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project success is perplexed by excellent project management

Author: Mag Eric Kaltman, Senior Consultant TEMA

The rapidly growing Demands on Demand - Supply - Chain, the frequency of the availability of new technologies, or the strict need for cost reduction in both the primary and secondary power supply are the most common causes - due to the ever increasing dynamics of the market - for the fact ; that successful companies are subject to constant change process.

Although Key - Know how to successfully implement the changes in the company is lacking, professional project management is often criminal.

Why projects fail or do not bring the expected results?

Because they are poorly managed!

this may sound superficially arrogant. Go through your mind is under the following typical characteristics of poor current projects and consider whether these should be avoided through better project management. You will come to the conclusion: "Yes!"

Typical project deficits

• Insufficient detailed planning
• Gaps in monitoring progress
• Missing decrease - Milestones
• Lack Kundeninvolvierung
• Lack of communication
• Unclear specification
• Lack of documentation
• Open management decisions
• Regular deadlines
• Unreliable like external service
• Overloaded project staff

The causes of poor ongoing projects vary, but the result is always the same:

• The project will be delayed completion
• The planned project costs exceed
• The not project an unexpected outcome

consequence: The company undergoes a significant monetary disadvantage in many cases a sustainable competitive disadvantage.

The columns to project success

Professional Project management is based on four key factors:

1. use of appropriate project management methodology
2. selection of project management and team members
3. providing the necessary know-how - both internally and externally (in the case of optimization and implementation projects, mostly business process know-how) and use of best practices
4. creation project supporting framework

Ad 1: Project Management - A method

professional project management - method provides a clearly structured, standardized course of the project ensure clear responsibilities defined in the Project organization and control the projects on the basis of appropriate reports. The latter include the necessity of the presence of measurable criteria for project success.

Figure 1 illustrated by the example of "PRINCE2" ( "Projects in Controlled Environments" has as a project management method, at least positioned in the front row "and - although coming from information technology - generally used ) that each project takes place in defined stages, which in turn clearly defined outputs in terms of the agreed control objects have (have):

If the output of the "start up" - phase of a project, a formal project proposal involves, this including a "high level business case, while the actual project proposal as a result of the project initiation (" Initiate a project ") already has a detailed business case must include etc. Each phase has clearly defined outputs to control the objects each with a clearly defined level of detail and the accompanying responsibilities. This not only formal compliance with the necessary Kommittments including that of top management is ensured, but also throughout the project necessary for project success status for all Control objects.

The most important control objects:

• the project progress
• costs
• resources
• the business case
• the quality / specification
• risk
• communication
• the change requests

In many projects, mostly only focus on costs and project progress down. This leads almost inevitably mean that changes are detected in the specification too late to impact on the project results and thus the business case can not be perceived in time or bring existing project risks in the worst case, the project on a case because they were not considered in time.

course, the complexity depends on the control model on the size of the project and the resulting project organization. The structuring of the teams and work packages of content is up as far as the experience of the project manager, but to structure the phases, documents and level of responsibility and the PM - processes - especially escalation and change management - essential if the professional methodology.

Ad 2: Selection of project management and team

Only a "Dream Team" provides fantastic results! Keep in mind the requirements of a project manager and the entire team. to put "Randomly available" resources in the project, condemned the project from the outset to failure.

checklist of requirements for the project:

• knowledge / application of a professional PM method (see above)
• expert in task structuring and commercial project controlling
• social skills in leadership and coaching of staff
• "Standing" of the project manager in company, a member of corporate boards
• commitment and decision-orientation
• expertise on project-related technology (n)
• knowledge of relevant business processes and their integration
• Ideally, expert status in one of the subjects of the projects

checklist of requirements for the project team in its entirety:

• core team is not too big!
• Meaningful "balanced" representation of all areas as required. Supply Chain, FI / Controlling, Technology
• Complementary expertise in the team (business processes, technology, Interdisciplinary Information)
• balanced social structure between leader and player and Seniors / Juniors etc ...
• team structure (sub-teams) depending on the complexity of the project

Ad 3: Providing the necessary know-how and use of best practices

In most business improvement projects as well as for the ERP - the availability of sufficient commercial implementations process - know-how essential. The use of reference models and use of existing (ERP - compliant) best practices is a crucial advantage.

Figure 2 shows an overview of graphics from the TEMA - business process - reference model, the main raw materials procurement process. The information contained in sub-processes are defined and based on individual tasks in detail and designed according to best practices. Also differs, for example, the procurement process of raw materials, auxiliary materials and supplies and services etc. Special forms of procurement such as Vendor Managed Inventory, Consignment or contract manufacturing etc., each a separate process is dedicated. Precisely the subject of procurement is also a good example of the importance of integration with FI / CO in material inventory (vs. direct materials) and evaluation

Ad 4: Create project supportive environment

The "project-supporting conditions" are those points from which one could say "Everyone knows it, nobody does it!". Therefore, whether they are repeated on the safety at this location:

• involvement of top management in the project
• project progress as part of management - exempt agenda
• project success as a target agreement of the relevant Head
• For large projects, key individuals to 100% for the project
• necessary training provide for project team members before the start of
• Performance-based incentives for project members
• regular positive communication about the project in the company
• If needed, use of external resources, maintaining the internal leadership
lower

Inspired

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Malik

by the information that Prof. Malik has a new series of talks about the serious changes in the economy and the associated demands on management, I have researched on the Internet, which exist statements on this subject by him in the web and am (slightly belatedly) came across an interview: http://www.die-wirtschaft.at/ireds-104187.html # 0

I must admit, the interview has left me perplexed back.

