Timetrack App – Zeiterfassung für Einzelunternehmer & Teams

The Ultimate Guide to PI Planning

Hibba Imran — Mon, 01 Jan 2024 19:11:31 +0000

The Ultimate Guide to PI Planning

#ProjectManagement

Table of Content

What is PI Planning?
Why do PI Planning?
What is the goal of PI Planning?
What to include in a PI planning agenda?
When is PI Planning held?
What are the inputs and outputs of PI planning?
Benefits of PI Planning
Example PI Planning Agenda

Prioritizing and adhering to Agile principles while scaling is paramount for the success of any organization. The journey from a small entity to achieving scale often involves the collaboration of geographically and functionally dispersed teams whose work is intricately interdependent.

Recognizing and strategically planning for these interdependencies is crucial to ensure that each team’s efforts are harmoniously directed toward a singular, project-focused goal.

The implementation of Program Increment (PI) planning significantly facilitates the attainment of this goal. But what precisely is PI planning, and why does it hold such significance?

What is PI Planning?

PI Planning, an abbreviation for Program Increment Planning, constitutes a vital practice within the Scaled Agile Framework® (SAFe®). These structured events occur every eight to 12 weeks, with the frequency dependent on the duration of the increments. During these planning sessions or ceremonies, large agile teams often seize the opportunity to coordinate and integrate the efforts of smaller team units.

The responsibilities within PI Planning are distributed across different teams agree various roles. Project managers strategize the planned features for the increment, while development teams take ownership of user story planning. Simultaneously, UX designers and researchers contribute to validating the planning. The overarching objective is to align teams not only with the organization’s mission but also with each other.

For those new to the SAFe framework, initiating the journey with the PI Planning ceremony is a foundational step. The framework is specifically designed to enhance visibility, alignment, and collaboration among teams, ultimately leading to heightened productivity, superior results, and accelerated delivery.

Whether an organization adopts all five levels of SAFe or focuses on essential aspects, the cornerstone of the transformation lies in the PI Planning ceremony. This ceremony serves as the linchpin, steering the entire process towards improved efficiency and successful implementation.

Why do PI Planning?

PI Planning holds paramount significance for large-scale organizations employing Agile methodologies. Imagine an organization with several thousand developers organized into more manageable units of 400 to 600 individuals per team.

Prior to the implementation of PI planning, it was not uncommon for these distributed teams to operate in relative isolation, seldom engaging in communication unless prompted by significant issues. This isolation often led to the formation of severe organizational silos.

Historically, the alignment of vision within remote teams of such organizations primarily occurred through a top-down approach. Managers of various teams would convene to discuss overarching concepts such as vision, mission, and values.

However, this process involved multiple levels of management, resembling a game of telephone, with information cascading down through hierarchical layers to reach individual teams. Consequently, direct coordination among all the teams themselves was a rarity.

What is the goal of PI Planning?

PI Planning constitutes an indispensable component of the Scaled Agile Framework (SAFe), a framework meticulously crafted to introduce agile methodologies to large companies with multiple teams.

Within the SAFe context, PI Planning plays a pivotal role in facilitating synchronization, collaboration, and alignment among teams forming the Agile Release Train (ART). This alignment encompasses various aspects, including workflows, objectives, releases, and more.

Conversely, the absence of PI Planning leaves teams without a structured communication framework. This lack of coordination can lead to significant challenges, such as teams unknowingly working on disparate features, potentially resulting in dependencies that might impede the release or necessitate extensive code rework.

The overarching objective of PI Planning is to strategically align all teams and foster cross-team collaboration, thereby preempting potential issues. Having established the rationale behind PI Planning, let’s delve deeper into its operational aspects by examining a comprehensive sprint planning agenda.

What to include in a PI planning agenda?

Adhering to these three fundamental steps for effective program increment planning is crucial to harness the full potential of the Agile project methodology.

1. Organizational Readiness

Ensure key stakeholders are available for the program increment planning session.
Schedule timely PI planning meetings and send reminders to participating teams.
Consider conducting the PI planning session before the quarter commences to allow teams to set up and prepare for upcoming activities.

2. Content Preparedness

Clearly communicate the mission, vision, and purpose of the program.
Emphasize the significance of each activity by articulating the “why” behind the scaled Agile program increment planning sessions.
Ensure that the rationale for the sessions is well understood by all relevant team members.

3. Logistics Preparation and Accessibility

Facilitate optimal engagement during PI planning sessions, whether conducted offline or virtually.
Arrange for a spacious room or a virtual platform, such as a team Zoom call, to accommodate the required number of attendees.
Utilize Zoom breakout rooms to foster collaboration among teams in smaller groups, addressing specific action items.

Understanding the Connection between SAFe and PI Planning Event

Program Increment Planning, structured as either a face-to-face or virtual event, plays a pivotal role in aligning Agile Release Train (ART) teams toward shared goals.
As a team expands, maintaining adherence to core Agile principles can pose challenges, making PI planning in ART crucial for Scaled Agile Framework (SAFe) implementation.
SAFe, encompassing Agile methodologies, lean principles, and systems thinking, provides a foundational knowledge base. While not offering ready-made solutions for unique organizational challenges, SAFe equips teams with proven best practices to enhance project deliverable quality, increase team productivity, and foster employee engagement.

When is PI Planning Held?

– Optimal duration

Companies often find that a program increment lasting 8-12 weeks is effective. This duration corresponds to 4-6 iterations, each lasting 2 weeks.

– Variability in scheduling

The timing and frequency of PI Planning sessions vary among organizations based on their specific needs and project timelines.

– Quarterly Schedule Example

Some organizations adopt a quarterly schedule for regular PI Planning events to provide a structured framework.For instance, Q1 PI Planning might occur in December, followed by Q2 PI Planning in March, Q3 PI Planning in June, and Q4 PI Planning in September.

– Consideration for Holidays

When scheduling PI Planning sessions, it’s essential to consider holidays and potential disruptions. This ensures that teams can fully engage in the planning process without significant interruptions.

– Advantages of Regular Occurrence

Fixed and regular scheduling of PI Planning sessions offers several advantages. Teams and business owners can plan well in advance, allowing for better preparation and participation.

– Structured Approach to Planning Process

The regular occurrence of PI Planning enables a structured and well-coordinated approach to project planning and execution. Teams can align their efforts with organizational goals and synchronize their activities.

– Preparation Significance

The preparation leading up to previous PI Planning event is as crucial as the event itself. Proactive planning ensures organizational readiness and logistical readiness for the planning session.

– Proactive Approach

Organizations benefit from a proactive approach to PI Planning, addressing considerations well in advance. This approach contributes to the smooth execution of planning sessions and subsequent project activities.

– Stakeholder Involvement

Consistent scheduling ensures the active participation of the team presents all relevant stakeholders. Stakeholders, including team members and business owners, can allocate time and resources effectively.

– Alignment with Agile Principles

The regularity of PI Planning aligns with Agile principles, fostering collaboration, iterative development, and effective execution. It ensures that Agile teams stay true to the core principles even as the organizational scales.

By adhering to a well-defined schedule and prioritizing thorough preparation, organizations set the foundation for successful PI Planning sessions, promoting collaboration and adherence to Agile principles.

Seamlessly Manage Time Off in Lieu and Boost Productivity.

Get started

What are the Inputs and Outputs of PI planning?

Inputs for Successful PI Planning

– Overall Company Vision and Goals

A foundation for PI planning success lies in a comprehensive understanding of the overall company vision and goals. A clear business context, defined mission, actionable roadmap, and prioritized backlogs contribute to effective PI planning.

– Mapping Goals to Business Needs

Goals become meaningful when aligned with tangible business needs and end-user requirements. Ensure a mapping of company goals to actual business needs, providing a roadmap for teams during PI planning.

Outputs of a Successful PI Planning Event

– Committed PI Objectives and Tasks

Each team, irrespective of its size, defines clear and well-defined objectives and associated tasks during PI planning. The commitment made by teams serves as a basis for a management review by business owners to identify risks and assign appropriate business value.

– Crystallized Features, Milestones, and Delivery Dates

Successful PI planning results in a crystallized set of features, milestones, and precisely defined delivery dates. Program boards are used to identify potential risks and interdependencies among teams, ensuring explicit timelines for feature delivery.

By establishing these inputs and outputs, organizations can streamline the PI planning process, fostering clarity, commitment, and effective collaboration among teams. This structured approach contributes to achieving organizational outcomes more efficiently.

Benefits of PI Planning

Detailed Aspects for Successful PI Planning

Establishing Communication Across All Team Members and Stakeholders

Facilitating open and transparent communication channels is crucial for effective PI planning. Ensuring that all team members and stakeholders have a platform to express ideas, concerns, and updates fosters a collaborative environment.

Building a Social Network that Makes the Agile Release Train (ART) Really Work

Cultivating a social network within all the team members of Agile Release Train (ART) enhances team cohesion and cooperation. Encouraging social interactions and team-building activities contributes to a positive and productive ART environment.

Aligning Development to Business Goals

The heart of PI planning lies in aligning the development team and efforts with overarching business goals. Teams need a clear understanding of how their work contributes to the broader business objectives, ensuring a unified direction.

Identifying Dependencies and Cultivating Cross-Team and Cross-ART Collaboration

Recognizing dependencies between teams and ARTs is essential for streamlined planning. Cultivating collaboration across teams and ARTs promotes knowledge sharing, review and problem solving re-solving, and a collective commitment to success.

Syncing Up Demand and Capacity

Balancing demand and capacity is a key element in PI planning. Ensuring that teams have a realistic assessment of their capacity and aligning it with the demand for work prevents overcommitment and fosters achievable goals.

Eliminating Excessive Work in Process (WIP)

Striving for efficiency involves minimizing Work in Process (WIP) to maintain a steady workflow. Reducing WIP helps teams focus on high-priority tasks, leading to better productivity and successful PI outcomes.

Fast Decision-Making in Agile Teams

PI planning requires swift decision-making to adapt to changing circumstances. Establishing mechanisms for quick decision-making ensures that the planning process remains agile and responsive to evolving needs.

Organizations can create a robust foundation for agile PI planning by addressing these detailed aspects, promoting collaboration, goal alignment, and streamlined workflows across Agile Release Trains and teams.

Example PI Planning Agenda

Every PI planning session adheres to a consistent agenda, allowing for adaptation based on team-specific requirements. The standard agenda itself can be modified, for instance, when conducting digital PI planning with remote teams or hybrid teams, necessitating potential adjustments in duration to accommodate diverse time zones.

Day 1

Business Context (8–9 a.m.)

A leader or executive provides an overview of the current business state, articulates the business owner’ vision, and evaluates the efficacy of existing solutions in meeting customer needs.

Product/Solution Vision (9–10:30 a.m.)

The head of product presents the current vision, highlighting upcoming features, addressing changes from the previous PI planning, and introducing imminent milestones.

Architecture Vision and Development Practices (10:30–11:30 a.m.)

The System Architect or Engineer outlines the architecture vision, potentially introducing Agile-supportive changes to development practices in the upcoming PI.

Planning Context and Lunch (11:30–1 p.m.)

The Release Train Engineer (RTE) delineates the planning process and expected outcomes.

Team Breakout Sessions (1–4 p.m.)

Individual teams estimate their iteration capacity, identify backlog items for feature realization, and create draft plans visible to stakeholders.

Draft Plan Review (4–5 p.m.)

Teams present key planning outputs, including capacity, draft PI objectives, risks, and dependencies. Stakeholders review and provide input.

Management and Problem Solving (5–6 p.m.)

Negotiation, management review and problem of scope changes and resolution of challenges occur as management addresses planning adjustments.

Day 2

Planning Adjustments (8–9 a.m.)

Management presents any changes to scope, people, or resources.

Team Breakouts (9–11 a.m.)

Teams refine planning, make necessary adjustments, and finalize objectives with managerial approval.

Final Plan Review and Lunch (11–1 p.m.)

Teams present plans to senior development manager, outlining risks and obstacles. Teams seek managerial approval, with opportunities for plan adjustments if concerns arise.

Program Risks (1–2 p.m.)

Teams collectively address identified risks, discussing and even program risks and categorizing them.

Confidence Vote (2–2:15 p.m.)

Teams and teams vote mostly on confidence in meeting their objectives. Concerns are addressed, and other teams also voice their confidence levels.

Plan Rework as Needed (2:15–X:XX p.m.)

Teams rework plans until achieving a high level of confidence.

Planning Retrospective and Moving Forward (When Ready)

The RTE leads a brief retrospective, capturing insights into what went well and areas for improvement in future PI planning events.

Bottom line

In conclusion, Time Off in Lieu (TOIL) is a valuable strategy that benefits employers and employees. TOIL balances addressing business needs and recognizing employees’ efforts by incentivizing additional work without incurring extra costs.

However, its successful implementation relies on a well-crafted policy that delineates responsibilities, ensures clarity in accrue toil and usage, and fosters equitable application. HR’s pivotal role in communicating, maintaining consistency, and nurturing understanding among employees is integral to the effectiveness of the TOIL policy.

