Valuendo Aiesec Importance Of Planning (2001) Handout

Importance of Planning

The importance of planning

AIESEC

Mr. Marc Vael
Managing Director
Valuendo

© 2001 Valuendo. All rights reserved.
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INFORMATION CLASSIFICATION = PUBLIC

Agenda

• Introduction
• Why is planning needed?
• Definition
• Critical Success Factors
• Conclusion
• Internet Sites

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Marc Vael AIESEC
Valuendo 2001
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Introduction
• Marc Vael
• Managing Director Valuendo (“value & do”) since July 2001
• Education
– Master Applied Economics (UAntwerp)
– Master Information Management (UHasselt)
– Master+ Applied Economics & ICT (KUL)
• Core Services
– Enterprise Risk Management
– IT Governance
– Information Security Management
– Data Privacy & Protection
– Business Continuity / Disaster Recovery
– Crisis Management
– IT Audit & Compliance
• Certifications
– CISA

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Planning: Why?
In 1999, of all projects :
• 25 % SUCCEEDED :
=> on time, on budget,
as initially specified
• 35 % were CHALLENGED :
=> late, over budget,
delivering less than specified
• 40 % FAILED :
=> canceled at some point

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Marc Vael AIESEC
Valuendo 2001
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Planning: Why?
The most elementary aspects are missing :

• 85% of projects starts without an accepted view
on costs and timeframe.
• The exact starting date is known in < 1% of projects.
• Of 15% of projects it is not clear if they are finished or
not.
• Scope enlargements are common in > 50% of projects.
• Less than 15% of project managers have created a
change-management plan to deal with scope changes.

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Planning: Why?
Why do projects fail so often?
– Poorly defined scope (incomplete requirements / specifications)
– Poor organization and management
– No standard vision / communication on the progress
– Wrong estimations (time and budget)
– Lack of proper resources
– Poor quality control
– “Silo vision”
– Conflicts between projects
– Organizational / Corporate Politics
– Problems are hidden for top management (quot;shoot the messengerquot;)
– Resource draining – “hardest shouting man” syndrome
– Lack of proper change management standards & procedures
– No study for (technical) feasibility
– Usage of immature / poor (technology) infrastructure
– Inadequate testing procedures/controls
– Project crisis management instead of project (risk) management
– No one is in charge (too many Indians and no chief?)
– Everyone is in charge (too many chiefs and no Indians?)
– Excessive / Unrealistic expectations
– Hidden costs

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Marc Vael AIESEC
Valuendo 2001
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Planning: Words from the wise

There is much to be said of failure.
It is more interesting than success.
Max Beerbohm

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Planning: Why?
Warning signs of a project heading for failure:

– A lack of scope / change control
– Real costs consistently exceeding budgeted costs
– Breakdown of team communication
– Team members working excessively long hours
– Decreasing team co-operation and enthusiasm
– Increasing number of “ad hoc crisis meetings” that are
held in an attempt to regain project control
– No presence of internal control & security requirements
– Missing or out-of-date documentation
– Resource consumption on non-issues
– Little or no “end-user group” interest and involvement

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Marc Vael AIESEC
Valuendo 2001
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Agenda

• Introduction
• Definition
• Conclusion
• Internet Sites

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Planning: Definition
•Program =
may comprise multiple projects or be a recurring project with
predictability, but with a new plan and unique product

•Project =
combination of complex, sequenced, goal-driven, interrelated
tasks and unique events
with a defined beginning and an end-date
to be executed bounded by resources, time and budgets
with many people involved and
resulting in a desired end-product or service.

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Marc Vael AIESEC
Valuendo 2001
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•Task (activity) =
a cohesive unit of work on a project divided into “work
assignments”

•Work Assignment (sub-task) =
individual activity required to complete a project assigned by the
project manager and/or subordinates of the project manager.
Subtasks are the steps needed to complete a task. These
subtasks are not traced in the plan.

