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DEPARTMENT: Mechanical Engineering SEMESTER: 2nd SEM

Project Management
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11

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UNIT - 2

Idea Generation
22 Click to edit Master subtitle style

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: Iterative & Overlapping

LE V E L O F A C T I V I T Y

Executing Process Initiating Process Planning Process Controlling Process

TI ME

Proprietary - PMI Pittsburgh

Closing Process

PROJECT START

PROJECT FINISH

CONCEPT

DEVELOP

IMPLEMENT

CLOSEOUT

PHASES OF THE PROJECT LIFE CYCLE

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The Five (5) Project Variables

Proprietary - PMI Pittsburgh

Scope

Resources

Time

5 Key Project Variables

Quality

PM

Cos t

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Percent age Comple te 100%

Installation substantially complete Major contract let Project go decision Phase 1 Phase 2 Planning & Design techdesign cost estimate Phase 3 Execution fabrication constructio n

Full operation

Phase 4 Turnover final testing maintenanc e

Feasibilit y study suggestio n

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Phase 0

Phase 1

Phase 2

Phase 3

Phase 4

Determi -nation Concept Engineering Production Operation Demonsof the Exploration and and and tration Mission and Manufacturing Development Supporting and Need Definition Validation Development Milestone 0 Concept Study Approval Milestone 1 Concept Demonstratio n Approval Milestone 2 Development Approval Milestone 3 Production Approval Milestone 4 Major Modification Approvals

Project Life Cycle of DOD of USA for Acquisition

Project Management Processes

Initiating Processes Planning Processes Executing Controlling Processes Processes Closing Processes

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Links Among Process Groups in a Phase

Project Management Processes

Design Phase Implementation Phase Initiating Processes Planning Processes Executing Processes Controlling Processes Closing Processes Executing Processes Initiating Processes Planning Processes Controlling Processes Closing Processes

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Interaction between Phases of a

Project Management Processes

Level of Activity Executi ng Planni Process Controlli ng ng Proces Process s

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Initiati ng Proces s Phase Start

Closing Process Phase Finish

Overlap of Process Groups in a Phase of a project

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Shown below is the relationship between the various project phases. The concept phase is the first phase and overlaps with the project planning. Activities conducted during the concept phase will eventually be integrated into the various planning documents and/or will drive the planning elements such as schedule and budget.

Project Management Phases

P ject M ag en P cesses ro an em t ro P je T e F m ro ct im ra e

S P ject tart ro C cep on t

P roject C ncep o t an d D efinitio n

In l itia P roject P n lan ing

P roject S tart-U / p B aselin e

P ject ro P rm ce erfo an O eration and p C se-O lo ut

Major Questions to be Answered During the Concept Phase

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W h a t is to be done? W h y is it to H o w w ill b e d o n e ? it b e d o n e ?

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Project Selection

Project Identification Appraisal Selection

Project Project

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Objective

Strength

Weakness Opportunities Threats Alternative

project possibilities

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Search new ideas

What

are the objectives? to generate alternative

Brainstorming

solutions
SWOT Other

Emerging

market trend

analysis constraints

Shortlist

candidate idea for detailed scrutiny.

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Motivation
Projects

are means to accomplish some goals

Individual/family Organizational Nations Project

/global

identification begins in response to the specific needs or the objectives.

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Objectives
To To To To To To To

increase profits minimize the threat of losses become more competitive provide help after disaster train people in new area reduce the level of pollution become a successful enterprenuer

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SWOT Analysis
Objective Experience Resources Environment Keeping

pressure

these factors in mind SWOT analysis is made to identify & select a suitable project.

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Strengths
Expertise/experience Financial

position contacts

Industrial Capital Foreign

raising capabilities collaborations

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Weakness
Newer

unfamiliar technologies to raise huge investments

Inability Lack Lack

of experience of trained personnel to forecast market trends

Inability

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Opportunities
Emerging New New

new technologies

products with new markets processes with better features financial schemes incentives & schemes

Special

Government

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Threats
Competitor Poor

state of economy technology management skills

Outdated

Unprofessional New

products & services

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Sources of new product ideas

Marketing Research Top

& sales people

& development department

management

Production Consumers

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Brainstorming
Receptive A

to take idea from all (top to Bottom)

good means to generate new project idea is on uninhibited idea by a group

Focus

Listing

of idea without suppressing creativity at source. listing the idea once taken is subjected to screening & evaluation subsequently.