The Ins and Outs on How to Streamline Communication

Hibba Imran — Wed, 27 Dec 2023 06:08:25 +0000

The Ins and Outs on How to Streamline Communication

#Project Management

Table of Content

What is Streamlined Communication?
Why is Streamlining Team Communication Important?
How to Streamline Communication Channels?
Benefits of Streamlined Communication?
Challenges of Streamlining Communications
Examples of Streamline Communication

Tackling team communication is a prevalent challenge faced by many companies, regardless of team size or location. Whether managing a remote or co-located team, the task of ensuring communications with everyone is aligned remains a significant hurdle.

Updates scatter across instant messages, messages, project management software comments, emails, and casual hallway chats, creating a communication maze. The multitude of communication channels can lead to confusion and missed messages, potentially causing detrimental outcomes for both individuals and the company.

Interestingly, while many teams, students and individuals perceive themselves as adept communicators, nearly 75% of received communication is often interpreted incorrectly.

Despite recognizing the significance of communication in both personal and professional spheres, the task of mastering and communicating it can be challenging, and the consequences of miscommunication can be substantial.

Research indicates that miscommunication can incur costs ranging from $4,000 to $6,000 per employee per year. The key solution to overcoming the challenges of misinformation and miscommunication lies in streamlining our communication methods to deliver information to users and our teams as efficiently and effectively as possible.

What is Streamlined Communication?

Efficient communication not only provides numerous avenues for engaging with your team, partners, and customers but also establishes effective relationships with each of them.

Why is Streamlining Team Communication Important?

Streamlined communication provides teams with the confidence to create and manage work asynchronously while fostering connections and alignment among team members.

While verbal communication in meetings is often the first thing that comes to a person with a communications job, to mind, it’s essential to recognize that effective communication extends beyond these interactions.

The goal point of streamlining communication is to save time and make information accessible to everyone, even after a meeting concludes. This process involves proper documentation to eliminate bottlenecks and unnecessary meetings that can hinder productivity.

Streamlined communication is instrumental in guiding projects through every stage, from early ideation to planning and execution. A standardized flow enhances team members’ comfort in a collaborative setting, improving clarity and saving valuable time and resources.

How to Streamline Communication Channels?

Amidst the challenges businesses face in adapting to an ever-changing environment, particularly highlighted by the events of March 2020, maintaining effective communication methods is crucial to keeping organizations aligned with their business goals and KPIs.

Improving team communication ability, clarity, and trust is a process that can commence today with a few key steps:

Access Information

At the organizational level, create comprehensive documentation accessible to all departments. This documentation can include policies, business goals, org charts, benefits information, and other pertinent details. Ensuring everyone has access to this information facilitates a common understanding and reduces high-level inquiries.

On a team level, consider utilizing or creating a Lucidspark board (utilize the free templates provided) to outline team norms, announcements, contact information, and more. This board becomes a centralized space for team-specific messages and questions, fostering efficient communication to achieve shared goals.

Gather Feedback

When you streamline communications, it involves actively seeking feedback from your team. Demonstrating that their opinions matter boosts morale and contributes to creating a collaborative environment. Regular check-ins provide team members with a platform to voice their thoughts, ensuring their perspectives are considered.

“Make sure to over-communicate. Choose one voice or a small group and define a whole message or narrative. Use internal tools to communicate regularly with your employees. Also, organize pulse surveys. You can use pulse surveys to understand your employee population and everybody’s concerns. Use that input to influence how you communicate.” – Robert Allen, Atlassian

Connect Regularly To Streamline Internal Communications

Regular team connections are essential for addressing blockers, answering questions, and fostering camaraderie. Consider the following practices:

Host brief 15-minute stand-up meetings for a pulse check on the team’s well-being.
Conduct regular meetings to delve into strategy, goals, and brainstorming sessions.
Schedule time for team activities or icebreakers to enhance team cohesion.
Consistent communication and connection contribute significantly to the effectiveness and success of any team.

Benefits of Streamline Communications

Quicker And Better Access To Data

When you streamline communications within your company facilitates quicker and better access to relevant information for employees and customers.

This ensures a clear path of communication, and saves time by eliminating unnecessary data and focusing on priority updates. The result is improved decision-making across different areas of your business, fostering growth and success.

Improved Communication

A company driven by streamlined communication is well-integrated and exhibits enhanced connections among participants in various sectors of its operations.

Controlled, patterned, and predictable communication channels build trust in conveyed messages, enabling organizations to share and discuss information more efficiently. This contrasts with previous challenges of accessing information that was tough, costly, and time-consuming.

Better Productivity

Streamlining communication eliminates the manual, time-consuming task of duplicating and sharing data and waiting for its transfer between departments.

Automated and fast-paced processes allow employees to dedicate more time to crucial tasks, enhancing overall company productivity. This, of course, in turn, contributes to the growth of your business.

Single Access Point

Centralizing data in one accessible place saves time and effort in communication. A single access point eliminates confusion and offers convenience in sharing information.

Your company gains an advantage by viewing every aspect of the organization discussed from one system, resulting in fewer management concerns.

Rapid And Substantial Growth

As your company grows, the complexity of applications increases, leading to entangled processes and information.

Streamlining with integrated software resolves problems and implements changes with just a few clicks. This solution fosters rapid and substantial growth, allowing your business to improve and your employees to succeed continually.

Challenges of Streamlining Communication

Challenges related to streamlining communication vary across companies, but some are universal in all industries. One major issue is the complexity and ambiguity of specifications and requirements.

When not clearly defined, team members struggle to understand expectations, leading to rework, errors, and a direct impact on the bottom line.

This lack of clarity, often stemming from unfamiliar communication styles, can give rise to cross-functional and relational issues among employees, negatively affecting the overall user experience.

The absence of digitized and standardized data further complicates streamlined communication. Without consistency, team members may work off different data sets, resulting in divergent data languages.

Using a common data set ensures that everyone works from the same information, fostering a shared understanding of project specifications, timelines, and goals. A synced data language provides a single source of truth for communication, reducing confusion and miscommunication when discussing project data.

Effective communication extends beyond internal teams to other stakeholders and external partners. The absence of internal communications and standardized data sets makes it challenging to locate errors and implement necessary changes. Teams may also find that without internal communications and unified data, informed decision-making becomes complex.

To cultivate a culture of collaboration and teamwork, businesses must leverage the right tools for specification management.

Seamlessly Manage Time Off in Lieu and Boost Productivity.

Get started

Examples of Streamline Communication

1. Unified Project Management Platforms

Implementing a unified project management platform serves as a central hub for all communication related to a project. Tools like Asana, Trello, or Jira allow teams to collaborate on tasks, share updates, and track progress in real-time.

This streamlines communication by consolidating discussions, files, and feedback within a single platform, eliminating the need for scattered communication channels.

2. Integrated Messaging and Collaboration Apps

Utilizing integrated messaging and collaboration apps such as Slack or Microsoft Teams helps streamline real-time communication.

These platforms enable team members to engage colleagues in instant messaging, share files, and organize discussions in dedicated channels. By centralizing communication, these apps reduce the reliance on scattered emails and promote quick, efficient exchanges.

3. Cloud-Based Document Collaboration

Cloud-based document collaboration tools like Google Workspace or Microsoft 365 facilitate streamlined communication through shared documents.

Multiple team members can collaborate on a document simultaneously, providing a centralized location for feedback and edits. This eliminates the confusion of managing different document versions and ensures everyone is on the same page.

4. Automated Workflows and Notifications

Implementing automated workflows and notifications through tools like Zapier or Integromat can significantly streamline communication processes.

These tools allow teams to automate repetitive tasks, trigger notifications for key events, and ensure that relevant stakeholders are informed without manual intervention. Automated workflows enhance efficiency and reduce the risk of communication gaps.

5. Video Conferencing Solutions

Incorporating video conferencing solutions such as Zoom or Microsoft Teams enhances face-to-face communication, especially in remote work scenarios. Video meetings provide a platform for comprehensive discussions, visual presentations, and team collaboration.

By integrating video conferencing into communication strategies, teams can maintain a sense of connection and understanding.

6. Transparent Internal Communication Channels

Establishing transparent internal communication channels, such as company-wide newsletters, intranet portals, or town hall meetings, promotes open and consistent communication.

These more streamline internal communications channels serve to disseminate important updates, company news, and strategic goals to the entire organization. Transparent communication fosters a shared understanding of the company’s vision and objectives.

7. Customer Relationship Management (CRM) Systems

For businesses engaging with clients, implementing CRM systems like Salesforce or HubSpot can streamline communication-related to customer interactions.

These platforms centralize customer data, communication history, and upcoming tasks, ensuring that sales, marketing, and support teams have a unified view. This cohesive approach enhances customer communication and relationship management.

8. Social Intranet Platforms

Social intranet platforms, such as Yammer or Workplace by Facebook, provide a collaborative space for employees to engage in discussions, share updates, and celebrate achievements.

These platforms mimic social media interfaces, making communication intuitive and accessible. By fostering a sense of community, social intranets enhance internal communication and team connectivity.

By incorporating these examples of streamlined communication into their workflows, businesses can overcome common challenges and create a more efficient and connected work environment.

Conclusion

By leveraging these tools and techniques, you can establish a communication ecosystem that empowers your team.

Effective communication is the backbone of any successful business, and streamlining communication processes paves the way for growth and service excellence.

At TimeTrack, we’re dedicated to enhancing the success of the businesses we engage with.

What is a Steering Committee in Project Management?

Hibba Imran — Sat, 23 Dec 2023 16:13:07 +0000

What is a Steering Committee in Project Management?

#Project Management

Table of Content

Steering Committee Definition
What Does the Steering Committee Do?
Responsibilities of a Steering Committee
Roles of a Steering Committee
What Should be Included in a Project Steering Committee Charter?
How Often Should a Steering Committee Meeting be Held?

Running projects can get pretty complicated. With all the changing business needs, limited resources, and making sure everyone on the team is pulling their weight, it can feel like juggling a bunch of balls at once. That’s where project steering committees come in – they’re like the superheroes of project management.

A steering committee serves as the executive backbone, providing vital support for strategic planning and project direction and adeptly resolving challenges to ensure that projects adhere to their intended trajectories and ultimately achieve their objectives.

Picture it as a high-level guardian overseeing the project landscape, ready to intervene and recalibrate when necessary.

Consider the steering committee as the lighthouse in the foggy expanse of project management, illuminating the way forward and aiding in the circumvention of potential obstacles. Their role is akin to problem-solving virtuosos, adeptly navigating through complexities to both resolve conflicts and maintain the overall project scope’s alignment with its predefined goals.

In simpler terms, a steering committee is like having a group of experienced mentors who guide you through the ups and downs of your project, making sure you reach the finish line successfully.

Steering Committee Definition

Steering committees are made up of different folks – board officers, big-shot stakeholders, experts, executives, regular department folks, and even some client representatives from the client side.

These committee members get together to chat and work together on figuring out what projects are important, what needs to be tackled first, and how to keep everything in check. They’re like the brainpower behind the scenes.

Their job? Well, they guide the project manager on all sorts of things. It’s like having a bunch of experienced minds giving advice on how to steer the project ship.

Now, here’s the deal: completing projects is no walk in the park. Actually, it’s more like a bit of a struggle. Stats say that only a tiny 3% of companies manage to finish all their projects. And get this – most companies end up spending way more money on ongoing projects than they planned, about 27% more! That’s like shelling out extra cash you didn’t expect.

But here’s where the steering committee swoops in. They’re the project watchdogs, making sure everything stays on track – the budget, the overall project scope, and the timeline, and making sure no unexpected issues pop up. They’re the project superheroes, saving the day and making sure things get done right.

Who is Included?

A steering committee comprises key stakeholders and representatives from pivotal departments with a significant stake and substantial interest in the project’s successful outcome. The committee is structured to include these senior stakeholders:

C-suite executives, including the Chief Financial Officer (CFO), Chief Technical Officer (CTO), and Chief Operating Officer (CEO), who provide strategic oversight and alignment with organizational goals.
Leaders heading diverse cross-functional teams such as IT, sales, product, marketing, legal, and finance, ensuring comprehensive representation of critical business functions.
Subject matter experts drawn from various internal departments contribute specialized knowledge and insights to enhance decision-making processes.
Senior employees possess considerable project management expertise, offering seasoned guidance and support based on their extensive experience.
External independent representatives, such as quality consultants, lead auditors, or delegates from external agencies or organizations, bring an objective viewpoint and additional expertise to the committee.

What Does the Steering Committee Do

Steering committees play a crucial role in overseeing and managing specific activities within an organization’s strategy, whether it’s a special project, compensation matters, or even the oversight of the board itself.

Now, here’s the interesting part: while steering committees are deeply involved in these activities, they’re not the ones rolling up their sleeves to get the work done.

Instead, they team up with a project manager, acting like the project’s strategic partners, ensuring that a dedicated team handles all the tasks on time and within the budget.

They often leverage board portal software to efficiently manage corporate governance, documents, communications, and reporting – kind of like their secret weapon.

Each steering committee has its own set of guidelines laid out in what’s called a committee charter. This charter spells out everything – the committee’s mission, its roles and responsibilities, who’s on the team, and more.

You might be wondering, with project managers in the picture, why bring in an external steering committee? Well, that’s where the big-picture magic happens. Steering committees are like the wise elders of the project world. They bring in an external perspective, ensuring that risks are under control, budgets are in check, and any conflicts are resolved. They basically keep projects cruising on the right path.

