learned must be documented at the end of each project life-cycle phase, must be stored in a way that facilitates retrieval (NOT stored by project name) and there must be a mechanism in place that requires PMs to consult past lessons and penalties/disincentives for failing to apply lessons learned.

Bill Duncan, IPMA-B Assessor

• Retrospectives on the process must be done at the end of each iteration, not just at the end of the project. The entire team is involved and participates in a (15 to 30 minutes) well facilitated retrospective, while the team picks up changes they can commit for the next period of work (1 -4 weeks on what you have picked as your cycle time).

Bachan Anand, Believer, Agile Coach

• People should be commended for bringing things to the attention of others that we should avoid doing, and promoting best practices. The worst crime is to cover things up that you would rather others not know and damage the organization’s development as a result.

Derek Bell, PMP (APM & PMI) PRINCE2 Practitioner

• “If you do not learn from history, you are doomed to repeat it.” In order for a group of people to get better at a repeating or similar sets of tasks, they MUST review what worked and what didn’t as often as possible AND use the results of these reviews to change what they plan to do next. Here is another useful quote: “Insanity is defined as repeating the same things over and over again and expecting different results!”.

Bill Gutches, Author and Producer at Opinions Are Free

In a recent conversation on the Project Manager Networking Group on LinkedIn,  MBA Operations student Milind N. Suryavanshi posed the question, “Can a Project Manager from non-IT (engineering) background understand, design and execute projects in IT or a related industry?”

The inquiry has drawn responses from hundreds of project managers, industry leaders and IT professionals worldwide. The Managing the Work team compiled a list of the most compelling responses from that discussion for our readers.

Community insight about what it would take to make the successful transition includes:

Adrian Baker • My answer is “yes…but.”

The key skills of a project manager are not technical: Communication skills, planning, attention to detail, motivating a team, etc. Anyone with these skills who has managed business projects, could with a little effort adapt to IT Projects. The PM methodology PRINCE 2 is entirely independent of IT or Engineering.

Sarita Agrawal • Yes of course, Project management is a mix of native PM qualities and what you learn from your PM experience. It requires passion, good communication skills and ability to work with different people with a most productive approach. So I think people with non IT can succeed as long as they have native PM skills.

Frank Jaskulski • If you are trying to secure employment… this will be a problem. Today most employers want all of the team’s skills to be resident in the PM. And most are demanding particular technologies.

Erik Burd • I’ve seen some PMs do this very successfully. I ended up “training” one PM at one company because I was the in-house expert on our statistics program. I brought her up to speed with the terminology, operational use, customer requirements, etc. She did a great job managing the project, and often asked me for advice and questions.

The key was that she sought out the experts, which is a critical skill that anyone in a management role should have. Don’t make any assumptions – ask people who know.

Gary Vaughan • I tend to be of two minds on the issue:

On the one hand, some IT background (either education or experience) helps. Since communications is such a big part of project management, knowing IT lingo and concepts better enables you to be an effective bridge among techies, users and managers. And knowing how to use and apply the IT product also comes in handy.

On the other hand, I agree with others that many project management skills (organization, processes, team-building, risk assessment) are generic and can be applied to any industry (Agile methodology is a good example). And to an extent, a non-IT “outsider” is better able to ask tough questions from a fresh perspective.

Brian O’Reilly • I’d have to say no. While the PM skills are fundamental for all disciplines, the nature of IT is that it requires skills above and beyond what a PM typically does. In support, IT is currently transitioning to an agile model. This has followed 40 years of waterfall, RAD, RUP, Spiral XP, Scrum, etc. The constant evolution of how IT does development is a challenge to even seasoned IT PMs.

As a counter point, I have seen what I would call “generic PMs” who have an IT background working in IT. Not to dis on these PMs, I think they do a good job, but never a great job.

Keith Payne, PMP • First, I think an engineering background would be technically sufficient for an IT project manager. Focus on your technical strengths. Second, the benefit of any Project Manager, regardless of background, is their “big picture” view.

Having said that, it seems the current hiring trend is not toward broad backgrounds but toward a specific set of skills and experience that align with the project and/or organization.

On Wednesday, June 30, 2010 at 2pm ET/1pm CT/11:00 am PT, Daptiv is sponsoring a free Webinar with Margo Visitacion, an expert in IT PPM at Forrester Research, who will present on “The Need to Break Out of the PPM Silo” and how integrating with back-office systems like ERP can help.

If you can’t make the Webinar, don’t worry, it will be recorded and available in Daptiv’s archives. Register and you’ll get the info in email so you don’t miss out.

There has been quite a bit of news and research lately about the state of ERP software systems – that’s Enterprise Resource Planning – provided by companies like Netsuite, Oracle and SAP. So, what is it and why should you care if you’ve never heard about it or dealt with it before?

Historically, ERP systems have managed the “guts” of many major organizations, from functional areas like HR to inventory and accounting. These giant systems house lots of crucial business data that are necessary to keep a company running – we’re talking everything from employee ID numbers to vendor purchase orders. However, it can be tricky to get information in or out of such monolithic systems – and frequently financial information tracked in an ERP system is generated (and also managed) in other software systems, like PPM, for instance.