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Idea synthesis technique

SCAMPER IDEA

BOX

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Scamper
Scamper

is a checklist of idea spurring questions substitute? combine? adapt? modify or magnify? put to other use? eliminate or minimise? reverse?= rearrange

S= C= A= M= P= E= R=

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Idea Box
Idea

box is an excellent technique of synthesizing idea. It is based on grouping idea by category/ channel or parameter, then testing various combinations to look for unusual but effective approaches.

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Screening of ideas
Poor fair good V good Excellent

(1) Weight Cost Risk Return 40% Hazard

(2)

(3)

(4) 20% 30%

(5)

10%

Score = 2X0.2 + 3 X0.3+ 4X0.4 + 2X0.1= 3.1

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Criteria in screening projects

Investment Similarity to

existing business

Rate of return Expected life Risk Flexibility Likely profit Environment Payback Competition

impact

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Morality of new ideas

No.

of ideas are initially too many & during screening this number reduces to one third. ideas are further subjected to rigorous evaluation during appraisal the appraisal three fourth of the ideas are reduced ( appraised on technical, financial & market viability) the end of the selection we are left with only one project

The

After

At

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Market Appraisal
What

would be the aggregate demand of the proposed product or service?

What

would be the market share of the project under appraisal?

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Technical Appraisal
Whether

pre-requisites for the success of project considered?

Good

choices with regard to location, size, process, machines etc

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Economic Appraisal
Social

cost -benefit analysis

Direct

economic benefits and costs in terms of shadow prices

Impact

of project on distribution of income in

society

Impact

on level of savings and investments in

society

Ecological Appraisal

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Impact of project on quality of :

Air Water Noise Vegetation Human life

Major projects ,such as these, cause environmental damage

Power plants Irrigation schemes

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Financial Appraisal

Whether the project is financially viable ?

Servicing debt

Meeting return expectations

Financial Appraisal of Projects

Estimation of cost of the project and its timing. Estimation of the likely revenues during each period. The cost of capital. The planning horizon of the project.

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Financial Criteria of Interests

Net

present value

Internal

rate of return

Simple

before/after tax rates of return

Equivalent

annual cost

Payback

period

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Project Conception:
Conception

of an Industrial Project is the initial step in the process of defining the actual scope of a project. Project conception generally starts with a manifestation of a requirement or an opportunity that will benefit the corporate interests, and culminates when one or more preliminary options have been formulated which will, theoretically, satisfy the companys expectations as originally presented

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Stages of Project Conception:

Initial

conceptualization of a project has various degrees of complexity, depending on the nature of the specific project and the particular analysis and approval procedures used by a company. companys planning strategy may require formulations of programs involving several projects. Conception of the overall program should then precede conception of the individual specific projects.

The

The conceptual stage involves the following activities:

1. Definition of a requirement or an opportunity that commands the interests of the company. 2. Formulation of a set of preliminary alternatives capable of fulfilling the initial requirement. 3. Selection of alternative(s) that might satisfy the requirements in terms and conditions attractive to the company.

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1. Definition of the Requirement of Opportunity:

The

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continuity of efficient operations and the opening of the new business areas are the main drives for capital investments for industrial firms. Investment opportunities are detected through operational analysis of current performance and by forecasts of the most likely future scenarios. the scope of any new investment is likely to be vague. Subsequent definition involves consideration of all available relevant facts, required resources and constraints associated with the original idea.

Initially,

Preliminary Formulation of the Alternatives:

Project

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conception continues with development of alternatives capable of fulfilling the expressed objectives. The preliminary formulation of alternatives is important as it sets the pace of the subsequent definition and elaboration of the project scope. During this phase, the company calls upon the experience and creativity of its technicians, manager and directors to generate an adequate group of alternatives to fulfill the expressed need.