Now, get this: research shows that steering committees are not just a trendy thing; they’re a well-established and widely accepted practice, especially in the realm of IT management. Over 80% of IT companies have steering committees and a whopping 69% swear by their effectiveness.

When companies set up steering committees, they’re not just adding more layers – they’re adding a layer of safeguarding. Steering committees bring immense value by offering advisory support that goes beyond the day-to-day operations of the regular project teams. They’re like the guardians ensuring that everything runs smoothly and successfully.

Responsibilities of a Steering Committee Members

Steering committee meetings, tailored to the project and organization, typically have senior leadership and shoulder varied responsibilities for project success. Here are the common tasks for project management committees:

Offering Guidance

Think of steering committee members as seasoned mentors. With their wealth of experience, they dish out recommendations to navigate the project successfully.

Beyond advice, the committee shapes the project’s goals and objectives, giving it a clear sense of direction. These goals should be concrete and trackable, ensuring the committee can keep the project on course and make adjustments if needed.

Crafting Timelines and Budgets

Picture the steering committee as architects sketching out the project’s timeline and budget. They break down the work into milestones with deadlines, ensuring everything stays on track.

Managing the project budget becomes their forte, carefully overseeing progress to match the predetermined timeline and financial plan.

Quality Control Center

The steering committee acts as the whole project management software’s quality control squad, following a three-step process:

1. Setting Standards: Identify quality standards and share them with stakeholders to align everyone with the project’s goals.

2. Regular Audits: Routinely check the project quality and standards to ensure the project stays on course, making adjustments if needed. These audits also ensure project deliverables meet safety standards mandated by the law.

3. Tracking Results: Keep a meticulous record of results to assess performance, track progress easily, and recommend necessary changes to steer the project toward completion.

Risk Evaluation and Monitoring

Anticipating the unexpected is the forte of a proactive steering committee. They use five key questions to evaluate and monitor project risks:

Identifying Events: What negative events might impact the project?

Timing of Risks: When is the risk likely to happen?
Assessing Likelihood: What are the chances of the risk occurring?
Expected Outcomes: What outcomes can be expected if the risk occurs?
Trigger Analysis: What can trigger the risk?

After answering these questions, they craft a plan to tackle each identified risk head-on.

Defining Triumph

Project outcomes are the final masterpieces. The project metrics steering committee ensures they are specific, measurable, and meaningful. By defining these outcomes, organizations articulate the project’s purpose and impact, ensuring it aligns perfectly with the desired results.

Roles of a Steering Committees

Business Manager

The Business Manager assumes a pivotal role in steering the project towards success by overseeing both the project manager and the business case owner.

Their critical responsibility involves evaluating the project from a strategic business perspective, ensuring that it not only aligns with overarching business objectives and interests but also rigorously determines the justifiability of costs against the anticipated benefits.

Senior Users

The Senior Users, acting as staunch advocates for end-user satisfaction, play a crucial role in the steering committee.

Representing the group for whom the project is designed, they function as the discerning end-users of the product or service.

Their paramount responsibility is to ensure that project goals and deliverables not only align seamlessly with user requirements but also strive for the ultimate satisfaction of the end-user.

Senior Supplier

The Senior Supplier is the operational linchpin, providing vital manpower, budgetary oversight, and essential services for the project’s success.

Whether hailing from the organization’s IT department or an external stakeholder, their role extends beyond providing resources.

They meticulously ensure adherence to design, product, and other pertinent standards while evaluating the feasibility of the product or service within the constraints of the budget and the project plan. Their operational stewardship is indispensable for the project’s smooth progression.

Seamlessly Manage Time Off in Lieu and Boost Productivity.

Get started

What Should be Included in a Project Steering Committee Meeting Charter?

Establishing a steering committee involves more than assembling a group; it requires clear direction, a strategic action plan, and adequate resources to support project teams effectively.

A crucial tool in this endeavor is the creation of a project steering committee charter. This document serves as an actionable roadmap, delineating the fundamental vision, direction, and operations of the committee.

It outlines how the committee will both provide guidance and support to project teams and establish the framework for its establishment and functioning.

Key components to be included in a project steering committee charter encompass:

Project Vision and Purpose: Clearly articulate the overarching vision of the project and the fundamental purpose behind constituting the committee.
Committee Jurisdiction: Define the scope of the committee’s jurisdiction, specifying whether it pertains to a single project or a portfolio of projects.
Committee Authority: Clarify the committee’s authority, delineating whether it will provide strategic direction or operate in an advisory capacity regarding the project.
Committee Formation Rules: Outline the rules governing the formation of the committee, including the criteria for selecting its members.
Overall Deliverables: Specify the committee’s deliverables, encompassing directives on decision-making, opinions, and analysis. Utilize TimeTracks Project Tracking tool to track the timeline of decisions, ensuring timely resolutions. The tool can be instrumental in documenting decision points, rationales, and outcomes, contributing to a transparent decision-making process.

How Often Should a Steering Committee Meeting Be Held?

The frequency and duration of project management steering committee meetings are contingent upon the project’s complexity, size, and scope. However, as a general guideline, these advisory group meetings should strategically align with specific project milestones to facilitate a clear assessment of the project plans and progress.

Arbitrary scheduling of the steering committees increases as committee work meetings on predefined days within a month may prove less beneficial.

For instance, if the imminent project milestone pertains to “Preparing the content creation calendar,” the subsequent steering committee meeting should be convened post-completion of that milestone.

This approach not only enables the systematic tracking of progress from one meeting to the next but also ensures the judicious utilization of team and project resources.

Aligning meetings and positive and timely communication along with critical project milestones optimizes the committee’s effectiveness in overseeing and monitoring progress and steering the project toward successful outcomes.

Final Thoughts

A meticulously crafted charter, proficient meeting management, and the integration of board portal software collectively epitomize the hallmarks of a commendable and effective steering committee itself.

Interestingly, these attributes contribute significantly to the establishment and successful performance of sound corporate governance.

Effective governance is predicated on ensuring that individuals with the requisite expertise comprehend their responsibilities and possess a lucid understanding of the parameters delineating decision-making processes.

This framework facilitates the seamless pursuit of organizational objectives with heightened efficiency and productivity—an imperative for the efficacy of all committees.

In essence, the synergies between a well-defined charter, adept meeting practices, and the utilization of board portal software fortify not only the steering committee but also serve as integral components in fostering robust corporate governance within an organization.

How to Use the Impact Effort Matrix to Prioritize Projects

Hibba Imran — Wed, 20 Dec 2023 04:54:23 +0000

How to Use the Impact Effort Matrix to Prioritize Projects

#ProjectManagement

Table of Content

What is an Impact Effort Matrix?
How Does an Impact Effort Matrix Work?
How to Create an Impact Effort Matrix Template
Impact Effort Matrix Example

Entrepreneurs and project managers often grapple with a common dilemma: how to invest their time and resources wisely.

Picture this: on one hand, there are low-impact projects that demand relatively less effort, like picking low-hanging fruit. On the other hand, there are high-impact, high-effort endeavors akin to building a ladder to reach for cherries at the top of the tree.

Opting for the low-hanging fruit seems like a safe bet. It involves minimal risk, and the rewards are readily available. However, if you decide to invest time and energy into constructing that ladder for the higher-value cherries, there’s a catch – success isn’t guaranteed.

By the time you finish building it, the cherries might have fallen, or someone else might have picked them.

What is an Impact Effort Matrix?

Consider the impact-effort matrix as a practical tool for prioritizing tasks. It simplifies decision-making by evaluating tasks based on their impact potential and the effort required for implementation.

In essence, impact signifies a task’s ability to contribute significantly to project goals, while effort quantifies the resources, including time and money, needed for the execution of the project goal.

For instance, in a business context, the matrix can be applied to compare the impact and effort associated with different initiatives, such as launching a marketing campaign versus introducing a new product.

The matrix facilitates a systematic analysis, enabling the identification of tasks that offer the optimal balance between two factors of impact and effort.

Key Components of an Impact Effort Matrix Template

In constructing an Impact Effort Matrix, there are two fundamental components to consider: impact and effort. These elements play a pivotal role in determining the priority of tasks, efforts and projects.

Impact: This measures the potential significance or benefit that a task or project can deliver to the organization or stakeholders. It can be gauged through various metrics, such as financial gains, customer satisfaction, or alignment with strategic business objectives. Tasks with high impact are those that directly contribute to achieving organizational goals or addressing critical issues.
Effort: This assesses the resources, including time, money, and manpower, required to complete a task or project successfully. It takes into consideration the complexity of the task, the level of expertise needed, and the availability of resources. Tasks demanding high effort may involve extensive research, collaboration, or technical skills.

In essence, when developing an Impact Effort Matrix, these components serve as objective criteria for evaluating and prioritizing tasks based on their potential impact and the resources required for their execution.

How Does an Impact Effort Matrix Template Work?

To make use of the matrix, it’s as straightforward as plotting the potential impact of an action on the up-and-down side of the chart (that’s the y-axis) and the effort needed to pull off that action on the left-to -right side (the x-axis). On each axis, just label one end of the vertical axis as ‘low’ and the opposite as ‘high.’ Then, you split the graph into four sections, creating four quadrants that represent different scenarios:

High impact/low effort: This is the golden zone. It’s where you find those rare opportunities that bring significant impact with minimal effort. Whenever you stumble upon options here, they’re usually the ones to go for. It’s like hitting the jackpot on the Impact Effort Matrix.
Low impact/low effort: Actions in this category may not be game-changers, but sometimes they’re necessary to lay the groundwork for bigger projects with higher impact.
Low impact/high effort: Generally, it’s a good idea to steer clear of options in this quadrant unless absolutely necessary. They demand a lot of resources but don’t give much in return.
High impact/high effort: Often known as the “challenge quadrant,” this area needs careful consideration. Due to the high effort required, there’s some risk involved. Conversations with your team become crucial to navigate through this quadrant and decide on the best course of action.

To keep things clear, it’s customary to place ‘L’ (low) at the bottom of the y-axis and on the left of the x-axis, while ‘H’ (high) goes on the top of the y-axis and the right of the horizontal axis of the x-axis. This positions the low impact/low effort quadrant at the bottom left and the high impact/high effort quadrant at the top right.

Which quadrant you focus on depends on your team’s goals and the circumstances you’re dealing with.

If you’re aiming for quick wins with minimal effort, the high impact/low effort quadrant is where your attention should be, even though these opportunities are often a bit scarce. Therefore, if every business had plenty of options for high impact with minimal effort, success would come too easily.

On the flip side, if you’re ready to invest more time and lose focus and energy for greater results, your gaze might shift to the high-impact/high-effort quadrant. The Impact Effort Matrix is like a chameleon – it adapts to fit any situation.

How to Create an Impact Effort Matrix

Step 1: Gather the Team

Start most discussions by getting everyone on the team together. It’s important to have input from the people doing the actual work – they have firsthand experience and know the effort involved.

Step 2: Pinpoint Goals and Objectives

Hold a brainstorming session to figure out the project leader’s main goals and objectives. This helps everyone refocus on the bigger picture and what you’re aiming to achieve.

Step 3: Sketch the Matrix

Now, visualize your Impact Effort Matrix. Whether it’s on a big piece of paper or using a digital tool like an interactive whiteboard, create a grid with four quadrants, mapping effort on one side and impact on the other.

Imagine it as a chart – the higher up you go, the more impact a task has. Move farther to the right, and you’re looking at tasks that demand more effort.

Step 4: Share Your Thoughts

Ask everyone to list down all the projects and tasks they’re currently working on, including routine work. This ensures you have a comprehensive view of what’s on everyone’s plate.

Step 5: Place Tasks on the Matrix

Now, it’s time for everyone to place their notes on the matrix. They decide where each task belongs based on their perception of effort and impact. This sets the stage for an open discussion about the placement of tasks.

Step 6: Craft an Action Plan

With all tasks on the matrix, it’s time to create an action plan. Having a clear understanding of both the impact and effort for each task allows you to identify priorities easily. You can now allocate resources and time according to what each task truly needs.

Ready to supercharge your project management?

Get started

Impact Effort Matrix Example

Consider a scenario where you’re planning to implement Facebook advertisements for a recently launched product. The approach involves strategizing and scheduling tasks with a significant return on investment but demanding substantial effort.

This might include initiatives like implementing a new CRM system and refining the customer onboarding process.

During periods of available time or when filler projects are needed, attention can be directed to tasks with minimal impact but requiring low effort. On the other hand, in the context of Facebook marketing, an example would be the development of a complimentary tool for campaigns.

It’s crucial to note that the priority assigned to factors depends on individual preferences, business needs, and available resources. What may be considered a low effort for one person could translate to a significant investment of time and energy for another.

Similarly, a task with a modest impact on one company might yield substantial results for another. Prioritization should thus be tailored accordingly to align with specific business dynamics.

Bottom line

Impact Effort Matrices serve as valuable tools for organizations to prioritize tasks and make well-informed decisions.

Despite potential challenges, understanding the fundamentals, maintaining a balanced approach, and applying practical solutions can help organizations overcome common problems associated with Impact Effort Matrices.

Hence, in turn, enables optimized resource allocation, improved decision-making tools in making, and better outcomes in addressing complex problems. Embracing the equilibrium, let Impact Effort Matrices be a reliable compass guiding organizations toward success.

