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Copyright ® 2012, Glen B. Alleman, All Rights Reserved
                                                         All projects are disappointments. That’s
                                                         why they call it a project. All projects
                                                         push the boundaries of schedule, cost,
                                                         and technical performance, otherwise it
                                                         would be called production.
                                                         We need to face up to this. We need to
                                                         acknowledge that projects are managed
                                                         in the presence of uncertainty.
                                                         Uncertainty drives risk. Risk drives cost,
                                                         schedule, and technical performance.
                                                         We must manage in the presence of risk.
                                                         This starts with having NO, I mean NO
                                                         surprises. Is something goes wrong that
                                                         was a surprise, a REAL surprise, them
                                                         someone didn’t do their job. A risk was
                                                         ignored. A risk was overlooked. A risk
                                                         was hiding in plain site.
                                                         Risk management is the primary role of
                                                         project management. And By The Way,
                                                         agile is not a risk management process
                                                         unless it has a risk register, a probabilistic
                                                         assessment for those risk and the impact
                                                         of those risks, and a monetized outcome
                                                         for the handling strategy for each risk in
                                                         the Risk Register.
                                                         Risk is an Uncertainty that Matters. Risk is
                                                         any uncertainty that if it occurs will affect
                                                         achievement of objectives.
                                                         The role of risk management is to reduce
                                                         or eliminate the surprise of being over
                                                         budget, behind schedule, and not have
                                                         your thing work. Risk management means
                                                         knowing bad things are going to happen
                                                         soon enough to do something about them.
                                                         The other four principals of success are in
                                                         support of risk management

                                                                                                    1/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved




                                                         The five immutable principles of project
                                                         success are:
                                                         1. Know where you are going by
                                                            defining “done” at some point in the
                                                            future. This point may be far in the
                                                            future – months or years from now. Or
                                                            closer in the future days or weeks from
                                                            now.
                                                         2. Have some kind of plan to get to
                                                            where you are going. This plan can be
                                                            simple or it can be complex. The
                                                            fidelity of the plan depends on the
                                                            tolerance for risk by the users of the
                                                            plan.
                                                         3. Understand the resources needed to
                                                            execute the plan. How much time and
                                                            money is needed to reach the
                                                            destination. This can be fixed or
                                                            variable.
                                                         4. Identify the impediments to progress
                                                            along the way to the destination.
                                                            Have some means of removing,
                                                            avoiding, or ignoring these
                                                            impediments.
                                                         5. Have some way to measure your
                                                            planned progress, not just your
                                                            progress. Progress to Plan must be
                                                            measured in units of physical percent
                                                            complete. In units meaningful to the
                                                            decision makers.




The 5 Immutable Principles of Project Management                                                2/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved
                                                         The key is requirements tell us something
                                                         about where we are going.
                                                         But requirements come in all shapes and
                                                         sizes.
                                                         Here’s a sample of two extremes.
                                                         A small project and a not-small project.
                                                         The small project is straight forward in
                                                         terms of requirements. There is a list of
                                                         them on the flip chart. They are likely
                                                         well understood. They probably can be
                                                         estimated in terms of cost and schedule.
                                                         And most importantly the interactions
                                                         between the requirements can be intuited
                                                         with a little effort.
                                                         The project on the right is a different
                                                         class of effort. This is the top level
                                                         components (if you can call them that) of
                                                         the Future Combat System. It’s a $35B,
                                                         that’s billion with a B program to
                                                         restructure the entire US Army Battle
                                                         Space Management processes.
                                                         I help one of the teams – the Class I team
                                                         – build their Performance Measurement
                                                         Baseline and get that information into a
                                                         cost and schedule management system, so
                                                         they can use Earned Value Management
                                                         to “manage” their program.
                                                         FCS is a software intensive system, where
                                                         software is in everything from small hand
                                                         held devices to major facilities housing
                                                         the “battle space management
                                                         command.”
                                                         If the software doesn’t work, the FCS
                                                         doesn’t work. Soldiers can’t do their job.
                                                         If soldiers can’t do their job – there’s a
                                                         BIG PROBLEM.
The 5 Immutable Principles of Project Management                                                 3/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved


                                                         These two words should be tattooed on
                                                         your wrist.
                                                         If we don’t have a Plan, our schedule is
                                                         not credible. Plans are not Schedules.
                                                         And Schedules are not Plans.
                                                         A Plan is a Strategy for the successful
                                                         delivery of the project. Plans state “what”
                                                         is to be done (programmatically what,
                                                         not technically what). Schedules state
                                                         “how” it is to be done –
                                                         programmatically how it is to be done.
                                                         While this may seem subtle or maybe not
                                                         even useful, it is critically important for
                                                         several reasons:
                                                          The plan shows how the project
                                                           produces increasing value and
                                                           increasing maturity of the products.
                                                          This value and maturity is meaningful to
                                                           the business.
                                                          It’s is the “road map” from the
                                                           beginning to end, INDEPENDENT from
                                                           the actual durations of the work.
                                                          The Plan speaks to What we are
                                                           doing.
                                                          The schedule is the “driving instructions”
                                                           for the vehicles on the roads, following
                                                           the map.
                                                          The execution of the schedule is the
                                                           actual “driving” of the vehicle by the
                                                           driver along with the passengers.
                                                         All three are needed, no one can be
                                                         missing, all three interact with each other.


The 5 Immutable Principles of Project Management                                                  4/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved




                                                         Now that we know about the existence of
                                                         a Plan, what is the Schedule?
                                                         Why is it different from the Plan?
                                                         The Schedule shows the work needed to
                                                         produce the “deliverables” in the Plan.
                                                         This sounds like a tautology – a statement
                                                         of the obvious.
                                                         But there’s more to it than that.
                                                         This work is ONLY the work needed to
                                                         cause the “exit criteria” to appear of
                                                         each individual definition of the criteria
                                                         for named Accomplishment.
                                                         In a previous slide we mentioned the
                                                         definition of the Accomplishments come
                                                         first. With these definitions – and most
                                                         importantly the order in which these
                                                         Accomplishments must be accomplished
                                                         I know this is not as clear as you’d expect
                                                         at this point.
                                                         But we’ll need to use an example before
                                                         we get back to the details.
                                                         For now think of the schedule as the
                                                         description of how the individual Exit
                                                         Criteria from the “lumps of work” are to
                                                         be accomplished.




The 5 Immutable Principles of Project Management                                                  5/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved
                                                         Now that we know where we want to go, the
                                                         next question is how to get there.
                                                         How do we build the products or provide the
                                                         services needed to reach the end of our
                                                         project.
                                                         There are numerous choices, depending on
                                                         the domain and the context of the project in
                                                         that domain.
                                                         For the software domain there are many
                                                         context’s. Using the example on the previous
                                                         page, let’s look at two methods. These are
                                                         the extreme ends of the spectrum of contexts
                                                         and methods. They can serve to focus the
                                                         discussion on project management rather than
                                                         product development methods, by hopefully
                                                         disconnecting project management from
                                                         product development so we can look at them
                                                         separately.
                                                         In the first software development context – a
                                                         list of features, SCRUM is a popular
                                                         approach.
                                                         But there are many more software based
                                                         project, possibly more complex than the
                                                         example from the previous page to the
                                                         “wickedly” complex program also shown on
                                                         the previous page.
                                                         The SCRUM method is shown in its common
                                                         diagram. But below it is the method used for
                                                         product procurement in the US Department of
                                                         Defense – DoD 5000.02. The products are
                                                         not actually developed by the DoD (except in
                                                         rare cases). But are instead, procured. So
                                                         acquisition management is guided by this
                                                         process.
                                                         Both are iterative, both are incremental, both
                                                         can deal with emerging requirements, both
                                                         make use of “test driven planning,” and both
                                                         have clear and concise measures of physical
                                                         percent complete.

The 5 Immutable Principles of Project Management                                                     6/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved




                                                         Now that we know some things about
                                                         what capabilities we need and how we
                                                         might cause these capabilities to appear
                                                         at the appointed time and place for the
                                                         planned cost and schedule, do we know
                                                         what we need to be successful?
                                                         We need to constantly ask this question.
                                                         If we don’t ask and answer the question,
                                                         we’ll find out what is missing when they
                                                         arrive on our doorstep.
                                                         At that point it will be too late. It is not
                                                         too late to acquire them, but too late to
                                                         acquire them within our planned schedule
                                                         and planned budget.