Independent research firm, Forrester Research, recently published a report on the current ability to integrate software systems with ERP, noting that although some progress has been made, this really important nut has not been completely cracked yet. Forrester used the analogy of ERP integration as a “beast” that needs to be tamed. Though the big ERP vendors have their work cut out for them, immediate solutions are being created through Software-as-a-Service integrations that can be put in place as quickly as 3 days, and for a fraction of the price of other integration options.

Why the big push to integrate systems with ERP?  Here are a few for project managers to consider:

• Show off: Reflecting your PM financials in the ERP system will showcase your results and the value of your portfolio
• Save yourself (and your team) some hassle: If your PPM system is properly hooked up with your company’s ERP system, you will cut out duplicate processes and make your teams more productive (example: streamline payroll – enter hours once for project status and for the paycheck)
• Be a hero: Your company’s accounting team will love you if you make it easy to line up project financials with ERP financials. Accurate info is your CFO’s key to a better night’s sleep!

Learn more about the why’s and where-fors of integrating PPM with back office systems by registering for the Webinar by Margo Visitacion, a vice president at Forrester Research, serving Application Development & Program Management professionals.

Margo focuses on the areas of project management, project portfolio management, PMO, software testing, quality assurance and Agile test methodologies. She has worked with Forrester for eight years, during which time she has covered project and program management, project portfolio management, project-based organizations, integrated IT management, requirements management, quality assurance and testing processes.

We’ve written before on strategies and practices that can make you a better remote manager. Recently, we read this piece from BNET discussing the role of the remote manager as it pertains to developing employees’ potential.

Author Wayne Turmel writes, “It would be foolish to suggest that the manager is solely responsible for all the learning a worker has to do, but we do have a unique and powerful impact on the growth of our team, especially with remote employees.”

This really underscores what is true of every organization – interpersonal skills are critical to strengthening your team. Although more employees and managers alike are working remotely via technologies such as video conferencing and social platforms, the personal connection is what ties a team together.

No doubt that creating such relationships is getting more difficult as the office expands to more remote locations… however, it’s not impossible, and Turmel hits some key points on how to maintain a managerial role that will strengthen your team by encouraging employee growth.

He aptly notes that managers are the biggest reason employees stay or leave an organization. Managers also influence how employees guide themselves because managers know the organization, provide crucial feedback and have a larger view of the organization and team as a whole.

The most important point he makes is that managers “are the biggest influence on whether skills get transferred and reinforced.” So, if you want your employees to learn new skills to expand their expertise, you need to make a concerted effort to lead them and reinforce those ideals, no matter if you sit in the same office or work remotely.

Project Manager Planet recently covered a trend on the evolution of the project manager’s role within an organization. According to author Herman Mehling, it’s a job that is creating more value for both the business and IT sides of companies.

He notes that, “Increasingly, staff PMs are becoming strategic players who bring an independent, almost consultant-like vision to projects as well as hands on skills. Their value lies in their multi-tasking abilities to shepherd projects, improve an organization’s communications, and drive bottom-line efficiencies in products, processes and services.”

Mehling spoke to two Daptiv PPM customers about how they’re seeing this trend as project managers. Here’s what they had to say:

Addie Monson, PMP director in the enterprise project office at one of the largest credit card payment processing companies, Chase Paymentech Solutions, observed that, “At Chase, PMs need to wear multiple hats,” and that, “A PM needs to have aggressive business knowledge as well as IT knowledge, be a player/coach, while contributing to the strategic vision of the company and be able to drill down into tactical issues.”

It’s a shift in a company’s approach to PM that does not always happen organically. Gary Sikma, director of project management at the Evangelical Lutheran Good Samaritan Society, discussed how his team needed to champion their cause, and that his organization, “has progressed from having a limited understanding of project management to an in-depth one over the past five years.” He went on to say that, “It took quite a bit of educating in the early days to get senior management to appreciate that PMs offered something other than IT skills.”

The shifting role of the project manager is something we’ve touched on before, and will continue to keep an eye on as organizations’ needs for trained counsel in both project management and business continues to grow.

The Apple iPhone 4 was released this week and the buzz has been nothing short of impressive. Although people have begun answering questions about the iPhone’s functionality, how will the latest generation of smart phone improve the way people collaborate and communicate via their mobile devices?

The answer? An advancement from the iPhone’s former “high end” collaborative tool (Glide 3.0). As part of the new design and capacity, Apple developed FaceTime, a new video chat program made possible by a front-facing camera. And yes, it’s in HD.

Although FaceTime has its flaws, the latest wave of mobile communication has officially hit the shore, creating a splash sure to instigate innovative new applications from anxious developers.

Projects@Work recently ran a story about the Abbey Road Group, a land development firm that implemented a project management solution to streamline project and administrative efficiency. What they experienced was a productivity gain of 200 percent since January 2008, when the real estate market was headed south.

After tiring of unorganized tools like Excel and Outlook, Abbey Road implemented an on-demand project management solution from Daptiv. The company began seeing immediate results, including increased clarity and communication among their staff of project managers and engineers.