What is SIPOC Diagram? How to Use It

Hibba Imran — Sat, 16 Dec 2023 05:31:05 +0000

What is SIPOC Diagram? How to Use It

#ProjectManagement

When you’re talking about business processes, it’s often clearer to visualize them. That’s where a SIPOC diagram comes in – it presents the entire process in a way that’s easy for your team to grasp.

SIPOC is like a team discussion guide; it helps everyone agree on what tasks are moving forward and can be handy for process improvements.

Let’s look into what SIPOC is, check out real-life examples, and learn how to create a SIPOC diagram.

What Does SIPOC Stand For?

SIPOC breaks down to Supplies, Inputs, Processes, Outputs, and Customers – a full rundown of the entire business process. It’s like looking at the big picture, perfect for top-level management to document any new business or process improvement.

Now, there’s also COPIS, which flips the process backwards. Why start with “Customer” first? Well, some companies want to highlight the customer’s experience and build their business process around that.

On the other hand, SIPOC’s chronological order might make more sense to others. It’s like the essential recipe for distilling the business process down to its core steps, from A to Z.

What is a SIPOC Diagram?

A SIPOC diagram gives us a bird’s-eye view of a process, jotting down its main components:

Suppliers → Inputs → Process → Outputs → Customers
Suppliers → Inputs → Process → Outputs → Customers

Each iteration underscores the dependence of each step on the others, showcasing the collaborative and communicative nature of the process.

By visually representing these relationships, a SIPOC diagram serves as a valuable tool for stakeholders. It aids in understanding the interplay between suppliers, inputs, processes, outputs, and customers.

The repetitive format reinforces the idea that the success of the process relies on effective coordination and communication throughout the entire workflow. This visual guide is instrumental in identifying areas for improvement and ensuring that the final product or service aligns with customer expectations.

It’s like a visual guide showing how everyone involved shares materials or data, and it’s often used to make processes better or understand how they affect the customer experience.

Now, these diagrams aren’t meant to overload you with details. Instead, they offer stakeholders a top-level map detailed view of the process to help them make decisions and come up with ideas for improvement.

That’s where SIPOC diagrams fit into the world of business, process improvement and management (BPM). BPM is like a toolbox for constantly making processes better. It involves digging into processes, figuring out how to make them better, and putting those improvements into action through smart strategies.

What are The Five Components of SIPOC?

Creating a SIPOC process can be as detailed or straightforward as you prefer. At a high-level overview, at the very least, it should cover these key elements:

– Supplies: What tools, products, services, or raw materials are necessary for the business process to deliver the final result to the customer? List them all here.

– Inputs: Are there other other resources useful tools, resources or data inputs needed at this stage of the process? What modifications or additions are required for the existing supplies?

– Processes: This is where you outline the essential functions and overarching inputs of your new business process as you follow the customer requirements and new directive. Consider what processes convert inputs can be automated, which ones will be manual, and whether new hires are needed to handle processes and inputs. Answer these questions here.

– Outputs: Think about maintaining standards and implementing quality control processes. Any testing conducted on your products or services before reaching the market falls under this category.

– Customers: This stage isn’t just about the point of purchase. Consider the entire customer experience. You might even want to explore COPIS exercises to envision the end result before building the process around it.

SIPOC Diagram vs. Workflow Diagram

Workflow diagrams act as visual guides for business processes or projects. Among them, the SIPOC diagram is a specific type that emphasizes the creators, suppliers and recipients of materials or data within the process.

Unlike some workflow diagrams that arrange process steps chronologically with dependencies, a SIPOC diagram doesn’t delve into task dependencies. Instead, it provides a visual representation of material creation, its integration into the process, and the recipients of process outputs.

This focus allows for a clear understanding of how materials or data flow within the business process.

What are the Benefits of SIPOC Diagrams?

Dwight D. Eisenhower once wisely said that plans may change, but the act of planning is crucial. The SIPOC diagram makes your business dive into the essential work of planning. Creating one allows you to visualize the entire workflow, uncover blind spots, generate new ideas, and trim unnecessary red tape that might hinder the results you want.

However, the perks of SIPOC diagrams go beyond just planning:

Cost Savings

Imagine building a house without blueprints. Mistakes could be costly. SIPOC acts as your business process blueprint, helping you spot potential issues before they turn into expensive problems.

Starting the Process Mapping

With SIPOC, you’re already initiating the planning stages for your business development project. You’re brainstorming suppliers, considering input needs from different departments, and identifying key people involved in project itself. A well-constructed SIPOC diagram gives you a ready blueprint that’s open for feedback and adjustments.

Strategic Decision-making

SIPOC makes you view business processes as outcomes of cause and effect, helping you identify patterns. This positions you to make strategic decisions from the get-go. How will the supplies you acquire impact the customer segments you target? Are additional hires necessary for key inputs not already present in your company?

Ready to Optimize Your Processes and Elevate Customer Experiences?

Get started

How to Create a SIPOC Diagram

Creating a SIPOC diagram is a straightforward process map that offers flexibility in its order. Although the acronym suggests a specific sequence, starting with the “process” section is often recommended, allowing teams to work backwards from “customers” to “suppliers” if needed. In some cases, it’s referred to as a COPIS diagram. Let’s break down how to create a SIPOC diagram:

1. Choose a Process Mapping

– Select the business process you want to visualize with the SIPOC diagram. It could be a new business process, to implement or an existing one for optimization.

– For example, let’s consider improving the shipping and delivery process for a product.

2. Define the Process (P)

– Instead of following the SIPOC order, start by defining the process in 4-5 high-level steps, each with its action and subject.

– In our shipping example: Customer checks out, Invoice sent to the warehouse, Warehouse team prepares shipment, Distribution company picks up shipment, Distribution company carries shipment to destination.

3. List the Outputs (O)

– Identify the outputs of the process, representing what you get from the invested resources and what customers receive.

– Outputs in the shipping example: Customers get the product within a certain time frame, and your company receives money for the product.

4. Identify the Customers (C)

– Customers are those who receive the outputs or benefit from the process, whether internal or external.

– For the shipping example: online shoppers (receive the product), your company (receives money for the product).

5. List the Inputs (I)

– Identify the resources required for the process to function properly, including the raw materials used, products, services, or information.

– Inputs for five components of the shipping example: customer shipping and payment information, online payment services, packaging services, packaging and raw materials itself, warehouse space, and delivery trucks.

6. Identify Suppliers (S)

– Suppliers are sources providing each input of the process. Understand the number of suppliers and evaluate their efficiency.

– Suppliers in the shipping process mapping for example: Customers (provide shipping and payment information), Warehouse team members (offer packaging services), Packaging manufacturer (create packaging materials), Warehouse leasing company (provide warehouse space), Delivery services (provide delivery trucks).

7. Share Your Diagram

– A SIPOC diagram is valuable when shared. Utilize project management tools for easy sharing and accessibility, ensuring everyone involved understands the business process.

By adhering to these key steps, the process mapping creating your SIPOC diagram becomes a powerful visual tool for understanding, improving, and communicating business processes.

How is SIPOC Used in Project Management?

By now, you’re likely grasping how a SIPOC diagram can make project management a breeze. To maximize its benefits for your projects, consider the following:

Use Specifics

Avoid vague statements. Instead of saying, “we’ll need enough graphite for our pencils,” get down to details. Employ formulaic statements like, “We’ll build X-quantity of Y-material into Z-units before moving to the next stage of the process.” SIPOC is your blueprint, so be specific about quantities from the start.

Document Customer Needs

While project management often focuses internally, a complete SIPOC includes customer considerations. Identify your target customer, understand their concerns, and recognize the problems you’re solving. Integrating these insights will lead to innovative solutions that may not be apparent by solely focusing on the initial stages.

Record Your Progress

Don’t expect perfection on your first SIPOC attempt. Document your progress each time you discuss specific details with your team. Treat your SIPOC as a blueprint – record every specified step, including key numbers and identified individuals in the new process.

Keeping a record of your progress when creating a SIPOC (Supplier, Input, Process, Output, Customer) diagram is crucial for refining and optimizing your process. Additionally, integrating the use of a project time-tracking tool like TimeTrack can help you manage and monitor your project more effectively.

Gather Feedback

Once your SIPOC is ready, involve key board members and decision-makers for feedback, even if they won’t make a direct impact on decisions in the process. Take a scientific approach to the process map, identify potential issues, and devise solutions before implementation.

A thoroughly vetted SIPOC diagram defines your new business process comprehensively. Launches might not be flawless, but with a clear picture, troubleshooting becomes more straightforward.

Rather than making processes rigid, a SIPOC diagram fosters flexibility and adaptability. You’ll build a business capable of adjusting on the fly. Occasionally discarding old plans is part of the process, but if approached right, the simple act of planning can take your business anywhere.

Examples of SIPOC Diagram

Let’s take a simple example to understand SIPOC: creating a healthy smoothie. Imagine a table with five columns representing the SIPOC elements. Now, let’s break it down:

Supplier: The supplier in this scenario is the one tasked with creating the smoothie. It involves a smoothie preparer, a kitchen manager, a store owner (where the preparer works), and an order taker.

Inputs: These are all the elements needed for the smoothie. It includes the order, the recipe, the receipt, the countertop for customer interaction, equipment like a blender, and all the ingredients required.

Process: The process starts with receiving and preparing the order and ingredients, ensuring they are clean, cut, and sorted. Following the recipe, blend the ingredients and conduct a quality test before notifying the customer.

Outputs: The outputs of the process are the completed purchase, the order, and hopefully, a delicious smoothie that results in a happy customer. Providing a receipt and potentially receiving a tip for good service is also part of the output.

Customer: The customer entered the establishment with a need, hunger in this case. This includes the end customer receiving the smoothie but also considers the smoothie preparer and the store owner when they are customers purchasing ingredients.

Pro-Tip: Enhance the process improvement quality by introducing automation for task statuses. Designate specific individuals for task and product approvals. Utilizing workflow automation software can greatly assist in this process improvement too.

Bottom line

SIPOC diagrams are like handy tools in your process improvement kit. They’re not complicated to create, super easy to share, and offer essential insights for decision-makers to grasp business processes and customer requirements at a broader level.

When you whip up a SIPOC diagram with your team, it’s like putting together the pieces of a puzzle, making it crystal clear how each part of the process connects and figuring out ways to streamline everything for top-notch business efficiency

Iterative Process Definition – A Detailed Guide

Hibba Imran — Thu, 14 Dec 2023 03:57:43 +0000

Iterative Process Definition – A Detailed Guide

#Project Management

Table of Content

Iterative Process Definition
What Does Iterative Process Mean
The Iterative Process in Project Management
Benefits of Iterative Processes
How to Implement the Iterative Process
Examples of Successful Iterative Processes

The iterative process empowers your organization to learn and improve by embracing trial and error. It’s a flexible and efficient approach, allowing your company to respond to new information and market shifts promptly.

Large-scale projects often come with unexpected challenges, whether it’s surprising test results, client feedback, or shifts in the supply chain that can steer your project in a different direction overnight. The methodology you employ in project management determines how swiftly and effectively your team can adapt to such changes.

In a dynamic business landscape or a scenario with a short feedback loop, the iterative process proves beneficial. This adaptable method involves short, repeated cycles of previous iteration, culminating in a testable product or concept. These iterative cycles provide the flexibility to learn, adjust, manage risks, and make continuous progress toward your goal.

Iterative Process Definition

The iterative process involves the practical approach of building, refining, and enhancing a project, product, or initiative. Teams utilizing this development process go through cycles of creating, testing and revising until they achieve a satisfying end result. Imagine it as a trial-and-error method that guides your project toward its ultimate goal.

Iterative processes form a crucial component of lean methodologies and agile project management, but their applicability extends beyond agile teams to any group.

Throughout the iterative process, you continually enhance your design, product, or project until both you and your team are content with the final deliverable.

What Does Iterative Process Mean

The iterative process is a valuable technique for enhancing products, processes, initiatives, ideas, or designs. It begins with your team creating the initial version of the product, testing it, and pinpointing necessary adjustments. Subsequently, you go through the process again, incorporating the changes identified in the two previous iterations in each round. With each new iteration, the product becomes more refined, steadily approaching your desired outcome.

This method is a common practice across various industries, ranging from software development to graphic design. Scientists and research teams use iterations to fine-tune their experiments, while marketers rely on trial-and-error cycles for more targeted campaigns.

The iterative approach proves useful at the organizational level, allowing business leaders to implement gradual changes as they strive for more efficient and effective business strategies, processes, and procedures. As a team leader, the iterative process may serve as a fundamental component of your project management framework.

So What is a Non-iterative Process?

In a non-iterative process, you and your team collaborate to produce a final product without exploring new ideas along the way. Typically, non-iterative processes demand more time in the conceptualization and creation phase to ensure everything works as intended during testing.

The most common non-iterative process is the Waterfall model. In this iterative model, project phases are predefined before the project begins, and each phase commences only after the completion of the preceding one. Requirements and resources are typically fixed before the project starts, and the team aims to minimize changes to the project plan.

For instance, if you’re working with a design agency to create an ebook, you’d first provide all the copy, and then the design agency would create designs. Finally, your internal team would copyedit the designed ebook.

