Weitere ähnliche Inhalte Ähnlich wie Client Expectations.pptx (20) Kürzlich hochgeladen (20) Client Expectations.pptx1. What makes a great project?
We performed a survey among senior project managers and project
executives in typical project-based businesses across several industries.
Relentless focus on client expectations
This is the 4th of 9 priorities
2. Project
Management
Survey
Results
(All 9 priorities)
NOTE: The initial survey was open ended asking project executives for quotes describing their single most important success criterion. The
second survey, including a much wider audience, asked: What Makes a Great Project? Please rate these quotes based on how close they
represent your opinion. (Answer options: a) #1 priority, b) A top three priority, c) Important or d) Not important.)
What makes a great project?
© ReAdapt, Inc.
1. Experienced project managers and great teams
2. “We avoid surprises because we do front-end planning...”
3. “We apply best practice based on lean principles...”
4. Relentless focus on client’s expectations
5. Agile collaboration using digital tools
6. "We understand the technology and manage risks…”
7. “Procedures and hands-on management reduce incidents...”
8. “We are great at solving problems…”
9. “We standardize on everything we can…”
What makes a great project?
This is the 4th of 9
presentations.
3. Project
Management
Survey
Results
(All 9 priorities)
What makes a great project?
© ReAdapt, Inc.
What makes a great project?
Mapping the priorities
Experienced project
managers and great teams
“We avoid surprises because
we do front-end planning…”
“We apply best practice
based on lean principles...”
Relentless focus on client’s expectations
Agile collaboration using digital tools
"We understand the technology and manage risks...”
“Procedures and hands-on management reduce incidents...”
“We are great at solving problems...”
“We standardize on everything we can...”
4. What makes a great project?
As a starter: Ensure effective channels of information:
Some companies rely on the project manager to handle all client
communication, but those who are more successful say they have a
comprehensive approach to ensure that client expectations are
understood and fully met. Here is one such example:
• An Executive is the Project Sponsor overseeing the client relationship ensuring people
are working well together, communicating effectively
• A Key Account Manager obtains lessons learned and follows up on improvement actions
between the parties as well as applying those to future projects
• The Project Manager has specific responsibilities focused on aligning with the client
representative to provide early and reliable information
• Each team member works with their counterpart in the client’s organization and keep
an open line of communication in order to continuously clarify expectations
“There is no way we would leave something as important as ‘client
expectations’ to chance. Our ‘client relationships’ are the most important
means to ensure repeat business and growth…”
“There is no reason that an unavoidable problem should lead to unmet
expectations and loss of trust. If it is prewarned, responded to and resolved
– it should be a ‘win-win’…”
“Adjusting expectations ahead of time is much better than hoping things
will somehow work out…”
“It is all about openly
sharing early information
about risks and
opportunities..”
© ReAdapt, Inc.
“We have a comprehensive
approach to ensure that
client expectations are
met..”
Project
Sponsor
Project
Manager
Project
Team Leads
Key Account
Manager
Client Executive
Client
Business
Manager
Client
Representative
Client Functional
Leads
5. What makes a great project?
What are the expectations?
Here is what responders described as “client expectations”:
“Clear end-goals carefully planned out and then executed following a
predictable and transparent process.”
“A purpose described by financial and ESG goals, measured and addressed
at each stage. A rapid feedback loop immediately adjusting performance.”
“A plan based on optimal economics and functionality, implemented by a
visible leadership team, delivered by an aligned project team and supply
chain. Addressing uncertainty and mitigating risks. There will be problems,
but we expect you to address them immediately and solve them with
speed.”
“A detailed plan enabling the project to perform with agility, realigning
processes and interfaces at each stage, thereby maximizing efficiency.”
“Besides nobody getting hurt and staying on schedule, we had one
expectation which was to learn as much as possible. Perhaps selfish but
working in a great project can further your career.”
“We wanted to make sure that we also met the expectations of the
community we worked in – everyone had goals and metrics related to
that.”
Environmental, Social
and Governance (ESG)
Financial objectives
Strategic goals
6. What makes a great project? Why is this a top priority?
This was the 4th most widely held criteria for making a great project.
1/3 had it included among top 3 priorities. Responders had a surprising
angle on what client expectations really means for a project. So, let’s
hear what they said:
“Product Businesses are more transactional, strive to describe customer
expectations and then focuses on exceeding them…
… Service Providers listen carefully to their clients so they can pick up the
undescribed expectations as well...
Project Businesses have both of those and more…much more…often
described as the project experience”. An experience shared by all.
© ReAdapt, Inc.
“The Project
Experience...”
Focus on
Client’s
Project
Expectations
Defining,
Monitoring
and Adapting
to Expectations
The Project
Experience
7. “…withholding
information is a root
cause for missed
expectations..”
What needs to improve:
Detached
Teams
“Projects are complex and ambiguous. A successful outcome takes a
close client-contractor relationship. A detached team with poor
leadership never meets the expectations.”
Misalignment
“Some project expectations are not well defined, particularly in the
beginning, and require the team to quickly readapt as it develops. A
misaligned team will most often fail at this.”
Interfaces
“Projects have many parallel interdependent activities. Ignoring
interfaces is a very common lesson learned in failed projects.”
“For complex problems, we try to find a solution that is finite, simple,
but unfortunately, wrong.”
Win-Lose
Attitude
“If your goal is to reduce the profit margin of your suppliers, you're
lost. This does not however stop you from reducing project cost.”