Work
Program Task
Project
Assignment

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•Scope =
the size which determines how many resources, how much time
and how large the final product is.

•Project Resources =
time, people, money, equipment and facilities used to complete a
project.

•Project Sponsors =
people with a personal or business interest in the desired end-
results of a project (e.g. customers, managers, corporate
executives, shareholders and/or representatives of governmental
agencies).

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Marc Vael AIESEC
Valuendo 2001
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•Project Manager =
person designated as responsible for the management of all
activities necessary for the delivery of the contracted
deliverables to the end-customer to the customer's satisfaction
and within the agreed time and budget constraints.

•Deliverable (goals) =
clearly defined result, good or service produced during the
project or at its outcome. This may include organizational
attributes, reports, plans, physical products or objects.

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•Lag =
amount of time after one task is started or finished before the
next task can be started or finished.
•Lead =
amount of time that precedes the start of work on another task.
•Duration =
the time it takes to complete a task.
In a schedule, the duration is an estimate.
•Project duration = the time (usually in days) that it takes to
complete the entire project, from starting the first task to
finishing the last one.

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Marc Vael AIESEC
Valuendo 2001
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•Float (slack) =
the difference between the time available for a task and the
time required to complete it.
•Total float = latest finish - earliest start – duration.
If the total float for a task equals zero, then that task is on
the critical path.
•Work Breakdown Structure (WBS) =
hierarchical chart used to organize the milestones and tasks
of a project clearly into related areas. This is often
completed as a tree diagram or as an
outline. A completed WBS can be used for budgeting,
personnel selection, scheduling and network diagram
purposes.

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•Milestone =
summary of the completion of an important set of tasks or
event
•Resource loading =
the time individual resources (people, vendors, etc.) have
committed to a project.
•Resource leveling =
the process of shifting the use of resources to even out the
workload of team members and equipment. This will cause
changes in network diagram, budget or the timing of a
project.

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Marc Vael AIESEC
Valuendo 2001
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Planning : Definition
•Rush charges =
when external companies are rushed. A task which normally
takes 24 hours will cost more if needed in 2 hours.

•Project conflict =
people, priorities or problems begin to interfere with
completing a project on time and within budget.

•Project murder =
the sudden termination of a project for reasons that range from
rational to absurd.

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Agenda

• Introduction
• Definition
• Conclusion
• Internet Sites

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Marc Vael AIESEC
Valuendo 2001
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“Begin at the beginning” the King said,
gravely, “and go until you come to the end,
then stop.”
Lewis Carroll, Alice’s Adventures in Wonderland (1865)

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Planning: Critical Success Factors
(CSF)
1. Provide structure
2. Identify all stakeholders
3. Understand the scope
4. Proper resources
5. Risk management
6. Progress measurement & quality control
7. Change management
8. Contingency planning
9. Communication Strategy
10. Power of re-application

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Marc Vael AIESEC
Valuendo 2001
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The greatest mistake an executive can make
is to be afraid of making a mistake.
John Capozzi, 1997

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CSF 1: Provide structure
• What are you going to do?
• Provide detailed breakdown of
– the program in projects,
– the project in tasks,
– the task in work assignments
• Provide timing
• Provide cost
• Provide deliverables
• Provide people
• Provide place
=> WHO / WHAT / HOW / WHEN / WHERE ?

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Marc Vael AIESEC
Valuendo 2001
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CSF 2: Identify all stakeholders
Stakeholders
–Who?
»Steering Committee:
Guarantee appropriate control over key plans
»Sponsorship:
Drive the plan and ensure that it has the
appropriate resources (budget, technology
and people)
»Project Management Office:
Provide assurance to management with
regard to the overall plan, business and risk
management process
»Leadership:
Guarantee that appropriate strategies are in
place
»Customers:
Are identified and appropriately involved
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CSF 2: Identify all stakeholders
• Steering Committee Organization
– Full management buy-in and commitment
– Accountable sponsor with leadership
• The plan is based on a sound business case in alignment with
the overall business (strategy)
• Adequate authority levels are in place to “enforce” the plan
(approval/rejection power) based on a specific written
document
• Make sure that effective project management & QA office is
installed and active
• Direct and regular communication to all parties involved
• Appropriate incentive schemes are in place

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Marc Vael AIESEC
Valuendo 2001
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When you don’t know where you want to go,
any road will get you there.
Chinese proverb.

