Project Management: Key factors to success in Supply Chain

1. Project Management: Key factors to success in Supply Chain Presented by Lisa Kravetsky, CPA 3 November 2007 ISM NY/NJ Conference Binghamton, NY

2. Agenda • Introductions • What is our Goal today? • Five Factors to Success • What and Why • Execution versus Skills

3. Introductions • Name • Title • Company • What PROJECTS have you managed in your career? • Big, Small and In-between 

4. What is our Goal today? • Learn how to identify you are in a Project Management role! • Understand the Factors to Success for Project Management • Key Factors • Mutual exchange of experiences • Reinforce universal Skills

5. Project Management • Project management is the discipline of organizing and managing resources (e.g., people) in such a way that the project is completed within defined scope, quality, time and cost constraints.* * Per www.Wikipedia.org

6. Project A project is a defined set of work that has a specified beginning and ending and that produces a distinct output: Is Goal Oriented Possesses a unique initiative Has a limited duration Contains interrelated activities Creates the output only once Utilizes multi-disciplined teams Requires planning Ongoing Work A routine business operation or process which consists of on-going activities: Are repetitive business processes Has no definitive beginning or ending Creates the same output each time the work is performed Are performed by people in similar functions Requires routine function execution Definition

7. Plan Execute Initiate Close Manage & Control Project Lifecycle

8. Exercise Thinking about some of the recent initiatives or projects with which you have been involved; name one thing you thinkworked well and one thing you would do differently.

9. FACTOR #1: Clear Understanding • What is the objective • Cross reference the answer with multiple stakeholders • Who are the Stakeholders • No limitation on level! • What is the budget • Both Financial and Human Capital

10. S: Specific M: Measurable A: Achievable R: Relevant T: Time-bound Objectives should be S.M.A.R.T

11. Customers / End-Users Take delivery of output Pay for the output Provide specifications for project output Contribute resources to the project Who are the Stakeholders? • Project Team Members • Assigned based on ability to handle specific project activities • May include internal and external resources • Interface with sponsor and other stakeholder through project manager Sponsor & Steering Committee • Has authority over the project • Guides & approves project • Key driver of the project • Controls scope change • Manages the project manager • Facilitates rapid decisions • Affords sign off authority • Provides resources • Champions and mentors team • Reviews progress and quality • Removes administrative speed bumps

12. Project Budget Labor • Anticipated regular and OT expense (may/may not include fringe benefits) • Consultants labor costs • Travel, lodging, meals Equipment • Computers, printers, copiers, etc. • Software licenses • Purchase, lease or rental charges Facilities • Electric, phone, etc. • Typically budgeted on square footage used Supplies/Other • Paper, pens, binders, etc. • Events/Milestone celebrations Always include a contingency or management reserve to protect against overruns

13. Key Factors to Success • Clear Understanding

14. FACTOR #2: Have a Plan • Written Documentation • Utilize Project Planning tool • Microsoft Project is very simple to use • Define Timing/Resource needs

15. Why is Project Documentation Important? • Enables the Project Manager to control the project throughout the Project Lifecycle • Is a means to improve knowledge sharing with stakeholders and within the organization • Assists in setting expectations • Creates an audit trail • Promotes accountability • May help improve quality of future projects

16. Project Documentation Initiating Project Charter Statement of Work • Project Scope • Communication Strategy Planning • Project Budget • Communication Plan • Risk Management Strategy • Training Strategy • Kickoff Meeting • Work Breakdown Structure • Skills Requirement Worksheet • Responsibility Matrix • Network Diagram • Schedule Executing • Training Plan • End User Documentation Managing & Controlling • Status Report • Issues Log • Change Request

17. Work Breakdown Structure

18. Key Factors to Success • Clear Understanding • Have a Plan

19. FACTOR #3: The Right Team • For all phases of the Project • Representation from key Stakeholders • Define roles, gain buy-in, build confidence

