Notes for Project Boards > Value for money

Last time I promised to come back on the subject 'Money'. Money is one of the criteria used to control a project. In many cases however the information is about the budget, what was spend en what is left. But what do you know when you have this information? Well you have a reasonable view on the project status as is. But it is 'looking back' on what has happened. Is is usefull? Yes. Is it all you need to know? No!

As a member of the Project Board you will want to know if the project will be succesfull. You will want to know if the project will achieve its targets within the criteria you agreed on with our Project Manager. You will want to know if the product delivered sofar are value for money. You will want to know if the work, still to be done, will be achived within time and budget. Will the remaining product be produced against the agreed budget?

Therefor it is good to know a budget for a project, but wise to know what cost and value is connected to every product the project will produce. So do not agree to a budget based on hours times cost but have an overview of price per deliverables. Every deliverable has it's price and a value. When you spend money on a deliverable is should bring you some value. And if possible this value should be worth the money you spent on it.

So the project budget should be the sum of all product prices and you should have your Project Manager analyze the value you earned sofar and expect to earn with the coming products. With this method it cannot happen that you spent 80% of your budget and achieve 20% of your target. You might think you are on track (80%) but be aware you're having problems (only 20%).

Notes for Project Boards > The Money

So we agreed that money might be an interesting criterion to keep track of to see if a project is on target. You might say this is the easiest one, maybe besides the planning. Is the project ready in time and on (or below) budget. But what is the case?

Projects tend to start with a limited amount of information. This is evident. Projects start because the existing organization is not capable of doing the thing that is expected to be done. If that was the case we would not have started a project. See a posting some while ago. So in the beginning the budget is a bit fuzzy.

During (starting-up and initiating) a project, things become clearer. No problem so far. Get used to that being a normal situation within a project. And even on the go, information and circumstances can change so budget will need adjustments. But at a point in time your Project Manager will say: 'This is it. This is the money I need'. At that point in time you should wonder: 'What is he talking about?'

In many (not all) cases the money is based on spending for labor and purchases. How many hours will the team members spend on the project and what will we buy during the project. Sounds fine, doesn't it? Well, ok it is reasonably fine but not complete. You should expect an insight in the cost of the deliverables. The cost of a project product is a sum of costs of all separate products that will add up to this one final project product.

Do not settle for an overview of hours, cost per hour and a total. Ask for price per product. I will come back on this.

Notes for Project Boards > Freedom to move

When you have a project team and a Project Manager to manage this team, you would like to spend just enough time on managing your project. A widely used approach to achieve this is criteria and tolerances. Critical Success (or failure) Factors (CSF's) and Key Performance Indicators (KPI's). This sounds familiar doesn't it? Kaplan and Norton? Balanced Scorecard?

When you have a project, you in fact have a temporary organization with directors (you), management (PM) and organization (project team). And for this organization you will need some indicators to measure the performance of this organization. Will it work towards the desired result? And does it achieve this result within defined limits? A classic set of criteria consists of money, organization, quality, information and time. But it is up to you to drop or add any criterion you like.

Better is it not to just do what you like but what is good for your organization. Doing better what you already do very well is not useful. To improve what needs to be improved is much better. Therefor one can do a SWOT analyses on your organization and the project team. Where are the strength and weaknesses? Where are the opportunities and threads? This will help you understand what criteria you should pay attention to as they could go wrong and where you should not spend to much time on as your organization is very strong in that area.

A further nuance can be given through tolerances. Bear in mind that you can have different tolerances on different criteria and between positive and negative deflection. The interesting question is: 'What are good tolerances to work with?' I will come back on this n a next posting.

Notes for Project Boards > The Senior Supplier

'Well, if you know what you want, I will make it'. Is it as simple as that? A good supplier will not just make what a Senior User wants but take responsibility for that product. It is not only the Senior User who has requirements. There are requirements that the Senior Supplier should, or better, is obliged to consider when making the project product.

One has to bear in mind that the Senior User (in many cases) is not the specialist when it comes to the product. A pilot is not the specialist when it comes to plane construction. He will know how to fly one and might understand how it is constructed but being the specialist requires other competencies. Those competencies are to be expected from or at least represented by the supplier of the plane. In many cases those requirements are applied by law, regulation, good practices and so on.

In a Project Board the Senior Supplier should represent those requirements and when needed explain the consequences of those requirements. So both Senior User and Senior Supplier represent interests, requirements, restrictions of different kinds and origins that sometimes conflict with each other. And, as stated before, these should be discussed in the Project Board.

Notes for Project Boards > The Senior User

Who should be the Senior User. An interesting question that should be addressed very carefully. One can also wonder if the Project Manager is the one to decide on this question. I think not.