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CSF 3: Understand the Scope
• The scope is clearly defined, properly approved and
controlled
– What is wanted?
– What is needed?
– For which business processes?
• Scope is translated in
– detailed estimates
– a detailed inventory of assumptions
• Cost / Benefit analysis
• Detailed scope (in writing for each phase)
–detailed & realistic approach
–(tangible) deliverable definition
–scope limitations (“STRICTLY EXCLUDED”)
• The scope is communicated to all direct parties involved

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Marc Vael AIESEC
Valuendo 2001
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Give us the tools, and we will finish the job.
Winston Churchill, radio broadcast 1941

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CSF 4: Proper Resources
• Cost calculation & budget development
• Staff & resource planning
• Adequate financial resources
• Use metrics to validate funding needs
• Recognition of costs and approved funding
– Arrangements for technical personnel
– Arrangements for user personnel
– Arrangements for supplemental personnel
• Legal and contractual arrangements
• Top management involvement to determine approach
under strenuous conditions
• Human element is vital for success
• Allow margin of error (hidden buffer)
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Marc Vael AIESEC
Valuendo 2001
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CSF 4: Proper resources
• The team is cohesive and well-motivated
– defined roles, responsibilities and authorities
– clear structure
– know what the success criteria are
• Key personnel (including QA) is identified and available
• Active participation with key user buy-in, enthusiasm and
commitment
• Skills transfer (“delegation power”) and empowerment
strategies are in place (including the transfer of skills from
external to internal personnel and from team members to
end-users)
• Appropriate skills retention strategies and fall-back plans
are in place (outsourcing and downsizing issues)
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• Organization
–Milestone settings to identify subprojects
derived from master plan
– “You can’t eat an elephant”
–Business application and general controls
assurance: support the accreditation of new or
modified systems and assure that internal
controls meet the requirements
–Responsibilities?
»Execution and decisions
»Progress monitoring and communication
–Communication?
»Who to consult?
»Who to inform?
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Marc Vael AIESEC
Valuendo 2001
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• The responsible manager has to have following interpersonal
skills :
–a prophet
with prediction skills
–a politician
to sell anything needed and find compromises
–a police agent
to guard and enforce the rules of the game
–a surgeon
to detect and solve / eliminate problems
–an attorney
with the in-depth knowledge & negotiating skills
–a psychiatrist
with the people (listening) & analytical skills
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“Now remember, the first step in avoiding a
trap is knowing of its existence.”
From the movie DUNE

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Marc Vael AIESEC
Valuendo 2001
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CSF 5: Risk Management
• Risk identification and risk management plan
• The plan is business-driven with a detailed analysis of
business impacts (business benefits and costs)
(including external dependencies and performance
requirements)
• Include study of potential exposures :
– contracts and SLA’s
– liability and indemnification
– ownership of products/results
• Comparison of similar projects is useful
• The controls are focused on the provision of efficient,
effective and economic follow-up.

