Project Management x470 Planning Process

1. Project Management x470Planning Process UC Berkeley Extension, Business and Management Weeks 5 – 6, March 12th and 19th Ray Ju 415.845.8880 rayju@sbcglobal.net

2. Main Planning Outputs

3. Process Groups Outputs Project Mgm’t Outputs Initiation Planning Execution Monitoring & Control Closure • Team performance assessed • Vendor Contracts signed • Comm. Plan implemented • Work results reviewed / accepted • Earned Value • Baseline metrics reporting • Change control / corrective and preventive measures • Proj plan updates • Project Closure Sign-Off • Lessons Learned • Contracts Closed • Project Charter • Preliminary Scope Statement Baseline Others • Scope Statement • WBS • Schedule • Cost • RAM • Comm. Plan • Risk Response Plan • RFQs

4. Project Team Assembly

5. Project Human Resource Management

6. Responsibility Assignment Matrix RACI Chart: R= Responsible A= Approver C= Consult I=Inform Role: who does what Responsibility: who decides what

7. When and how staff resource requirements are met Staffing Management Plan • Recognition and rewards • Compliance • Safety • Staff acquisition • Timetable • Release criteria • Training

8. Bank Network Migration Project Deliverables

9. RAM Exercise • Refer to the template in PM Workbook • Feel free to add to or modify the roles given in the template

10. Communication Plan Perhaps as much as 90 percent or more of the time the project manager spends in providing project direction involves some form of communications

11. Project Communication Management

12. Communications Management Plan • Collection and filing structure that details methods for gathering and storing various types of info • Distribution structure of the info – what info goes to who, via what method, frequency • Description of info to be provided – format, content, level of detail, owner • Methods for accessing info between schedules • Methods for updating and refining communications management plan as the project moves on • Escalation process Stakeholder communication needs

13. Communication Plan Matrix

14. Total Communication Process SOURCE MENTAL MODELS RECEIVER MENTAL MODELS MESSAGE SOURCE ENCODER RECEIVER DECODER PERSONALITY PERCEPTION SCREEN SCREEN FEEDBACK PERCEPTION SCREEN PERSONALITY SCREEN

15. Mental Models

16. Mental Models • Personal views of reality • Perceptions • Assumptions • Mental chatters • Experience • Voice of judgment • Personal scenarios • Views of systems • Internalize experience • Projections “What gets us into trouble is not what we don’t know. It’s what we know for sure that just ain’t so.” Mark Twain

17. Listening skills Mental Models Culture Intelligence Knowledge base Context Dependence Primacy effect Recency effect Contrast effect Halo effect Situational consideration Emotional status Authority or position Common sense Cognitive dissonance Communication Barriers

18. Communication Styles

19. Communication Signals Receptiveness I cannot hear your words, your actions speak too loudly!

20. Peter Drucker Functioning Communications

21. Communication… • … isPerception • It is the recipient who communicates. • One has to talk to people in terms of their own experience. Know what the recipient can see and why. • … is Expectation • As a rule, we perceive what we expect to perceive. • The unexpected is usually not received at all. It is not seen or heard, but ignored or worst, misunderstood. • What the recipient expects must be known before we communicate. • “Shock of alienation” needed if message is unexpected. • … Makes Demands • Demands that the recipient become somebody, do something, believe something. • Communication appeals to motivation. If it fits within the values and purposes of the recipient, it is powerful. • Else, it is likely not be received at all or, at best, resisted.

22. Communication and Information • Communication is perception, information is logic. • Information is always encoded. To be received, the code must be known and understood by the recipient. • Information presupposes communication. • Information is purely formal and impersonal. The more it can be freed of human component (emotions, values, expectations, perceptions), the more valid and reliable it becomes. Does communication need information?

23. Evolution of Communication Wisdom Knowledge Information Data

24. Six Steps to Effective Communications • Think through what you wish to accomplish. • Determine the way you will communicate. • Appeal to the interest of those affected. • Give playback on ways others communicate to you. • Get playback on what you communicate. • Test effectiveness through reliance on others to carry out your interactions.

