www.pwc.

com/jg

Project Management:
Improving performance,
reducing risk

When will you think differently about

project management?

2014
Who are your presenters?

David O’Brien Lara Haskins

Senior Manager Senior Manager

• Advisory team member specialising in Programme • Advisory team member specialising in managing
& Project Management people and projects through change

• Over 7 years’ experience across multiple industries, • Over 15 years’ experience managing projects of
including financial services, retail, government, and varying sizes and complexities within different
utilities; working with clients to manage end-to-end industry sectors.
solution delivery

• Experienced in: • Experienced in:

• Delivery and implementation of business • Leading organisational development, process
solutions to both public and private sector improvement and change initiatives
• Project and Programme management • Overseeing IT implementations and service
• Managing IT implementations that drive delivery
business change and end value • Supporting Executive Team in organisational
• Working across multiple geographies to communications and strategic projects
deliver project objectives and goals

• Certified PMI PMP and PRINCE II Practitioner • Holds an MBA from Queens School of Business,
Canada

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Agenda

Slide

What is Project Management and its

4
fundamental importance

Why do projects fail and what are the

11
warning signs of a failing project?
What are the costs of a failed project 15
Lead Presenters
How do you increase the chances for
19
project success?
• David O’Brien
Managing the people side of change 21
• Lara Haskins
What are the key takeaways? 29

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What is Project Management and its
fundamental importance?

Project Management: Improving performance, reducing risk 2014

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What is Project Management
“Project management is the application of processes, methods,
knowledge, skills and experience to achieve the project objectives”

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The strategic imperative for Project Management
“Today is the slowest rate of change we will ever experience”

• Economic & Demographic shifts

• Regulatory Changes
Increasingly • Growing digital economy
disrupted
markets • Changes in characteristics and expectations of customers
• Group / Board Strategy Initiatives

Rapidly • Cost Structures

transforming all • Organisation Design & Business Transformation
aspects of the
organisation • Technological Investments
• Process Improvements & Outsourcing

• Ability to execute
Creating
sustainable • Capitalise on market change
value • Identify new market opportunities for your clients
• Improvements and efficiencies in working practices
• Increase in ROI and net profit

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Business Leaders – Your Responsibilities
Clear
Project
direction
and its
strategic fit

Championing
the Project Business Ensuring Project
is on time,
Leaders budget and
scope

Review and
provide
feedback on
status
reports

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Project Management – More than just a plan?
“We will either find a way, or make one”
“Don’t find fault, find a remedy”

Learning from failure Organising Chaos

Retain and use Managing Risk &

knowledge Clearing Issues

Project
Management
– More than
just a plan?

Managing
Communication Quality

Managing Change Managing Integration

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Project Management from the start – do it once
and do it right

Total Project Life Cycle

Phase 1 Phase 3 Phase 4
Phase 2
Strategy & Construct & Operate &
Design
DECREASING OPPORTUNITY

Assess Implement Review

INCREASING COST
Opportunity to add value

Constructive Destructive
Opportunity Intervention

Cost to Change

TIME

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Why should Project Management be important to
you?
Project Sponsor

Project Manager

Additional Workstreams Project Constraints

Compliance / Local Process / Offshore Quality

Consultants
Regulatory Regulator Procedures Teams Assurance

Stakeholder UK / Global Business Change

IT Dep’t Internal Audit
Board Board Employees Delivery

Senior
Steering Middle Office
Procurement Client Staff Temp Staff Business
Committee Function
Leaders

PMO Office

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Why do projects fail and what are the
warning signs of a failing project?

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 Are those figures true?
100%
90%
80%
70%
60% 57% 60%
50%
40% 39%
30% 27%
20%
10% 2.5%
0%
Companies that Average cost overrun Projects that fail due Projects that fail due % of failed projects
successfully complete of all projects to "breakdown in to lack of planning, have a duration of less
100% of their projects communications" resources, and than one year
activities

Could these be changed through good project management?

Source: team Gantt - “Seven Shocking Project Management Statistics and Lessons we should learn”

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 Why people who commission change don’t get what
they want?

41% 21% 8%

Change(s) in Weak project Change in strategy

scope mid-project planning
The Top Three
reasons for project
failure – regular 39% 15% 6%
theme since 2004 !
Poor estimates in the Lack of change- Change in
planning phase control management environment

30% 15% 6%

Insufficient Lack of executive Ineffective

resources sponsorship procurement/supplier

Source : PwC PPM Survey 2014

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What are the warning signs of a failing project?

Lack of Stakeholder Overruns of schedule and cost

engagement and support

Resource reallocation Poor communication

Lack of progress Missed milestones

Constant scope creep Increase in overtime

Baseline plan is non-existent / Inconsistent management

ignored information (MI)

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What are the costs of a failed project?