The 5 Immutable Principles of Project Management                                                  7/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved


                                                         Now that we know where we’re going
                                                         and how to get there – do we have all
                                                         we need to reach the end?
                                                         Staff, time, money, the necessary skill and
                                                         experience and the proper management
                                                         support.
                                                         These are all obvious on any project – at
                                                         least any well managed project.
                                                         But there are always underlying issues
                                                         with answering these questions.
                                                         The first is that management, as well as
                                                         the development organization, is always
                                                         optimistic about the outcome. This is the
                                                         very nature of project management. Why
                                                         be pessimistic?
                                                         Well maybe not pessimistic, but how
                                                         about realistic? What do we mean when
                                                         we say realistic?
                                                         One good word is credible. Credible
                                                         could be optimistically credible or
                                                         pessimistically credible. But either way
                                                         we have a credible understanding of
                                                         what it takes to reach the end.
                                                         One part of credible is knowing what the
                                                         risks and uncertainties are and how we
                                                         are going to deal with them. Managing in
                                                         the Presence of these uncertainties is
                                                         critical to reaching our goal.
                                                         Risk and uncertainty never go away.
                                                         They are always there. They are
                                                         unavoidable.



The 5 Immutable Principles of Project Management                                                    8/58
Copyright ® 2012, Glen B. Alleman, All Rights Reserved

                                                         Project Managers constantly seek ways to
                                                         eliminate or control risk, variance, and
                                                         uncertainty. This is a hopeless pursuit.
                                                         Managing “in the presence” of risk,
                                                         variance and uncertainty is the key to
                                                         success.
                                                         Some projects have few uncertainties –
                                                         only the complexity of tasks and
                                                         relationships is important – but most
                                                         projects are characterized by several
                                                         types of uncertainty.
                                                         Although each uncertainty type is distinct,
                                                         a single project may encounter some
                                                         combination of four types:
                                                         1. Variation – comes from many small
                                                            influences and yields a range of
                                                            values on a particular activity.
                                                            Attempting to control these variances
                                                            outside their natural boundaries is a
                                                            waste (Muda).
                                                         2. Foreseen Uncertainty – are
                                                            uncertainties identifiable and
                                                            understood influences that the team
                                                            cannot be sure will occur. There needs
                                                            to be a handling plan for these
                                                            foreseen uncertainties.
                                                         3. Unforeseen Uncertainty – is uncertainty
                                                            that can’t be identified during project
                                                            planning. When these occur, a new
                                                            plan is needed.
                                                         4. Chaos – appears in the presence of
                                                            “unknown unknowns.”
                                                         “Managing Project Uncertainty: From
                                                         Variation to Chaos,” Arnoud De Meyer,
                                                         Christoph H. Loch and Michael T. Pich, MIT
                                                         Sloan Management Review, Winter
                                                         2000.


The 5 Immutable Principles of Project Management                                                9/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved
                                                         If risk management is how adults manage
                                                         projects, here are some principles of
                                                         project risk management.
                                                         These five principles are simple, obvious,
                                                         but difficult to implement. The reason
                                                         they’re difficult is that most people shy
                                                         away from risk. Managing in the
                                                         presence of risk does not come naturally.
                                                         It is a learned behavior. And once
                                                         learned it has to be practiced. But before
                                                         it can be learned and then practiced,
                                                         “managing in the presence of risk,” must
                                                         become part of the business culture.
                                                         Some cultures doe this better than others.
                                                         NASA is probably better than others. But
                                                         even NASA has moved to a risk adverse
                                                         culture in the past decades.
                                                         1. Hoping that something positive will
                                                            result is not a very good strategy.
                                                            Preparing for success is the basis of
                                                            success.
                                                         2. Single point estimates are no better
                                                            than 50/50 guesses in the absence of
                                                            knowledge of the standard deviation
                                                            of the underlying distribution.
                                                         3. Without connecting cost, schedule, and
                                                            technical performance of the effort to
                                                            produce the product or service, the
                                                            connection to value cannot be made.
                                                         4. Risk management is not an ad hoc
                                                            process that you can make up as you
                                                            go. A formal foundation for risk
                                                            management is needed.
                                                         5. Identifying risks without communicating
                                                            them is a waste of everyone’s time.

The 5 Immutable Principles of Project Management                                               10/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved




                                                         Measures of progress are one of the
                                                         difficult topics in project management.
                                                         Typically we measure progress by the
                                                         consumption of resources and the
                                                         passage of time.
                                                         We talk about “budget,” being “on
                                                         budget,” being “over budget.”
                                                         We talk about the passage of time.
                                                         “We’re on schedule,” “we’re late,” “our
                                                         schedule is slipping.”
                                                         These are all necessary things to talk
                                                         about. But they are not sufficient for our
                                                         project’s success.




The 5 Immutable Principles of Project Management                                                11/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved




                                                         Performance measurement is the
                                                         comparison of actual performance
                                                         against an integrated baseline plan
                                                         consisting of the integrated cost, schedule
                                                         and technical goals. The baseline used
                                                         for performance measurement should be
                                                         a single, integrated plan, because the
                                                         analysis of cost performance must include
                                                         schedule considerations and the
                                                         evaluation of schedule performance must
                                                         include technical performance
                                                         considerations.
                                                         Given a project where some tasks are on
                                                         schedule, some are ahead of schedule
                                                         and some are behind schedule, overall
                                                         project status is virtually impossible to
                                                         determine.
                                                         It is no wonder that many project
                                                         managers are literally “flying by the seat
                                                         of their pants” without a good feel for
                                                         where the project stands at any given
                                                         point in time.
                                                         A systematic, organized process for
                                                         collecting performance information and
                                                         presenting it in a clear manner on a
                                                         regular basis is essential to the project
                                                         management process.
                                                         And therefore a critical success factor for
                                                         the project itself.




The 5 Immutable Principles of Project Management                                                12/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved
                                                         For successful measurement of progress
                                                         to plan in a project we need to have:
                                                          Tangible evidentiary materials
                                                           measure progress to plan.
                                                          Pre–defined existence of this evidence
                                                           in meaningful units of measure
                                                           established before starting work.
                                                          Progress is defined in these same units
                                                           of measure.
                                                          All units of measure must be meaningful
                                                           to the decision makers.
                                                          The Technical Performance Measures
                                                           must be traceable to the requirements,
                                                           the capabilities and back to the
                                                           Measures of Effectiveness (MoE).
                                                          MoE’s are how the customer measures
                                                           progress. The customer didn’t buy the
                                                           development environment, or even the
                                                           code produced by the development
                                                           environment. The customer bought the
                                                           capabilities that the software
                                                           implements. Or any product, not just
                                                           software.
                                                          One example is the program of the
                                                           Hubble Robotic Service Mission (HRSM).
                                                           The customer Goddard Space Flight
                                                           Center bought the capability to fly to
                                                           Hubble, do not harm to the telescope,
                                                           change the Wide Field Camera, and
                                                           connect the umbilical cord of th
                                                           external batteries latched to the towel
                                                           bars on the ass end of the telescope.
                                                          That’s what done looked like, that’s
                                                           what Frank Cepollina bought for his
                                                           telescope.

The 5 Immutable Principles of Project Management                                               13/58
Copyright ® 2012, Glen B. Alleman, All Rights Reserved

                                                         With the information from the previous 4
                                                         irreducible principles, we now need to
                                                         confirm we are making progress.
                                                         The key principle here is “planned
                                                         progress.” We must pre-define what
                                                         progress we must make at any specific
                                                         point in the project, otherwise all we can
                                                         determine is the passage of time and the
                                                         consumption of money. Preplanning the
                                                         progress is the basis of “performance
                                                         based” measurement for both project
                                                         processes and technical products.
                                                         Like Kent Beck’s (eXtreme Programming)
                                                         advice we need feedback on our
                                                         progress.
                                                         There is only one kind of feedback for
                                                         projects – measures of physical percent
                                                         complete.
                                                         No soft touchy feely measures of
                                                         progress. No hand waving measures.
                                                         Physical, tangible evidence of progress.
                                                         Something that can be physically shown
                                                         to the customer. Something that is
                                                         compliant with the planned technical
                                                         outcomes at this point in the plan.
                                                         Scrum does this by predefining the
                                                         outcomes of the iteration. DoD 5000.02
                                                         does this as well with the Integrated
                                                         Master Plan and Integrated Master
                                                         Schedule.
                                                         So looking at two extremes of the
                                                         spectrum – one a software development
                                                         method and the other a mega-program
                                                         procurement method. Both share the same
                                                         principles and outcomes. Something that
                                                         is tangible and measurable at
                                                         incremental steps along the way to
                                                         “done.”


The 5 Immutable Principles of Project Management                                               14/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved


                                                         Let’s talk a bit about a common fallacy in
                                                         the project management world.
                                                         The notion of the “iron triangle” has fallen
                                                         into disrepute lately.
                                                         We all should know about the iron
                                                         triangle. It connects cost, schedule, and
                                                         quality – or some 3rd element in place of
                                                         quality.
                                                         Actually the variable in place of quality
                                                         is “Technical Performance Measures”
                                                         (TPM).


                                                         Technical Performance Measurement
                                                         (TPM) is a technique for predicting the
                                                         future value of a key technical
                                                         performance parameter of the higher-
                                                         level product based on current
                                                         assessments of products lower in the
                                                         system structure.
                                                         Continuous verification of actual versus
                                                         anticipated achievement of technical
                                                         parameters confirms progress and
                                                         identifies variances that might
                                                         jeopardize meeting a higher-level end
                                                         product requirement.
                                                         Assessed values falling outside
                                                         established tolerances indicate the need
                                                         for management attention and
                                                         corrective action. A well thought out
                                                         TPM program provides early warning of
                                                         technical problems, supports
                                                         assessments of the extent to which
                                                         operational requirements will be met.