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Initial Selection of Alternatives:

After

the alternatives have been identified, comparative analyses are made in order to select the most beneficial and to reject the least attractive. The selection process employs a basic feasibility analysis of each alternative the establishment of criteria that will allow the identification of the most attractive options. this point, further consideration of the rejected alternative is terminated along with the need to prepare elaborate definitions for them. cost, schedule, profitability, and other salient advantages and disadvantages of each of the selected alternatives are assessed in terms of order

At

The

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Feasibility Study
A

feasibility study is an analytical tool used during the project planning process, shows how a business would operate under an explicitly stated set of assumptions. These assumptions include the technology used (the facilities, types of equipment, manufacturing process, etc.) and the financial aspects of the project (capital needs, volume, cost of goods, wages etc.).

What is Feasibility Assessment?

As

the name implies, a feasibility study is an analysis of the viability of an idea. The feasibility study focuses on helping answer the essential question of should we proceed with the proposed project idea? activities of the study are directed toward helping answer this question. studies can be used in many ways but primarily focus on proposed business ventures. and others with a business idea should conduct a feasibility study to determine the viability of their idea before proceeding with the development of the business.

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All

Feasibility

Farmers

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Feasibility study
A

feasible business venture is one where the business will generate adequate cash flow and profits, withstand the risks it will encounter, remain viable in the long-term and meet the goals of the founders. The venture can be a new start-up business, the purchase of an existing business, an expansion of current business operations or a new enterprise for an existing business.

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Feasibility Study
A

feasibility study is only one step in the business idea assessment and business development process. Reviewing this process and reading the information below will help put the role of the feasibility study in perspective. feasibility study is usually conducted after producers have discussed a series of business ideas or scenarios. The feasibility study helps to frame and flesh-out specific business alternatives so they can be studied in-depth. this process the number of business alternatives under consideration is usually

During

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Pre feasibility
A

pre-feasibility study may be conducted first to help sort out relevant alternatives. you find out early on that the proposed business idea is not feasible, it will save you time and money. consultant may help with the pre-feasibility study, but one should be involved. This is an opportunity for one to understand the issues of business development.

If

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Feasibility Study
A

market assessment may be conducted to help determine the viability of a proposed product in the marketplace. The market assessment will help to identify opportunities in a market or market segment. If no opportunities are found, there may be no reason to proceed with a feasibility study. If opportunities are found, the market assessment can give focus and direction to the construction of business alternatives to investigate in the feasibility study. market assessment will provide much of the information for the marketing section of the feasibility study. conclusions of the feasibility study should

The

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Do

not expect one alternative to jump off the page as being the best one. Feasibility studies do not suddenly become positive or negative. decision of whether to proceed often is not clear-cut. Major stumbling blocks may emerge that negate the project. these weaknesses can be overcome. Rarely does the analysis come out overwhelmingly positive. The study will help to assess the tradeoff between the risks and rewards of moving forward with the business project.

The

Sometimes

 It

is not the purpose of the feasibility study or the role of the consultant to decide whether or not to proceed with a business idea; it is the role of the project leaders. go/no-go decision is one of the most critical in business development. It is the point of no return. Once it has been definitely decided to pursue a business venture, there is usually no turning back. The feasibility study will be a major information source in making this decision. feasibility study is not a business plan. The separate roles of the feasibility study and the business plan are frequently misunderstood. The feasibility study provides an investigating function. It addresses the question of Is this a viable business venture? The business plan

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The

 The

feasibility study helps to narrow the scope of the project to identify and define two or three scenarios or alternatives. The consultant conducting the feasibility study may work with the group to identify the best alternative for their situation. This becomes the basis for the business plan. feasibility study is conducted before the business plan. A business plan is prepared only after the business venture has been deemed to be feasible. If a proposed business venture is considered to be feasible, then a business plan constructed that provides a roadmap of how the business will be created and developed. business plan provides the blueprint for project implementation. If the venture is deemed not to be feasible, efforts may be made to correct

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The

The

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Project

leaders may find themselves under pressure to skip the feasibility analysis step and go directly to building a business. Individuals from within and outside of the project may push to skip this step. include: given for not doing feasibility analysis

Reasons

We know it is feasible. An existing business is already doing it. Why do another feasibility study when one was done just a few years ago? Feasibility studies are just a way for consultants to make money. The feasibility analysis has already been done by the business that is going to sell us the equipment.

