COMMON REASONS FOR PROJECT FAILURE Roberto Rodriguez President – Project Management Consultant January 2015

Questions • Are your organized for sound project management and execution? • Does your firm have both a Quality Management System and a Project Management System?

• Are your people following such systems? • Are your projects coming on target? (budget, schedule, quality, safety, etc.) • Are your expectations for capital investment being met? If you answered NO to some or all of the above questions, then…

Second Set of Questions • • • • •

How is your Quality Management organization helping you? Is their involvement in the projects effective? How are you measuring such involvement?

Are your Customers happy with your firm’s quality performance? Are you receiving sufficient feedback to create and implement corrective actions?

What can be done?

Quality Management Principles The eight quality management principles are defined in ISO 9000:2005, Quality Management Systems - Fundamentals and Vocabulary, and in ISO 9004:2000, Quality Management Systems - Guidelines for Performance Improvements. These are:

Principle 1: Customer Focus Principle 2: Leadership Principle 3: Involvement of People Principle 4: Process Approach Principle 5: System Approach to Management Principle 6: Continual Improvement Principle 7: Factual Approach to Decision Making Principle 8: Mutual Beneficial Supplier Relationships

Assure & Approve Does it meet Systems, Policies and Standards?

Does it meet Client's Expectations?

Supervise & Control Check for Project Requirements and Client Expectations Check for technical compliance

Was Supervision adequate?

Perform Multidiscipline check Perform Consistency check

Can it be approved?

Plan & Execute

Perform Quality check (correct, complete and accurate)

Initiate

Plan

Execute Close

Coordinate

Lead

Assessment of the situation… 1. Tend to focus on procedures, not work processes 2. Little to no Quality Assurance being performed by the area supervisors 3. Quality Audits are generally superficial and do not explore understanding of key Project Management concepts and best practices

4. Quality is expected to be achieved through the use of tools, with little attention to the data going in, or the applicability of the tool

5. No accountability established over work processes 6. Leadership in Project Management not always present 7. Roles & Responsibilities not clear and communicated 8. Personnel turnover or unqualified personnel affecting project execution

Assessment of the situation – Cont’d 9. Failure to fulfill requirements primarily associated to poor management of change, risk, communications, decisions and stakeholders

10. Project scope definition not aligned with proposed contracting scheme. 11. The estimating and management of contingency are not consistent with best practices. 12. Risk Levels vary as we make decisions and depart from the plan. Proper assessment and adjustment of new risk level not systematically performed.

13. Change is unavoidable but teams do not plan for it. Change introduces risks and affects the quality of deliverables and services.

14. Quality is not a given, but people treat it as if it was. Reactive Quality Assurance. 15. Change, unmanaged risks and poor quality have a direct impact in project cost and duration. 16. Customers typically try to freeze project cost and duration, creating a challenge for managing the project’s execution, while taking all of the above into account.

A different Scope Triangle…

Results of my assessment

The Concept PROJECT MANAGEMENT

Stakeholders

Decisions

Communications

Risk

Change

QUALITY MANAGEMENT

Work Process Based System Feedback

K.P.Is Documentation Management

Accountability

Work Process Based System QMS Level Feedback

K.P.Is

Accountability

Documentation Management

Down to the Project Level…

K.P.Is Accountability

Work Process Based System (Project Specific Procedures)

Feedback

Documentation Management

Contractual & Local Requirements

Change

Change Log

Risk

Risk Register

Communications

Communication Plan & Records

Decisions

Decision Records

Stakeholders

Documented Events / Incidents

Project Deliverables

Quality Plan & Records

Project Level

It is all interrelated! A decision for change post planning

Will require to be communicated and may affect the communication plan

•Change • Contracting Procedures • Specs • Contracting Plan

•Decision •Sole Source Vs. Competitive •Benefit: Schedule

Contract Planning

Contracting

Contract Closure

Contract Administration & Control

Will have some impact in the project

•Risk • Higher risk due to single source • More costly • More exceptions

•Communication • Simplified and direct • May be less technical

• Stakeholders • May affect the relationships • Complaints & delays

May affect the relationships with some stakeholders. Must be managed.