The 5 Immutable Principles of Project Management                                                15/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved

                                                         When we say “project management” we
                                                         have to say “management” in terms of
                                                         measuring progress to plan.
                                                         This is not always the first image of a
                                                         Project Manager. Many times we think of
                                                         a personnel coordinator, a facilitator, all
                                                         those soft skills that are taught at the PM
                                                         conferences.
                                                         But at the end of the day, the customer
                                                         has little concern about that. It is assumed
                                                         that all that is handled. It is considered
                                                         hygiene, part of the normal operations.
                                                         The customer wants to know
                                                          When will you be done?
                                                          How much will it cost?
                                                          Will it work the way the customer
                                                              wants it to work?
                                                         With a good plan, a schedule, a
                                                         description of the needed capabilities
                                                         and related requirements, the needed
                                                         resources to deliver on the requirements
                                                         and all the impediments to progress
                                                         identified and handling plans - The
                                                         question is how to measure progress to
                                                         plan?
                                                         How do we define what the planned
                                                         progress “should” be, what actual
                                                         progress we made to date, and how
                                                         much work there is to go?
                                                         With the remaining progress to go, what
                                                         should or pace be to arrive at the end of
                                                         the project at the planned time?
                                                         Without clear and concise answers to
                                                         these question all the other aspects of
                                                         project management are going to add
                                                         little to the probability of success.
                                                         This is the source of most project failures,
                                                         the dreaded Death March of Ed Yourdon.


The 5 Immutable Principles of Project Management                                                 16/58
Copyright ® 2012, Glen B. Alleman, All Rights Reserved




                                                         Performance measurement is the
                                                         comparison of actual performance
                                                         against the planned performance in an
                                                         integrated baseline plan consisting of
                                                         integrated cost, schedule and technical
                                                         goals.
                                                         The baseline used for performance
                                                         measurement should be a single,
                                                         integrated plan, because the analysis of
                                                         cost performance must include schedule
                                                         considerations and the evaluation of
                                                         schedule performance must include
                                                         technical performance considerations.
                                                         Given a project where some tasks are on
                                                         schedule, some are ahead of schedule
                                                         and some are behind schedule, overall
                                                         project status is virtually impossible to
                                                         determine.
                                                         It is no wonder that many project
                                                         managers are literally “flying by the seat
                                                         of their pants” without a good feel for
                                                         where the project stands at any given
                                                         point in time.
                                                         A systematic, organized process for
                                                         collecting performance information and
                                                         presenting it in a clear manner on a
                                                         regular basis is essential to the project
                                                         management process.




The 5 Immutable Principles of Project Management                                                17/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved




                                                         Project management means being able to
                                                         state with confidence these phrases any
                                                         time someone asks you “how are you
                                                         managing the project?”
                                                         If you cannot say this with a straight face,
                                                         then you need to take action to start to
                                                         move in that direction.




The 5 Immutable Principles of Project Management                                                 18/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved




                                                         OK, enough principles, let’s go to work.




                                                                                               19/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved

                                                         All projects are over budget, behind
                                                         schedule, and many times don’t deliver
                                                         what was promised.
                                                         This is the realm of projects.
                                                         The BIG problem is when this comes as a
                                                         surprise, when it comes too late to do
                                                         anything about it, when there is no
                                                         margin for schedule slips, cost over runs,
                                                         or technical performance shortfalls.
                                                         That’s when projects should be labeled as
                                                         troubled. If you’re late but have schedule
                                                         margin and use that margin to cover the
                                                         lateness, then you’re not late.
                                                         If you’re over budget but have
                                                         contingency funds to cover your over
                                                         budget condition, then you’re not really
                                                         over budget, you just used your
                                                         contingency.
                                                         By The Way, Management Reserve is not
                                                         the same as contingency, but that is
                                                         another topic.
                                                         You’re product doesn’t meet the 90th
                                                         percentile of performance, but your
                                                         design will still function if the product
                                                         performs at the 80th percentile of the
                                                         performance band on the first release.
                                                         Without defining these margins,
                                                         contingencies, performance bands up
                                                         front, you’ll never know if you’re actually
                                                         performing well or not.
                                                         But most importantly, you don’t have a
                                                         leg to stand on with your customer when
                                                         you are actually late, over budget, and
                                                         in a performance short fall.


                                                                                                 20/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved




                                                         Here are 16 program management
                                                         processes that must be in place for any
                                                         business that depends on managing
                                                         projects for revenue generation.
                                                         For the moment we’ll only talk about 7 of
                                                         these.
                                                         Planning, measuring performance of the
                                                         Plan, requirements, finance, earned
                                                         value, scheduling and risk.
                                                         2. You need a plan to know where you
                                                            are going.
                                                         3. You need some way to measure
                                                            progress of that plan
                                                         6. Earned Value tell you how you can
                                                            measure physical percent complete
                                                            and with that forecast future
                                                            performance.
                                                         7. Requirements tell you what things you
                                                            need to produce to meet the plan.
                                                         8. You need a schedule of the work,
                                                            how it will be performed, and what
                                                            order it will be performed in.
                                                         9.   Finance, so one has to fund your
                                                              project and will be asking what you
                                                              did with their money.
                                                         10. Risk is how adults manage projects




                                                                                               21/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved




                                                         The 5 Immutable Principles of project
                                                         success are based on 5 process areas of
                                                         project management. The five process
                                                         areas are the basis of Performance
                                                         Based Management(sm), they are:
                                                         1. Identify the capabilities needed to
                                                            fulfill the mission, vision, business case,
                                                            or any other forward looking
                                                            description of the project.
                                                         2. Identify the technical and operational
                                                            requirements needed to enable the
                                                            capabilities to be fulfilled.
                                                         3. Define the cost, schedule, and
                                                            technical performance measures of
                                                            the work activities needed to
                                                            implement the requirements.
                                                         4. Determine how the work activities will
                                                            be measured to assure their planned
                                                            performance is being achieved.
                                                         5. Identify and handle the impediments
                                                            to progress for the project.




                                                                                                  22/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved




                                                         Capabilities are where the business value
                                                         is.
                                                         Capabilities drive requirements, but
                                                         rarely do requirements by themselves
                                                         have value to the business.
                                                         The business wants a capability. A
                                                         capability to do something with the
                                                         outcomes of your project. There are lots
                                                         of ways to implement a capability, so
                                                         focus first on establishing a baseline set
                                                         of capabilities before you start
                                                         developing requirements and solving the
                                                         perceived problems.
                                                         Capabilities are what you would do with
                                                         the resulting system. The business would
                                                         put it to work making money, satisfying
                                                         customers, running the business, running
                                                         the products the business produces.
                                                         If you don’t know want capabilities you
                                                         need to produce from the project, you
                                                         rally can’t talk about the business value,
                                                         and therefore you really can’t speak
                                                         about what DONE looks like in are
                                                         meaningful way other than the passage
                                                         of time and consumption of money.




                                                                                                23/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved




                                                         The first step in identifying requirements
                                                         that fulfill the needed capabilities is to
                                                         separate “product” requirements from
                                                         “process” requirements.
                                                         The product could be a service as well,
                                                         but the product (or service) is not the
                                                         same as the process that delivers the
                                                         service that may be enabled by the
                                                         product.
                                                         We can see there are several
                                                         components of this separation.
                                                         While this type of taxonomy looks
                                                         unnecessary, later on we’ll see it can
                                                         serve to reduce complexity, focus our
                                                         efforts on important parts of
                                                         requirements management, and reduce
                                                         the overall effort of managing these
                                                         requirements.




Copyright © 2012                                                                                24/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved




                                                         The Baseline of the project is actually three
                                                         baselines:
                                                         1.   The technical baseline assures that all the
                                                              deliverables are identified. Even if the
                                                              details are not know, the needed
                                                              capabilities must be defined in some
                                                              meaningful manner. Otherwise the
                                                              project will have no way to control the
                                                              scope.
                                                         2.   The schedule baseline says when the
                                                              needed capabilities will be available
                                                         3.   The cost baseline says how much each of
                                                              these capabilities is planned to cost.




