PMI Global Congress 2012 Presentation

Implementing Formal Project
Management to Local Government
Projects

Session # IND07
Zahid Khan, PE, PMP
King County Solid Waste Division

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Presentation Outline

• Project management culture and practices in
Local Government Agencies (LGAs)
• Need for project management improvement
• Major challenges with project management
process improvements
• A Case Study – King County experience with
project management process improvement

©2012 Permission is granted to PMI for PMI® Marketplace use only. 2

LGA Definition
• LGAs are referred to as local agencies,
including cities and counties, that operate
independently.
• May provide a broad range of services including
development, maintenance, and operation of
infrastructure, utilities, and natural resource
management.


LGA Project Drivers

• Ordinances
• Federal, state and local regulations
• Utility services
• Environmental protection
• Stakeholder requirements


Project Management Culture in
LGAs [1/2]
Varies from organization to organization
depending on:
– Project Management Policies
– Project Management Maturity
– Formal vs. Informal Project
Management


Formal vs. Informal Project
Management
Formal Project Management
Consistently following a set of established
processes, protocols, and tools to manage all
projects within the organization.
Informal Project Management
Projects are managed by applying some elements
of project management processes without
comprehensive documentation, formal review,
change control, or approval.


Project Management Culture in
LGAs [2/2]

Organizational Structure
– Functional
– Matrix
• Weak Matrix
• Balanced Matrix
• Strong Matrix
– Projectized


Functional Organization

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) –
Fourth Edition, Project Management Institute, Inc., 2008, Figure 2-7, Page 29.

8

Strong Matrix Organization

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) –
Fourth Edition, Project Management Institute, Inc., 2008, Figures 2-10, Page 30.

9

Projectized Organization

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fourth
Edition, Project Management Institute, Inc., 2008, Figure 2-11, Page 31.

10

LGA Project Management Practices
[1/2]

• Projects are managed by applying varying
degrees of project management processes.
• Projects are managed by technical staff
rather than project management
professionals.
• Only a few agencies have formal project
management policies.


LGA Project Management Practices
[2/2]

• Majority of LGAs have policies for
procurement planning and contract
management.
• Focus on scope, schedule, and budget
management elements.
• Lacks formal project risk management
process.


Formal Project Management –
Snapshot


PMBOK® Guide
Based Manuals

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fourth Edition, Project
Management Institute, Inc.,2008, Table 3-1, Page 43.


Major Concerns with LGA Project
Management Practices
• Formal project management is viewed as a
costly or unnecessary step.
• Lack of consistency with application of project
management processes.
• Lack of documentation for monitoring and
controlling processes.
• Informal project management hinders project
success.


Problems with Informal Project
Management
• Insufficient or no documented basis for initiating
a project or a phase.
• No systematic plan to manage all aspects of a
project.
• Undocumented change management processes.
• Less likely to meet project objectives.
Scope creep
Delay
Cost overrun


What is Standardized Project
Management?
• Uses project management terminologies that are
recognized as industry standards.
• Applies common processes for:
– Initiating new projects or a new phase
– Planning and organizing project work
– Executing project work
– Monitoring & controlling project performance
– Closing a project or a phase
• Uses a singular project management methodology


Why Standardized Project
Management?

• Improve the likelihood of project success.
• Increase transparency to document effective
use of taxpayer’s $$$$.
• Maximize efficiency by applying a singular
project management methodology.
• Meet performance reporting requirements.


Challenges to Implementing
[1/2]
• Systematic project planning viewed as a costly
and unnecessary step.
• Lack of project management knowledge.
• Technical professionals managing projects often
focus on product more than project.
• Organizations without any directive mandating
project management.


Challenges to Implementing
[2/2]
• Requires concentrated effort by the organization.
• Lack of documented support from senior
management.
• Inadequate resources and funding.
• Resistance to change.
• Misunderstanding of the PMBOK® Guide.
• Organizational structure.