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The best preparation for good work
tomorrow is to do good work today.
Elbert Hubbard

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Marc Vael AIESEC
Valuendo 2001
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CSF 6: Progress Measurement &
Quality Control
• Detailed program with a functional breakdown into
manageable “sub”-projects, tasks, dependencies and
milestones
• Detailed time frame and priority setting
• Reasonable buffers in time and/or budget are always
incorporated in the plan
• Formal project methodology with standards and rules
– Appropriate logistics and infrastructure are in place
– Pilot plan with prototypes
– Testing methodology and environment (intra / inter)
– Documentation
• Use of resources and tools

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Quality Control
• Estimates
–Every hour of planning saves 10 hours of work
–The accuracy of an estimate is increased with the
power of the number of persons.
–Based on :
»own experience
»experience of colleagues
»experience of external experts / competitors
»historical data
»external metrics & estimate methods
»planning / QA methodology

Real-time,
Infrequent Very
Estimates Accurate

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Marc Vael AIESEC
Valuendo 2001
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Quality Control
• QA & Change Control is integrated in master plan
• Review of the plan
– expectations
– communication
– resources
– risks
– documentation of key issues and decisions
against QA standards and procedures
• Satisfaction verification via
– Survey
– “Lessons learned” meeting

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If you go into battle,
it’s better to win the first time.
George S. Patton, 1941

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Marc Vael AIESEC
Valuendo 2001
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CSF 7: Change Management
SCOPE CHANGE MANAGEMENT
• Flexibility to rapidly and effectively respond to changes
within the environment (live document)
• Mechanisms in place to enable rapid and effective
decision making (documentation, validation,
verification and communication)
TRANSITION MANAGEMENT
• Business readiness is assessed as ready prior to
execution
• Business change-agents / project champions
are identified and well-motivated

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Time waits for no one and nowhere is that
more true than when managing a project.
Project Manager and PM Teacher Jim MacIntyre

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Marc Vael AIESEC
Valuendo 2001
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CSF 8: Contingency plan
• Formal contingency plan (“what if”-scenario’s)
• Proper contingency resources (budget and people)
• Alternative plans with counter-actions in case issues
occur

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Graham’s Law: If they know nothing of
what you are doing, they suspect you are
doing nothing.
Robert Graham in Understanding Project Management

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Marc Vael AIESEC
Valuendo 2001
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CSF 9: Communication Strategy
• Official communication
– high-level management dashboard overviews
– detailed activity milestones and issue lists
• Communication management & strategy
– Despite phone, e-mail and documents are
PHYSICAL MEETINGS still the most effective
– distribution of regular concise status reports to all
relevant people involved is easy in order to receive
open and structured feedback
– emphasis on each success and focus on benefits
realized from each failure.

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CSF 10: Power of re-application
• All plans eventually lead to a deliverable, a result.
• Such result can be achieved again
– In other locations
– On a larger scale
provided following conditions are met :
– Complete and detailed documentation
– Track of all communications
– Lessons learned
• Avoiding re-inventing the wheel and
dependency of specific skilled people

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Marc Vael AIESEC
Valuendo 2001
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Planning: Critical Success Factors
(CSF)
The 10 CSF elements lead to

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Agenda

• Introduction
• Definition
• Conclusion
• Internet Sites

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Marc Vael AIESEC
Valuendo 2001
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Planning: Conclusion

Team

Deadlines
Sched End
ule
Budget Quality

Expectations

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Those who cannot remember the past
are condemned to repeat it.
George Santayana, 1905

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Marc Vael AIESEC
Valuendo 2001
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Planning: Conclusion

May the Force be
with you on your
Planning
Endeavors.
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Planning : Internet Sites
• Project Management Institute
– http://www.pmi.org/

• Project Management Forum
– http://www.pmforum.org/

• Project Net
– http://www.projectnet.co.uk/

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Marc Vael AIESEC
Valuendo 2001
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No project is too small
to not be taken seriously.
An Intel Project Manager

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Contact information

Mr. Marc Vael, CISA, CISM, CISSP, ITIL
Managing Director
Valuendo
Kriebrugstraat 33
1760 Roosdaal
Belgium
T: +32 5 433 61 93
M: +32 473 99 30 31
M: mvael@valuendo.com
mvael@ valuendo.com

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Marc Vael AIESEC
Valuendo 2001
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