                                                                                                    25/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved




                                                         When we talk about Plans and Schedule,
                                                         we need to speak about outcomes in
                                                         terms of needed capabilities and then
                                                         speak about how we are going to
                                                         produce those outcomes through “work.”
                                                         The work that produces an outcome,
                                                         produces a “Deliverable.” A tangible
                                                         evidence that the customer has received
                                                         a capability.
                                                         This is the picture of the Integrated Master
                                                         Plan and the Integrated Master Schedule.
                                                         The Plan is needed first. It tells us what
                                                         DONE looks like in terms of capabilities.
                                                         What capabilities we’ll posses when the
                                                         project is done. Most importantly it tells
                                                         how the maturity of these capabilities
                                                         evolves over time.
                                                         The Integrated Master Schedule shows
                                                         the packages of work that must be
                                                         performed in a specific order to produce
                                                         the needed capability.
                                                         Both the Plan and the Schedule are
                                                         needed. If you have the Plan without the
                                                         schedule, then you know what done looks
                                                         like, but not how to get there.
                                                         If you have the schedule and not the Plan
                                                         you cannot determine if your work is
                                                         increasing the maturity of the desired
                                                         capabilities.




                                                                                                 26/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved




                                                         With the Work Packages defined in the
                                                         Integrated Master Schedule, shown below
                                                         the line in the previous slide, the
                                                         execution of the work is straight forward.
                                                         So simple in fact, you just have to do the
                                                         work in the order is says to do it. This
                                                         sounds too simple of course, but this is
                                                         where the Planning process pays off.
                                                         Just like an Agile development process
                                                         using sticky notes and iterations, the
                                                         project agrees what work is going to be
                                                         performed in what order – the iteration
                                                         in the example of Scrum. Work Packages
                                                         in the example here.
                                                         It turns out that formal project
                                                         management using Work Packages is
                                                         very close to Scrum in many ways.




                                                                                                27/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved




                                                         Continuous Risk Management, when
                                                         performed successfully, provides a
                                                         number of benefits:
                                                          Prevents problems before they occur –
                                                           identifies potential risks and deals
                                                           with them when it is easier and
                                                           cheaper to do so – before they are
                                                           issues.
                                                          Improves product or service quality –
                                                           focuses on the program’s objectives
                                                           and consciously looks for things that
                                                           many effect quality throughout the
                                                           program lifecycle.
                                                          Enables better use of resources –
                                                           allows the early identification of
                                                           potential problems – proactive
                                                           management – and provides input into
                                                           management decisions regarding
                                                           resource allocation.
                                                          Promotes teamwork – involves
                                                           personnel at all levels of the program.




Copyright, Glen B. Alleman 2012                                                               28/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved




                                                         No matter what method you are using for
                                                         the management of your project,
                                                         someone outside your project has an
                                                         interest in how things are going.
                                                         This interest is usually measured in units
                                                         different from yours as a project
                                                         manager or as a developer.
                                                         Here are 11 critical activities needed to
                                                         answer almost any question from anyone
                                                         in your organization about how is it
                                                         going?




                                                                                                  29/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved

                                                         Performance Based Management(sm)
                                                         method provides the tools, processes, and
                                                         training needed to increase the
                                                         probability of success of projects.
                                                         This approach is unique in its integration
                                                         of the critical success factors for projects,
                                                         no matter the domain.
                                                         This approach answers the following 5
                                                         immutable principles:
                                                          Where are we going?
                                                             Do we have a definitive description of
                                                             the needed capabilities and the
                                                             requirements needed to deliver those
                                                             capabilities?
                                                          How do we get there?
                                                             What is the sequence of the work
                                                             efforts to achieve the plan?
                                                          Do we have enough time, resources,
                                                           and money to get there?
                                                             Are the resources properly allocated to
                                                             the sequence of work activities?
                                                          What impediments will we
                                                           encounter along the way?
                                                             Have we captured the risks and their
                                                             handling plans for all the critical work
                                                             activities?
                                                          How do we know we are making
                                                           progress?
                                                             Can we measure progress to plan in
                                                             units meaningful to the decision
                                                             makers?



Copyright, Glen B. Alleman 2012                                                                    30/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved

                                                         Performance Based Management(sm)
                                                         method provides the tools, processes, and
                                                         training needed to increase the
                                                         probability of success of projects.
                                                         This approach is unique in its integration
                                                         of the critical success factors for projects,
                                                         no matter the domain.
                                                         This approach answers the following 5
                                                         immutable principles:
                                                          Where are we going?
                                                             Do we have a definitive description of
                                                             the needed capabilities and the
                                                             requirements needed to deliver those
                                                             capabilities?
                                                          How do we get there?
                                                             What is the sequence of the work
                                                             efforts to achieve the plan?
                                                          Do we have enough time, resources,
                                                           and money to get there?
                                                             Are the resources properly allocated to
                                                             the sequence of work activities?
                                                          What impediments will we
                                                           encounter along the way?
                                                             Have we captured the risks and their
                                                             handling plans for all the critical work
                                                             activities?
                                                          How do we know we are making
                                                           progress?
                                                             Can we measure progress to plan in
                                                             units meaningful to the decision
                                                             makers?



Copyright, Glen B. Alleman 2012                                                                    31/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved




                                                         With the principles and practices in
                                                         place, the next step is to put them to
                                                         work on your projects.
                                                         This is a call to action.
                                                         Start with agreeing to measure all
                                                         progress to plan (you do have a plan
                                                         right) with tangible evidence of physical
                                                         percent complete.
                                                         This means the phrase show me has to be
                                                         used all the time.
                                                         You have to define what done looks like
                                                         in fine grained increments with pre-
                                                         defined units of measure. Otherwise
                                                         you’ll never recognize done when it
                                                         arrives, if it arrives.
                                                         Planning is a dynamic process that must
                                                         deal with change, emergent situations.
                                                         The planning horizon can not be further in
                                                         the future than you have capabilities to
                                                         manage. Otherwise your plan is bogus.
                                                         You need a mission and a vision of what
                                                         done looks like to guide your plan, to
                                                         anchor your efforts.
                                                         But don’t be fooled by plans that state
                                                         outcomes beyond the horizon if you
                                                         actually haven’t been beyond the horizon
                                                         to see what it looks like out there.




                                                                                                  32/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved




                                                         Now comes the part where all the soft
                                                         skills come into play.
                                                         You need to be ruthless about the 5
                                                         principles and the 5 processes, without
                                                         appearing to be ruthless.
                                                         This is where good project managers
                                                         excel.
                                                         I personally am not one of those people.
                                                         I’ve grown up in the weapons systems
                                                         business, with a prior military
                                                         background, worked on large programs
                                                         where people die if things go wrong.
                                                         Or people die when things go right
                                                         (Intercontinental Ballistic Missiles).
                                                         But in many domains, IT being one,
                                                         people skills are critically important.
                                                         But these principles and practices are
                                                         universal.
                                                         In order to make them work though, the
                                                         Project Manager must adhere to the
                                                         principles first and the practices that
                                                         result.




                                                                                                   33/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved




                                                         Now for questions.




The 5 Immutable Principles of Project Management                              34/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved




                                                         So we’ve arrived at the end of our short
                                                         time here. What did we learn?
                                                         There are 5 immutable principles of
                                                         project management, no matter the
                                                         project domain and context.
                                                         We need to confirm are project is
                                                         applying these principles, and look for
                                                         the evidence in the form of practices for
                                                         each principle.
                                                         Hopefully I’ve conveyed the notion that
                                                         project management is not the same as
                                                         product development.
                                                         Both are needed, some times more than
                                                         the other depending on the context and
                                                         the domain.
                                                         If I’m building a web site I approach the
                                                         project management and development
                                                         method differently than if I’m building the
                                                         terminal guidance control software for an
                                                         autonomous Mars Lander




The 5 Immutable Principles of Project Management                                                35/36
Copyright ® 2012, Glen B. Alleman, All Rights Reserved




                                                         36/36
Here’s the five practices needed for
success with the five immutable principles.
These practices are general purpose for
all project domains and independent of
any development method.
The five principles contain the activities
needed to implement the principle. There
is of course much more detail needed. But
this is a framework and not the step by
step methods, that's several 100 ore
pages of overview.




                                              37
Here’s the next level down of 3 more
levels.
The idea here is that increasing fidelity of
the produced outcomes requires
increasing fidelity of the processes
needed to produce those outcomes. They
go hand in hand.
For example to Identify Needed
Capabilities, you just can’t say Identify
Needed Capabilities, there are 4major
steps to do that
1. Define capabilities as operational
   concepts, means a clear and concise
   definition of how the capability with
   be used in production. This is usually
   some narrative. I want to fly to
   Hubble and fix the wide field camera.
2. Then we need scenarios or use cases
   describing all the activities that will
   take place while using this capability.
3. Trade offs between needs, risks, and
   costs have to consider all the
   interactions. This is the Anlysis is
   Alternative (AoA) described in
   Systems Engineering.
4. Then the actual trade offs must be
   performed. A trade space built where
   quantitative assessment can be
   performed.




                                               38
Here’s another view of connecting
the Five Principles with the Five
Practices while building the Needed
Capabilties.




                                      39
And another view.
Multiple views of the same process and
problem are always needed.




                                         40
For the IT world, here’s a way to
assemble the deliverables based
planning into a business process.




                                    41
A way to show how capabilities can
drive requirements and how
capabilities can be connected to
business benefits.




                                     42
An example of a Product
Development Kaizan for a space
craft.




                                 43
From the sticky note a Mind Mapping
tool is used to capture the stuff on
the wall.
From there this tool – MindJet – can
produce a schedule directly. You still
have to hook up the work, assign
durations, and resources, but the
topology of the project – the Program
Architecture is captured during the
Kaizan process.




