I have been burned more times than I can count by bad estimates. What can a project manager do to help ensure the accuracy of estimates? First we should understand the basics behind the estimating process (there are many more than I have listed here). Some are:
• The more unique the project, the more of a challenge it will be to get good estimates
• Estimates are only as good as the estimator is at predicting the future
• "Padded" estimates are not always bad as long as the padding is communicated (... and as long as the Project Manager is the one doing/approving the "padding")
• An estimate is not a bid
• Estimates using sound estimating practices, performed by experienced estimators from clear specifications should never be negotiated
• Ballpark estimates are guesses and should be treated as much by the project team, management, and the project sponsor
Other items to consider when estimating are:
• Ensure the statement of work or contract is clear and understood by the person(s) doing the estimates
• Ensure that a schedule or mandated date doesn't drive the estimating thought process
• Include risk management in the estimating process
• Ensure that estimates take into account the skill level(s) of the person(s) that will do the work
• If your work breakdown structure (WBS) is flawed, your estimates will be inaccurate
Accurate estimating is an art and a science. The estimator (or estimating team) must take into account historical data from past proejcts, the team's knowledge and experience, the project risks, the statement of work and other project information to make the best estimate possible.
Keep in mind when planning your project that estimates aren't hard and fast numbers. They are guesses, however they should be very good guesses if you have good estimators and are following tried and true estimating practices.
Friday, January 15, 2010
Tuesday, January 12, 2010
A Project is Unique...
As the readers of this blog know, I try to cover the basics of Project Management. As project managers, we get in trouble when we try to complicate things. In my career, I have worked for many different types and sizes of organizations. Some have embraced Project Management and others have made excuses so as not to be constrained by what they believe is a process that slows things down (adds cost and overhead). I have preached the same message for years. Project Management is designed to help reduce or eliminate rework and surprises at the end of a project.
So why don’t some organizations see the value of Project Management? Usually it is because they do not understand the benefits of Project Management, they do not trust the Project Managers they currently have, or the ones they have encountered in the past. OK, we can accept that, however, what we should never accept is the idea that Project Management just adds cost and overhead.
We need to educate those around us about the difference between projects and other organizational work. Senior management needs to realize the fact that work is basically broken down into two areas: Operations (focused on Maintaining) and Projects (focused on Change). Most organizations do an adequate job of managing their operations; however, my experience (limited as it is) has shown that projects and the support of project management vary greatly.
Every organization has projects; sometimes they are just too busy to realize it. As project managers, we need to educate the influencers in our organizations about the benefits of Project Management. In addition, we need to realize that the benefits of Project Management are demonstrated in the successful implementation of projects. Do not preach the benefits of Project Management; demonstrate them by walking the walk and talking the talk.
Therefore, to answer our central question and wrap this up, a project is:
A temporary endeavor to create a unique product or service
Unique
Constrained by a finite budget
Constrained by a finite timeline (defined start and end date)
Composed of interrelated activities
Focused on attaining one or more clearly defined objectives
The last point needs to be stressed. Without clearly defined and agreed upon objectives your project is doomed to fail from the start. I would also add that your project does not have a chance for success unless you have an engaged, influential, and respected executive in the role of project sponsor.
So why don’t some organizations see the value of Project Management? Usually it is because they do not understand the benefits of Project Management, they do not trust the Project Managers they currently have, or the ones they have encountered in the past. OK, we can accept that, however, what we should never accept is the idea that Project Management just adds cost and overhead.
We need to educate those around us about the difference between projects and other organizational work. Senior management needs to realize the fact that work is basically broken down into two areas: Operations (focused on Maintaining) and Projects (focused on Change). Most organizations do an adequate job of managing their operations; however, my experience (limited as it is) has shown that projects and the support of project management vary greatly.
Every organization has projects; sometimes they are just too busy to realize it. As project managers, we need to educate the influencers in our organizations about the benefits of Project Management. In addition, we need to realize that the benefits of Project Management are demonstrated in the successful implementation of projects. Do not preach the benefits of Project Management; demonstrate them by walking the walk and talking the talk.
Therefore, to answer our central question and wrap this up, a project is:
A temporary endeavor to create a unique product or service
Unique
Constrained by a finite budget
Constrained by a finite timeline (defined start and end date)
Composed of interrelated activities
Focused on attaining one or more clearly defined objectives
The last point needs to be stressed. Without clearly defined and agreed upon objectives your project is doomed to fail from the start. I would also add that your project does not have a chance for success unless you have an engaged, influential, and respected executive in the role of project sponsor.
Monday, January 04, 2010
Project Don'ts
Don’t believe everything you are told about a potential project’s benefits. Investigate for yourself and plan accordingly.
Don’t take on a project that doesn’t have a strong sponsor that is committed to seeing the project succeed.
Don't forget that most project assumptions should also be risks.
Don't set project expectations that are higher than reality can deliver.
Don't try to define reality too early in the project planning phase.
Don’t define solutions that do not address needs.
Don’t forget to manage customer expectations.
Don’t forget to thank your team members for doing a good job.
Don’t be a whiner. A leader never whines and a whiner never leads.
Don’t forget that leaders need to have credibility.
Don’t forget that credibility requires honesty, dedication, commitment, and capability.
Don’t forget that people are the number one reason for project failure.
Don’t forget that empowering teams is a management function.
Don’t allow others to influence your attitude. Be positive in the face of adversity.
Don’t forget to have fun while working on your projects.
Don’t forget that Project Management is mostly art and some science.
Don’t take on a project that doesn’t have a strong sponsor that is committed to seeing the project succeed.
Don't forget that most project assumptions should also be risks.
Don't set project expectations that are higher than reality can deliver.
Don't try to define reality too early in the project planning phase.
Don’t define solutions that do not address needs.
Don’t forget to manage customer expectations.
Don’t forget to thank your team members for doing a good job.
Don’t be a whiner. A leader never whines and a whiner never leads.
Don’t forget that leaders need to have credibility.
Don’t forget that credibility requires honesty, dedication, commitment, and capability.
Don’t forget that people are the number one reason for project failure.
Don’t forget that empowering teams is a management function.
Don’t allow others to influence your attitude. Be positive in the face of adversity.
Don’t forget to have fun while working on your projects.
Don’t forget that Project Management is mostly art and some science.