Senior Management or a program gives a mandate to an Executive. In both cases it is expected that it is clear who will use the final project product. This can range from a minor department in the organization up to all employees and even external parties like customers and suppliers. Users are important stakeholders of the final project product as in many cases they are expected to achieve the profit mentioned in the business case. It is therefor important that they are represented in the Project Board where discussions about what is produced and what is needed can be settled. The Senior User is the representative of all users. This can also be a department the will manage the product after handover.

To be able to take that representing role the Senior User should be given the right authority. He should be able to negotiate on the behalf of the users meaning that he should guard the requirements and he should be able to accept changes in the organization or processes to achieve the agreed profit.

In many cases it is not clear who is capable and in the position to take that role. It is therefor important that a Project Board takes time to seek and find the best suited functionary and arrange all needed mandates for him to take the role of Senior User. The Senior User role can be taken by more than one functionary. Make sure their responsibilities do not overlap. Keep the Project Board as small as possible.

Notes for Project Boards > Programs

I would now like to consider how a Project Board relates to a program. But before we do that we should consider the differences between a project and a program. As there are many books written about this subject one can understand that I will not fully go into this in one posting.

However, the statement that 'projects cost money while programs save money' helped me to get the difference a bit more clear. This is a bit short. Another way to look at it is the difference in attention area. Where programs tend to look for a bigger picture, a project focusses on a smaller area. This could be organization wide against departmental. Maybe this is more useful in your situation.

But what should be clear is that a project provides a part of the solution a program is aiming for. This is different from having a project portfolio and the management of it. The latter has more to do with setting priorities. Where do we spend the limited amount of money? Portfolio management can be a part of program management bit is just one of the attention areas.

All projects, also the ones initiated by a program should have Project Boards. A program will have several Project Boards with their own mandates. This will give project management team room to operate at their own pace and their own responsibility. A Project Board will be much more involved with the projects objective then a Program Board.

The Project Board will take its own role and responsibility and will respond to the Program Manager instead of to line management. And a Project Board should not leave this up to the Project manager. For what reason are you a Project Board? If it turns out that it is perfectly possible for a Project Manager to respond to a Program Manager one should consider if there is a program at all or if it is just a big project. If this seems to be the case a Project Board can, no should, take immediate action. Functional organization is one of the responsibilities of a Project Board.

Notes for Project Boards > Sleep better!

When a Project Board asks a Project Manager to manage the temporary project team, you would like him not to come back to you for every minor detail. What do we mean with 'minor detail'? These 'minor details' need to be made clear to both parties, the Project Board as well as the Project Manager. If one does not make good agreement on these details one runs into the situation that the Project Board will manage the project team on a day to day basis and will use the project manager as errand-boy and this will in the end not motivate him nor free you from work you do not have the time for.

The Project Board should give the Project Manager a portion with which he can move forward, if possible until the closure of the project. As long as the Project Manager can operate with given margins he can go along. This will help us, the Project Manager and your project team. The Project Manager does not need to come back to you for every variation. This will promote the efficiency and effectiveness of the project team.

But what exactly is a 'minor detail'? You will agree with the Project Manager to what level he will be free to move, within set directions by the way. Typical areas on which these agreements are made are budget, organization, time, quality, information and planning. You will give the Project Manager the freedom to go ahead as long as he can move with the given limits. You will understand that you can agree on any given set of criteria.

Make yourself comfortable and spend enough time on setting these criteria. Do not only consider project result but also the conditions and constraints the project manager should take into account when achieving these results. The project team will act professionally and it will make you sleep better!

Notes for Project Boards > Methods for production

There are many projects management methods. Most companies have adopted one as the standard for doing projects. But one has to bear in mind that a project management method is a way to manage a project. So it is about governance. It is about controlling the progress, handle decision making, handing over work and so on.

So let's be clear on the fact that it is not a method to 'make' something. For producing the (final) project product there are in many cases also methods. For example when developing an application one could use a software development method. But also for building a house, or to innovate, or to change an organization or selecting a software package there are methods.

In many cases the decision for which method to use for producing the project product is not taken deliberately or even at all. So when your company would like to make something she does not have a line organization for one needs a method to run the temporary project organization and a method for producing the project one is aiming for.

And, just to make sure, see to it that those two methods are not to be integrated to one method as they serve different purposes. See to it that you run the project with a project management method and produce your deliverables with another one. A good project management method is flexible so it will not inhibit the producing method from functioning.

Is this a responsibility of the Project Board? Yes and no. When a good project manager is selected, he will point the Project Board on this choice. But as stated before, the Project Board is responsible for the final project product. Sometimes it is better to have specialists on the product to be produced advise you on the methods available for this. In the end it is your choice.

Notes for Project Boards > Quality first!

The project started so now the Project Board can sit back. Not... ! Project Boards are the subject of this blog. We will continue to talk about the role of the Project Board. This time quality is at stake. What can a Project Board do to make sure the project and its results will meet all quality criteria?

