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DECISION MAKING:

A PRACTICAL FRAMEWORK FOR


PROJECT MANAGERS
Presented by:
Amos C.
C Townsend,
Townsend PMP
Director, Federal Management Systems, Inc.
www.FMSHQ.com

September 16, 2013

Ground Rules
This is meant to be interactive,, I will ask for your
y

participation and response throughout the session.


We will have questions at the end but feel free to ask

them during the presentation as need dictates.


All questions are good questions.

Objectives
Stimulate a conversation around Decision Making
g for

Project Managers
Examine tools and concepts for decision making
Define a decision making framework
Eliminate the notion of good
good or bad
bad decisions

Working Definition of Decision


decision
[ di s'n ]
something somebody has chosen: something that somebody
chooses or makes up his or her mind about
about, after considering
it and other possible choices
firmness in choosing something: the ability to choose or decide
about things in a clear and definite way without too much hesitation
or delay
process of choosing: the process of coming to a conclusion or
determination about something

Conditions for making a decision


In order to make a decision you:
y

MUST have at least two (2) choices from which to choose (to
do or not to do)

MUST involve something that is achievable

MUST have the POWER to decide

Exercise: Applying
pp y g decision making
g
conditions from a personal perspective.
Using
g the conditions from the p
previous slide for making
g

decisions, lets see what you think about the following.


Can you:
decide when you are born?
decide who your parents are?
decide the color of your eyes?
decide to be bald headed?
decide your name?
decide whether or not to follow y
your supervisors
p
instructions?
decide what grade you are if Government or pay level you are if

Private Industry?
decide how much education you get?

Focus of Decisions in Projects


In project management, decisions are required throughout

the Triple Constraints:


Scope (how much functionality, at what quality level, for how many

users, etc.)
Schedule (can activities be crashed, can activities be aligned

differently, can a provider change its schedule, can you skip/defer


activities, can milestones be missed or eliminated, etc.)
Cost (can a segment of work be allowed to come in over cost; can

you reduce the cost of a segment; can you afford a scope change,
etc.)

Townsends
Townsend
s Theory
There is no such thing as a Good or

Bad decision, BUT there is such a


thi
thing
as good
d or b
bad
d ANALYSIS
before making a decision.

Decision Making Framework


Create a constructive and workable environment for

getting decisions made


Involve the right people
Know the allowable parameters and authorities in getting
decisions made
Understand the organizational norms and processes
around the subject area about which a decision is to be
made
Ensure risk analysis is part of the process
Establish an orderly process for getting to decisions

10

Tools for the Decision Making Framework


When p
projects
j
are chartered,, there is one p
process activity
y

that I recommend be established as part of the Project


Management Plan (PMP)
The
Th process activity
ti it iis as iimportant
t t tto establish
t bli h att th
the
outset as Change Management, Risk Management,
Schedule Management, and others
The activity is to establish a Decision Matrix or Model
which is comprised of:
RACI Model
Decision Threshold Matrix

11

Responsible,
p
, Accountable,, Consulted,,
and Informed (RACI) Model
R
Responsible
ibl leads
l d the
th process and
d has
h the
th duty
d t and
d obligation
bli ti to
t do
d the
th
work. Must exercise independent judgment to escalate risks and issues.
R

Accountable - has been granted the authority to make the determination


and is recipient of consequences; the ultimate authority. Only one A can
be assigned to an activity.

Consulted stakeholders with expertise,


expertise experience,
experience and interests who
must be given the opportunity to influence plans and decision prior to
finalization.

Informed receiver of information on progress,


p g
keyy decisions, and
deliverables by the Responsible designee; its necessary for them to know
in order to collaborate well.

12

Decision Threshold Matrix Example


Decisions involving the creation and management of the BLANK Project Integrated Master
Schedule (IMS). Includes intra-Program and cross-project dependency identification and
management.

Schedule
Sub-type

Responsible (R)

Thresholds

Within

Schedule
Dates
Exceeds

Within

IPT Delivery
Partners
Schedule
Dates
Exceeds

Decisions that are


within the schedule
threshold for the
Project
Decisions that
d th
the schedule
h d l
exceed
threshold for the
Project Decisions that
affect a dependency
external to the Project
Decisions that affect
the Program critical
path

Decisions that are


within the schedule
threshold for the project

Decisions that
exceed the schedule
threshold for the project
or functional area
Decisions that affect
the Program critical
path Decisions that
affect a dependency
outside of the individual
schedule

Section Chief

Branch Manager

Accountable (A)

Consulted (C)

Informed (I)