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From

a financial perspective, project selection is basically a two -part process. the organization will conduct a feasibility study to determine whether the project can be done. second part is to perform a benefit-to-cost analysis to see whether the company should do it. purpose of the feasibility study is to validate that the project meets feasibility of cost, technological, safety, marketability, and ease of execution requirements. is possible for the company to use outside consultants or Subject Matter Experts (SMEs) to assist in both feasibility studies and benefit-tocost analyses. A project manager may not be

First,

The

The

It

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Once

feasibility is determined, a benefit-to-cost analysis is performed to validate that the project will, if executed correctly, provide the required financial and nonfinancial benefits. Benefit-to-cost analyses require significantly more information to be scrutinized than is usually available during a feasibility study. This can be an expensive proposition.

Types of Feasibility: Feasibility is of the following types

1. Technical Feasibility:
This

area reviews the engineering feasibility of the project, including structural, civil and other relevant engineering aspects necessitated by the project design. technical capabilities of the personnel as well as the capability of the projected technologies to be used in the project are considered. some instances, particularly when projects are in other countries, technology transfer between geographical areas and cultures needs to be analyzed to understand productivity loss (or gain) and other implications due to differences in

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The

In

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2. Managerial Feasibility:
Demonstrated

management capability and availability, employee involvement, and commitment are key elements required to ascertain managerial feasibility. addresses the management and organizational structure of the project, ensuring that the proponents structure is as described in the submittal and is well suited to the type of operation undertaken.

This

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Economic Feasibility:
This

involves the feasibility of the proposed project to generate economic benefits. A benefitcost analysis is required. breakeven analysis when appropriate is also a required aspect of evaluating the economic feasibility of a project. (This addresses fixed and variable costs and utilization/sales forecasts). The tangible and intangible aspects of a project should be translated into economic terms to facilitate a consistent basis for evaluation. Even when a project is non-profit in nature, economic feasibility is critical.

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Cultural Feasibility:
Cultural

feasibility deals with the compatibility of the proposed project with the cultural environment of the project. In labor-intensive projects, planned functions must be integrated with the local cultural practices and beliefs. For example, religious beliefs may influence what an individual is willing to do or not do.

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Financial Feasibility:
Financial

feasibility should be distinguished from economic feasibility. Financial feasibility involves the capability of the project organization to raise the appropriate funds needed to implement the proposed project. many instances, project proponents choose to have additional investors or other sources of funds for their projects. In these cases, the feasibility, soundness, sources and applications of these project funds can be an obstacle. As appropriate, loan availability, credit worthiness, equity, and loan schedule still be reviewed as aspects of financial feasibility analysis.

In

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Social Feasibility:
Social

feasibility addresses the influences that a proposed project may have on the social system in the project environment. The ambient social structure may be such that certain categories of workers may be in short supply or nonexistent. effect of the project on the social status of the project participants must be assessed to ensure compatibility. It should be recognized that workers in certain industries may have certain status symbols within the society.

The

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Safety Feasibility:
Safety

feasibility is another important aspect that should be considered in project planning. Safety feasibility refers to an analysis of whether the project is capable of being implemented and operated safely with minimal adverse effects on the environment. Unfortunately, environmental impact assessment is often not adequately addressed in complex projects.

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Political Feasibility:
Political

considerations often dictate directions for a proposed project. This is particularly true for large projects with significant visibility that may have significant government inputs and political implications. For example, political necessity may be a source of support for a project regardless of the project's merits. On the other hand, worthy projects may face insurmountable opposition simply because of political factors. feasibility analysis requires an evaluation of the compatibility of project goals with the prevailing goals of the political system.

Political

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Environmental Feasibility:
This

is an aspect worthy of real attention in the very early stages of a project. must be shown and action must be taken to address any and all environmental concerns raised or anticipated. This component also addresses the ability of the project to timely obtain and at a reasonable cost, needed permits, licenses and approvals.

Concern

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Market Feasibility:
This

area should not be confused with the Economic Feasibility. The market needs analysis to view the potential impacts of market demand, competitive activities, etc. and market share available. competitive activities by competitors, whether local, regional, national or international, must also be analyzed for early contingency funding and impacts on operating costs during the start-up and commercial start-up phases of the project.

