As project managers, we crave the same thing – we want our project to be seen as a “success”, by the sponsor, business owner, governance, the team, end-users, ... everyone.
Successful projects deliver benefits, within constraints including scope, time and cost. To be seen as a success, a project needs to start out with good estimates of the time required to deliver the scope, and the cost of that time.
A key finding of KPMG’s NZ Project Management Survey in 2010[1], was that projects undertaken by New Zealand companies often perform poorly in at least one of the following areas – lack of timely delivery, cost over-runs, or inability to achieve the stated deliverables.
The survey found that only a third (36%) of NZ organisations reported consistent on-time delivery of projects, and only half (48%) reported projects being consistently delivered to budget. Internationally the Standish Group found only a third (32%) of all projects were delivered on time, on budget, with required features and functions. NZ project success rates are not unlike elsewhere.
As Project Managers, we are not enjoying “success” as often as we would like. At least some of the reasons for this can be traced back to how we go about preparing our estimates of time and cost to complete the project.
When looking back on a successful project, the following features will often be found to be true:
- During planning, the scope was broken down into detailed requirements that were measurable (testable). This ensures everything gets estimated, and the estimators are clear on what will be an acceptable deliverable.
- Estimation time was adequately budgeted, and a sound process used. It takes time, and a good process, to do a good job of estimation.
- Estimates were provided by the people who did the work. This ensures estimates reflect the work rate of the people involved, and helps to get their buy-in.
- Estimators understood the work and were able to estimate it accurately. Possibly the most challenging aspect of estimation. Get data on similar projects, to enable comparison. It also helps to break the work down into less complex tasks that can be more readily estimated. If in doubt, get advice from someone with more expertise, either in estimation techniques, the work being estimated, or both.
- Actual delivery was regularly monitored against the project baseline, to validate that the work accomplished matched the plan. Where there are variances, re-forecast completion time and costs. This enables you to signal early if the project is likely to run ahead or behind on schedule or budget, and creates the opportunity for the project schedule and budget to be adjusted (using appropriate change control).
- Scope variations were quickly identified and managed. Volumes can be written on this topic, and experienced project managers know that scope creep will torpedo the success of a project. The mitigation for this involves good communications within the project team and with stakeholders, an effective change control process that enables request for changes to baselines to be identified, assessed, estimated, approved or declined, documented, and communicated to all those that need to know.
- Risks to the project were identified and managed effectively. Risks and issues need to be estimated, either quantified as time and cost, or at least identified qualitatively in a risk and issues register, enabling allowance to be made in project contingency estimates. Under-estimating risks will lead to insufficient contingency time and costs, which in turn can lead to under-estimation of schedule and budget for the project.
This is not an exhaustive list, you may have tips and techniques of your own that contribute to project success. Consider sharing the benefit of your experience with the wider project management community. See below for details on how to submit an article to PMINZ eNews.
Good luck with your project estimates, may all your projects be seen as successes.
[1] For the full report, see www.kpmg.com/NZ/en/IssuesAndInsights/ArticlesPublications/Documents/Project-Management-Survey-report.pdf
Peter Young has managed business focused IT projects in the Wellington government sector over the past 5 years, and prior to that 25 years in international and local roles in the oil industry. He has held several volunteer roles with PMINZ and is the current Central Branch Chair. All rights reserved.
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