20. Skills Requirement Worksheet

21. Key Factors to Success • Clear Understanding • Have a Plan • The Right Team

22. FACTOR #4: Communication • Frequently and openly • Report periodically to stakeholders on project status • Maintain Meeting Minutes • Status • Actions/Follow-ups

23. Communication Principles • Why are Communications important to projects? • Communications are a critical tool for motivating employees, increasing commitment to change, reducing confusion and overcoming resistance to an initiative, preparing people for the pluses and minuses of a project initiative, and for giving employees a personal stake in the process. • Effective communication can set the tone for a project and is critical to implementation. • What are key elements found in teams with effective Communications? • Open and ongoing communication • Communication objectives linked to project objectives • Project plans and goals shared with employees • Feedback solicited regularly • Senior Management engaged in supporting the communication process • Pay and benefits linked to project strategy • Coordinated internal and external communication • A formal communications program supporting internal project initiatives and documenting internal communication strategies

24. Sample Issues Log Issues Logs should maintain a description of status, history of actions taken, and should be updated whenever the issues report is created. Each issue must have an owner.

25. Key Factors to Success • Clear Understanding • Have a Plan • The Right Team • Communication

26. FACTOR #5: Continuously Monitor • Remain Flexible • Manage Risks • Identify Scope Changes • Evaluate Team membership • Situational Management

27. Question: What stagnates a project? What are the inhibitors to success?

28. Key Factors to Success • Clear Understanding • Have a Plan • The Right Team • Communication • Continuously Monitor

29. Reminder • Key Factors are an overall means of execution • Successful Project Management is built on the right SKILLS

30. Project Management Skills • Profile of a Successful Project Manager • Leadership Skills • Communication Skills • Management Skills • Selecting an Effective Project Team • Managing and Motivating Project Team

31. Project Management Skills LEADERSHIP: • Provide strategic direction • Foster enthusiasm for the project • Work with stakeholders to detail project goals • Define the project structure, roles, and responsibilities • Define and develop the overall project plan and refine as needed • Provide direct support of team members including motivation and team building • Build consensus among diverse groups of people • Resolve conflict • Negotiate and facilitate resolution of issues Project success depends on people, not on reports, charts, or computers.

32. Project Management Skills COMMUNICATION SKILLS: • Act as a communication focal point to project team, sponsors, customers, and stakeholders • Report periodically to stakeholders on project status • Manage expectations of sponsors and stakeholders • Work with change management experts to develop and implement communication and training plans • Communicate frequently and openly about any changes to the project plan so that team members can revise their assignments accordingly

33. Project Management Skills MANAGEMENT SKILLS: • Plan, schedule, and budget activities • Secure and evaluate project team resources • Monitor and control project progress and budget • Manage the project scope • Control change relative to scope, schedule, and budget • Manage risk • Escalate and resolve issues in a timely manner • Ensure the quality and completeness of project deliverables • Monitor stakeholder involvement • Act as the liaison between stakeholders and the project team

34. Selecting an Effective Project Team Team Members ideally should be • Functional experts • Knowledgeable about many processes • Respected in their own organization • Committed to achieving the project goals • Not afraid to make changes and decisions (and authorized to make those decisions) • Open minded, open for ideas from team members It would be most helpful if they have • Good written and oral communication skills • A willingness to do the job (overtime) • A conceptual knowledge of systems • The ability to work in multi-disciplined team

35. Managing and Motivating Project Team Throughout the project it is critical to • Establish and communicate clear goals, objectives, and priorities • Set up clear procedures and processes • Maintain open communication channels • Encourage participation and seek input Understand how to motivate each team member • Provide ongoing positive reinforcement • Build effective relationships, Treat people fairly • Administer effective discipline • Restructuring jobs, if necessary

36. Questions • Have we achieved our Goal today? • ? • ?

37. THANK YOU. Lisa Kravetsky, CPA Director of Client Service – Supply Chain Resources Global Professionals 8 Campus Drive Parsippany, NJ 07054 [office] 908-401-2575 [cell] 908-442-0766 Visit us at www.ResourcesGlobal.com.  NASDAQ: RECN