10 tips to ensure project delivery….#pmot #in

On target delivery

On target delivery

As Project Managers our business is project delivery. However some external suppliers are more reliable than others so here are 10 tips to ensure success:-

1) At the first sign of trouble arrange to have a face to face meeting with your supplier. It doesn’t matter if they are on the other side of the world, clear a space in the diary, book the flights and get in front of them. It will be worth every penny.

2) Raise your concerns in an open, honest none aggressive manner. By all means express your irritation but don’t blow your top – you will make yourself look foolish and unprofessional.

3) Identify the key stakeholders within your own organization who share an interest in the project.

4) Identify the key stakeholders in the supplier organization who share an interest in delivering the project.

5) Break the task down into manageable chunks and identify responsibility for each sub-task.

6) Insist the supplier provide a daily report of activity to be delivered at a specific time. This report should include a simple graphical representation (such as a bullseye chart) to indicate days ahead or days behind schedule. It should also stipulate actions required and responsibility. This report should be circulated to all key stakeholders. Accept no excuses for late or none delivery of this key report.

7) Following the face-to-face have a daily conference call. Do this whether there are any issues or not. 2 minutes passing the time of day reminds the supplier they are uppermost in your mind.

8) Identify Carrots and Sticks. What penalty clauses can you invoke ?  What are the opportunities of new business ?  Identifying them gives you additional leverage.

9) Make it easy for them – have they got a spec, is it up to date, is it comprehensive enough, do they understand exactly what is required ?

10) Don’t assume everything is the fault of the supplier, have you communicated clearly and concisely what your expectations are ?  Have you paid each milestone on time ? Is the SOW & Contract clear ?

Some suppliers are always easier to deal with than others but employing the above tips should help. Have you got any more you could share ?

chris@projectsguru.co.uk

www.projectsguru.co.uk

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PGBANNERSTATIC

A true story……

Customer Focus

Customer Focus

Back in 2006 Reflex Semiconductor was a medium sized electronics business with Sales Revenue around $200 million and a respectable Net Profit of around $5 million.

The company had several hundred customers and  a diverse and mixed product range.

Unsatisfied with performace the Board decided to appoint a new President of Marketing.

This guy was called Max Cutter (I kid you not) and he summed up his philosophy in his joining speech.

” Guys, I want to re-focus on our core business. 80% of our profits come from 20% of our customers but 80% of our efforts are in supplying the lowest contributing 20%”  (He was obviously familiar with the Pareto rule)

“I want to re-focus our business (hang on Max, how long have you been here) by eliminating the lowest earning 20% and refocussing our efforts on the highest grossing 20% and watch this business GROW!!!”

When the clapping and cheering had subsided Max set about his business. Gathering together a multifunctional team of career oriented individuals from all levels of the organization (well, engineer level up anyway)

Pursuing a mantra of ‘All Change is Good’ they set about trimming the companies customer database, removing anyone who contributed less than 0.5% of Total Sales.

This carried on  for several months.

The Quaterly results were due to be published when Max announced he was leaving the Company for a better position. Despite much persuassion and the offer of a 30% increase in salary Max left anyway. He did get a nice leaving present of  a Rolex watch presented by the CEO.

The Quaterly results indicated that Sales were down to $140 million (-30%) and Profit was now a loss of $1.2 million.

Naturally, a Consultant was brought in to assess the situation and, after one weeks analysis, She reported that NO ONE CUSTOMER REPRESENTED MORE THAN 0.7% OF SALES.

The companies customer base was so diverse and its product range so varied the Good Old Pareto Rule didn’t apply in this case and Max and the team had successfully exterminated 30% of a perfectly good business.

Unfortunately Reflex Semiconductor never recovered and went bust a year later.

Max went on to get a job in investment banking and invented something called the “Credit Default Swap”….

chris@projectsguru.co.uk

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The car in front is…..$%#*$ !!!

priusThe news today that Toyota plans on recalling several hundred Prius due to brake problems follows hot on the heels of rumours last week that 19 people had died due to faulty accellerator pedals on Toyota vehicles in the U.S.A alone.

What is going on ?  Toyota has always had a terrific and well deserved reputation for product quality and anyone involved in product design knows that quality has to be built in at the design stage where the product should be rigorously tested and key parameter should exceed a certain capability. This approach guarantees a high degree of reliability and integrity with product failures measured in a handful per million.

The enormity of the problems at Toyota indicate a much, much higher level of failure which is incompatible with a quality product.

Toyota are already discovering the high price of possible shoddy design procedures with sales down around 16% last month.

Sadly their reputation may never recover.

Quality is built in at the design stage.

chris@projectsguru.co.uk

www.projectsguru.co.uk

Dissapointing your customers…..

projectsSometimes, despite best efforts at Risk Management, we drift off plan. In the worst case this means we won’t be able to meet our customer commitments.

So what do we do:-

a) Wait until the last minute, hoping for a miracle, then tell the customer they are going to be dissapointed – this is probably the worst thing you could do; no one likes to be let down at the last moment, particularly customers, it also offers them no options and could be extremely costly if they have prepared an expensive advertising campaign to launch their product.

b) Tell the customer as soon as you are aware of the problem – probably better than a) but this will still cause a lot of consternation to the customer and doesn’t offer them any solutions; in effect it puts the responsibility back on the customer which is what they are paying you for !

c) Explore all the possibilities to get the plan back on track; get the whole team involved and seek advice from Senior Mangement once you have explored all the possibilities.

Develop a contingency plan. Find out what you could deliver on time and what you could deliver at a later date. Come up with 3 or 4 alternatives.

Arrange a face to face meeting with the customer, apologise profusely and present them with the contingency plan.

You should have absolute confidence in your contingency as you want to make sure you do not let the customer down again.

Most customers are realistic and pragmatic and the contingency approach will generally maintain your reputation as an effective project manager.

chris@projectsguru.co.uk

www.projectsguru.co.uk

ap4

Its a risky business…..

transparentOnce the plan is in place & agreed the project then moves into the execution phase. This is when things really start happening and, if the planning has been done properly, things should proceed according to plan – right ?……Wrong !!

No matter how good the planning, in reality, things rarely proceed to plan. This is where the skills of the Project Manager come into play.

Each stage of the plan will have obstacles, some minor and some major, which need to be overcome in order for the plan to proceed. These obstacles may be referred to as RISKS and it is part of the Project Managers role to identify those risks, quantify them and mitigate against them.

It is useful to create a Risk Management log (normally in spreadsheet form) which should have the following headers as minimum:-

RISK , MITIGATION,  EXPIRY DATE,  SEVERITY,  TREND

Other factors may also be tracked but the principal is to log all the risks in severity order so that they may be prioritised and addressed accordingly. This should be done by the team and the results published to the wider business so that everyone is aware of the situation. The Risk log should be reviewed periodically and any new risks added. Any which are deemed closed will be marked as such.

So, by addressing the project risks in a structured way their impact may be minimized and the project kept on track.

If the Critical path is extended at any point the whole project delivery will be impacted so the structure of the plan should be reviewed to see if any tasks may be shortened to pull in the overall timescale.

If this is not possible then the end customer (external or internal) must be informed of the change to delivery date so that their expectations are not adverse to reality. This may cause some short term pain but it is always better to get the bad news out early if the alternatives have been exhausted.
Remember:-

all projects have risks, its how you manage them which counts.

chris@projectsguru.co.uk

www.projectsguru.co.uk