This exemplifies the waterfall model as each phase depends on the completion of the previous step (e.g., you can’t copyedit the designed ebook until it’s been designed).

Non-iterative processes, depending on the team and project type, can be challenging because they don’t incorporate time for iteration and continuous improvement. Engineering teams, facing numerous unknowns and surprises, often prefer iterative processes, but any team can benefit from incorporating iterative approaches.

The Iterative Process in Project Management

In project management, the iterative process simplifies initial planning, allowing you to commence the first cycle with concise goals and objectives.

These iterations, shorter than traditional development phases, offer ample opportunities to incorporate new insights and adjust strategies as the project unfolds. Learning through trial and error, your team can efficiently address significant risks early on, when they are easier and less costly to resolve.

The versatile nature of the iterative process allows for adaptation to different project scopes and team structures. Agile project management methodologies often leverage iterations to break down extensive projects into more manageable sections.

For instance, in the Scrum framework, these iterations are referred to as sprints, where each iteration cycle involves focused work on a project phase with specific goals. At the cycle’s end, progress is evaluated, and adjustments are made before moving on to the next sprint.

For projects with a clear and defined scope, such as developing software or creating a business logo, a streamlined iterative process yields swift results.

The feedback loop is rapid and efficient, facilitating immediate implementation of learned insights. Before deciding if an iterative approach suits your team, it’s beneficial to consider the potential benefits.

Benefits of Iterative Processes

Reduced risk: Each iteration allows the team to identify and address small risks before they escalate into more significant issues.
Easy adjustments: Iterations provide a moment to pause and reflect at the end of each cycle, allowing for the immediate incorporation of new information in the next iteration.
Efficiency: The iterative process adapts easily to changes in the business, industry, and market, facilitating quick course corrections and enabling simultaneous work on different project components for faster progress.
Sustainable innovation: The entire project cycle is traversed during each iteration, allowing teams to experiment with new ideas at minimal risk in terms of time and resources, fostering creativity and innovative solutions.
Increased morale: Continuous improvement in the iterative process contributes to a sense of achievement and progress. With the project not relying solely on a single cycle, the environment remains low-stress and pressure-free.
Better quality: Each iteration addresses small issues that might go unnoticed in longer product development cycles, resulting in a refined and high-quality final product.
Lower cost: The iterative approach helps avoid expensive delays and bottlenecks common in more extended development cycles, proving to be cost-effective.

How to Implement the Iterative Process Model

You need to take the following five key steps to implement the iterative process.

1.Plan

It all begins with a plan. You need a clear idea of what you want to achieve with your project. What are your goals, and what objectives are you aiming for? Additionally, think about the resources needed to complete the project, including technical requirements, time, money, and workforce.

Lastly, decide on the timeline for the project. How much time do you have to finish it, and what milestones do you need to reach? Having the right answers to these questions helps you understand the resources available at different stages of the project managers and the your project timeline.

2. Design

Once you’ve planned the project, the next step is to begin designing it. This is where you translate your ideas onto paper or into a digital format.

Consider the various components of the project and how they will integrate. This involves thinking about the user interface, the various database models, and the code.

Also, ponder on the different steps users will take when interacting with your project. What will they see, and what actions will they perform? This design phase is crucial for bringing your project to life in a way that makes sense and meets the needs of its users.

3. Implement

After completing the project’s design, it’s time to put it into action. This is where you start coding or building the project’s technical requirements.

You’ll be writing or building the code for the various components of the project. Additionally, during planning phase you’ll be assembling everything to ensure it functions seamlessly as a unified whole. This implementation phase is where your project takes shape and comes to life through the actual coding and construction process.

4. Test

Once the project is implemented, the next step is testing. This is where you thoroughly check the project to make sure it works as intended.

Testing involves checking each component of the project individually and also evaluating the project as a whole. It’s like putting your project through its paces to ensure it meets the expectations and functions seamlessly.

5. Evaluate and Review

Following the testing phase, it’s time to step back and evaluate the completed project. Take a moment to reflect on what worked well, what didn’t, and areas that could be improved.

Based on this evaluation, you can make a decision on whether to proceed with the project. If everything goes well, you can move on to the next iteration.

However, if there are areas that need improvement, you can make the necessary changes to enhance the project’s overall performance. This step ensures that the project evolves and aligns with your goals and expectations.

Improve Your Project Results with TimeTrack!

Get started

Examples of Successful Iterative Processes

Organizations, departments, and teams can all enjoy the advantages of the iterative process. Likely, certain parts of your business are already incorporating iterations organically. This approach fosters continuous improvement and adaptability, making it a valuable strategy for various aspects of your business operations.

Product Development

When companies are in the process of creating and updating products like appliances, smartwatches, or running shoes, they often undergo iterations in two key stages.

Initially, during the development phase, designers and engineers continuously create new versions of the prototype until the product aligns with the end consumer’s needs. The iterative development process doesn’t conclude once the first version of the product hits the market. If there is strong demand, it persists internally until version 2.0 makes its way to the shelves.

A notable example of an iterative process on a grand scale is the Apple iPhone. Each new model is a result of iterations that encompass customer feedback, new technologies, updated materials, and competitive analysis.

The outcome? A device featuring a higher-resolution camera, a larger screen, and improved waterproofing showcasing continuous refinement through incremental design iterations.

Software Development

Software engineers excel in the iterative process, consistently adjusting and refining code to address bugs, patch security holes, and enhance the user experience.

After completing the third phase of a cycle, developers release a new version. Consider the last time your phone or laptop received an update to the operating system—that’s the iterative process in action. This ongoing, incremental development and refinement ensures that software remains robust, secure, and aligned with evolving user needs.

Digital Marketing

Digital marketers leverage rapid-fire iterations to fine-tune and target their online campaigns. Utilizing data analytics tools like Google Analytics, they can monitor the real-time performance of ad campaigns, websites, or social media posts and make adjustments on the fly.

If an ad fails to resonate with the target audience, a marketer can tweak the copy in seconds and deploy the updated version. Through A/B testing, they can experiment with multiple blog titles and swiftly determine which one garners more clicks.

This agile approach in digital marketing allows for immediate responsiveness and optimization based on data-driven insights.

Graphic Design

The graphic design workflow typically revolves around iterations. The designer initiates the process by creating an initial concept or set of concepts aligned with the client’s needs and submits it for review. Subsequently, they refine the design based on the feedback received.

This iterative cycle continues until both the designer and the client reach a satisfying outcome. To manage scope creep and control costs, designers often define the number of iterations included in the contract, ensuring a structured and efficient iterative design process.

Using a project time tracking tool, such as TimeTrack, proves invaluable for optimizing iterative processes within your team or organization. TimeTrack offers a user-friendly platform designed to enhance project management efficiency through detailed time monitoring and analysis.

Try, Trial, and Try Again

In the end, every team can glean valuable insights from the iterative process. Embrace a trial-and-error mentality whenever possible, fostering an environment of flexibility and collaboration.

Regardless of whether you adopt the iterative method, always strive for continuous improvement in your work. This commitment to ongoing enhancement ensures that your team remains adaptable, innovative, and primed for success.

What are Overrun Costs in Project Management?

Hibba Imran — Sat, 09 Dec 2023 04:31:19 +0000

What are Overrun Costs in Project Management?

#ProjectManagement

Table of Content

What is the Definition of Cost Overrun?
How Do You Calculate Cost Overrun?
What is the Difference Between Cost Overrun and Cost Escalation?
Signs of Cost Overrun
Project Overrun Examples
How Do You Prevent Cost Overruns?
What To Do When Costs Have Overrun

Planning a project requires precision. With nearly 28% of projects facing failure due to inaccurate cost estimates, it’s evident that dedicating time and attention to your project plan is crucial.

When predictions about overrun costs, resources, benefits, and timeframes go awry, it introduces risks that can impact your organization’s profitability and growth opportunities. Consider the case of Apple canceling its highly anticipated AirPower wireless charging mat after investing nearly two years in research and development.

What is the Definition of Cost Overrun?

Experiencing a project cost overrun is like hitting an unexpected bump in the road. It happens out of the blue, causing the overall project budget to escalate. Project managers suddenly find themselves grappling with an unforeseen change that requires immediate attention. This situation rings alarm bells because it can spell trouble for the original project budget, upset stakeholders, and strain the workforce.

The impact of cost overrun is not to be taken lightly; it can significantly impede the progress of your project or, in some cases, bring it to a standstill. This issue is particularly prevalent in the construction industry, where fluctuations in material costs, processes, and labour charges are parred for the course.

Without mental preparedness and accurate project cost estimation, your project becomes susceptible to the disruptions caused by cost overrun, putting your project’s success and its pace at risk.

Signs of Cost Overrun

Teams must ensure a transparent perspective on project progress to detect any hints of cost or budget overrun; here are several methods to swiftly identify potential budget and avoid cost overruns:

The absence of a comprehensive project budget outline
Lack of an effective contingency plan, allowing unexpected costs to escalate
Failure to utilize tools for tracking project spending
Incomplete resource utilization plan
Neglecting to associate costs with specific tasks or create a work breakdown structure
Oversight in reviewing similar past projects and historical data
Failure to document project deliverables, resulting in unexplained scope creep

What is the Difference Between Cost Overrun and Cost Escalation?

Cost overrun often causes of cost overrun that catches individuals off guard as it seems to materialize unexpectedly, appearing out of nowhere and disrupting even the most meticulously crafted plans.

In contrast, cost escalation is a factor considered well in advance, even before the commencement of the estimation phase of a project. Essentially, it involves the anticipation that certain costs in the project, typically associated with long-term endeavours, will increase over time. This foreseen change is factored into the initial cost estimation for the new project itself.

Reasons for Cost Overruns in Projects

Ensuring the success of projects hinges on steering clear of cost overruns. Despite having various checks and balances and cost overrun project managers in place to plan projects, there’s still a possibility of exceeding the budget.

Inaccurate Project Estimates

Incorrect project estimates contribute significantly to project failures, accounting for 28% of such cases.

The inaccuracies in estimates can stem from various economic factors, either underestimating or overestimating costs, both of which pose equal harm. These discrepancies often result from intentional or unintentional biases in forecasting.

Scope Creep

A staggering 45% of projects grapple with scope creep, making it one of the most prevalent contributors to cost overrun in project management.

Employing a comprehensive project management tool and tracking system proves essential in monitoring both completed and pending tasks, offering a crucial means of controlling scope creep.

Internal Communication Gaps

A notable 29% of projects meet their demise due to unclear communication. The absence of a straightforward communication channel between project managers and stakeholders can result in unnecessary delays.

These delays, in turn, lead to wasted effort, misdirected resources, and lost time and ultimately contribute to the causes of cost overrun in project management when cost overrun occurs.

Lack of Risk Management

Every project manager crafts plans with the hope that they will unfold seamlessly. However, it’s not always that straightforward. Unforeseen internal or external factors can introduce unexpected project delays or contribute to cost overruns.

Implementing a robust risk and change management strategy is crucial in helping your team navigate these uncertainties and avoid potential financial losses.

How Do You Calculate Cost Overrun?

To swiftly calculate your project overspend, use the following formula:

Overspend Percentage=(Actual Expenses−Budgeted AmountBudgeted Amount)× 100Overspend Percentage=(Budgeted AmountActual Expenses−Budgeted Amount)×100

For instance, if your actual expenses were $10,000 and the budgeted amount was $9,000:

Overspend Percentage=(10,000−9,0009,000)×100Overspend Percentage = (9,00010,000−9,000)×100

Overspend Percentage=(1,0009,000)×100Overspend Percentage =(9,0001,000)×100

Overspend Percentage≈11.11%Overspend Percentage≈11.11%

This calculation indicates an overspend of approximately 11.11% above the budgeted amount.

Seamlessly Manage Time Off in Lieu and Boost Productivity.

Get started

Project Overrun Examples

Example 1: Construction Project

Consider a construction project where a new office building is being erected. The initial budget estimates are meticulously calculated, including costs for materials, labour, permits, and contingencies.

However, during the construction phase, unforeseen weather delays extend the timeline, resulting in additional labour costs and temporary storage expenses for materials.

Moreover, changes in local building codes necessitate modifications to the original plans, incurring additional design and approval costs. These unexpected events contribute to a project overrun, surpassing the initial budget.

Example 2: Software Development Project

In a software development project, initial estimates cover the costs of coding, testing, and implementation. Midway through the project, the client requests several changes to the software’s functionality, leading to extra development hours and adjustments in the testing phase.

Simultaneously, unexpected technical glitches arise, demanding additional resources for debugging and troubleshooting. These unforeseen complications contribute to a project experiencing cost overrun again, exceeding the initially projected budget for the software development.

Example 3: Marketing Campaign

Imagine a marketing campaign designed to launch a new product. The initial budget outlines expenses for advertising, promotions, and events. However, as the campaign progresses, market research reveals the need for adjustments to the advertising strategy.

This necessitates additional spending on new creatives, media placements, and revised promotional materials. The evolving nature of consumer preferences also prompts on-the-fly changes, resulting in unexpected costs for adapting the campaign. These unplanned adjustments contribute to a project overrun in the marketing campaign budget.

In each example, unforeseen events, changes in project requirements themselves, or external economic factors lead to project overruns. These variations from the initial plan highlight the importance of proactive risk management and thorough contingency planning in project management.