                                         44
Another view of a Value Stream Map,
showing how the maturity of products and
services move from left to right.




                                           45
Time: 00 :00
Total: 00:00

                                                 This is a picture of a Plan for the project.
                                                 This is a real project. It is a health
                                                 insurance claims processing system
                                                 integration. It shows what capabilities we
                                                 would like to have, the order of those
                                                 capabilities, the preconditions for each
                                                 capability, and the outcomes of each
                                                 capability when it is available.
                                                 This is the Integrated Master Plan.
                                                 It is NOT the Integrated Master Schedule.
                                                 But having this Plan is critical to
                                                 developing the Integrated Master
                                                 Schedule.
                                                 If you look back to the early slides in this
                                                 session you’ll see similar charts. People
                                                 standing in front of a board of sticky
                                                 notes were doing the same thing.
                                                 The process lays out the “value flow” for
                                                 the project. This is the mythical “value”
                                                 spoken about in many Agile development
                                                 processes.
                                                 We can monetize the presence of a
                                                 capability and assign that monetary
                                                 value to a section of the business case.
                                                 With this “value flow” we can identify the
                                                 needed capabilities, the technical and
                                                 operational requirements that must be in
                                                 place to enable these capabilities and
                                                 finally the “packages of work” needed to
                                                 produce the solutions that meet those
                                                 requirements.




Glen B. Alleman, PMI Mile High Symposium, 2012                                           46/38
Time: 00 :00
Total: 00:00
                                                 Using the topology from the previous slide,
                                                 we can now see what the Plan looks like. The
                                                 Data in Marts for ERP Ready is a capability
                                                 needed by the business. This capability can
                                                 be put to work. The business case can
                                                 monetize this capability and we can connect
                                                 our development efforts with the production
                                                 of this monetized value. In order to arrive at
                                                 this capability, we need several Significant
                                                 Accomplishments:
                                                 Billing is complete.
                                                 Internal process complete.
                                                 Data store look up complete.
                                                 Data marts complete.
                                                 Portals and others complete.
                                                 Each of these Significant Accomplishments has
                                                 a set of Work Packages (not shown here) that
                                                 must be completed. The Exit Criteria of these
                                                 Work Packages is called the Accomplishment
                                                 Criteria.
                                                 The Accomplishment Criteria, Significant
                                                 Accomplishments, and the Milestones or Events
                                                 that release the Capability are the
                                                 Integrated Master Plan (IMP).
                                                 The Work Packages and their internal Tasks,
                                                 when placed in the right sequence are the
                                                 Integrated Master Schedule. If we look back
                                                 at the topology of the IMP and IMS, we now
                                                 have the language needed to describe:
                                                 What DONE looks like?
                                                 How to get to DONE?
                                                 What resources we need on the way to
                                                 DONE?
                                                 The impediments along the way?
                                                 The measures of progress to plan?
                                                 We’ll have answered the 5 immutable
                                                 questions in a single integrated document –
                                                 the Integrated Master Plan / Integrated
                                                 Master Schedule.


Glen B. Alleman, PMI Mile High Symposium, 2012                                            47/38
Time: 00 :00
Total: 00:00                                     The perfect schedule has some attributes
                                                 we need to understand before we start.
                                                 The schedule tells us what DONE looks
                                                 like in units of measures meaningful to the
                                                 decision makers. This phrase units of
                                                 measure meaningful to the decision
                                                 makers will be at the heart of everything
                                                 we do today.
                                                 The schedule shows us what work needs
                                                 to be done to produce the outcomes
                                                 needed for the project to be successful.
                                                 Actually it shows us the work that needs
                                                 to be done that increases the probability
                                                 of success for the project – since all
                                                 project work is probabilistic.
                                                 The schedule shows us what resources are
                                                 needed to do that work.
                                                 The schedule must show us what are the
                                                 impediments to performing that work.
                                                 What are the risks to the project’s success.
                                                 And finally the schedule shows us how we
                                                 are measuring the tangible evidence of
                                                 progress to our plan.
                                                 This evidence and these measures are
                                                 usually not part of the traditional
                                                 approach to scheduling. In that
                                                 traditional approach, work is planned
                                                 left to right, resources assigned – you do
                                                 have a resource loaded schedule right?.
                                                 And then that work is executed.
                                                 What we’re going to learn today is that
                                                 another paradigm is needed in order to
                                                 increase the probability of success.
                                                 This paradigm is called the Integrated
                                                 Master Plan or IMP. The IMP is used –
                                                 and many times mandated in large
                                                 defense and NASA programs. But it is
                                                 also found in Enterprise IT programs.
                                                 Project like ERP.

Glen B. Alleman, PMI Mile High Symposium, 2012                                          48/38
Immutable principles of project management
Immutable principles of project management
Immutable principles of project management
Immutable principles of project management
Immutable principles of project management
Immutable principles of project management
Immutable principles of project management
Immutable principles of project management

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Immutable principles of project management