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 Cost of poor Project Management Global Bank A

$1bn – IT “glitch”
2013
NHS

£12bn – Failed IT implementation

December 2011 Global Bank B

£292m – Failure to apply AML procedures

April 2012

Sainsbury's – Supply Chain

£260m – Supply Chain IT Global Bank C

April 2004
£12m – Failure to apply CDD (Internal Standards)
April 2014

UK Gov’t – Millennium Dome

£600m – Failed Infrastructure

SNCF
April 2001

€15bn – Purchased wrong trains

May 2014

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 So how does this relate to the Channel Islands

Processes & Systems Mergers & Acquisitions

• Global standardisation • Common working practices
• Global Operational Changes • Culture impact
• Process efficiencies • Change Management
• Technology Implementation • Reliance on others DD

Channel
Islands
Market
Regulation & Compliance Restructuring
• Failure to implement local • Alignment to market need
regulatory change • Risk, Conduct, Culture
• Meeting Global Standards impact
• Strategic view on regulatory • Internal procedure review
change • Loss of personnel and
• Use of in-house vs. external SME information

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It’s not just a financial cost that you should be
aware of if a project fails
Opportunity Cost

01 • Alternative project?
• Project Dependency?

Business & Board Credibility / Appearance in

02
Market / CI Plc
• Perception in market place
• Loss of competitive advantage

Employee Morale

03 • Potential attrition
• Acceptance of future projects

Future appetite for projects

04 • Reduced appetite for future projects

• Stagnation within business
• Inability to grow

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How do you increase the chances for
project success?

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How do you increase the chances for project
success?
• ‘Doing things differently’ could make a real difference to the success
of your projects and programmes
Optimise your portfolio to maximise return
• Use of objective criteria and quality data to develop your portfolio of projects
• Guessing is not a strategy for change – use of clear and consistent methodology

Be flexible, change faster

• Embrace change
• Ability to be more flexible and adaptable to change

Enable your people to deliver success

• Create the right environment and experience for your people to deliver
• Utilise local SMEs with relevant experience and skillset

Connect the Executive Team to project delivery teams

• Working more closely will generate pace and better results
• Ensure alignment between strategic goals and tactical implementation

Measure and address the harsh facts to maintain direction

• Tackle the big issues head on
• Act as a trusted advisor
Source : PwC PPM Survey 2014

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Managing the people side of change

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Managing people through change

Why is it important?

• People can drive or reject change

• Shift in core values means
resistance should be expected
• People more likely to embrace Accept Adopt
change if feel part of the process

Sustain Drive

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Change Management

Why should it be important to you?

Governance, independent judgement, oversight

Mergers, Acquisitions Strategies used to

manage people
Restructuring through change
will impact:
 Performance
 Resources
Regulation  Strategy

Systems & processes  Risk

“A negative or resistant culture can derail even the best strategy” – Jack Welch

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Change Management

What is it?
• Processes, tools and techniques
• Specific plan that shadows the Project Plan
o Before, during and after the change

Change Management

Project Management

Change Management

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Key elements of a Change Plan

Change
Readiness

Engagement Training

Change
Plan

Communication Risk Mitigation

Sustainment/
Reporting

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What is the impact on the business?

Significant positive correlation between focus on people & change

management and shareholder returns/meeting project objectives.

Return on investment (ROI) Percent met or exceeded objectives

143% 35% 96% 16%

Strong CM Weak CM Effective CM Poor CM

Sources: LaClair and Rao, McKinsey Quarterly, 2002 / Posci, Best Practices in Change Management, 2014

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Some challenges…

Distance
Transformation
Gap in key
messages Management
style
Methodologies

Pick and
Mix
Change
Seen as just
another Business
Failure to move
programme lacks
to action
quickly change
strategies

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 Change Management

What are the key questions to ask?

Have you
Does everyone
established a Are reward and
really understand
clear vision of recognition
the need for
what needs to systems aligned?
change?
change?

Do we have
Are roles, Does the
the right
responsibilities organisation
leadership
and desired design support
team?
results clear? new ways of
working?
Is the Executive
Team closely Do you have key
aligned to influencers in
the business?
Change Management is a
Project Team?
required competency in
business today.
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What are the key takeaways?

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 Bring thought leadership into the Board Room
What are the key things that you should be thinking…..
What has been Have I heard Do I receive
Is the business taking on our past
new projects to meet that Project What are our appropriate,
success and Management or timely and
market demands and strategic,
failures in Change Delivery accurate MI
strategic objectives? tactical and
project delivery are during a
people
Does the business have an and managing understaffed project?
objectives?
established, effective and change?
credible Project Are we able to
Are we learning
Management function? react quickly
from our
mistakes?

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Questions

What’s on your mind?

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Contact details

David O’Brien
[email protected]
+44 (0) 1534 838 228

Lara Haskins
Lara.haskins@je. pwc.com
+44 (0) 1534 838 330

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Thank you!

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