How Do You Prevent Cost Overruns?

Research findings from McKinsey and the University of Oxford paint a concerning picture for large IT projects, revealing that over half of them exceed their defined budgets by more than 45%.

As technology projects continue to expand in scope, encompassing a broader organizational base, the stakes for errors rise significantly, posing a substantial risk to the entire company. With an annual loss exceeding $66 billion due to cost overruns, maintaining control over project budgets becomes paramount for safeguarding a company’s profitability.

Here are some actionable tips to prevent project cost overruns and ensure tighter control over budgets:

Accurate Project Planning

One of the cornerstones of ensuring project success is meticulous and accurate planning. The precision of project estimates directly correlates with the likelihood of the project staying within budget.

Developing a detailed budget and risk management plan serves as a proactive measure to cover potential challenges and set the project on a trajectory to achieve its intended objectives.

Due Diligence with Vendors

Many projects involve collaboration with third-party vendors, ranging from specific tasks to supplying crucial raw materials. Ensuring thorough due diligence before establishing these key supplier relationships is crucial to avoiding prohibitively expensive pitfalls that lead to cost overruns.

Steps include understanding the project risks and the vendor’s capacity, verifying quote accuracy, reviewing their project history, and conducting background checks to confirm their ability to meet quality and timeline requirements.

Scope Creep Control and Resource Optimization

Research from the Project Management Institute (PMI) underscores the significance of the initial project stages in influencing total costs. Preventing scope creep, driven by change requests from end-users, internal teams, and stakeholders, is essential.

Thoroughly reviewing and approving scope changes, along with efficiently reassigning resources, contributes to cost-efficient, positive project outcomes and successful goal achievement.

Utilize Project Management Tools

We are equipping project managers with versatile project-controlling tools like TimeTrack, which enhance project efficiency and aid in cost overrun control.

Beyond efficient resource monitoring, these tools facilitate optimal task scheduling, minimizing resource wastage and preventing cost overrun. They serve as a comprehensive solution for better project management and more successful project cost control.

Clear Communication Channels

Establishing clear communication channels through project management software fosters seamless information flow. This ensures that key stakeholders have a broad overview of project progress while project teams gain easy access to essential details for their work.

Transparent communication becomes a linchpin in preventing misunderstandings and disruptions that can lead to cost overruns.

Monitoring Project Progress

Vigilantly monitoring project progress is critical for preventing cost overruns. Project management tools, such as Gantt charts, offer real-time insights into project timelines, team workloads, and potential slippages. Identifying and addressing smaller issues promptly prevents them from escalating into significant problems that could jeopardize project success.

What To Do When Costs Have Overrun

When project costs overrun, despite the best efforts of your teams, it’s crucial to take proactive steps to prevent cost overrun, realign the project and regain control. Mastering the four broad dimensions of cost is key to preventing cost overrun and ensuring project success:

1. Identify the Root Cause

Delve into the specific activities that exceeded the budget to uncover the real reasons for the project delay and cost overrun. It’s plausible that a particular project task consumed more resources or time than anticipated, creating a domino effect on subsequent tasks.

Engage with your team members and conduct a comprehensive review before drawing any conclusions. Understanding the root cause is the first step towards implementing corrective measures.

2. Manage Project Strategy and Stakeholders’

While meticulous attention to project budgeting and scheduling is essential, it’s equally critical not to overlook project strategy and stakeholders. Establishing the project’s strategic value early on maintains a focus on the project’s objectives.

Aligning business goals with project timelines helps project teams avoid cost overruns and enhances the chances of successful project delivery. A strategic approach to project objectives ensures that the project remains aligned with the broader organizational objectives.

3. Engage and Align the Team with Project Management Software

A high-performance culture, a shared vision, and standardized team processes are indispensable for delivering top-performing projects. Foster a sense of unity and collaboration by creating a shared project-based incentive structure, shifting the focus from individual work goals to collective success.

Infuse change management processes and strategies transparently and naturally into the team dynamics. Through precise and timely communication of project changes, milestones, and key developments, every team member stays informed and aligned with project objectives.

4. Uphold Core Project Management Practices

To navigate project challenges and adhere to the original plan, having tried and tested project management practices is crucial. Introduce process discipline and establish a rigorous process for handling change requests with shorter delivery cycles to prevent wastages.

This ensures clear ownership and minimizes misunderstandings within the team, leading to increased efficiency. Staying true to core project management practices provides a structured framework for addressing issues, adapting to changes, and steering the project back on course.

Final Remarks

Knowing how to prevent cost overruns is a crucial skill for a project manager. This involves implementing proactive measures during the planning phase, including accurate estimation of costs, thorough risk assessment, and developing contingency plans.

Additionally, the project manager should be adept at managing scope changes, ensuring effective communication, and maintaining strong vendor relationships. Learning from past projects and continuously refining cost estimation processes contribute to preventing future budget overruns.

Everything You Need to Know About Schedule Variance (SV)

Hibba Imran — Wed, 06 Dec 2023 05:38:50 +0000

Everything You Need to Know About Schedule Variance (SV)

#ProjectManagement

Table of Content

Schedule Variance in Project Management – Definition
Why is Schedule Variance Important?
Schedule Variance Formula
How to Calculate Schedule Variance
Interpreting Schedule Variance in Practice
Top Tips for Making Schedule Variance Calculations

Project managers have a big job in a company, and schedule variance is a confusing concept. They have to plan work, handle people, deal with money, and manage technology. If we had to sum up their main job in one sentence, it would be something like, “Project managers make sure that work is done on time and doesn’t go over budget.”

Now, how do they figure out if a project is on track or falling behind? They rely on a powerful calculation called project schedule variance. While it can be calculated by hand, it’s much better to use project management software. This way, it can update and change as the project moves forward, giving real-time information to internal teams.

Schedule Variance in Project Management – Definition

Schedule variance helps you figure out if your entire project side is on track or running late. If your whole project team is behind schedule and has limited resources, finding this out early is crucial. It helps you manage resources well, focus on the most important tasks, and handle stakeholder expectations.

Now, let’s break down the schedule variance formula into three main parts:

Schedule Variance (SV)

This shows the difference between the work completed and the work expected by a project efficiency rating a certain date. It helps you see the schedule performance indicator if you’re ahead or behind.

Earned Value (EV)

This tells you how much of the project’s budget you’ve used based on the work completed so far. You calculate it by multiplying the total remaining project time and budget by the percentage of work done.

Planned Value (PV)

This is the budget amount remaining resources you should have used by a specific date based on the expected project progress. To find it, multiply the total project budget by the percentage of work that should have been done, considering the schedule and time passed.

Why is Schedule Variance Important for Project Managers?

Schedule variance is crucial for project managers because it gives them a clear picture of how the project is progressing. This is really important in project management. Managers need to quickly identify any problems that come up and fix them so that the project progresses and stays on track.

The schedule variance formula is handy because it’s fast and efficient. Managers can calculate progress in just seconds, leaving them with more time to focus on other important things.

Another reason project schedule variance really matters is that it helps keep an eye on costs, which is a basic part of project management. Going over budget is a big test of whether a project will succeed or fail.

Project managers have a key job in preventing project delays and preventing these overruns, so they need a quick way to see project resources and figure out their costs regularly. This ensures they stick to the budget and have enough resources to finish the project successfully.

Lastly, the schedule variance calculation is vital for managing stakeholder expectations for complex projects. When project managers use the schedule variance formula, they get useful information to share at meetings with stakeholders.

These numbers can reassure stakeholders that the project’s progress is going well. If the formula shows the project is behind schedule, it helps explain why changes are needed to the project dashboard to address the delay.

Using specialized tools like Online Project Tracking by TimeTrack can enhance the efficiency of project managers in tracking and managing project delivery schedules, aligning with the user’s emphasis on fast and efficient methods in project management.

Schedule Variance Formula

To find out how well a project is doing, complete schedule performance indicator, you can use something called Schedule Variance. This is calculated by taking the Earned Value (EV), which shows how much work is done, and subtracting the Planned Value (PV), which is how much work was supposed to be done.

So, Schedule Variance (SV) = Earned Value (EV) – Planned Value (PV).

Earned Value (EV) tells you the amount of work completed at a certain point in the project, while Planned Value (PV) tells you how much work was planned to be done at that same point in a construction project.

Sometimes, you might see the formula written as SV = Budgeted Cost of Work Performed (BCWP) – Budgeted Cost of Work Scheduled (BCWS).

It means the same thing. Here, BCWP is the budget for the work that’s been done, and BCWS is the budget for the work that was scheduled to be done.

Here’s the breakdown:

BCWP (Budgeted Cost of Work Performed)

This is the budget for the work that’s already done. You calculate a budget value for it by calculating actual progress and multiplying the total project budget by the percentage of work completed.

BCWS (Budgeted Cost of Work Scheduled)

This is the budget for the work that should be done by now, based on the project timeline. You find it by multiplying the scheduled cost of the total project budget by the percentage of work that should be completed, considering the time that’s passed.

Now, let’s break it down with an example. Imagine you have a 20-day project with a total budget of $100,000. After 10 days, you should have completed 50% of the work, which is $50,000. But, in reality, you’ve only finished $25,000 of work.

Plug these numbers into the following formula:

BCWP ($25,000) minus BCWS ($50,000) equals SV (-$25,000).

To express this as a percentage, just divide:

SV (-$25,000) divided by BCWS ($50,000) equals -0.5 or -50%.

This percentage shows that your project’s schedule is 50% behind where it should be at this point. If the number were positive, your project would be ahead of schedule. If it’s zero, then your whole project plan is right on track!

How to Calculate Schedule Variance

Let’s break down the difference between the Budgeted Cost of Work Scheduled (BCWS) and the Budgeted Cost of Work Performed (BCWP). BCWS measures the overall project budget, while BCWP measures the actual cost of the actual work completed.

The schedule variance, which tells us how the project is doing compared to the plan, is found by subtracting BCWS from BCWP.

For an easy calculation, let’s say your BCWS is $20,000, and your schedule variance percentage BCWP is $40,000. To find the schedule variance, simply subtract BCWS from BCWP:

$40,000 (BCWP) minus $20,000 (BCWS) equals $20,000 (SV).

So, your schedule variance is $20,000, indicating that your project is ahead of schedule. To show this as a percentage, divide the project’s schedule variance by BCWS:

$20,000 (SV) divided by $40,000 (BCWS) equals 0.5.

This means your project is 50% ahead of schedule.

Cumulative Variance

When we talk about Cumulative Schedule Variance, it’s about looking at the negative schedule variance means the difference between the earned and planned values over several periods in a row. To figure out the cumulative CVs, you just add up the Earned Value (EV) for each period. It goes like this: EV for period 1 plus EV for period 2 plus EV for period 3, and so on.

Then, you subtract the total sum of the earned and Planned Value % (PV), which means adding up PV for period 1, PV for period 2, PV for period 3, and so on. The outcome is the Cumulative Schedule Variance (cumulative SV). This gives you an overall picture of how things are going across multiple periods.

Interpreting Schedule Variance in Practice

Understanding Schedule Variance is pretty straightforward: if it’s positive, your project is likely ahead of schedule; if it’s negative, you might be behind; and if it’s zero, you’re on track. However, real-world situations can make it a bit tricky:

For instance, a negative Schedule Variance doesn’t always mean you’re falling behind. Picture this: you hire a developer to finish a task, and they wrap it up in half the expected time.

This actually saves you money, so even though the schedule cost variance is negative, it’s because the work took less time than planned.

On the flip side, a positive Schedule Variance doesn’t always mean your project stays in smooth sailing. If part of your project goes over budget, the schedule variance can end up positive, even though you’re not ahead of schedule.

Some folks propose having a “time-based” earned schedule to make Schedule Variance easier to understand. That’s because SV is usually in terms of money (like dollars or euros), which can make it tricky to measure in units like months.

Seamlessly Manage Time Off in Lieu and Boost Productivity.

Get started

Top Tips for Making Schedule Variance Calculations

When you’re getting ready to figure out schedule variance, it’s good to remember a few important things. Here are three key tips:

Always check your math: If you’re doing the schedule variance formula in your head, it’s smart to double-check with a calculator to be sure.
Check schedule variance at different project stages: Things can change quickly in a project, so it’s a good idea to keep getting updates regularly. This is especially important if a previous calculation showed you were behind schedule, and you want to make sure you’ve caught up.
Look at quality, not just schedule variance: Even if your project is ahead of schedule, it’s important to also think about the quality of what you’re delivering. You don’t want to compromise on quality just to be on time.
Use a Gantt chart to watch your project timeline: This helps you see if there are any clashes in your schedule and makes sure you’re hitting the big milestones on time. It’s a great way to keep everything on track.

In a nutshell

In conclusion, understanding and calculating schedule variance is a crucial aspect of effective project management. It serves as a valuable tool, providing project managers with real-time insights into the actual and expected progress made of their projects.

The schedule variance formula, whether expressed as EV minus PV or BCWP minus BCWS, offers a quick and efficient way to gauge if a project is on track, behind schedule, or ahead of schedule.