Branch Manager

Delivery Partners

Selected IPT Delivery


Partner

Director

Delivery Partner
Managers

Section Managers

-Section Managers
g

Branch Manager
g

Delivery Partners

Branch Managers
Program Delivery
Managers
Delivery Partner
Managers Project
Business Owner

Delivery
y Partners

All IPT Delivery


Partner

Selected IPT Delivery


Partner

All IPT Delivery


Partner

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Decision Threshold Matrix


Matrix-continued
continued
Thresholds for BLANK Project
j
IMS Schedule Changes
g

within the Branch Manager Authority is + /- 5 work days


with no critical path impact. For Schedule Changes
outside those parameters
parameters, the Director
Director, XXXX Division is
the Authority. For BLANK IPT Delivery Partners Schedule
Changes within the IPT manager authority is + / - 5 days
f activities affecting
for
ff
O
ONLY
the IPT group with no critical
path impact. For Schedule changes outside these
parameters,, the BLANK Branch manager
p
g is the Authority.
y

14

Decision Threshold Matrix


Matrix-continued
continued
Characteristics:
Should have sections for each Triple Constraint area
Should go to the lowest level of granularity that is practical to
foresee in early project planning
Should be adjusted/amended/expanded as needed during the life
cycle of the project
Benefits:
Establishes a template for getting to the right person with the right
authority to make decisions
Introduces a repeatable process for getting matters before the
correct decision maker(s)
Provides clarity on which Stakeholders to include in the analysis
process
Eliminates
Eli i t uncertainty
t i t off who
h can d
decide
id

15

But how do they get me to a decision?


The RACI and Decision Threshold Matrix

do not get you to a decision


They do provide structure to go into the

A l i process tto gett to


Analysis
t a decision
d i i

16

Decision Making Framework


There are three components
p
to the Decision Making
g

Framework:
Gather Inputs
Analyze Information
Evaluate Outcomes (what are the possible positive or

negative
g
outcomes that can result from the decision))

The g
goal for all decision making
g should be to
maximize the probability of positive outcomes!

17

Decision Making
g Framework-Gather
Inputs
Goals to be achieved from the decision
Identification of achievable alternatives
What time is available (to make the decision, by which a

decision is required)
What time impacts are there for the alternatives under
consideration
What are the cost implications associated with the
alternatives
What are the scope implications, including quality, of the
alternatives
What are the data sources that are needed
Wh t risks
What
i k are associated
i t d with
ith each
h alternative
lt
ti

18

Decision Making
g Framework- Analyze
y
Information
Consider the resources needed for each alternative.
Consider the resource availability for each alternative.
What are the risks associated with each and mitigations

for them?
What is the organizational climate (risk averse, risk taking,
cutting edge)?
What regulatory implications are there for each?
What agency/company policy implications are there for
each?
Do you have sufficient information available for each?
Do you have the most current (especially for technology
i
issues)
) iinformation
f
ti on each?
h?

19

Decision Making
g Framework-Analyze
y
Information (continued)
What information do the p
parties in the Decision Threshold

Matrix have that could aid the analysis?


What customer perspective is needed for each
alternative?
lt
ti ?
When does a decision need to be rendered to be able to
communicate and implement it timely?
What happens if no decision is made?

20

Decision Making
g Framework-Evaluate
Outputs/Outcomes
Identify all the possible Positive outcomes that are

associated with each alternative. Positive means the


outcome
t
has
h good
d or d
desired
i d results.
lt
Identify all the possible Negative outcomes that are

associated with each alternative. Negative means the


outcome has bad or undesired results.
It is important to be honest and objective when
reporting to the Decision Maker the possible outcomes
for each alternative analyzed!

21

Decision Making Steps


Identification

Analysis

Render
Decision

Determine
D t
i that
th t a decision
d i i is
i needed
d d
Invoke the Decision Model and RACI
Develop alternatives and inputs

Assemble available data from the Input phase


Convene discussion or assessment teams as needed
Ensure
Ensure all available data,
data regulatory provisions,
provisions risks,
risks costs,
costs and scope implications are considered

Evaluate
Evaluate all potential outcomes (positive and negative) identified for each alternative
Determine the alternative that is most likely to produce the most positive outcomes
Make a decision
Communicate and implement the decision
Assess how well the selected outcome delivered the desired positive outcomes and document why or why not
for Lessons Learned reports

22

Itss the analysis that counts


It
counts
Effective decision making
g focuses on the three p
parts of

the Framework
Gather Inputs
Analyze Information
Evaluate potential outcomes

You have all the ingredients and the recipe


recipe
So lets go make some decisions!

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QUESTIONS!

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