First is unreflective and uncritical efforts of the mainstream of states that debt-financed growth and fundamentally bad is the problem - a statement that the economy in the Theory at least highly controversial, if not refuted applies. It is interesting that the advocates of this position aimed their criticism at government-financed growth, while simultaneously complaining that the banks the company did not provide sufficient loans to enable them to finance their growth!

my perplexity, however, refers primarily on the statements to the new challenges:
"What determines this new complexity?
It results from the global network of social systems that change dynamically. What appears now on the surface like an economic crisis is in the Depth of a fundamental restructuring of the economy and society ... ... ...
The current crisis can be seen as the birth pangs of a new world. Conventional steering processes, organizational structures and management systems are overwhelmed by this complexity. . Some work hardly, today as in politics, "

would be exciting to know:

• What is the fundamental restructuring?
• arises What new world?
• What is the complexity?

I'm not predict in a position to be held to what extent and in what direction the restructuring of the economy. However
you can give a few tendencies (because they are already evident) and derive requirements:

• The global distribution of service production (goods and services) is changing rapidly (see China as the largest car producer).
• Some key concepts and technologies are now in the foreseeable future, no longer tenable (see oil as an energy supplier and as a raw material).
• Handed down sales and marketing concepts apply in the Internet world, not more (see, for example: Inbound Marketing: Get Found Using Google, Social Media, and Blogs (The New Rules of Social Media) (Hardcover) by Brian Halligan (Author) , Dharmesh Shah (Author), David Meerman Scott (Foreword)).
• experienced the entire Common profit sector, the financial pressure, a dramatic transformation from idea-led resource management for demand-oriented performance management (see article in INOVATOR No. 16 "by Franz Auinger, hermannn Fuchs, Klaus Theuretzbacher).

There is no claim that these . four points outlined the changes adequately and correctly you have more needs as a guide to the key requirements for companies but also to set at CPO's:

first strategy is more important than ever, but in the center, the questions are.

• As seen from the future needs in specific areas Visibility of retail and / or in terms of business customers? What
• purchase decisive factors can be derived from it?
• Who trains and the needs and factors of purchasing decisions, a homogeneous market segment?
• see How is the exact matching services?
• What should we as an organization for it?

second Flexibility is more important than ever. But they must be planned and assessed.

• What assumptions or conditions in my strategy considerations have the highest uncertainty?
• In which direction and how far volatility?
• What organizational and technical Solutions provide adaptability to possible changes?
• What is the Kosten-/Nutzen-Relation this flexibility? (See the topic of real options analysis in this blog).

third Operational planning is more important than ever.

• Right now there are many who suggest that recent years have shown that planning makes no sense that there is sufficient self-control ability of the organization to increase.
• Just when uncertainty increases, it is important that the whole team is confident and has a consensus will look like the environment and challenges as it seeks to address the challenge and of course (see above) the action options are available when conditions change.

4th Process management is more important than ever.

• what requirements must be met by processes in the future?
• How can I keep them effectively, efficiently and flexibly?
• How will process necessary adjustments on profitability?

5th Inbound marketing is entscheidedes instrument.

6th Alignment of the IT structure to the business strategy (inclusive of all processes) is more important than ever.

• set to continue investment in existing applications, or whether in fact a technological Restructuring rate. Which "Payback can be achieved?
• Which one is the most prominent competitive advantages?

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IT management in SMEs - mischief or necessity?

Author: Mag Eric Kaltman, Senior Consultant TEMA

IT in SMEs are usually characterized by the fact that she is headed in Union function with other areas that are no in-house IT department, and that IT services from local small suppliers be purchased. The degree of standardization of hardware and software is generally low, the focus is on "permanent" and "management by incident". Service levels are not defined, budgeting and reporting of IT costs are often not present, the IT spending low anyway. In one way or another department, an employee also sits with a special affinity for IT, which - performs Access databases etc. - often in unpaid time - in the programming of MS.

This is actually ok so (!!!) , because obviously IT-structure and control are priorities between SMEs and large companies differ widely. Nevertheless, it is the "ok" only with the following exception: If

• known IT is busy bringing the deal / and whether the allocated funds are targeted?
• Does the company how much money it spends on IT and how IT procurement processes are initiated and carried out?
• employees, the company occasionally to existing IT opportunities and risks, and it meets the criteria in terms of a "license to operate" (Some applications licensed by the manufacturer maintained software - prior versions, the Data Protection Act, Civil Code, AGB, protection? unauthorized access to data, etc.)