Key Challenges to Standardizing
Project Management
Other 14%

Lack of time 57%

Lack of Skills 71%

Lack of Support from Upper Management 57%

Cost Prohibitive 43%

Fear of Change 29%

Resistance to Change 86%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Source: Survey Monkey, through the National Association of Counties (NACo)


Data Collection Methods

• Internet Search
• Expert Opinion
• Informal Survey
• Survey Monkey
• Document Review


A Case Study of King
County Solid Waste Division


King County – Demographics
• King County is located in
Washington State
• 2,134 square miles
• Twice as large as the
average county in the
United States.
• About 1.9 million people,
ranking it as the 14th
most populous county in
the nation.


King County Organizational Structure


Business Description of the King
County Solid Waste Division
• Eight transfer stations and two drop boxes that
accept municipal solid waste.
• Cedar Hills Regional Landfill receives waste
collected at the transfer stations.
• Eight closed landfills.
• Household hazardous waste facilities.
• Recycling projects and programs.
• Regulatory compliance programs.


Bow Lake Transfer Station


Cedar Hills Regional Landfill
(CHRL)


CHRL – New Area Development


Project Management
Micro-cultures within King County
• Variable project management practices among
departments and divisions.
• Each division has their own project
• Project management maturity varies between
divisions.
• Organizational structure varies from functional
to matrix.


Drivers for Formalizing Project
Management Processes
• 2008 Ordinance 16308 - Creating the office of
strategic planning and performance
management
• 2008 Ordinance 16764 – Phased appropriation
& reporting requirements for high risk projects.
• 2010 Executive Order CIP 8-1 - Development of
consistent and comprehensive standards for
project management.


Key Elements of
Executive Order CIP 8-1
• Capital Project Budgeting & Reporting
• Common standards
• Common definitions and terminology
• Capital Project Management Standards
• Project management manual template
• A Performance Measurement
• Establish baseline


Project Management
Improvement Steps
[1/2]
• Issued Executive Order CIP 8-2
• Improving project management processes
• Investing in training and staff development
• Assuring accountability and transparency
• Establishing a baseline
• Project Performance Reporting


Project Management Improvement
Steps
[2/2]
• County-wide Project Management Work
Group (CPMWG) task force:
Common project management standards
Scalable tools and templates
Guidelines for minimum requirements
• Development of project management manual
• Focus on continuous improvement process


Efforts Undertaken by the
Solid Waste Division


Approach
Two Phased Approach
• Phase-I
– Assessment of current project
management
– Development of processes
• Phase-II
– Customization
– Implementation
– Continuous improvement


Phase I
• Project management needs assessment;
• Project management training;
• Project management manual development;
• Current organizational structure review; and
• Development of a project information
management and reporting (KCPRISM)
database.


Project Management –
Needs Assessment
• Reviewed policies, processes, protocols, tools,
and templates.
• Interviewed project teams, functional managers,
and senior management.
• Evaluated competency and knowledge of
project managers.
• Recommended need for improvement.


Recommendations of the Project
Management Needs Assessment
[1/2]
• Improve project risk management, quality
management, and human resources
management.
• Develop a culture that fosters both the
behavioral and quantitative sides of project
management.


Recommendations of the Project
Management Needs Assessment
[2/2]
• Implement scalable project management
processes and methodologies.
• Develop and implement an on-going project
management curriculum.
• Continuously improve project management
processes.


Project Management Training
Level I: Project Management Fundamentals
• Project management vocabulary and
terminology
• Project management processes and
knowledge areas
Level II: Applying PMBOK® Guide to SWD
projects
Level III: Project Management Training
Program
• Preparing participants to take the PMP exam


Project Management Manual
Development Goals

• Consistent with the five project management
process groups and nine knowledge areas.
• Ensure scalability and flexibility with
development of processes, tools, and
templates.
• Meet the CPMWG requirements.