Possible

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Tangible and Intangible Benefits: Estimating benefits and costs in a timely manner is very difficult. Benefits are often defined as: Tangible benefits for which currency may be reasonably quantified and measured. Intangible benefits that may be quantified in units other than currency or may be identified and described subjectively.
Costs

are significantly more difficult to quantify, at least in a timely and inexpensive manner. The minimum costs that must be determined are those that specifically are used for comparison to the benefits.

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These include: The current operating costs or the cost of operating in today's circumstances. Future period costs that are expected and can be planned for. Intangible costs that may be difficult to quantify. These costs are often omitted if quantification would contribute little to the decision-making process. There must be careful documentation of all known constraints and assumptions that were made in developing the costs and the benefits. Unrealistic or unrecognized assumptions are often the cause of unrealistic benefits. The go or

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Organization Approaches To Managing Projects:

Proprietary - PMI Pittsburgh

Functional Organization Matrix Organization Projectized Organization Composite organization

Project Management Context

Organizational Systems
Organizational

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Cultures and Styles:

Entrepreneurial

firms more likely to adopt highly participative Project Manager accept higher risk/reward firms less likely to adopt participative Project Manager take fewer risks

Hierarchical

Project Management Context

Organizational Systems

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The organizational system of Performing Organization is an very important environment factor for a project.
based vs. Non-Project Based

Project

Project Based derive revenues from performing projects for others (consultants, contractors), management by projects Based seldom have management systems designed to support project needs (manufacturing, financial services)

Non-Project

Project Management Context

Organizational Structures
Functional

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Organization

More emphasis on functions, Specialists 1 supervisor No career path in PM

Projectized

Organization

Efficient Organization Lack of Professionalism Effective Communication, Duplication of functions

Matrix

Organization

Visible Objectives PM Control More than 1 boss, Potential for conflict

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Organization Structures
Proprietary - PMI Pittsburgh

XYZ ENG OPR MKT SVC

FUNCTIONAL

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Project Coordinatio n Functional Manager S S S T T T A A A F F F F F F Functional and Liner P Organization

Chief Executi ve Line Depart. Director Line Dep artm ent Lin e Dep art me S ntS T T A A F F F F

Functional Manager S T A F F S T A F F P S T A F F P

S T A F F

S T A F F

S T A F F

S T A F F

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Organization Structures
XYZ
Proprietary - PMI Pittsburgh

PM PL1 PL2 PL3

ENG

OPR

MKT

SVC

MATRIX

Chief Executive

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Functiona l Manager STAFF Project P Manag er Project STAFF Manag P er STAFF Project P Manag er Project Coordinatio n

Functiona l Manager STAFF P STAFF P STAFF P

Functiona l Manager STAFF P STAFF P STAFF P

Line Depart. Director Li ne D ep ar t m en t Li ne D ep ar t m en t

Matrix Organization

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Organization Structures
XYZ P R O J E C T I Z E D

Proprietary - PMI Pittsburgh

PM 1 ENG OPR MKT SVC EN G OP R MK T SV C

PM 2 EN G OP R MK T SV C

PM 3 EN G OP R MK T SV C

T E A M

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Project Coordinatio n Project Manag er S T A F F S T A F F S T A F F S T A F F S T A F F Project Manag er S T A F F S T A F F

Chief Executi ve Project Manag er S T A F F S T A F F S T A F F S T A F F S T A F F Function al Manager S T A F F S T A F F S T A F F S T A F F

Projectized Organization

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Project Organization Approaches

Proprietary - PMI Pittsburgh

Functional
Maintenance Enhancemen t New Product (Strategic)

Matrix Projectized L Priority H

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Chief Executi ve Line Depart. Director Functional Manager STAFF P STAFF P STAFF P Functional Manager STAFF P STAFF P STAFF P Composite Organizati on Functional Manager STAFF P STAFF P STAFF P Manager of Project Managers Project Manager Project Manager Project Manager

Li Li ne ne D D ep ep art art m m en en t Project t Coordinatio n

Project Coordinatio n

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Contract

The word contract can be defined in short as an agreement between the parties enforceable under the law. A contract is a legally binding agreement between the parties identified in the agreement to fulfill all the terms and conditions outlined in the agreement. A prerequisite requirement for the enforcement of a contract, amongst other things, is the condition that all the parties to the contract accept the terms of the claimed contract. One who is in charge of the project is known as the Employer. One who agrees to execute or perform is known as the Contractor.