  • 1. Copyright ® 2012, Glen B. Alleman, All Rights Reserved All projects are disappointments. That’s why they call it a project. All projects push the boundaries of schedule, cost, and technical performance, otherwise it would be called production. We need to face up to this. We need to acknowledge that projects are managed in the presence of uncertainty. Uncertainty drives risk. Risk drives cost, schedule, and technical performance. We must manage in the presence of risk. This starts with having NO, I mean NO surprises. Is something goes wrong that was a surprise, a REAL surprise, them someone didn’t do their job. A risk was ignored. A risk was overlooked. A risk was hiding in plain site. Risk management is the primary role of project management. And By The Way, agile is not a risk management process unless it has a risk register, a probabilistic assessment for those risk and the impact of those risks, and a monetized outcome for the handling strategy for each risk in the Risk Register. Risk is an Uncertainty that Matters. Risk is any uncertainty that if it occurs will affect achievement of objectives. The role of risk management is to reduce or eliminate the surprise of being over budget, behind schedule, and not have your thing work. Risk management means knowing bad things are going to happen soon enough to do something about them. The other four principals of success are in support of risk management 1/36
  • 2. Copyright ® 2012, Glen B. Alleman, All Rights Reserved The five immutable principles of project success are: 1. Know where you are going by defining “done” at some point in the future. This point may be far in the future – months or years from now. Or closer in the future days or weeks from now. 2. Have some kind of plan to get to where you are going. This plan can be simple or it can be complex. The fidelity of the plan depends on the tolerance for risk by the users of the plan. 3. Understand the resources needed to execute the plan. How much time and money is needed to reach the destination. This can be fixed or variable. 4. Identify the impediments to progress along the way to the destination. Have some means of removing, avoiding, or ignoring these impediments. 5. Have some way to measure your planned progress, not just your progress. Progress to Plan must be measured in units of physical percent complete. In units meaningful to the decision makers. The 5 Immutable Principles of Project Management 2/36
  • 3. Copyright ® 2012, Glen B. Alleman, All Rights Reserved The key is requirements tell us something about where we are going. But requirements come in all shapes and sizes. Here’s a sample of two extremes. A small project and a not-small project. The small project is straight forward in terms of requirements. There is a list of them on the flip chart. They are likely well understood. They probably can be estimated in terms of cost and schedule. And most importantly the interactions between the requirements can be intuited with a little effort. The project on the right is a different class of effort. This is the top level components (if you can call them that) of the Future Combat System. It’s a $35B, that’s billion with a B program to restructure the entire US Army Battle Space Management processes. I help one of the teams – the Class I team – build their Performance Measurement Baseline and get that information into a cost and schedule management system, so they can use Earned Value Management to “manage” their program. FCS is a software intensive system, where software is in everything from small hand held devices to major facilities housing the “battle space management command.” If the software doesn’t work, the FCS doesn’t work. Soldiers can’t do their job. If soldiers can’t do their job – there’s a BIG PROBLEM. The 5 Immutable Principles of Project Management 3/36
  • 4. Copyright ® 2012, Glen B. Alleman, All Rights Reserved These two words should be tattooed on your wrist. If we don’t have a Plan, our schedule is not credible. Plans are not Schedules. And Schedules are not Plans. A Plan is a Strategy for the successful delivery of the project. Plans state “what” is to be done (programmatically what, not technically what). Schedules state “how” it is to be done – programmatically how it is to be done. While this may seem subtle or maybe not even useful, it is critically important for several reasons:  The plan shows how the project produces increasing value and increasing maturity of the products.  This value and maturity is meaningful to the business.  It’s is the “road map” from the beginning to end, INDEPENDENT from the actual durations of the work.  The Plan speaks to What we are doing.  The schedule is the “driving instructions” for the vehicles on the roads, following the map.  The execution of the schedule is the actual “driving” of the vehicle by the driver along with the passengers. All three are needed, no one can be missing, all three interact with each other. The 5 Immutable Principles of Project Management 4/36
  • 5. Copyright ® 2012, Glen B. Alleman, All Rights Reserved Now that we know about the existence of a Plan, what is the Schedule? Why is it different from the Plan? The Schedule shows the work needed to produce the “deliverables” in the Plan. This sounds like a tautology – a statement of the obvious. But there’s more to it than that. This work is ONLY the work needed to cause the “exit criteria” to appear of each individual definition of the criteria for named Accomplishment. In a previous slide we mentioned the definition of the Accomplishments come first. With these definitions – and most importantly the order in which these Accomplishments must be accomplished I know this is not as clear as you’d expect at this point. But we’ll need to use an example before we get back to the details. For now think of the schedule as the description of how the individual Exit Criteria from the “lumps of work” are to be accomplished. The 5 Immutable Principles of Project Management 5/36
  • 6. Copyright ® 2012, Glen B. Alleman, All Rights Reserved Now that we know where we want to go, the next question is how to get there. How do we build the products or provide the services needed to reach the end of our project. There are numerous choices, depending on the domain and the context of the project in that domain. For the software domain there are many context’s. Using the example on the previous page, let’s look at two methods. These are the extreme ends of the spectrum of contexts and methods. They can serve to focus the discussion on project management rather than product development methods, by hopefully disconnecting project management from product development so we can look at them separately. In the first software development context – a list of features, SCRUM is a popular approach. But there are many more software based project, possibly more complex than the example from the previous page to the “wickedly” complex program also shown on the previous page. The SCRUM method is shown in its common diagram. But below it is the method used for product procurement in the US Department of Defense – DoD 5000.02. The products are not actually developed by the DoD (except in rare cases). But are instead, procured. So acquisition management is guided by this process. Both are iterative, both are incremental, both can deal with emerging requirements, both make use of “test driven planning,” and both have clear and concise measures of physical percent complete. The 5 Immutable Principles of Project Management 6/36
  • 7. Copyright ® 2012, Glen B. Alleman, All Rights Reserved Now that we know some things about what capabilities we need and how we might cause these capabilities to appear at the appointed time and place for the planned cost and schedule, do we know what we need to be successful? We need to constantly ask this question. If we don’t ask and answer the question, we’ll find out what is missing when they arrive on our doorstep. At that point it will be too late. It is not too late to acquire them, but too late to acquire them within our planned schedule and planned budget. The 5 Immutable Principles of Project Management 7/36
  • 8. Copyright ® 2012, Glen B. Alleman, All Rights Reserved Now that we know where we’re going and how to get there – do we have all we need to reach the end? Staff, time, money, the necessary skill and experience and the proper management support. These are all obvious on any project – at least any well managed project. But there are always underlying issues with answering these questions. The first is that management, as well as the development organization, is always optimistic about the outcome. This is the very nature of project management. Why be pessimistic? Well maybe not pessimistic, but how about realistic? What do we mean when we say realistic? One good word is credible. Credible could be optimistically credible or pessimistically credible. But either way we have a credible understanding of what it takes to reach the end. One part of credible is knowing what the risks and uncertainties are and how we are going to deal with them. Managing in the Presence of these uncertainties is critical to reaching our goal. Risk and uncertainty never go away. They are always there. They are unavoidable. The 5 Immutable Principles of Project Management 8/58
  • 9. Copyright ® 2012, Glen B. Alleman, All Rights Reserved Project Managers constantly seek ways to eliminate or control risk, variance, and uncertainty. This is a hopeless pursuit. Managing “in the presence” of risk, variance and uncertainty is the key to success. Some projects have few uncertainties – only the complexity of tasks and relationships is important – but most projects are characterized by several types of uncertainty. Although each uncertainty type is distinct, a single project may encounter some combination of four types: 1. Variation – comes from many small influences and yields a range of values on a particular activity. Attempting to control these variances outside their natural boundaries is a waste (Muda). 2. Foreseen Uncertainty – are uncertainties identifiable and understood influences that the team cannot be sure will occur. There needs to be a handling plan for these foreseen uncertainties. 3. Unforeseen Uncertainty – is uncertainty that can’t be identified during project planning. When these occur, a new plan is needed. 4. Chaos – appears in the presence of “unknown unknowns.” “Managing Project Uncertainty: From Variation to Chaos,” Arnoud De Meyer, Christoph H. Loch and Michael T. Pich, MIT Sloan Management Review, Winter 2000. The 5 Immutable Principles of Project Management 9/36
  • 10. Copyright ® 2012, Glen B. Alleman, All Rights Reserved If risk management is how adults manage projects, here are some principles of project risk management. These five principles are simple, obvious, but difficult to implement. The reason they’re difficult is that most people shy away from risk. Managing in the presence of risk does not come naturally. It is a learned behavior. And once learned it has to be practiced. But before it can be learned and then practiced, “managing in the presence of risk,” must become part of the business culture. Some cultures doe this better than others. NASA is probably better than others. But even NASA has moved to a risk adverse culture in the past decades. 1. Hoping that something positive will result is not a very good strategy. Preparing for success is the basis of success. 2. Single point estimates are no better than 50/50 guesses in the absence of knowledge of the standard deviation of the underlying distribution. 3. Without connecting cost, schedule, and technical performance of the effort to produce the product or service, the connection to value cannot be made. 4. Risk management is not an ad hoc process that you can make up as you go. A formal foundation for risk management is needed. 5. Identifying risks without communicating them is a waste of everyone’s time. The 5 Immutable Principles of Project Management 10/36
  • 11. Copyright ® 2012, Glen B. Alleman, All Rights Reserved Measures of progress are one of the difficult topics in project management. Typically we measure progress by the consumption of resources and the passage of time. We talk about “budget,” being “on budget,” being “over budget.” We talk about the passage of time. “We’re on schedule,” “we’re late,” “our schedule is slipping.” These are all necessary things to talk about. But they are not sufficient for our project’s success. The 5 Immutable Principles of Project Management 11/36
  • 12. Copyright ® 2012, Glen B. Alleman, All Rights Reserved Performance measurement is the comparison of actual performance against an integrated baseline plan consisting of the integrated cost, schedule and technical goals. The baseline used for performance measurement should be a single, integrated plan, because the analysis of cost performance must include schedule considerations and the evaluation of schedule performance must include technical performance considerations. Given a project where some tasks are on schedule, some are ahead of schedule and some are behind schedule, overall project status is virtually impossible to determine. It is no wonder that many project managers are literally “flying by the seat of their pants” without a good feel for where the project stands at any given point in time. A systematic, organized process for collecting performance information and presenting it in a clear manner on a regular basis is essential to the project management process. And therefore a critical success factor for the project itself. The 5 Immutable Principles of Project Management 12/36