What is Project Proposal? A Detailed Guide

Hibba Imran — Sat, 02 Dec 2023 15:41:46 +0000

What is Project Proposal? A Detailed Guide

#ProjectManagement

Table of Content

What is Project Proposal in Project Management?
Why is a Project Proposal Important?
Benefits of a Good Project Proposal
Types of Project Proposals
How to Write a Project Proposal?
Tips for Writing an Effective Project Proposal
Proposal Project Examples

Every project begins with a story, but it doesn’t start by saying, “Let there be resources!” To progress with a project, teams need to send a proposal to the people who make decisions within their organization or to external and internal stakeholders. But what is project proposal?

A project proposal is like a short written pitch—it’s meant to showcase your various project ideas in a brief but effective way. In this guide, we will show you how to effectively write up a project proposal so that you can get approval and be successful at work.

What is Project Proposal in Project Management?

A project proposal is a written document that tells stakeholders everything they need to know about a project, such as the timeline, budget, objectives, and goals of the continuation project proposal. Your project proposal should give a brief overview of your proposed project and convince stakeholders to get involved.

The main aims and future benefits of your project proposal are to:

Obtain external funding
Use company resources for your project
Get approval and support from stakeholders
Generate excitement and interest

While the specific elements of a project proposal can vary based on the project, there are some key components, including:

Project Background : Why is this project needed? What challenges or opportunities does it address?
Objectives : What are the expected outcomes of the project?
Project Scope : What are the project’s steps or stages? What does it include? How will it achieve the objectives of the project?

Why is a Project Proposal Important?

A project proposal aims to describe the services and results offered by a potential service provider. This allows decision-makers to compare vendors and choose the best one for their needs.

It acts like a sales document, convincing decision-makers that the provider has the skills and expertise to complete the project successfully. The project proposal template also outlines expectations, details the project budget and timeline, and provides a preview of what the final delivery will look like.

Enhanced Vendor Comparison

A crucial role of a project proposal is to enable decision-makers to compare vendors objectively. By presenting details on prices, processes, and expected outcomes, decision-makers can make informed and objective choices.

Any variations in price can be understood by examining the differences in services offered. This comprehensive information assists decision-makers in making well-informed vendor decisions.

Understanding the Project

The project proposal defines the purpose and scope of a project. This is beneficial before starting a project as it ensures mutual agreement on what the project will entail.

It assures decision-makers that the service provider comprehends the project’s scope, fostering trust between the parties for a successful transaction.

Establishing Credibility

Consider a project proposal as a sales tool that builds credibility. It conveys to decision-makers that the service provider is capable of meeting project requirements and expectations.

This is achieved by outlining the project and planning phase completion process and addressing potential risks or challenges, along with strategies to overcome them.

Proposing an Estimated Timeline and Budget

The project proposal suggests a timeline and budget for the project. While an informal proposal is not a formal contract, it furnishes stakeholders with enough information on budget, timeline, and outcomes to decide whether to proceed with the supplemental project proposals and make an informed choice regarding contractors or vendors.

Setting Expectations

Furthermore, a project proposal establishes expectations for the client relationship. This involves a mutual understanding of deliverables, timelines, and budgets.

Although not a formal document or a contractual agreement, the project proposal serves as a preliminary agreement that the details outlined solicited write a project proposal will be included in the contract if the project moves forward.

Informing Project Planning

Finally, an unsolicited project proposal plays a vital role in project planning. Upon approval, this document becomes a roadmap for finalizing project details, including addresses, timelines, and budget for the contract.

Additionally, it facilitates resource scheduling. Enhance your project planning with the use of Project Time Tracking by TimeTrack.

Benefits of a Good Project Proposal

A well-crafted project proposal brings advantages to you, new clients, existing clients, your business, and your client in various ways:

Drives Innovation: A detailed project proposal instills confidence in stakeholders to invest resources, fostering innovation. Innovative projects not only benefit the business but also contribute to the broader community.
Ensures Focus: Project proposals serve as a reference point during project execution, helping businesses stay focused and deliver as promised.
Identifies and Addresses Issues Early: By presenting a project proposal to a new audience, potential risks and challenges that the original writer might not have noticed may surface. Discussing these early allows teams to address issues before they escalate proactively.
Facilitates Planning: A well-prepared project proposal aids businesses and stakeholders in future planning. It enables them to anticipate resource allocation, including finances and time, and predict the project’s impact on the business in the long run.

Types of Project Proposals

There are six kinds of project proposals that a project manager might come across, and it’s helpful to understand the various formats as you create yours. Each type of project charter has a different objective.

Solicited: You send a solicited project proposal when responding to a Request for Proposal (RFP). An RFP provides detailed project information and invites bids from qualified teams. Since you’re competing with other companies for this proposal, thorough research, and persuasive writing are crucial.
Unsolicited: Unsolicited project proposal are sent without an RFP, meaning no one requested your proposal. Even though you’re not competing with other companies in this case, you still need to be persuasive since you’re unsure if the stakeholder you’re pitching to actually needs your services.
Informal: A client might send you an informal request for a project proposal, and you can respond with your project pitch. Because it’s not an official RFP, the rules are less rigid.
Renewal: Renewals are sent to existing clients, aiming to convince them to extend their services with your organization. The goal of this type is to highlight your team’s past results and persuade the client that you can achieve similar success in the future.
Continuation: Continuations serve as reminders to stakeholders, letting them know the project is starting. Instead of persuading the stakeholders, this proposal provides information about the project.
Supplemental: Similar to a continuation proposal, a supplemental proposal is sent to a stakeholder already involved in your project. In this type, you inform the stakeholders that the project is starting and request additional resources, persuading them to contribute more to the project.

The tone and content of your project proposal will vary based on the type of formal request you’re sending. Knowing your project goals will guide how you write your project proposal outlines well.

How to Write a Project Proposal?

Writing a project proposal involves several crucial steps, each contributing to a detailed and persuasive document. Here’s a detailed guide on how to take key elements to craft an effective project proposal:

1. Craft an Executive Summary

The executive summary acts as the gateway to your proposal, capturing the stakeholder’s attention and interest.

This summary should be descriptive, creating a vivid image of what success looks like for the client. The ultimate aim of all the points is to motivate the project client, as the goal is to secure their commitment and move the project forward. In essence, it serves as a compelling introduction, encouraging the client to enthusiastically endorse the project by signing on the dotted line.

Keep the brief description concise, covering essential points such as:

Problem Identification: Clearly state the problem your project aims to solve.
Proposed Solution: Outline the solution your project offers for the identified problem.
Impact: Highlight the anticipated impact and benefits of your project.

2. Explain the Project Background

In this section, provide a thorough understanding of the background, convincing other stakeholders of the problem’s significance. Address the following questions:

Problem Definition: Clearly articulate the problem your project is addressing.
Existing Knowledge: Summarize what is already known about the identified problem.
Previous Attempts: Mention if there have been previous attempts to address the issue and provide insights into past research efforts.
Insufficiencies: Explain why past research or solutions have been insufficient in tackling the problem.

Additionally, establish a connection between the problem and the buy-in your organization, emphasizing relevance.

3. Define Project Vision & Success Criteria

Begin by establishing your project vision, best articulated through a vision statement serving as your project’s guiding principle. Unlike specific details of the informal project proposal, the vision statement describes the overall impact your company aims to achieve through the project.

Equally important is the establishment of success criteria to demonstrate the project’s effectiveness. The conventional triple constraint of cost, scope, and time serves as three evident success criteria.

However, it’s crucial to establish measurable metrics for these criteria and implement a responsive approach if they deviate from the planned trajectory.

4. Present a Solution

Building on the problem presented in the background, outline key details of your proposed solution with greater detail. This section serves as the heart of your project proposal outline and should include:

Vision Statement: Clearly articulate your vision for the project.
Project Schedule: Present a timeline with key milestones, showcasing the project’s progression.
Team Roles and Responsibilities: Detail the roles and responsibilities of each team member.
Risk Mitigation: Identify potential risks and provide strategies to mitigate them.
Project Deliverables: Clearly outline what the project aims to deliver.
Reporting Tools: Specify the tools and methods you’ll use for project tracking and reporting.

Tailor this section based on your project’s specific scope, making it comprehensive and detailed.

5. Define Project Deliverables and Goals

Clearly define the tangible outcomes your renewal project proposal will produce. This section helps stakeholders visualize what they can expect. Include:

End Product/Objective: Describe the final result or objective your project aims to achieve.
Project Timeline: Present a schedule indicating when each deliverable will be ready.
SMART Goals: Align goals with the deliverables, ensuring they are Specific, Measurable, Achievable, Relevant, and Time-bound.

This section provides a clear picture of the project’s expected outcomes.

6. List Required Resources

Detail the resources necessary for successful implementation of project management tools. This section includes:

Project Budget: Outline all budgetary requirements, covering supplies, advertising costs, and team salaries.
Breakdown of Costs: Justify each cost item, providing transparency and understanding.
Resource Allocation Plan: Provide an overview of how you plan to allocate specific resources within the project.

Presenting the project costs and resource needs towards the end aims to both secure funding and stakeholder commitment after they have understood the project’s details.

7. State Your Conclusion

Conclude your proposal with a compelling and confident summary. In this section:

Revisit the Problem and Solution: Briefly remind stakeholders of the addressed problem and your proposed solution.
Emphasize Impact: Reinforce the potential impact of your project.

Keep this conclusion relevant, akin to a traditional essay conclusion, leaving a lasting impression on other stakeholders.

Remember, adapt your project proposal template based on the unique goals of your project and the preferences of your audience to ensure effective communication.

eamlessly Manage Time Off in Lieu and Boost Productivity.

Get started

Tips for Writing an Effective Project Proposal

Following the steps mentioned above ensures your project proposal includes all the necessary elements to project approved. To make your project approach in writing stand out and gain approval from project sponsors, consider the following additional tips:

Know Your Audience: Keep your audience, the stakeholders, in mind as you write. Remember, the proposal’s goal is not just to present project details but to win over your audience. Tailor your approach based on your audience; for instance, appeal to the emotional side if your stakeholders are parents interested in a new editing tool for a children’s publishing house.
Be Persuasive: Persuasion is crucial in a project proposal because you want your audience to take action. Highlight the features and benefits of your project, emphasizing its positive impact. If your proposal doesn’t captivate your readers, they might not be motivated to support your project. Clearly convey why your project matters.
Keep It Simple: While providing details on the problem, approach, and solution, avoid unnecessary complexity. You don’t need to delve into technical intricacies. For example, when discussing the project plan for your editing tool, focus on the overall concept without delving into specific engineering details.
Do Your Research: A successful project proposal is backed by thorough research. Support your problem and solution with credible sources, case studies, statistics, or charts. Anticipate your reader’s questions and provide answers, addressing aspects like why the problem matters, how your project solves it, previous attempts to address the problem, and the projected costs.

By incorporating these tips, you enhance the persuasiveness and clarity of your project proposal, increasing the likelihood of gaining support and additional funding for your proposed initiative.

Project Proposal Template Examples

Executive Summary

Rose Boutique, a prominent women’s retro apparel store in the Bay Area, lacks an online presence, limiting its sales outreach.

In response to our recent discussion, the team at TimeTrack is eager to develop a website for you. This website will not only expand your market reach within California but also target an international audience.

The proposed website will boast an easily updated shopping cart, including international currency features, catering to local customers and engaging a broader audience of fashion-conscious women.

We project that this website will elevate your sales by 500% in the next two years.

Project Background

TimeTrack Technology Solutions, headquartered in Silicon Valley, specializes in website design, particularly for retailers in the fashion industry.

We are dedicated to helping businesses seamlessly transition into the digital realm, enhancing success with accessible and functional websites.

Our philosophy aligns with integrating websites to complement existing business practices rather than replacing them, making us an ideal fit for Rose Boutique.

Solutions and Approach

Our plan involves crafting a simple yet stylish website that aligns with the Rose Boutique brand.

User-friendly for your current and expanding customer base, the site will be easily updated through a content management system, ensuring it reflects the latest stock and promotions.

This website aims to bolster your competitiveness as the demand for online shopping continues to rise.

Key components of the website include:

An About Us page detailing the store’s history and philosophy.
An online store enabling customers to browse and purchase products globally. The online store will support automatic currency conversion, shipping calculators, and payments via major credit cards and digital wallets.
A blog for timely updates on new arrivals, styling tips, and retro style icons.
A contact page with store details and a user-friendly contact form.

We commit to providing free ongoing support for the initial three months post-delivery, and afterward, we offer issue resolution for a nominal fee.

The anticipated website launch is three months after your acceptance of our proposal, after the buy in which you assume full ownership of the project.

Financials

Our fee for building this website is $5,000, covering:

Hosting space on our servers
Two years’ domain registration (renewable at a $20 fee every subsequent two years)
Total website design and creation
Integration of mobile wallet payments
Troubleshooting assistance for three months post-delivery

Additional Documents

Attached, you’ll find:

Contact information for TimeTrack employees assigned to the website.
A site map outlining the website structure.
Testimonials from other retailers who have benefited from TimeTrack’s services.

Final Thoughts

Successful project proposals rely on effective project team collaboration. Utilizing appropriate management tools enables your project team to communicate, share information, and collaborate on a single shared document.

Centralizing all project information in one accessible location simplifies data retrieval when needed.

Well-organized and meticulously planned projects lay the foundation for compelling project proposals, emphasizing the importance of project management software as a valuable resource in crafting effective project proposals.

Ready to begin? Give TimeTrack a try.

