Leading New Product Development Projects

1. Leading New Product Development Projects An Eagles Eye View by Marty Wartenberg for LAMP 2014

2. Part 1 Topics • Introductions and purpose • You as the audience for my sessions • Project success or failure criteria • Project Management for various industries • New Methods in Project Management • Case study introduction • Open Discussion Excellence in Project Management

3. Assumptions and Scope • Most, if not all of you know the basics and fundamentals of PM well enough • If you plan to really run big projects, sign up for the UCSD PM Classes • At some point in the not too distant future, you may be managing project or program managers 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014

4. Project Management: Official Definition A project is a temporary endeavorundertaken to create a unique product or service. It implies • a specific timeframe • a budget • unique specifications • working across organizational boundaries

5. Project management is about organization Project Management: Unofficial Definition Project management is about decision making Project management is about changing & influencing people's behavior Project management is about creating an environment conducive to getting important projects done!

6. Is there a standardproject framework? Project Management Competencies: 5 Project Processes Initiating Planning Executing Controlling Closing 9 Knowledge Areas Integration Scope Time Cost Quality Human Resources Communication Risk Management Procurement Stakeholder Management General Management Skills Leadership Financial Customer Orientation Politics Subject Matter Expertise Financial Acumen Technical Software The Project Management Basic Skill Set

7. When do you need to really know how to manage projects? Probably not! • Really small and short • Only you are on it • Internal use only • Not much visibility • Few changes • Does not matter how long it takes or if it gets finished You Probably should! • Long term (over 3 months) • Multiple people • Multiple departments or functions • Changes likely • Outsiders involved • High Visibility • Some body cares that it gets done correctly 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014

8. Why Project Management? • Today's complex environments require ongoing implementations • Project management is a method and mindset…a disciplined approach to managing chaos • Project management provides a framework for working amidst persistent & constant change

9. The Leaders Role From The Top Create the Vision for the organization Determine the strategic goals of the organization Select the strategy for achieving these goals Define the success criteria for each strategy Assign the “right” people Communicate the vision and purpose Provide help when necessary

10. Project Team Member Roles and Missions Create the tactics necessary to meet the over all strategic goals Working with the “boss” create a system in which you can select the “right” projects and assign priorities based on all factors of importance (portfolio management) Establish the base line criteria for each tactical project Monitor and Control on-going work to ensure meeting project success Take corrective actions when necessary Escalate issues when the situation is beyond your control

11. Common Project Management Issues • Alignment of projects to organizational mission, goals and objectives • Resource conflicts; being spread too thin • Organization: traditional vs. a matrix, and how to get things done when you are not in control • PM role; Supervisor of many, but manager of none. • Managing smaller projects and keeping track of them • Being organized when organization is not your greatest strength

12. Activity: chart what has worked well & what hasn't in your company. In Groups, spend 15 minutes discussing what has worked well… what hasn't when it comes to managing development type projects in your organizations Chart + / -

13. Marty’s Score Card for Project Success Initiation and Planning Phase (score 10% for each Yes) • Is the PM involved in the initial project selection and sizing? • Is at least 50% of the team selected by the PM based on competencies and personal traits? • Are the project requirements developed by the team and SME’s? • Is at least 75% of the team co-located? • Does your project have some priority & management support? Execution including PM&C (score 10% for each Yes) 6. Do you have a reasonable change control process with the ability to re-plan and re-baseline based on approved scope changes 7. Do you have a monitoring and control system similar to EVPM in place? 8. Does the project manager have the authority to take corrective actions to keep the project on track? 9. Does the project have sufficient priority to maintain the staffing level? 10. Have you defined the metrics that would allow for project completion with agreement from stakeholders? A score of less than 70% is a pretty good indication that your project will fail.