If no, then missing it just yet for IT control! The crucial question is not the same size, but the proper focus, it is found in this case for SMEs and is the company-and situation-dependent, of course. It should also be noted that we make in contact with many ambitious SME IT managers and directors on issues such as: "What control mechanisms, procedures and reference documents or reports we should define minimum to manage IT more efficiently? "


process model

1) defining a clear objective of control measures:

Although the motivation for the improvement of IT management between small and large companies need not differ by force, can be seen but the trend that issues such as security, compliance, integrity only because of the specialization of the know-how, especially in Large companies play a role, even in the narrow sense compliance is demanded mainly limited liability companies (Basel II, Solvency, etc ...). The IT operations - especially the availability of systems and customized service levels - in fact generally "top priority", but also a thousand or more users, far more important than in small teams, often with practical workarounds.

The objective of IT governance in SMEs is proved to have the appropriated funds, the operational control of the cash flow and optimize related processes.

For the derivation of our example the following object was accepted

• Ensure that compliance with the business interests of continuous IT costs (both internal and external) is operated and the money is spent "targeted"
• It is the operating cash flow for IT - especially the procurement of hardware and software - to be regulated by appropriate measures
• As a logical consequence: IT spending should be budgeted and a current value comparison must comply.

Due to this objective to identify a next step, the relevant processes:

2) identification of the IT-business processes:

literature and industrial practice indicate a range of IT governance models, which simply put all the aim to align IT with the company's strategy to minimize IT risk and to create means of suitable process models, a structural foundation for IT management. Examples include: ITIL, COBIT, MOF, ISO27001 (BS7799), etc. In particular, COBIT (Control Objectives for Information Technology) provides a very comprehensive framework that business needs and IT processes (as well as required resources) in a manageable and easily understandable context does (see, matrix). These models show their strength, especially in large companies or corporate organizations.

Nevertheless, such models are also for SMEs, at least at a point on benefit: assist you in selecting the most important or relevant control objectives and allocation of IT processes, such as, among others, matrix (Figure 1) are shown.

addition to the selection of the relevant processes and their priorities for the purpose ("red" Markers in the Priority column of the table include identifying high priority), is also on the actual situation in each company, reference and opposed the action of priority. A process can therefore have no reason to act in spite of high importance when it is precisely regulated from the perspective of IT management's okay. In our example, this applies as for the change management - ie the dispatching and implementation of requirements and their implementation - close.

A look at the "map" of the red marks in the table makes clear above all, how focused and slim one can proceed in the expression of an appropriate IT governance model for SMEs. A step of "Hobbyismus" to the well-dosed professional IT management is enforceable with little effort.

After identifying the processes, so the next step is the identification of necessary procedures or reference documents (point 3).

Figure 1: Matrix processes / business requirements

3) definition of prozesskorrelativen measures:

is the continuation of Example 3 subject areas as the focus areas for the control model:

a.) to ensure the targeted use of funds

• create an annual IT issues memory to define the coordination with the GF IT topics
• definition and design of a standard procedure for the preparation, approval, monitoring and dispatching and sharing of issues as a project

b.) Operational management of the IT procurement

• Create a SOP IT procurement
• Create the following reference documents:
• hardware / software catalog
• roles and job types (including the description of IT equipment per job type)
• ; sharing rules for order processing (Depending on orders)
• definition of mandatory and preferred suppliers to the more "material type" / service

c) Operating cost monitoring

• Implementing an IT budget with periodic target-performance comparison.

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liquidity management in practice

liquidity, financial planning and setting up a liquidity monitoring were and are many companies in hot topics.

For a financial plan and its ongoing monitoring (planned comparisons), there are no procedural requirements - so the question of the "right" structure and breakdown as for Controlling most reports only in the context of actual business situation answerable.

When direct financial plan, the ongoing contributions facing the current outflows, all liquidity changes are explicitly stated - the income statement and not the income statement.
The indirect financial plan based on the fact that the result of a period (= changes in equity) and changes in liquidity are not equal, if there are other Mittelherkünfte and / or use of funds, ie, when additionally to equity and cash other balance sheet items change. Therefore, of the net income by subtracting other uses for these funds, and addition of other Mittelherkünfte to change the cash will be transferred. This is done in an outline, the possible control levels (earnings, working capital, investment, finance) separates (= cash flow statement). After

is subject to the result in many companies with a precise control, the concentration upon the monitoring of liquidity, especially the Working Capital, the investment and the financial management.

In practice, it has been shown: If the liquidity of a company to give up the entire management team, will be a link between the result- and liquidity management, and integration of leading indicators absolutely necessary.

An example of a structure that has proven itself:

By this structure

• the benefits of the cash flow statement logic used
• responsibility for the working capital for the the result of crossed and made transparent

deposit and withdrawal risks visible early (offers, orders ...)

This means that the overall operational management in the planning and variance analysis are assigned to rotating involved.

Planning and the deviation analysis should include any event 13 months (the past is as plan / actual comparison and the next 12 months).
The detailing of periods (months, weeks, days ...) depends on the "explosive." In difficult situations, a timely management is needed. In these cases it makes sense to plan for the next two months on a weekly basis and the following time on a monthly basis. It should be noted that the weeks go together with the months (week split with monthly changes).