A Detailed Guide on Strategic Planning Models

Hibba Imran — Thu, 30 Nov 2023 07:07:11 +0000

A Detailed Guide on Strategic Planning Models

#Planning

Table of Content

What is a Strategic Planning Model?
Essential Elements of a Strategic Planning Model
Best Practices for Strategic Planning Models
Popular Strategic Planning Models
How a Project Manager Executes Strategic Planning Models

In the ever-evolving landscape of business, the need for strategic planning has become paramount due to new business models, global disruptions, competitive advantages, the competitive advantage itself, and the constant call for rapid changes. Strategic planning models have emerged as valuable tools, providing a structured approach to translating strategies into actionable plans.

While the fundamental goal of these models is to offer a framework for creating strategic plans, the diversity of available frameworks reflects the unique challenges and objectives faced by organizations. Seeking improvement is a constant for businesses striving for relevance and profitability in an industry or business environment. Still, the path to enhancement requires more than desire—it demands a well-thought-out strategy and a model to implement that strategy effectively.

Enter strategic planning models designed to cater to businesses of all sizes. These models play a crucial role in project planning, constraints analysis, the implementation of organizational and strategic goals and internal processes, and offering a thorough and structured approach to the business environment.

What Is a Strategic Planning Model?

A strategic planning model is a structured approach employed by organizations to transform their strategic objectives into a tangible plan for enhancing operations and achieving set goals. This involves identifying the company’s desired outcomes and determining the steps necessary to achieve those objectives in the short term.

Essentially, it’s a systematic process of working backwards from defined targets to develop a strategic plan that effectively aligns with organizational goals. This established framework serves as a guide, simplifying the complexities involved in strategic planning and facilitating the achievement of desired outcomes.

Do You Need a Strategic Planning Model?

Employing a strategic planning model is not merely an elaborate way of asserting the necessity for a goal-oriented plan; rather, it underscores the indispensable nature of such planning in achieving organizational objectives.

Irrespective of whether an entity is a fledgling startup or an established, market-dominant brand, the absence of a meticulously devised plan to realize objectives can precipitate failure, manifesting as a loss of market share or, in extreme cases, business closure—neither of which aligns with the trajectory of a sustainable enterprise.

The multifaceted advantages inherent in the adoption of a strategic planning model are noteworthy. Primarily, it furnishes an organization with a clearly delineated pathway that is not only utilized internally but also disseminated among all staff members. The collaborative alignment of various departments towards a unified goal constitutes a potent force.

Conversely, the lack of such cohesion can yield disastrous consequences. Attainment of targeted objectives, be they a year, five years, or a decade into the future, is contingent upon the collective awareness of these objectives and a shared understanding of the roadmap to their realization.

Conceptualize this paradigm as a mechanism for sustaining focus. The daily milieu of business operations is replete with myriad distractions. The discernment of top-tier priorities serves as a compass, facilitating the reasonable allocation of energies towards the overarching strategic goals and vision of the company.

Another salient merit of a strategic planning model lies in its capacity to enhance the organizational capacity for insight constraints analysis regarding efficacy. It engenders an acute awareness of organizational strengths and weaknesses, affording a lucid perspective on the organizational standing within the marketplace of internal and external factors.

Essential Elements of a Strategic Planning Model

Vision and Mission Statement:
- Clearly articulate the organization’s long-term aspirations and purpose.
- Define what the organization aims to achieve and its fundamental reason for existence.
Values:
- Outline the core principles and beliefs that guide decision-making and behavior.
- Provide a framework for ethical considerations and organizational culture.
Focus areas:
- Identify key strategic areas where the organization will direct its efforts.
- Highlight specific areas of emphasis that align with the overall mission and vision.
Goals:
- Establish measurable objectives that support the focus areas.
- Break down overarching goals into smaller, achievable targets.
- Define timelines and performance indicators for each goal.

Governance of a Strategic Plan

Execution tracking:Develop a system for actively monitoring the progress of strategic initiatives. Implement tools or software to track key performance indicators (KPIs) related to goals.
Reporting mechanisms:Establish regular reporting intervals to communicate progress to stakeholders. Define the format and channels for reporting to ensure transparency and accountability.
Feedback loops:Incorporate mechanisms for feedback from teams involved in plan execution. Create a culture that encourages continuous improvement based on lessons learned.
Adaptation and Flexibility:Build flexibility into the governance structure to adapt to unforeseen challenges or opportunities. Establish a process for reviewing and, if necessary, adjusting the strategic plan based on changing circumstances.
Communication Strategy:Develop a communication plan to keep all stakeholders informed about the strategic plan’s execution. Clearly communicate roles, responsibilities, and expectations to everyone involved.
Performance review:Conduct regular reviews to evaluate the effectiveness of the governance structure. Identify areas for improvement and make necessary adjustments to enhance performance and alignment with strategic objectives.

Best Practices for Strategic Planning Models

Diverse and Appropriate Team : Assemble a group of 6 to 10 people that is both diverse and aligned with the goal. Diversity brings varied ideas to the table, enhancing the richness of the strategic planning process.
Allow Time for Creativity : Give the team time to generate creative solutions. Allow ideas to mature before finalizing the course of action.
Change of Environment: Consider removing the team from the usual work site. A change in environment, away from office distractions, can foster a more contemplative state for generating better ideas.
Secure Buy-in: Ensure that the team is fully on board with the chosen strategic planning model. Building commitment is crucial for the success of the plan.
Build Trust: Encourage free and open discussions. Consider hiring an outside facilitator to manage the process and ensure impartiality.
Realistic and Actionable Plan: Ensure the plan is realistic and executable. Clearly define goals, tasks, responsibilities, accountability, and deadlines for all involved.
Flexibility is Key: Acknowledgment that plans can change. Avoid excessive rigidity, allowing for adjustments based on evolving circumstances.
Regularly Scheduled Meetings: Treat the creation of a strategic planning model as an ongoing process. Schedule regular meetings, ideally monthly or at least quarterly, to discuss plan execution and hold team members accountable.

Popular Strategic Planning Models

Cascade Strategic Planning Model

The Cascade Model is recognized for its effectiveness in strategic planning, offering a user-friendly and practical approach. It is widely favored for its simplicity, making it suitable for organizations of varying sizes and industries. This model’s straightforward structure facilitates the seamless execution of strategies.

Within its key structural elements, there is the articulation of a vision statement, the definition of company values, the crafting of focus areas, strategic objectives, KPIs, and specific projects. Complementing these structural aspects are governance elements, including monthly strategic reports, project updates, and KPI dashboards.

Together, these components provide a comprehensive toolkit not only for creating strategic plans but also for their successful execution.

The Cascade Model ensures that these issue-based types of strategic planning and goals are not merely articulated but actively pursued and realized, making it a valuable asset in the realm of constraints analysis of strategic planning.

The Hoshin Planning Model

The Hoshin Kanri model stands out as a strategic planning approach adopted by organizations to instil a consistent focus across various levels of their structure. This makes it particularly well-suited for large organizations with diverse layers of management, including executive leadership, middle managers, and frontline staff.

The inspiration drawn from Hoshin and strategic planning tools significantly influenced the creation of the Cascade Strategic Model, earning it deep respect and admiration within our overall strategy and management framework at Cascade.

Structural Elements of Hoshin Kanri

Articulation of Visionary Goal: Define a distant horizon that acts as a guiding beacon for all subsequent planning.
3-5-Year Strategies: Develop high-level summaries outlining qualitative and quantitative achievements over this timeframe.
Annual Objectives: Define specific objectives intelligently distributed among different departments.
Action Items: Determine precise steps to be taken to realize the Annual Objectives.

Governance Elements of Hoshin Kanri

Monthly Reviews : Conducted against Annual Objectives, providing a platform for goal owners to offer descriptive progress updates and ensure continuous monitoring.
Annual Reviews: Occur at the end of the designated period, involving the evaluation of Annual Objectives and decisions on whether to mark them as complete or roll them over into the next year.

OKRs (Objectives and Key Results)

The OKR strategy model is a dynamic goal-setting and planning framework centered around quarterly objectives and key results (OKRs), subject to internal and external factors and review by every level of management within the organization. Similar to the Cascade Strategic Planning Model and Hoshin Kanri, the OKR strategic planning model consists of key structural and governance elements.

Structural Elements of OKRs

Objectives: Clearly defined outcomes targeted for the current quarter.
Key Results: Specific metrics gauging progress toward the defined Objectives, quantified for clarity.
Initiatives: Tasks or projects aligned with each Key Result, designed to contribute to the achievement of those results upon completion.

Governance Elements of OKRs

Weekly Check-Ins: Regular check-ins for each Key Result, covering your confidence level in achieving the OKR, action plans, and general progress updates.
Quarterly Review: A formal review is undertaken quarterly for each Objective. During this review, the OKR strategic planning method is assigned a “score” (typically from 0 to 1), and decisions are made regarding the course of action for the next quarter.

Such common strategic planning models strategic planning model provide a structured approach that not only defines goals and their measurable outcomes but also establishes a systematic process for continuous monitoring and adaptation based on regular check-ins and quarterly reviews.

V2MOM

V2MOM stands out as one of the simplest yet effective strategic planning tools and alignment models developed by Salesforce’s co-founder, Marc Benioff. This alignment model is also versatile, fitting seamlessly into various organizations, including small businesses, startups, and nonprofits. It operates as a top-down approach, scaling across different levels of the organization, from business units to teams and individuals. However, it’s important to note that V2MOM thrives in organizations with integrated alignment, as each V2MOM document should harmonize with the overarching plan.

Structural Elements of V2MOM

Vision: Similar to the Cascade Model, this is where you articulate your vision for the future.
Values: A set of guiding values shaping your company’s culture.
Methods: Strategic objectives, projects, or initiatives driving your organization toward its vision.
Obstacles: Uniquely, V2MOM includes this element to identify potential obstacles and risks that could hinder plan execution.
Measures: A set of Key Performance Indicators (KPIs) measuring performance and progress.

Governance Elements of V2MOM

The original V2MOM approach outlines the structure of the strategy management framework but lacks a built-in solution for tracking and measuring performance. To address this, we enhanced V2MOM to support teams in measuring their performance against set strategic goals through a strategy execution platform.

Customizable Strategy Dashboards: These provide leadership teams and team members with insights into organizational happenings or specific initiatives.
Reports: Analyzing in-depth raw data from the past, these reports transform data into actionable narratives for regular review meetings and quicker decision-making.

Balanced Scorecard

The Balanced Scorecard, or BSC, serves as a valuable tool for organizations to steer and evaluate business performance by categorizing key performance indicators (KPIs) into four primary focus areas: Financial, Customer, Internal Processes, and Learning and growth.

Structural Elements of the Balanced Scorecard:

Four Perspectives: These act as your focal areas, guiding your attention to crucial aspects.
Strategic Objectives: Define the desired outcomes you aim to achieve.
Projects: Outline specific initiatives, complete with timelines and resource allocation.
KPIs: These metrics measure the progress and success of your endeavors.

Governance Elements of Balanced Scorecard:

Strategy Dashboards: These provide a real-time overview of each, summarizing key objectives, projects, and KPIs.
Weekly or Monthly Reports: Owners of each area share progress updates and short-term action plans regularly.
Strategy Map: This visual representation illustrates how the four perspectives are interconnected, revealing cause-and-effect relationships between strategic objectives.

Transform Your Business Landscape Today!

Get started

How a Project Manager Executes Strategic Planning Models

Now that you’ve selected a strategic planning model to guide your organization’s objectives, the real work begins.

Start Planning In-Depth with Gantt Charts

After defining your goal, the next step is breaking down your goal into realistic tasks or steps leading to the Objective. Whether using a work breakdown structure or a spreadsheet, you can easily upload your tasks into your software.

Here, the Gantt chart tool comes into play, allowing you to visualize your entire project timeline by adding durations to tasks. Prioritize tasks, set milestones for key results, and provide detailed descriptions of key results to guide your team, fostering collaboration and productivity.

Multiple Views to Tackle Your Projects

They use various tools to accommodate various work styles. Alongside the Gantt chart, you can utilize a task list, calendar, or Kanban board for effective project management.

The board view is particularly beneficial, breaking down production into phases and providing transparency to keep workflows smooth and prevent bottlenecks.

Monitor Your Progress With Real-Time Dashboards

Monitoring progress is a crucial aspect of any strategic planning model. Use a real-time dashboard to track multiple project metrics, including project and measure progress variance, which automatically calculates planned vs. actual progress. This feature ensures you stay on track and hit your targets, contributing to the success of your strategic plan.

Strategy Model: Which One Is Right For You?

The strategic planning models we’ve highlighted share key qualities for a reason—they’re simple, encompass essential elements, and seamlessly blend goal setting with governance. This synergy makes them invaluable for constructing a highly effective strategic management process and successfully executing your overall strategy.

Choosing from the five types of common strategic planning models and model examples we’ve covered—Cascade Model, Balanced Scorecard, V2MOM, Hoshin Kanri, or OKRs—you’re on a solid path. Each issue-based strategic planning model brings its strengths to the table, ensuring a well-rounded approach to strategic planning.

Whether you import or create a strategic plan, our TimeTrack is sophisticated enough to adapt to your preferred model, ensuring seamless integration with your unique approach to business strategy.