14. Ranks of Project Failure • Challenged (Standish Group Chaos report) – Fail to deliver complete functionality, sufficiently over run and late to make stakeholder unhappy, but not enough to fire the project manager or cancel the project. • Death March or Zombie Project (Ed Yourdon) - It just keeps going and project staff and managers either die or burn out and appear to be alive, but the project will never end despite all the prayers • Runaway Projects – (R. Glass) Almost but not quite a complete disaster. The team is destroyed and the organization is severely damaged and at some point, we just say we are done and claim victory. • A Galloping Gertie Project (Jeffrey Pinto) – A complete and unmitigated failure that is so public that you can not hide. Careers, lives and organizations are destroyed. THIS and NOT THIS

15. Why Projects Succeed! • Project Sponsorship at executive level • Good project charter (Start it right!) • Strong project management • The right mix of team players • Good decision making structure • Good communication • Team members are working toward common goals Packers coach (Leader) Mike McCarthy talks about his winning game plan and QB Aaron Rodgers (PM)

16. Leadership Team Sets the Project Success and Failure Criteria • Definitions of Success • Criteria for consistently successful project management • Role of the Executive team to ensure or improve the likelihood of success • Your individual roles, mission and responsibility Saru mo ki kara ochiru (even monkeys fall from trees).-Japanese saying

17. Unclear or unrealistic goals and objectives Bad Estimating in any one of the three variables Selection of Project Manager and Team Lack of corporate sponsor or champion Primary Causes of Project FailurePre-Startup Activities “If you always do what you always did, you always get what you always got. If you don't want what you got, don't do what you did. If you like what you got, do it again” Anon. The PM's plight

18. Planning Phase • Goal and Objectives Setting • Developing Exit or Success Criteria • Good Project Resource Constrained Scheduling • Including Key Stakeholders in planning (management?) • Communicating the Plan • Getting Buy-in for the Plan • Considering Potential Risk Events • Dealing with priority issues

19. Implementation Phase • Controlling and Managing Scope Creep • Controlling Features Creep • Manage invention and new approaches • Watching for New Risks during life of the project • Not Monitoring Key activities • Lack of Control when Deviations occur • Finishing the last 10% • Priority and Portfolio issues • Not Sharing Lessons Learned Lets look at one of your home grown tracking tools

20. Role of Executive Management • Initiate or support a project culture • Reward and Reward Not* environment • Portfolio management and a mechanism for prioritizing projects and phasing projects • A mechanism for allocating scarce resources and resolving inter-project conflicts • Have developed a criteria for selection or de-selection of project managers • Create a climate in which lessons learned are normal and not to be feared during the project life-cycle • Be available as champions for selected projects and provide support as necessary • Sponsor and fund the success party at the end of the project (give credit when applicable and deserved) * Reward or Reward Not is used in lieu of penalties or punishment

21. Top Management Expectationsfrom Project Managers • Results/Accountability with minimum organizational interruption • Effective Reports and Information • Recommendations – Based on evaluation of alternatives • Interpersonal Skills • Self discipline • An omnivorous capacity to analyze and problem solve & prevent

22. Responsibility of the Project Manager • Take personal responsibility & accountability for all aspects of the project • Always provide accurate and honest inputs regarding the status of the project • Escalate problems early when they are beyond the ability of the project team to solve without additional help (beyond the scope of their charter) • Not bother management with trivial issues • Handle internal project issues and problems to the extent possible

23. Who is the project manager? with overall responsibility to deliver projects that are… The individual… Within budget On schedule and Within Scope

24. How is a project manager selected? Trait is defined as a personal characteristic such as a physical or personality feature. Competencyis defined assomething you can learn from a book, a class or watching others. Learning to use MS Project, or to do risk analysis are examples. 1. What traits are needed? 2. What competencies?