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Types of Contract
Contracts

can be broadly classified as Cash Contract, and BOT Contracts. In cash contract the consideration for the agreement is payment in cash to the contractor as per the terms and conditions of the agreement by the Employer. In a Built Operate and Transfer type of project, the contractor invests the capital cost and consideration is recovery rights like toll, rent etc over an agreed period. There are various models in Built Operate Transfer type contracts. Some of these are BOT, BOOT, BOLT.

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Types of Contract
Contracts

can be further classified as Service Contracts, Management Contract, Lease Contract, Divestiture, Sales Contracts (including leases), Purchasing Contracts, Partnership Agreements, Trade Agreements, and Intellectual Property Agreements Etc

Types of Contract
Service

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contract could be an agreement to provide agreed kind of services to the customer. Service delivery management ensures that the service is being delivered as agreed, to the required level of performance and quality. In civil engineering a routine maintenance contract for sweeping cleaning of Roads, Flyovers, security at site etc are relative examples of the service contractor. Contract is a contract between a company (the Seller) and a Customer that you are promising to sell products and/or services. The customer in return is obligated to pay for the product/services bought.

Sales

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Types of Contract
Purchasing

Contract is a contract between your company (the Buyer) and a Supplier who is promising to sell you products and/or services. Agreement may be a contract, which formally establishes the terms of a partnership between two legal entities such that they regard each other as partners in a commercial arrangement.

Partnership

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Types of Contracts
Lease

Agreement is generally an agreement related to rights to enjoy property for certain period as per the terms and conditions of the agreement. A standard consideration is the agreed Lease rent. Typical example will be renting a flat, Advertisement permits etc is the disposition or sale of an asset by a company. A company will often divest an asset, which is not performing well, which is not vital to the company's core business, or which is worth more to a potential buyer or as a separate entity than as part of the company.

Divestiture

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What Is Contract Management?

The

central aim of contract management is to obtain the product as agreed in the contract and achieve value for money. Contract management may also involve aiming for continuous improvement in performance over the life of the contract.

The

terms and conditions of the contract should include specifications, bill of quantities, contractor bonus, liquidated damages, time period, means to measure items executed, price adjustment procedures, variation/change control procedures, foreclosure, termination, and all the other formal mechanisms that enable a contract to be implemented.

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Good

contract management goes much further than ensuring that the agreed terms of the contract are being met. There will always be some friction between the different perspectives and approach of employer and contractor. Contract management is about resolving or reducing such friction and achieving the completion of the project as envisaged. many organisations are departing from traditional methods of contract management and moving towards building constructive relationships with contractors.

Increasingly,

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The following factors are essential for good contract management:

Good

preparation of bid document: A detailed estimate, project report of the work helps create a clear output-based specification. Proper eligibility criterion effective evaluation procedures and selection will ensure that the contract is awarded to the right person. right contract form: The contract is the foundation for the project implementation. It should include aspects such as obligations of the parties, the quality assurance of items required, and defect liability period, as well as procedures

The

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Good contract management is proactive, it should aim to anticipate and respond to project needs. If contracts are not well managed from the employer side, any or all of the following may happen:
The

contractor is likely to neglect the quality, resulting in substandard product that is not durable and structurally unsafe are not taken at the right time or not taken at all leads to delays in payment, approvals - leading to claims

Decisions

That

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What can go wrong, and why?

One of the chief reasons for project delays is poor contract management, and any or all of the following may happen:
Parties

fail to understand their obligations and responsibilities is inaction, misinterpretation and apprehension at the implementing level, with too many issues being escalated to top management for decisions

There

Ultimately, the contract becomes unworkable. There are several reasons why organizations fail to manage contracts successfully. Some possible reasons include:
Poorly

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drafted contracts resources assigned to contract

Inadequate

management
Project

team and the contractor team lacking skills or experience (or both) people being put in place, also

Inexperienced

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Contract

management consists of the full and proper fulfillment of roles and responsibilities. The main task areas are site management, adherence to specifications, and contract administration. The additional resources required to manage the contract depend on its scale, complexity and importance. For smaller contracts, the same individual may cover two or more areas: like, the contract manager takes on responsibility for administering the contract and supervision. Alternatively, a proper contract management team may be created in the employer organization.