  • 13. Copyright ® 2012, Glen B. Alleman, All Rights Reserved For successful measurement of progress to plan in a project we need to have:  Tangible evidentiary materials measure progress to plan.  Pre–defined existence of this evidence in meaningful units of measure established before starting work.  Progress is defined in these same units of measure.  All units of measure must be meaningful to the decision makers.  The Technical Performance Measures must be traceable to the requirements, the capabilities and back to the Measures of Effectiveness (MoE).  MoE’s are how the customer measures progress. The customer didn’t buy the development environment, or even the code produced by the development environment. The customer bought the capabilities that the software implements. Or any product, not just software.  One example is the program of the Hubble Robotic Service Mission (HRSM). The customer Goddard Space Flight Center bought the capability to fly to Hubble, do not harm to the telescope, change the Wide Field Camera, and connect the umbilical cord of th external batteries latched to the towel bars on the ass end of the telescope.  That’s what done looked like, that’s what Frank Cepollina bought for his telescope. The 5 Immutable Principles of Project Management 13/58
  • 14. Copyright ® 2012, Glen B. Alleman, All Rights Reserved With the information from the previous 4 irreducible principles, we now need to confirm we are making progress. The key principle here is “planned progress.” We must pre-define what progress we must make at any specific point in the project, otherwise all we can determine is the passage of time and the consumption of money. Preplanning the progress is the basis of “performance based” measurement for both project processes and technical products. Like Kent Beck’s (eXtreme Programming) advice we need feedback on our progress. There is only one kind of feedback for projects – measures of physical percent complete. No soft touchy feely measures of progress. No hand waving measures. Physical, tangible evidence of progress. Something that can be physically shown to the customer. Something that is compliant with the planned technical outcomes at this point in the plan. Scrum does this by predefining the outcomes of the iteration. DoD 5000.02 does this as well with the Integrated Master Plan and Integrated Master Schedule. So looking at two extremes of the spectrum – one a software development method and the other a mega-program procurement method. Both share the same principles and outcomes. Something that is tangible and measurable at incremental steps along the way to “done.” The 5 Immutable Principles of Project Management 14/36
  • 15. Copyright ® 2012, Glen B. Alleman, All Rights Reserved Let’s talk a bit about a common fallacy in the project management world. The notion of the “iron triangle” has fallen into disrepute lately. We all should know about the iron triangle. It connects cost, schedule, and quality – or some 3rd element in place of quality. Actually the variable in place of quality is “Technical Performance Measures” (TPM). Technical Performance Measurement (TPM) is a technique for predicting the future value of a key technical performance parameter of the higher- level product based on current assessments of products lower in the system structure. Continuous verification of actual versus anticipated achievement of technical parameters confirms progress and identifies variances that might jeopardize meeting a higher-level end product requirement. Assessed values falling outside established tolerances indicate the need for management attention and corrective action. A well thought out TPM program provides early warning of technical problems, supports assessments of the extent to which operational requirements will be met. The 5 Immutable Principles of Project Management 15/36
  • 16. Copyright ® 2012, Glen B. Alleman, All Rights Reserved When we say “project management” we have to say “management” in terms of measuring progress to plan. This is not always the first image of a Project Manager. Many times we think of a personnel coordinator, a facilitator, all those soft skills that are taught at the PM conferences. But at the end of the day, the customer has little concern about that. It is assumed that all that is handled. It is considered hygiene, part of the normal operations. The customer wants to know  When will you be done?  How much will it cost?  Will it work the way the customer wants it to work? With a good plan, a schedule, a description of the needed capabilities and related requirements, the needed resources to deliver on the requirements and all the impediments to progress identified and handling plans - The question is how to measure progress to plan? How do we define what the planned progress “should” be, what actual progress we made to date, and how much work there is to go? With the remaining progress to go, what should or pace be to arrive at the end of the project at the planned time? Without clear and concise answers to these question all the other aspects of project management are going to add little to the probability of success. This is the source of most project failures, the dreaded Death March of Ed Yourdon. The 5 Immutable Principles of Project Management 16/58
  • 17. Copyright ® 2012, Glen B. Alleman, All Rights Reserved Performance measurement is the comparison of actual performance against the planned performance in an integrated baseline plan consisting of integrated cost, schedule and technical goals. The baseline used for performance measurement should be a single, integrated plan, because the analysis of cost performance must include schedule considerations and the evaluation of schedule performance must include technical performance considerations. Given a project where some tasks are on schedule, some are ahead of schedule and some are behind schedule, overall project status is virtually impossible to determine. It is no wonder that many project managers are literally “flying by the seat of their pants” without a good feel for where the project stands at any given point in time. A systematic, organized process for collecting performance information and presenting it in a clear manner on a regular basis is essential to the project management process. The 5 Immutable Principles of Project Management 17/36
  • 18. Copyright ® 2012, Glen B. Alleman, All Rights Reserved Project management means being able to state with confidence these phrases any time someone asks you “how are you managing the project?” If you cannot say this with a straight face, then you need to take action to start to move in that direction. The 5 Immutable Principles of Project Management 18/36
  • 19. Copyright ® 2012, Glen B. Alleman, All Rights Reserved OK, enough principles, let’s go to work. 19/36
  • 20. Copyright ® 2012, Glen B. Alleman, All Rights Reserved All projects are over budget, behind schedule, and many times don’t deliver what was promised. This is the realm of projects. The BIG problem is when this comes as a surprise, when it comes too late to do anything about it, when there is no margin for schedule slips, cost over runs, or technical performance shortfalls. That’s when projects should be labeled as troubled. If you’re late but have schedule margin and use that margin to cover the lateness, then you’re not late. If you’re over budget but have contingency funds to cover your over budget condition, then you’re not really over budget, you just used your contingency. By The Way, Management Reserve is not the same as contingency, but that is another topic. You’re product doesn’t meet the 90th percentile of performance, but your design will still function if the product performs at the 80th percentile of the performance band on the first release. Without defining these margins, contingencies, performance bands up front, you’ll never know if you’re actually performing well or not. But most importantly, you don’t have a leg to stand on with your customer when you are actually late, over budget, and in a performance short fall. 20/36
  • 21. Copyright ® 2012, Glen B. Alleman, All Rights Reserved Here are 16 program management processes that must be in place for any business that depends on managing projects for revenue generation. For the moment we’ll only talk about 7 of these. Planning, measuring performance of the Plan, requirements, finance, earned value, scheduling and risk. 2. You need a plan to know where you are going. 3. You need some way to measure progress of that plan 6. Earned Value tell you how you can measure physical percent complete and with that forecast future performance. 7. Requirements tell you what things you need to produce to meet the plan. 8. You need a schedule of the work, how it will be performed, and what order it will be performed in. 9. Finance, so one has to fund your project and will be asking what you did with their money. 10. Risk is how adults manage projects 21/36
  • 22. Copyright ® 2012, Glen B. Alleman, All Rights Reserved The 5 Immutable Principles of project success are based on 5 process areas of project management. The five process areas are the basis of Performance Based Management(sm), they are: 1. Identify the capabilities needed to fulfill the mission, vision, business case, or any other forward looking description of the project. 2. Identify the technical and operational requirements needed to enable the capabilities to be fulfilled. 3. Define the cost, schedule, and technical performance measures of the work activities needed to implement the requirements. 4. Determine how the work activities will be measured to assure their planned performance is being achieved. 5. Identify and handle the impediments to progress for the project. 22/36
  • 23. Copyright ® 2012, Glen B. Alleman, All Rights Reserved Capabilities are where the business value is. Capabilities drive requirements, but rarely do requirements by themselves have value to the business. The business wants a capability. A capability to do something with the outcomes of your project. There are lots of ways to implement a capability, so focus first on establishing a baseline set of capabilities before you start developing requirements and solving the perceived problems. Capabilities are what you would do with the resulting system. The business would put it to work making money, satisfying customers, running the business, running the products the business produces. If you don’t know want capabilities you need to produce from the project, you rally can’t talk about the business value, and therefore you really can’t speak about what DONE looks like in are meaningful way other than the passage of time and consumption of money. 23/36
  • 24. Copyright ® 2012, Glen B. Alleman, All Rights Reserved The first step in identifying requirements that fulfill the needed capabilities is to separate “product” requirements from “process” requirements. The product could be a service as well, but the product (or service) is not the same as the process that delivers the service that may be enabled by the product. We can see there are several components of this separation. While this type of taxonomy looks unnecessary, later on we’ll see it can serve to reduce complexity, focus our efforts on important parts of requirements management, and reduce the overall effort of managing these requirements. Copyright © 2012 24/36
  • 25. Copyright ® 2012, Glen B. Alleman, All Rights Reserved The Baseline of the project is actually three baselines: 1. The technical baseline assures that all the deliverables are identified. Even if the details are not know, the needed capabilities must be defined in some meaningful manner. Otherwise the project will have no way to control the scope. 2. The schedule baseline says when the needed capabilities will be available 3. The cost baseline says how much each of these capabilities is planned to cost. 25/36
  • 26. Copyright ® 2012, Glen B. Alleman, All Rights Reserved When we talk about Plans and Schedule, we need to speak about outcomes in terms of needed capabilities and then speak about how we are going to produce those outcomes through “work.” The work that produces an outcome, produces a “Deliverable.” A tangible evidence that the customer has received a capability. This is the picture of the Integrated Master Plan and the Integrated Master Schedule. The Plan is needed first. It tells us what DONE looks like in terms of capabilities. What capabilities we’ll posses when the project is done. Most importantly it tells how the maturity of these capabilities evolves over time. The Integrated Master Schedule shows the packages of work that must be performed in a specific order to produce the needed capability. Both the Plan and the Schedule are needed. If you have the Plan without the schedule, then you know what done looks like, but not how to get there. If you have the schedule and not the Plan you cannot determine if your work is increasing the maturity of the desired capabilities. 26/36