25. Activity: chart the characteristics / skills of a project manager. In Groups, spend 15 minutes discussing the characteristics &skills of a successful project manager as viewed by your company. Chart Skills &Characteristics

26. What are the must have skills? • Clarity and immediacy of communication • Ability to work with a wide range of people • Successful experience running this type of project • A self starter who can provide a climate in which team members can be motivated • Understands the technology or business area of the project • Is well organized and pays attention to detail • Can see how the project fits within the “big” picture

27. What are the nice to have skills? Is pleasant to work around Has a good sense of humor Understands how to use project software Isn't too busy doing something else Brings cookies to meetings Able to coach and mentor

28. The Vision Thing “Creating a vision for the project that is sufficiently compelling to get a bunch of people sufficiently motivated towards its achievement” DSMC and PMI Survey People will put in the necessary effort to achieve something that they perceive as worthwhile

29. Defining Deliverables • Outcome or exit or success criteria • Level of adequacy • Form of deliverable • Plan time for some rework

30. Resource Planning • You are usually “borrowing” parts of people, including yourself • Impacts of multi-tasking and its inefficiencies • Some people take longer to do things • Some people may not do things as well

31. Establish success criteria Monitor and measure performance Analyze “short falls” Take corrective action & revise plans as necessary Measuring and Achieving Results

32. . What is a project life cycle and why should I use it? The phases that define the beginning and end of a project The points at which sign-off is (generally) required Defined to provide better management control and reviewat each phase completion A collection of generally sequential project phases whose name and number are determined by the control needs of the organization Planning and resource allocation based on life cycle model selected It is not just a pretty picture, but a model of how the organization wants projects structured and managed.

33. Life-Cycle Concepts UPGRADES Operations Divestment BUSINESS PLAN PRODUCT IDEAS Intermediate Phase Initial Phase Final Phase (Start) (Do) (Finish)

34. Samples from other industries

35. Various Organization Structures Functional Organization Hybrid Organization Structure Special Project Office Skunk works Phantom works Tiger Teams Special Action Teams Dragon Teams HPT’s JDIT’s New Dev teams iPT’s and IPPT’s

36. Role of a PMO in a Matrix or Hybrid Organization Establish and maintain priorities Provide standards, methods processes and help to project teams Maintain organizational capacity and help determine assignments based on needs and priorities Provide over sight and audit functions Train and certify project managers Select and maintain project tools

37. Project Management Methodologies • Seat of the pants (lightweight) • Agile Methods (Middle weight) • PMBOK, PRINCE2, NASA Lab, Mil Type (Heavy weight) 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014

38. Aerospace Projects • Heavyweight • Structured • Requirements defined by SOW and Spec’s • Project Planning and structure defined by Mil Spec or Company Process Manuals • Large and usually part of a program • Long term and a lot of changes over time

39. Life Science Projects • Long term • Complex with a large number of functional specialties • Reluctant to accept standard PM practices • High failure rates and delays in completion • FDA development guidelines usually impact the planning process. • Lab and Mfg. best practices impact project activity

40. Commercial Development Projects • System types (Hardware and software) • Heavily influenced by early work by HP, 3M and Xerox in terms of development methods and use of phase gate methodologies • Medium failure rate and rapid development becoming the focus

41. Construction Projects • Very high Success rate • Well planned and documented • Project Manager usually highly skilled • Project teams selected carefully and trained • Very good in terms of exit or success criteria October 2009, Fluor was awarded the Project Management Institute's (PMI's) "2009 Project of the Year Award" for work performed on the Newmont project. The PMI award is the organization's highest honor and was supported by Newmont's project manager. Also, in 2009, Power magazine named the Newmont power project a "Top Plant" for its many innovations and state-of-the-art technologies

42. Determining PM Methodology • How much project management is enough? • Heavy weight or light weight approach to planning? • The more complex, the more PM required • Simple low complexity projects minimize the extra PM work

43. Applied Methodologies • For each of the industries at your table – select the most appropriate approach to PM • What are the unique characteristics that the focused PM process must address Software Development 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014

44. Agile Project Tools • Kanban for Planning • Sprints • Burn Down Charts • Retrospectives • Range Estimating • Stories for Requirements • Daily Stand up Meetings • Product Owner Involvement 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014

45. Critical Chain Project Management • Eli Goldratt – the Goal and Critical Chain • Impact of sharing resources on the critical path • Impact of multi-tasking for knowledge workers • Concept of buffers 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014 9/8/2014

46. Questions and Open Discussion