May increase the risk level of the related work process

Contracting Planning Project Document or Deliverable

Project Record

Work Process

Contracting Planning

Accountability

Contracts Manager

Feedback

Initiator

Input

Purpose

Output

Process Workflow

Procedures

Tools

End Users

Process Assets

Contracts Manager

Project Contractual Documentation

To determine and plan for how the different services will be contracted out, while in compliance with project parameters (cost, schedule, quality, HSE, etc.)

Contracts / Subcontracts Execution Plan

Process Workflow # 6

Contracting and Subcontracting of Services Procedure

SPMAT, EIDA, PRISM, BENTLY or alike

Project Team

Complete & properly evaluated contractual strategy and subsequent plan for the execution of the project

PM Project Schedule PE Project Budget Contracting Strategy

K.P.Is

Project Sponsors Other Stakeholders

1- Contractual Plan available for review by Management before requiring to send 1st long lead equipment RFQ 2- Maximum use of approve vendors as per AVL. Less than 5% variance. 3- Contracting Strategy supported by risk analysis. All associated risks evaluated and brought to ALARP 4- Bidding cycle for all contracts and subcontracts within schedule allowance – Less than 3% variance 5- Cost of contracted / subcontracted services within project budget (+ 5% / - 10%)

Decisions

Communications

Risks

Changes

Stakeholders

Contracting Planning Project Contracting Plan Template

Native file (secured)

Contract / Subcontract Bidding Forms

PDF (signed / official)

Feedback template Continuous Improvement Log

Audit Plan Audit Findings Root Cause Analysis Action Plans Decision Record Template

Stakeholders Analysis

Decisions Log

Stakeholders Feedback

Communication Plan

Risk Matrix

Change Form

Communication Templates

Risks Register

Change Log

Stakeholders Sensibility Chart

The Flying Kite Incorporated in a nutshell… Project Management Consulting Expert advice on project management, including planning, organizing, and directing projects; performing comprehensive audits on existing projects, identifying problem areas and seeking improvement for the business and related work processes Quality Management​​ Quality Management System development, ISO 9001 Audits, Work Process Improvement, Value Stream Analysis, Root Cause Analysis, Lessons Learning. Training Solutions Specialized in providing individual or group training for the following areas: effective time management, root cause analysis, management of change, leadership, problem solving, quality systems, and decision making​​

TFKI services  Project doctor - Analysis of projects in failure mode to develop strategies to revert negative trend.  Quality Management System (QMS) development - External auditing and assessment to determine gap and work to build or elevate QMS to certification level.  Project Strategic Planning - Assessment followed by selection of best project execution strategy.  Company core business to work processes alignment - Assessment to introduce the necessary changes to elevate operational and business performance.

 Lessons Learned Sessions - Facilitation of Lessons Learned sessions; assistance in performing analysis of findings and development of action plans.

TFKI services (cont’d)  Risk Management Sessions facilitation - Application of known concepts and in house scope triangle theory to enhance your risk assessment sessions and manage risks and opportunities more effectively.  Change Management Process - Development and implementation of Management of Change procedure within a project organization. Looking at Change as a natural event, assist the project organization in becoming adept at identifying, processing and documenting changes.  Stakeholders Management - Application of uniquely developed concepts for determining and documenting project stakeholders needs and expectations, while focusing on aligning execution strategy and plans.

The Flying Kite – Project Execution Model  Fully integrated around work processes for project execution  Agile and web based  Provides strategy for managing typical areas for project failure, namely: Quality, Risk, Change, Stakeholders, Communication and Decisions  Instant feedback from the users allow for true opportunities for continuous improvement  Extremely user friendly  Adaptable to all industries and types of projects  Designed to enhance project performance​

Let me help you reach your goals…  Committed to making the difference while providing Project Management Consulting Services, which starts by hearing you out.

 Integrated solution, from the analysis of your needs and specific goals, to the implementation of effective actions.

 Will drive change within your organization with the objective of enhancing

ownership and accountability over work processes, improving project execution performance and increasing employee satisfaction.

 Personalized approach, done with honesty and professionalism, while observing the most strict confidentiality.

Contact us The Flying Kite Incorporated Roberto Rodriguez E. President www.theflyingkiteincorporated.com [email protected] Tel: 1(587)436-0013