Abbey Road pushed their improvements a step further by allowing their clients to access project information, increasing their visibility into project progress while equipping them with a forum to collaborate directly with developers.

Even more, the development firm selected the project management solution over other industry-specific (land development) tools because it was flexible enough to fit to the firm’s processes rather than requiring users to bend to a specific format.

Lesson learned:

• Use a hassle-free solution that is available on-demand
• Pick a tool flexible enough to adapt as your processes change and improve
• Choose project management software that can be pre-configured with your unique industry terminology so it’s instantly familiar to all users
• Reporting and collaboration are key! A client that is “bought in” because they know what is going on and have a hand in their own success, is a happy client that is more likely to be profitable and will return for more business.

Ultimately, Abbey Road found something that allowed them to streamline their reporting process and focus on the work they specialize in, rather than worrying about the in’s and out’s of project management software – all without sacrificing the features they needed in an enterprise-class solution.

Feel free to read the full article from Projects@Work (one of the Web’s best sources for project management resources and tools for professionals and training), highlighting Abbey Road’s project management implementation, and recommendations from their lessons learned throughout the process. Daptiv also has a case study on Abbey Road Group with additional details available here and you can follow Cassie Porcella, the company’s business manager, on Twitter – ask her how they are doing!

This is the final post in a 3 part series from Lokesh Datta on dealing with complexity in collaboration. Lokesh is a veteran project manager, collaborator and management consultant and he writes extensively on collaboration at All Collaboration. Enjoy!

Collaboration is usually a good thing. However, as technology makes it increasingly more easy to collaborate, our work frequently becomes more complex. In the first post in this series, I detailed some of the sources of complexity in collaboration, such as working in teams across geographies and bringing in external contributors. The second post focused on how to deal with the complexity that comes from collaboration – specifically the elements of Purpose and Place.

In this post, I give some practical advice on how to manage the complexity of collaboration related to Process and Place – the other P’s of holistic collaboration – for a total of 17 tips for how to manage the complexity introduced during collaborative work:

Process

• Design the process for the effort: What worked before may not work for the effort on-hand, particularly given the composition of the collaboration team. Design the collaboration process for this team collaboratively with all members. Starting slow with due attention to fundamentals will in fact help you get there faster. But, avoid the analysis paralysis trap, and get going. This brings us to the next point.
• Be flexible: Remember the old framework of team dynamic: forming, storming, norming, performing and adjourning! This team will experience these stages as well, but now in the networked world. Observe, learn and seek opportunities to make various aspect of the process more effective. These include: communications, meeting management, collaborative writing, project coordination, and so on. By design, include time for debriefing, feedback and discussions on process improvement. For example, set aside 10 minutes at the end of each meeting to discuss what worked and what can be improved. Then, act on it, so that is not just talk. You can also have a discussion forum for such discussions.
• Include face-to-face meeting: Trust and team building dynamics become more challenging in the virtual world. To the extent possible, bring the team together for face-to-face meetings, which could certainly include work but also team building and fun activities.
• Inject transparency: Sunshine is the best antidote, as the saying goes! Make the progress, documents, status, issues and discussions transparent. No gatekeepers! Lack of knowledge about who is doing what to who and when adds risk, confusion and potential conflicts. Lack of full access to information can hinder work, create duplicate work, and fester frustrations. Transparency builds and sustains trust (trust is at the core of collaboration) – particularly when you are collaborating in a far-flung team.
• Plan for managing security and compliance issues: Understand the challenge and complexity posed by collaborating with people with different affiliations. Have a game plan to deal with this explicitly and early on. Depending on your ability to overcome such constraints may indeed impact the team composition.

Place

• Select the right tools for the effort: As the saying goes, pick the right horse for the course! Understand: 1) How will the team conduct its interactions? 2) What is the mix of real-time meetings (physical, phone, or web) versus non-real-time interactions (message boards, wikis, email exchanges, etc.)? 3) How might the mix of interactions or “place” change over the course of the collaboration project — perhaps kicking off with more direct contact, separating into more virtual interactions, then coming back together with direct contact to converge on the solution? 4) Collaboration tools can be effective to help a team work together, but only in the broader context of “place” and how the team members will interact. Select the tools that address the team needs. Oh, and don’t forget that tools should be such that they provide transparency.
• Keep it simple on tools: This does not need much explanation. I would however like to remember Einstein at this time: Everything should be made as simple as possible but not simpler! A collaboration tool must not get in the way of collaboration.
• Ensure training and comfort with use of tools: Collaborators should be comfortable with using the selected tools, or else they could create detours around them. This can multiply complexity and can in fact derail the effort.
• Lead through tools and enforce discipline: The leader must lead through tools. If and when a team member does not use the right tool, address and remedy the situation promptly. There could be many reasons for not using the tool appropriately; for example, hesitation in editing the work of a superior which all others can see, lack or training or comfort with the tool, just a feeling – right or wrong – that the tool is not effective and is getting in the way of productive collaboration, and so on.

There you have it. What aspects of collaborative work do you think are most crucial to success? Are you proactively considering the complexity introduced by collaboration?