25. Bank Network Migration Deliverables

26. Communication Conclusions • Don’t assume that the message you sent will be received in the form you sent it. Be aware of recipients' mental models. • The swiftest and most effective communications take place among people with common points of view (shared experiences). The manager who fosters good relationships with his associates will have little difficulty in communicating with them. • Communications must be established early in the project.

27. Communications Management Plan Team Exercise • Create Communication Plan for your project • Use PMBOK 10.1.3.1 items as guide (p.227)

28. Project Risks

29. Project Risk Management

30. Risk Management • Systematic process of identifying, analyzing, and responding to project risks. • Maximizes probability and consequence of positive events and minimizes probability and consequence of adverse events • Risk and information are inversely related • Historical focus were on schedule and cost. Today, more emphasis on technological risk management: • Can we design and build it? • What is the risk of obsolescence?

31. Basic Concept • Project riskis an uncertain event or condition, that if it occurs, has a positive or negative effect on the project • Risk management focuses on: • Known unknowns • Proactive management • Risk management effort should be commensurate with the risk and importance of the project The alternative to proactive management is reactive management, also called crisis management. This requires significantly more resources and takes longer for problems to surface.

32. Tolerance For Risk • Risk avoider • Risk neutral • Risk lover

33. Risk Management Planning • Methodology • Roles and Responsibilities • Budgeting • Timing • Risk Categories • Risk probability and impact definitions • Probability and impact matrix • Reporting format • Tracking • Process of deciding how to approach and plan the risk management activities for the project • Risk Mgmt Plan – risk management structure and performance for the project

34. Risk Identification • Process of determining risks that might affect the project and documenting their characteristics • Iterative process • Outputs • Risks (risk register) • Triggers “The starting point for best practices in risk management is the development of a classification systems for the types of risks.” – Harold Kerzner

35. Risk Categories • Technical, quality or performance • Project Management • Organizational • External • Legal / regulatory • Labor • Weather • Force Majeure: earthquake, floods, etc..

36. Risk Types Examples ABB • Contracts and agreements • Responsibility and liability • Financial • Political • Warranty • Schedule • Technical • Resources • Supply and demand chain management • Customer • Consortia • Environmental Boeing • Financial • Market • Technical • Production

37. Risk Breakdown Structure

38. Qualitative Risk Analysis • Assessment of risk impact and likelihood • Risk prioritization based on project impact

39. Qualitative Risk Assessment • Ordinal Scales(rank-ordered values) • High, Medium, Low • Red, Yellow, Green • A, B, C • Cardinal Scales(assigns values) • 0 to 100% for likelihood of occurrence • 0 to 10 for impact of occurrence

40. Risk Prioritization - Ordinal Model High Probability Medium Low Low Medium High Impact

41. Risk Prioritization – Cardinal Model 8 6 4 2 Probability 2 4 6 8 10 Impact

42. Risk Assessment Metric

43. Risk Assessment Metric 2

44. Risk Response Planning • Developing options and determining actions to enhance opportunities and reduce threat to the project’s objectives • Assigns ownership to risk response

45. Strategies for Threats • Avoidance– changing plan to eliminate the risk • Transference – shifts consequence of a risk to a third party, including ownership • Mitigation– reduces probability and/or consequences of an adverse risk to acceptable level • Acceptance– risk is assumed. Contingency plan may be developed or team may deal with the risk only at the time of occurrence

46. Strategies for Opportunities • Exploit– ensuring that the opportunity is realized • Share– allocating ownership to a third party best able to realize benefit / opportunity • Enhance– modifies size of the opportunity by increasing probability and/or positive impacts and by identifying and maximizing key drivers of the opportunities • Acceptance– risk is assumed, Contingency Plan may be developed or team may deal with the risk only at the time of occurrence

47. Bank Network Migration Deliverables

48. Risk WBS – MPLS Project

49. RISK MANAGEMENT Exercises • Develop a classification systems for the types of risks in your project • Identify project risks and triggers for your project (use Post-It Notes) • Use Ordinal Model to prioritize risks (agree on H, M and L definitions – probability and impact) • Fill-in Risk Response Plan Form • Update High-Level Risk section in your Scope Statement

50. Vendor Inputs