  • 27. Copyright ® 2012, Glen B. Alleman, All Rights Reserved With the Work Packages defined in the Integrated Master Schedule, shown below the line in the previous slide, the execution of the work is straight forward. So simple in fact, you just have to do the work in the order is says to do it. This sounds too simple of course, but this is where the Planning process pays off. Just like an Agile development process using sticky notes and iterations, the project agrees what work is going to be performed in what order – the iteration in the example of Scrum. Work Packages in the example here. It turns out that formal project management using Work Packages is very close to Scrum in many ways. 27/36
  • 28. Copyright ® 2012, Glen B. Alleman, All Rights Reserved Continuous Risk Management, when performed successfully, provides a number of benefits:  Prevents problems before they occur – identifies potential risks and deals with them when it is easier and cheaper to do so – before they are issues.  Improves product or service quality – focuses on the program’s objectives and consciously looks for things that many effect quality throughout the program lifecycle.  Enables better use of resources – allows the early identification of potential problems – proactive management – and provides input into management decisions regarding resource allocation.  Promotes teamwork – involves personnel at all levels of the program. Copyright, Glen B. Alleman 2012 28/36
  • 29. Copyright ® 2012, Glen B. Alleman, All Rights Reserved No matter what method you are using for the management of your project, someone outside your project has an interest in how things are going. This interest is usually measured in units different from yours as a project manager or as a developer. Here are 11 critical activities needed to answer almost any question from anyone in your organization about how is it going? 29/36
  • 30. Copyright ® 2012, Glen B. Alleman, All Rights Reserved Performance Based Management(sm) method provides the tools, processes, and training needed to increase the probability of success of projects. This approach is unique in its integration of the critical success factors for projects, no matter the domain. This approach answers the following 5 immutable principles:  Where are we going? Do we have a definitive description of the needed capabilities and the requirements needed to deliver those capabilities?  How do we get there? What is the sequence of the work efforts to achieve the plan?  Do we have enough time, resources, and money to get there? Are the resources properly allocated to the sequence of work activities?  What impediments will we encounter along the way? Have we captured the risks and their handling plans for all the critical work activities?  How do we know we are making progress? Can we measure progress to plan in units meaningful to the decision makers? Copyright, Glen B. Alleman 2012 30/36
  • 31. Copyright ® 2012, Glen B. Alleman, All Rights Reserved Performance Based Management(sm) method provides the tools, processes, and training needed to increase the probability of success of projects. This approach is unique in its integration of the critical success factors for projects, no matter the domain. This approach answers the following 5 immutable principles:  Where are we going? Do we have a definitive description of the needed capabilities and the requirements needed to deliver those capabilities?  How do we get there? What is the sequence of the work efforts to achieve the plan?  Do we have enough time, resources, and money to get there? Are the resources properly allocated to the sequence of work activities?  What impediments will we encounter along the way? Have we captured the risks and their handling plans for all the critical work activities?  How do we know we are making progress? Can we measure progress to plan in units meaningful to the decision makers? Copyright, Glen B. Alleman 2012 31/36
  • 32. Copyright ® 2012, Glen B. Alleman, All Rights Reserved With the principles and practices in place, the next step is to put them to work on your projects. This is a call to action. Start with agreeing to measure all progress to plan (you do have a plan right) with tangible evidence of physical percent complete. This means the phrase show me has to be used all the time. You have to define what done looks like in fine grained increments with pre- defined units of measure. Otherwise you’ll never recognize done when it arrives, if it arrives. Planning is a dynamic process that must deal with change, emergent situations. The planning horizon can not be further in the future than you have capabilities to manage. Otherwise your plan is bogus. You need a mission and a vision of what done looks like to guide your plan, to anchor your efforts. But don’t be fooled by plans that state outcomes beyond the horizon if you actually haven’t been beyond the horizon to see what it looks like out there. 32/36
  • 33. Copyright ® 2012, Glen B. Alleman, All Rights Reserved Now comes the part where all the soft skills come into play. You need to be ruthless about the 5 principles and the 5 processes, without appearing to be ruthless. This is where good project managers excel. I personally am not one of those people. I’ve grown up in the weapons systems business, with a prior military background, worked on large programs where people die if things go wrong. Or people die when things go right (Intercontinental Ballistic Missiles). But in many domains, IT being one, people skills are critically important. But these principles and practices are universal. In order to make them work though, the Project Manager must adhere to the principles first and the practices that result. 33/36
  • 34. Copyright ® 2012, Glen B. Alleman, All Rights Reserved Now for questions. The 5 Immutable Principles of Project Management 34/36
  • 35. Copyright ® 2012, Glen B. Alleman, All Rights Reserved So we’ve arrived at the end of our short time here. What did we learn? There are 5 immutable principles of project management, no matter the project domain and context. We need to confirm are project is applying these principles, and look for the evidence in the form of practices for each principle. Hopefully I’ve conveyed the notion that project management is not the same as product development. Both are needed, some times more than the other depending on the context and the domain. If I’m building a web site I approach the project management and development method differently than if I’m building the terminal guidance control software for an autonomous Mars Lander The 5 Immutable Principles of Project Management 35/36
  • 36. Copyright ® 2012, Glen B. Alleman, All Rights Reserved 36/36
  • 37. Here’s the five practices needed for success with the five immutable principles. These practices are general purpose for all project domains and independent of any development method. The five principles contain the activities needed to implement the principle. There is of course much more detail needed. But this is a framework and not the step by step methods, that's several 100 ore pages of overview. 37
  • 38. Here’s the next level down of 3 more levels. The idea here is that increasing fidelity of the produced outcomes requires increasing fidelity of the processes needed to produce those outcomes. They go hand in hand. For example to Identify Needed Capabilities, you just can’t say Identify Needed Capabilities, there are 4major steps to do that 1. Define capabilities as operational concepts, means a clear and concise definition of how the capability with be used in production. This is usually some narrative. I want to fly to Hubble and fix the wide field camera. 2. Then we need scenarios or use cases describing all the activities that will take place while using this capability. 3. Trade offs between needs, risks, and costs have to consider all the interactions. This is the Anlysis is Alternative (AoA) described in Systems Engineering. 4. Then the actual trade offs must be performed. A trade space built where quantitative assessment can be performed. 38
  • 39. Here’s another view of connecting the Five Principles with the Five Practices while building the Needed Capabilties. 39
  • 40. And another view. Multiple views of the same process and problem are always needed. 40
  • 41. For the IT world, here’s a way to assemble the deliverables based planning into a business process. 41
  • 42. A way to show how capabilities can drive requirements and how capabilities can be connected to business benefits. 42
  • 43. An example of a Product Development Kaizan for a space craft. 43
  • 44. From the sticky note a Mind Mapping tool is used to capture the stuff on the wall. From there this tool – MindJet – can produce a schedule directly. You still have to hook up the work, assign durations, and resources, but the topology of the project – the Program Architecture is captured during the Kaizan process. 44
  • 45. Another view of a Value Stream Map, showing how the maturity of products and services move from left to right. 45
  • 46. Time: 00 :00 Total: 00:00 This is a picture of a Plan for the project. This is a real project. It is a health insurance claims processing system integration. It shows what capabilities we would like to have, the order of those capabilities, the preconditions for each capability, and the outcomes of each capability when it is available. This is the Integrated Master Plan. It is NOT the Integrated Master Schedule. But having this Plan is critical to developing the Integrated Master Schedule. If you look back to the early slides in this session you’ll see similar charts. People standing in front of a board of sticky notes were doing the same thing. The process lays out the “value flow” for the project. This is the mythical “value” spoken about in many Agile development processes. We can monetize the presence of a capability and assign that monetary value to a section of the business case. With this “value flow” we can identify the needed capabilities, the technical and operational requirements that must be in place to enable these capabilities and finally the “packages of work” needed to produce the solutions that meet those requirements. Glen B. Alleman, PMI Mile High Symposium, 2012 46/38
  • 47. Time: 00 :00 Total: 00:00 Using the topology from the previous slide, we can now see what the Plan looks like. The Data in Marts for ERP Ready is a capability needed by the business. This capability can be put to work. The business case can monetize this capability and we can connect our development efforts with the production of this monetized value. In order to arrive at this capability, we need several Significant Accomplishments: Billing is complete. Internal process complete. Data store look up complete. Data marts complete. Portals and others complete. Each of these Significant Accomplishments has a set of Work Packages (not shown here) that must be completed. The Exit Criteria of these Work Packages is called the Accomplishment Criteria. The Accomplishment Criteria, Significant Accomplishments, and the Milestones or Events that release the Capability are the Integrated Master Plan (IMP). The Work Packages and their internal Tasks, when placed in the right sequence are the Integrated Master Schedule. If we look back at the topology of the IMP and IMS, we now have the language needed to describe: What DONE looks like? How to get to DONE? What resources we need on the way to DONE? The impediments along the way? The measures of progress to plan? We’ll have answered the 5 immutable questions in a single integrated document – the Integrated Master Plan / Integrated Master Schedule. Glen B. Alleman, PMI Mile High Symposium, 2012 47/38
  • 48. Time: 00 :00 Total: 00:00 The perfect schedule has some attributes we need to understand before we start. The schedule tells us what DONE looks like in units of measures meaningful to the decision makers. This phrase units of measure meaningful to the decision makers will be at the heart of everything we do today. The schedule shows us what work needs to be done to produce the outcomes needed for the project to be successful. Actually it shows us the work that needs to be done that increases the probability of success for the project – since all project work is probabilistic. The schedule shows us what resources are needed to do that work. The schedule must show us what are the impediments to performing that work. What are the risks to the project’s success. And finally the schedule shows us how we are measuring the tangible evidence of progress to our plan. This evidence and these measures are usually not part of the traditional approach to scheduling. In that traditional approach, work is planned left to right, resources assigned – you do have a resource loaded schedule right?. And then that work is executed. What we’re going to learn today is that another paradigm is needed in order to increase the probability of success. This paradigm is called the Integrated Master Plan or IMP. The IMP is used – and many times mandated in large defense and NASA programs. But it is also found in Enterprise IT programs. Project like ERP. Glen B. Alleman, PMI Mile High Symposium, 2012 48/38