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Managing long term contracts

For

long-term strategic contracts, the emphasis on building proper records will be much greater. The costs involved in changing contractor are likely to be high and, in any case, contractual realities, and legal implications may make it very difficult and costly. It is in the organizations own interests to make the contract implementation successful. The three key factors for success are: Mutual trust and proper understanding of roles, openness and excellent timely communications, a joint positive approach to managing the project.

Development of project order

What

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slows progress and wastes the most time on projects is confusion about what the goals are or which things should come before which other things. miscommunications and missteps happen because person A assumed one priority (make it faster), and person B assumed another (make it more stable). is true for programmers, testers, marketers, and entire teams of people. If these conflicts can be avoided, more time can be spent actually progressing toward the project goals.

Many

This

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Debates

about priorities should happen, but they should happen early as part of whatever planning process being used. If the same arguments keep resurfacing during development, it means people were not effectively convinced of the decision, or they have forgotten the logic and need to be reminded of why those decisions were made. debates, but start by asking if anything has changed since the plans were made to justify reconsidering the priorities. If nothing has changed (competitor behavior, new group mission, more/less resources, new major problems), stick to the decision. there is an ordered list posted up on the wall clarifying for everyone which things have been agreed to be more important than which other

Entertain

If

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Common ordered lists

By

always working with a set order of priorities, adjustments and changes are easy to make. by some miracle, more time or resources are found in the schedule, it's clear what the next most important item is to work on. any prioritization mistakes one makes will be relative: if work item 10 turns out to have been more important than work item 9, big deal. Because the whole list was in order. And besides, by having such clear priorities and keeping the team focused on them, one may very well have bought the time needed to get work item 10 done after all.

If,

Also,

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For

most projects, the three most important and most formal ordered lists are used to prioritize are project goals, features, and work items. project goals are typically part of the vision document or are derived from it. The lists of features and work items are the output of the design process. Because each of these lists inherits priorities from the preceding list, by stepping up a level to reach a point of clarity and then reapplying those priorities back down to the level in question, any disputes can begin to be resolved.

The

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Other

important things that might need ordered lists include bugs, customer suggestions, employee bonuses, and team budgets. can all be managed in a similar way: put things in the order most likely to make the project or organization successful. No matter how complex the tools you use are the tools or processes one use don't help in putting things in order and carry out that order, find a different tool or process. triage, for example, where people get in a room and decide when a bug should be fixed

They

If

Bug

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While

using the three most common ordered lists, make sure that they always map to each other. Every engineering work item should map to a feature, and every feature should map to a goal. If a new work item is added, it must be matched against features and goals. This is a forcing function to prevent random features. a VP or programmer wants to slip something extra in, he/ she should be forced to justify it against what the project is trying to achieve: "That's a great feature, boss, but which goal will it help us satisfy? Either we should adjust the goals and deal with the consequences, or we shouldn't be investing energy here." If you teach the team that it's a rule to keep

If

Priority 1 versus everything else

Typically,

these ordered lists have one important line dividing them into two pieces. The top part is priority 1: things we must do and cannot possibly succeed without. The second part is everything else. Priorities 2 and 3 exist but are understood to be entirely different kinds of things from priority 1. It is very difficult to promote priority 2 items into priority 1. priority 1 line must be taken very seriously. You should fight hard to make that list as small and tight as possible. An item in the priority 1 list means "We will die without this." For example, if we were building an automobile, the only priority 1 things would be the engine, tires, transmission, brakes, steering wheel, and pedals. Priority 2 items would be the doors, windshield, air conditioning, and radio

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This

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The

challenge of prioritization is always more emotional/psychological than intellectual, despite what people say. Just like dieting to lose weight or budgeting to save money, eliminating things you want (but don't need) requires being disciplined, committed, and focused on the important goals. Ordered lists and the declaration of a high priority 1 bar forces leaders and the entire team to make tough decisions and think clearly.