From research one can learn the quality of the final product is determined by the quality of its parts which in their turn are determined by the quality of its production process. In a project we have a temporary organization with directors (you) and processes that should take place. And these processes should not only be executed but also adhere to certain demands and with some kind of evidence.

The organization that starts a project has a quality management system of some form that also sets quality criteria for projects. You, the Project Board are the link from organizational standards to project quality standards. So you have to make sure that the project arguably meets those standards. So agree on what quality standard are to be met. It is up to the project manager to make sure that happens.

Notes for Project Boards > Delegate but keep control!

With my last posting the Project Manager was in sight. He is the one to manage the project team. I also mentioned that the Project Board can have criteria a Project Manager should take into consideration when managing the project. There are limits within which a Project Manager is free to operate. This makes management by exceptions possible. You as a Project Board do not have to meet on a regular basis. Only when the Project Managers anticipates a shift out of given limits he might call a meeting with the Project Board.

Most common criteria are money, organization, quality, information and time. It is up to the Project Board to choose and set these criteria. Bear in mind that you, the Project Board, are considered to know the strength and weaknesses of your organization, you know where things might need your attention, what freedom is acceptable in specific circumstances. Again however this does not release your as Project Board from your responsibilities.

Of course you remain entitled to call a meeting whenever you like. Also in this case it is your understanding of the organization that helps you define what the best thing to do is. In many cases phases in a project are used to evaluate the past and consider the next steps. But remember the Project Manager is not expected to decide on these things but to advise and suggest. You are in charge and you will remain in charge by this way of working.

Later on we will consider Quality Assurance. And we will have to look into something called Project Approach. The criteria we mentioned in this posting will also need some further consideration. Are there other things you would like me to discuss?

Notes for Project Boards > Hail to the Project Manager!

Sooner or later we should discuss the Project Manager. This might look simple. 'Let's make him the owner of the project and that's it. Well... not so. There is some confusion about the role of the Project Manager. I could give many examples but I will not. You will have seen several of them in your own organization. It's all about responsibilities and communication.

What is the right sharing of responsibilities? This is not as difficult as its looks. One rule should be on top off mind in all discussions about the roles: 'The Project Board remains responsible for the final results of the project.' There can be more specifics to this rule like 'against a certain cost'; 'with a certain quality'; 'within certain time' and so on. However, to make this happen the Project Board should create conditions necessary to achieve the objective and check if the project remains within these conditions. Also the 'creation of conditions' is not the responsibility of the Project Manager.

But to manage the project team and the creation of the objectives on a daily basis one can hire a interim manager, in this specific case called a Project Manager. He will see to it, on behalf of the Project Board, that the project team keeps focus and remains within its limits. The Project Board however remains responsible. When this principle is taken in consideration not much can or will go wrong. Make sure it is clear for everybody in the project team.

Notes for Project Boards > What approach do you choose?

I already discussed 'What's a project'. In short: 'When everything else fails an initiative becomes a project', when there is no organization and processes in place to handle the request.

But what to do in case the requested result is fairly simple, there are few risks, planning is not essential and budget is not an issue? Or in case the request comprises of several standard requests that are interdependent? Will initiatives of this kind still require a project approach? It is clear that in those cases a complete project set up is far too much. In those cases one will need another approach. One could consider an ad hoc approach or coordinative activities to get the required result.

The question however is what do we mean when we say: 'fairly', 'few', 'essential', 'issue'. These are all relative compared to the characteristics of the organization, its environment, the growth phase and so on. A change can be simple for one and complex for another organization. Or what is now a big investment might at another point in time be considere as pocket money. Therefore one should consider the SWOT of an organization before one can decide on this. The right choice for a project approach is situational.

So, if no standard organization and processes are able to handle the request consider project approach, do SWOT analyses and decide on how stringent a project approach you will need. I will come back on approach in another posting.

Notes for Project Boards > What's the case?

Recently I joined a presentation on the Business Case by Michiel van der Molen. He wrote an interesting book called 'Waarom doen we dit eigenlijk?' (Dutch only for now meaning 'why are we doing this at all'?). A very strong appeal for the use of a business case when managing projects.

Of course it is about cost, scope, use and profit. But I was especially pleased by the importance of the reasoning behind the business case. What at all are we trying to achieve. What is the thing that matters most when making decisions on projects? To what end are we undertaking this activity? It's not to just make something, it is to achieve something.

For decisionmaking it is information to refer to. For projectteam members it is information that motivates them. It's the dream that helps everybody work in the same direction. That's why it is good to make a oneliner stating the dream of your project. It will sparkle the action and give focus in your project.

Notes for Project Boards > Get your act together!

