How to Spot a Troubled Project Before the Trouble Starts
A field guide for executives
Projects never go quite as planned. We expect that, but we don't expect disaster. How can we get
better at spotting disaster when there's still time to prevent it?
Skip to the Details: How To Orderroject failures — even project disasters — are much more common than most of us realize,
because most failures are concealed by the facts that the project was completed, and that it accomplished more or less what
we thought it would. The projects that fail utterly, and end in cancellation, are the obvious disasters. But most troubled
projects are hidden. Finding them while there's still time to avert the trouble, and then preventing trouble or extricating
these projects from trouble, can make a big difference in organizational performance.
Hidden disasters were disasters financially, because they ran over budget, or they were completed late, or
both. Other disasters perhaps were completed on time and on budget, but only at the expense of other projects, which were
stripped of talent at critical times. And some disasters were on time and on budget, but never led to the market success
they originally promised.
How to Spot a Troubled Project Before the Trouble Starts tells you how to identify disasters — both hidden and obvious — before they become
disasters. Written specifically for the executive and senior manager, it tells you how to read a project, to determine what
secrets might lie beneath its tranquil surface. Armed with these techniques you not only can prevent projects from becoming
disasters themselves, but you can also prevent projects from wrecking your organization.
Most important, you'll be able to identify troubled projects while there is still time to fix them or cancel them
with minimal waste of resources.
Read How to Spot a Troubled Project Before the Trouble Starts to learn techniques for identifying trouble projects that seem to be on track — tips
and insights that could take you a lifetime to invent on your own. For example, you'll learn:
Not only what to look for, but also how to look for what's missing — for instance, passion at the top
What to measure, and how to get around the Hawthorne Effect when you do
How to adjust organizational policy to limit the risk of troubled projects and get more done with the same resources
What usually goes wrong with risk management
How to spot project trouble by monitoring contract negotiation activity
Special risks of projects that have external customers
And it's all packaged in a single, compact e-booklet. At over 13,000 words, it's about the size of Who Moved My Cheese?
Load it onto your Acrobat-enabled PDA or laptop and carry it with
you on your next trip.
Who can benefit
How to Spot a Troubled Project Before the Trouble Starts addresses a broad readership:
Organizational leaders who want to set organizational policy to maximize the success of all projects
Senior managers who want to guide sponsors and leaders of project teams within their organizations
Sponsors of projects who want better results faster
Managers of project managers
What you do with it depends on your role in your organization. Here are just a few ideas:
Organizational leaders
Use the booklet as part of a program for enhancing your organization's sophistication with respect to project
disasters. Pick and choose ideas, add your own insights, and examine organizational policy for ways to tighten
project creation and management practice, and for ways to enhance and focus monitoring. Or have us
customize the booklet to your organization to create training and reference materials for executives, senior
managers, sponsors, auditors and project managers.
Senior managers
Whether managing a crisis or creating a risk management plan, understanding the problems and pitfalls of the project
management helps you deliver a successful project or operate with enhanced predictability. By focusing your attention
on the right projects, early in the unfolding of failure, you can intervene when needed and only when needed.
Sponsors of projects
Sponsors are uniquely positioned either to create disaster or to prevent it. They act as an important part of the
interface between the project and and the rest of the organization, arranging for resources, championing the project,
and curtailing project excesses. Finding the balance is critical, and this booklet provides essential guidance.
Managers of project managers
Managers of project managers, or leads of project management offices, can also benefit from How to Spot a Troubled Project Before the Trouble Starts.
They can advise project managers about high-risk practices; advise senior managers about policy that supports risk
reduction; and help devise reporting mechansms to focus monitoring and auditing activites to increase risk identification
efficiency.
Some sample tips
Here are some sample tips.
Be alert when the budget for contingencies was driven down during initial negotiations
If the project manager or risk manager presented a budget for contingencies, and that budget was driven down in
negotiations with the sponsor, the customer, Marketing, Sales, or management, take care. It's possible that the project
manager or risk manager yielded under the weight of superior political clout. The true cost of those contingencies
is probably closer to the proposed number than it is to the number that emerged from negotiations.
To limit repetitions of this sort of thing, collect data about negotiations. Let everyone know that it's OK to
negotiate, and it's OK to make these adjustments, but the adjustments must be included in a Negotiation Report. That
alone might deter some from using political clout to arrive at unrealistic results.
You can then create software to automatically alert internal "troubled project monitors" to flag the project,
even in cases where deterrence isn't achieved.
Beware projects with a high incidence of split assignments
An individual has a split assignment when he or she is working on two or more projects, and is responsible to two
or more different project leads. If this practice is widespread in your organization, it could mean that there are too
many projects active at once. It could also mean that there is a shortage of people with particular skills. In either
case, the projects that share people are at risk, for three reasons.
First, if trouble arises in one project, in the area covered by the split team member, the other
project(s) will temporarily have to make do with a reduced level of services of the split team member. This might work
out, but there is a finite chance that trouble will hit more than one of these projects simultaneously.
Second, it's unlikely that the project leads who share team members have enough schedule control
or flexibility to avoid contending for the split team members simultaneously. Even if they do have such flexibility,
they have to discuss and compare schedules, which takes time that many don't want to use, given the low likelihood of a
good outcome.
Finally, split assignments are usually arranged so that the split person's total effort summed
over all projects is 100%. But that's unrealistic. The splitting itself costs time. A good rule of thumb is 5% per
project. Thus, a person shared by two projects is only 90% available.
And split assignments have subtle effects on the level of trust in the organization — they tend to
erode trust. In projects where trust is very important (example: dispersed or virtual teams), this effect can create both
unrecognized cost and unanticipated risk to the project.
Be alert to financial trouble at bet-the-ranch suppliers
When a project relies on elements delivered through an outsource arrangement, and when the vendor is severely
extended and in trouble, that project must be considered at risk, even if all is well in terms of schedule and budget.
Project leads who do not monitor the financial health of such vendors are flying blind and without instruments.
When a project contracts with a vendor, and when that project is a stretch for that vendor, the
situation calls for an elevated level of risk monitoring by the project lead and sponsor. Have the project lead set an
appropriate Google Alert for the supplier, key locations for that
supplier, and all key personnel of that supplier.
How to order
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