Project Performance Reporting
Performance Green1 Yellow2 Red3
Reason for Deviation
Measure (Controlled) (Caution) (Critical)

Budget 
Schedule 
Scope 
T his P ha s e is
Project (Name) To tal B udget at
Co mpletio n
A ctuals Estimate to Co mplete
Estimate A t
Co mpletio n
(Co st) Variance at Co mpletio n (CVA C) Unde r ( O v e r)
B udge t by %
Phase BAC ACT ET C EA C VA C Unde r / ( O v e r)

1 Planning $ 500,000 $ 50,000 $ 450,000 $ 350,000 $ (150,000.00) 70.00%
2 Pre-Design $ 1,000,000 $ 100,000 $ 900,000 $ 1 00,000
,1 $ 100,000.00 110.00%
3 Final Design $ 1,000,000 $ 100,000 $ 900,000 $ 2,000,000 $ 1,000,000.00 200.00%
4 Implementation $ 1,000,000 $ 100,000 $ 900,000 $ 3,000,000 $ 2,000,000.00 300.00%
5 Close-out $ 500,000 $ 50,000 $ 450,000 $ 86,000 $ (414,000.00) 17.20%
6 Land/ROW $ 1,000,000 $ 100,000 $ 900,000 $ 2,500,000 $ 1,500,000.00 250.00%

Project Totals: $ 5,000,000 $ 500,000 $ 4,500,000 $ 9,036,000 $ 4,036,000.00 180.72%

Dashboard Analysis
DASHBOARD DEFINITIONS:
RED VAC is over 11%
YELLOW VAC is under 10%
GREEN VAC is under 5%
Baselined Date 9/21/2010 Planned Finish Date 12/31/2010
Estimated Total Project at Completion
$9,036,000 by the current finish date 12/31/2012
(EAC)
Estimated Total Project Variance (VAC) is Over Planned Total Budget ($) $ 4,536,000.00
This Total Project is is Over Planned Total Budget by (%) 80.00%


Realignment - Overview

• Review workload and organizational
structure to determine productivity.
• Identify organizational realignment and / or
restructuring to improve delivery of projects
and programs.
• Recommend an organizational plan.


Problems Related to Current

• Inconsistent management of projects;
• Lack of project prioritization;
• Communication gaps; and
• Projects not meeting schedules, budgets and
expectations.


Organizational Planning
Recommendations
• Balanced matrix organizational structure
• Project based matrix structure
• Project Management Office (PMO)
• PMOs can be established to provide a narrow
or broad set of services


Recommended PMO Responsibilities
[1/2]
• Establish a common set of project
• Deploy project management processes.
• Facilitate project communication.
• Establish a common repository for project
management documents.
• Provide training to build core competencies.


Recommended PMO Responsibilities
[2/2]
• Deliver project management mentoring and
coaching.
• Monitor and control all projects in the
organization.
• Track organization-wide project delivery and
the value being provided to the organization.
• Ensure consistent project management
practices.


Phase II
• Implementation of
• Project management manual
• KCPRISM
• Project baseline
• Update the project management
manual
• Strive for continuous improvement


Lessons Learned
[1/2]
• Executive orders and ordinances were very
helpful in obtaining senior management support.
• Executive champions played an important role
in improving project management processes.
• The needs assessment provided an approach to
improve project management processes.
• Effective implementation of new policies
requires detailed guidelines, training, and
necessary resources.


Lessons Learned
[2/2]
• CPMWG helped in the development of
common project management standards.
• Implementation of new project management
processes requires resources and time.
• A phased approach was applied in the
development of project management.


Conclusions & Closing

54

Conclusions and Closing
[1/3]
• Project management culture improvement
requires a holistic review of strategic
objectives, policies, organizational structure,
workflow, and stakeholder’s requirements.
• Integration of organizational processes is
necessary to formulate a singular
methodology for project management.


[2/3]
• If the organizational structure does not
support project management then
reorganization may be necessary.
• Project management should be encouraged
by all levels of management.
• Each layer of management should
understand their roles and must support.
• A comprehensive process improvement plan
should include executive commitments.

[3/3]

• Performance must be monitored and an
adaptive management approach should be
applied for continuous improvement.
• Establish and maintain a Lessons Learned
repository to ensure learning from completed
or failed projects.


Contact Information

Zahid Khan, PE, PMP
zahid.khan@kingcounty.gov
(206) 296-4419
Any other Contact
(http://www.linkedin.com/pub/zahid-khan-
pe-pmp/33/274/976)
Session #IND07


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