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Priorities If

are power

you have priorities in place, you can always ask questions in any discussion that reframe the argument around a more useful primary consideration. This refreshes everyone's sense of what success is, visibly dividing the universe into two piles: things that are important and things that are nice, but not important. Here are some sample questions: problem are we trying to solve? there are multiple problems, which one is most important? does this problem relate to or impact our goals? is the simplest way to fix this that will

What If

How

What

 Be

a prioritization machine

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There

are 1,000 ways to implement a particular web page design or database system to spec, but only a handful of them will really nail the objectives. new information comes to the project, it needs to be interpreted (alone or through discussion with others), and form it into a prioritized list of things one has to care about and things. list is to be revised and is adjusted to respond to the new information, any changes to direction or goals are to be reflected directly and immediately in them. Eliminating tasks from people's plates gives them more energy and motivation to focus and

Whenever

Previous

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Keeping It Real
Some

teams have a better sense of reality than others.

Little

by little, teams believe in tiny lies or misrepresentations of the truth about what's going on, and slide into dangerous and unproductive places. As a rule, the further a team gets from reality, the harder it is to make good things happen. Team leaders must play the role of keeping their team honest (in the sense that the team can lose touch with reality, not that they deliberately lie), reminding people when they are making up answers, ignoring problematic situations, or focusing on the wrong priorities.

Know the Critical Path

In

project management terminology, the critical path is the shortest sequence of work that can complete the project. In critical path analysis, a diagram or flowchart is made of all work items, showing which items are dependent on which others. If done properly, this diagram shows where the bottlenecks will be. For example, if features A, B, and C can't be completed until D is done, then D is on the critical path for that part of the project. This is important because if D is delayed or done poorly, it will seriously impact the completion of work items A, B, and C. It's important then for a project manager to be able to plan and prioritize the critical path. a relatively unimportant component on its own can be the critical dependency that prevents

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Sometimes,

 Making

things happen effectively requires a strong sense of critical paths. If you can nail the critical path, less-critical issues will more easily fall into place.

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For

some organizations, the fastest way to improve the critical path is to distribute authority across the team. Instead of requiring consensus, let individuals make decisions and use their own judgment as to when consensus is needed. Often the best way of improving critical paths in organizations is to remove processes and shift authority down and across a team, instead of creating new processes or hierarchies.

 Be

Relentless world responds to action, and not much else."

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"The

Many

smart people can recognize when there is a problem, but few are willing to expend the energy necessary to find a solution, and then summon the courage to do it. are always easier ways: give up, accept a partial solution, procrastinate until it goes away (fingers crossed), or blame others. harder way is to take the problem head-on and resist giving in to conclusions that don't allow for satisfaction of the goals. project managers simply do not give up easily. If something is important to the project, they will act aggressivelyusing any means necessary

There

The

Successful

 Sometimes,

this means asking people to do things they don't like doing, or raising questions they don't want to answer Many projects consist of people with specialized roles who are unlikely to take responsibility for things that are beyond their limited scope. relentless is fundamental to making things happen. There are so many different ways for projects to slide into failure that unless there is at least one emotional force behind the project pushing it forward, seeking out alternatives, believing there is always a way out of every problem and trapthe project is unlikely to succeed.

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Being

Be Savvy
But

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being relentless doesn't mean to knock on every door, chase people down the hallway. Sheer quantity of effort can be noble and good, but always look for ways to work smart rather than just hard. relentless in spirit, but clever and savvy in action. Look for smart ways around a problem or faster ways to resolve them. Make effective use of the people around. But most importantly, be perceptive of what's going on around you, with individuals and with teams.

Be

 Instead

of geographic environments, PMs must pay attention to the different social, political, and organizational environments they are in, and use the right approaches for where they are. savvy and environment-aware important in the following situations: and inspiring people teams and planning for action with other organizations or cultures anyone of anything is most

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Being

Motivating Organizing Settling

arguments or breaking deadlocks arguments for resources reports (personnel)

Negotiating Making

Persuading Managing

Summary
Everything

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can be represented in an ordered list. Most of the work of project management is correctly prioritizing things and leading the team in carrying them out. three most basic ordered lists are: project goals (vision), list of features, and list of work items. They should always be in sync with each other. Each work item contributes to a feature, and each feature contributes to a goal. is a bright yellow line between priority 1 work and everything else. happen when you say no. If you can't say no, you effectively have no priorities. PM has to keep the team honest and keep them close to reality.

The

There

Things

The