Information
Sharing
“The contracting environment often drives team members to
withhold information – a root cause for not meeting expectations”
“Not sharing critical information with your client is like assuming we
are fools – proactive sharing is the desired project culture”
“We are happy you achieved this milestone, but you should have told
us it was risky. We don’t like to base our business on ‘luck’…”
What makes a great project?
“..a detached team
will never meet
expectations…”
© ReAdapt, Inc.
8. © ReAdapt, Inc.
What makes a great project?
“…uncertainty
is a project
reality..”
“..clarity
enables
expectations
to be met…”
Contract
Value
Uncertainty
Fixed
Price
Fixed &
Rates
Alliance
Rates
1. Fixed Price – project phases with less uncertainty
2. Rates – project phases with a lot of uncertainty
3. Fixed & rates – large contracts with less uncertainty
4. Alliance – large contracts with a lot of uncertainty
“A clear and realistic scope of work enables expectations to be met.”
“Lack of clarity and uncontrollable risks will lead to missed expectations.”
How to align expectations:
Most owners responded that they prefer fixed price contracts with
strict contractual remedies. They might soften their approach by
accepting reasonable variation orders. However, this often leads to
missed expectations. Rate contracts are common, but many owners feel
those do not drive efficiency.
Since projects inherently include some level of uncertainty, responders used
contract compensation formats that addressed this reality:
“Delegating risks that cannot be controlled is a fool's game”
“We usually find an appropriate format for work that has a lot of uncertainties so we
can keep the rest of it simple and drive cost efficiency”
“…compensation formats that are fair and realistic, considering the uncertainties in
each particular project phase, lead to the best results”
“..a fair and
realistic
compensation
format leads to
best results…”
9. What makes a great project?
© ReAdapt, Inc.
An example of what works well
“A typical ‘client – server’ relationship is not sufficient for a complex project. A deeper
relationship, based on shared expectations is what we are looking for. “
“An alliance approach influences how project employees are engaged internally and how
they work in partnership with the contractors and suppliers externally. …
…It is cultural, it is something you can only experience.”
In order to make the project economically viable, an alliance was formed
including the owner, several contractors and suppliers to plan and execute
the project together.
Focused on a shared goal, the group of companies decided to sidestep the
traditional “client – server” relationship in its quest to transform it into a
great project.
Each participating company’s profit was aligned with the project`s financial
results.
For team members, the experience of working in a united team with the
freedom to challenge conventional thinking unlocked untouched possibilities
for innovation and collaboration.
Read further about how this approach became such a success:
WHAT
YOU
WANT
WHAT
THEY
WANT
WIN
WIN
A cultural shift
The Alliance approach
10. An Example of what works
The Client established an alliance with its Subcontractors
• “The synergy of companies working together in a well-organized alliance
with shared goals created an exceptional project culture”.
• “Shared risks and rewards provided a financial opportunity for all”.
• “The project revealed inherent personal abilities and a natural desire for
teamwork and to push the project to surpass previous standards.”
• “An immediate benefit was the savings in the boundaries between
companies’ scope of work:
- Less client personnel overseeing contractors
- Avoided duplication of effort
- Matched task with capability, shared or swapped work scopes
- Less documentation, expediting and inspection
- Challenged additional cost that did not add value anywhere
- Set stretched targets
“We shared risks &
rewards and unlocked
inherent personal
abilities for co-
operation”
“We set
stretched
targets”
© ReAdapt, Inc.
11. “Admit you don’t have all the answers and agree to trust the better
judgement and experience of others”
“New members underwent a comprehensive ‘induction’ including project
goals, financial targets and training in ‘open communication’”
“Problems occurred, but the difference was the way people responded”
“We could free our minds of commercial conflicts and concentrate instead
on making major decisions together for the project’s benefit”
“Setting stretched targets became a primary mechanism for success. We
therefore almost always achieved better results than usual.”
An example of what works
How to achieve this well proven best practice?
Financial alignment:
• Fixed overhead and profit with
manhours reimbursed at cost, some
lump sum plus schedule of rates
• Transparent budgets for all parties,
individual provisions for known
unknowns, shared 10% contingency.
“….the shift to a unified
team…”
“…stretched targets
became a primary
mechanism for success”
Responders familiar with the Alliance approach advice that it is most meaningful for a
client and a group of contractors with many interdependencies. An Alliance may also
be more suitable during certain phases of a project. All responders said that an
alliance requires appropriate leadership experience and style.
© ReAdapt, Inc.
12. “…if certain
contractors are crucial
to a successful
outcome - establish an
alliance..”
© ReAdapt, Inc.
If an Alliance is an option, make sure it is cohesive!
• during certain project phases e.g. front-end
• for specific scope of work; e.g. specific sub systems
• to pursue certain options or innovations
• for specific challenges e.g. system integration
An Alliance must, however, be cohesive with contract terms;
work processes; information flow; roles; risk exposure etc...
“…an alliance can
get you that ‘great
project experience’
we all are looking
for…”
“…If you agree to ‘share’ and the contract terms conflict that, the
alliance benefits will probably not materialize...”
“…an alliance can get you that ‘great project experience’ we all
are looking for…”
“..we successfully used an alliance format during the planning
phase, then moved to a fixed-price-format after many of the
uncertainties had been eliminated…”
If the contractors and suppliers are crucial to a successful
outcome you may consider an Alliance:
13. Leadership
Style
Information flows freely with broad
employee engagement
An influencer with goal-oriented and
supportive leadership style will be fitting
Clarity in mission, objectives and strategy
has shown to beat ambiguity; a tenacious
problem for any project.
Focus on a clear input if you want a
successful output
Clear up confusions with healthy dialogues
before critical decisions are made