What would be a logical composition for a Project Board. I will not go into stuff like Belbin and group process (for now). But if one takes charge, what does that mean. It means that the Project Board should consider three things. What is needed to be able to use the result, what is needed to make the result and what will it cost and provide? Any other requirement to a project result will come down to one of those.

The use of the result is by users, whoever and wherever they are. To be able to make the result, one needs providers, manufacturers, builders and so on. And of course there is money involved. Will the result help to achieve the business case? Discussions on these three matters should always be held in or at least be finalized and decided upon by the Project Board. Or put it in another way, the Project Baord must be able to discuss and decide within its own boudaries on these matters.

So the Project Board should be able to take the responsibilities on those three attention areas. This means that users, suppliers and company interest should be represented in the Project Board. Thats why Senior User(s), Senior Supplier(s) and Executive are the elected members of a Project Board. They will be able to succesfully finalize any project. Ofcourse, one needs a team to achieve the reults and for daily management one might need a manager. But whatever happens, the Project Board remains responsible for the result. Is next time the right time to discuss other team memebers?

Notes for Project Boards > Take charge!

Last time I already warned you that this time I might not yet consider the composition of the Project Board. This in indeed the case. Before I consider the composition I would like to say something about the responsibility of the Project Baord. There are misunderstandings about responsibilities as well as the meaning of the word itself.

Once upon a time a manager told me that only the day that I would walk into his office and state that I made a mistake ((instead of blaming others), I would be responsible. Responsibility is something you receive and pick up. One will not do without the other. If questions are asked one will respond because one is being and is feeling adressed. Although sometimes you are not the only one that can or will respond but you will be the only one obliged or expected to respond.

In projects, Project Boards are responsible for the results. I repeat: 'for the results'. Does the result do what it should do? Does the result deliver the profit it was expected to? Are the stakeholders satisfied with the result? I would like to stress that the Project Board and nobody else is responsible for this. You will have noticed that I did not mention the Project Manager sofar. And that is intentional.

Next time I will consider the composition of the Project Board.

Notes for Project Boards > There's a need!

Someone in the organization wants something. There can be several reasons for this need eg. efficiency, effectivity or innovation. It is important to keep an eye on these reasons. Sometimes that reason is forgotten. In that case you will have hard work on a solution that in the end does not satisfy the need. It is important not in the end to 'have' something but to have 'achieved' something. The fun is not in the having but in the using. To have a Maserati is nice but to (keep) driving it is fun. I think it is clear what I mean: 'Think well before you start'.

In the world of projects the overview of pro's and con's is called business case. What's the cost to get and to keep, what is the profit on the longer run and how do those two compare. In the world we live in many things change in a rapid speed, also during the lifetime of projects. The cost as well as the benefit can change. Therefor a Project Board should continiously check if the business case will be met. If cost becomes higher then profit it could be a good time to reconsider continuation of the project. So, it is fine to have needs but not at all cost. Remember that benefits are not always (only) economic terms.

Next time I would like to consider the composition of the Project Board. But as with all projects, you never know if something pops up that might push us in another direction. We'll see.

Notes for Project Boards > What’s a project?

The need for something is an important cause for having projects. It could be a manager, an employee, a (improvement) program having a need. This need will lead to some actions we will from now on call an initiative. An initiative can be a request for a change where there is an organization with processes and procedures available to execute that change. There could even be a Service Catalog where this change is described and priced. Is it completely clear what needs to be done and who should do it.
But sometimes an initiative ends up in a dark hole. There is no organization, no process, no clear view on what needs to be done. This is clearly something we never did before or is very exceptional. In this case we will need a temporary organization with all that comes along with it. A board of directors, middle management and a team. A project is born. Sounds a bit like Christmas .
So not the size, the complexity or any criteria determines if something becomes a project. Just when everything else fails an initiative becomes a project. So, stop asking yourselves what criteria can be used to decide if something is worth to become a project. Projects are initiatives that the existing organization is not equipped for. Or do you have another opinion?

Notes for Project Boards > Cause and effect

‘Is there a reason for blogging about Project Boards? Yes, there is!’ It so happens that many projects start without or with a weak Project Board. And we know that many projects are not successful. Could there be a relationship? I am sure there is. Let me make clear right away that having a poor Project Board is not the only reason for project failure. Most of the failures probably have other causes. However Project Boards can have great influence on the cause and effect of project failures. But what influence do they have?
Another point of view on cause and effect is the question weather a Project Board is a cause or an effect of a project. Which comes first and what follows from the other? Can there be a project without a Project Board? Can it be the other way around? And if at all we agree on this idea of having a Project Board, what would be its role? Should it act or react? What responsibilities does it have? What is its relation to the project? What is at all a project?
So, for now we have a lot of questions I intend to find answers for. But please feel free to give some answers yourselves. We’ll see where this brings us.