Archive for January, 2010

Accounting In Projects

Accounting is always fun to behold, but like anything that relates to moneys or resources being spent on a project, you need to have some ‘checks and balances’ in place.
This is why we spend so much time planning a project. We really want to know what is expected to be spent as the project progresses, and any fluctuations have to be understood before acceptance. This is where the double and triple checks should be used.

You should not be the only one ensuring compliance of spending. Many project managers have a contingency fund available for small, incidental costs that might occur. This fund should still have an extra set of ‘eyes’ on it. One or more associates should be double checking that these payments are justified and fully documented.

Neither you nor your sponsor wants surprises, so keep everyone informed! No matter how small the amount spent is, keep everyone in the loop with open and truthful communication. No surprises!

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Do you use a Checklist?

In many professions, checklists have become a common standard, according to a new book called The Checklist Manifesto. The author, Atul Gawande, writes that as today’s jobs become more complex, checklists that outline proper procedures are a way to decrease errors and mistakes.

The book focuses on the checklists used by healthcare professionals for complex procedures…surgeries, blood transfusions, etc. Gawande found that over a three month period with 8000 patients in hospitals around world, the use of checklists decreased death rates by 46%!!

Your projects may not literally be life or death situations (even though they may seem like it), but they can still produce serious consequences when not done correctly. The PMI PMBOK Guide’s Process Groups and Knowledge Areas provide a checklist of sorts for use during a project’s lifetime. But I’m sure that some project managers have their own checklists that they use to help them. Do you? Tell us about it!

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An Introduction to Procurement Management

Project procurement activities are often managed by specialists.  By this I mean that the procurement department takes over responsibility for purchasing and contract management from the project manager.  As a result of this separation of responsibilities, the steps and stages of procurement are often poorly understood by PMs.

In this and the next few blog submissions, I will attempt to shed light on procurement activities and relate these activities to the PMI PMBOK.

Procurement Steps

1. Make purchase decisions – Planning
Purchase decisions follow from project planning and analysis. Project needs are analyzed and compared with available resources and skills.  Anything the organization cannot provide must be procured.

2. Prepare bid documents
These documents include a SOW statement (Scope of Work), general terms and conditions, bid response instructions, and an explanation of how proposals will be evaluated (source selection criteria).

3. Distribute bid packages to potential vendors
Potential vendors can be identified through advertising, the internet, or through an organization’s qualified vendors list.

4. Bidder’s conferences
Bidder or vendor conferences are used to efficiently deliver detailed information to potential vendors.  The events offer an opportunity for vendors to ask questions and to hear questions posed by other potential vendors.

5. Receive responses from bidders
A suitable time-frame must be given for vendors to prepare bids.  Additional information and clarifications are often required by vendors.

6. Evaluate proposals
After all bids have been received, they are evaluated on the basis of a predetermined scoring system referred to as ‘source selection criteria.’  The comparisons are typically performed by experts from various disciplines related to the type of procurement.

7. Interview bidders
Short-listed bidders are interviewed to discuss details of their offers and to ensure a good fit with the purchasing organization.

8. Conduct negotiations
The leading candidate is invited to discuss (negotiate) contract details.  The issues that generally require clarification include such things as delivery date, shipping costs, warranty, and support.

To be continued……

Boring Meetings

Can meetings be tedious and boring when the facilitator/speaker is not prepared? Absolutely!

Lack of preparation and understanding of your objective is a terrible waste of time for everyone. If your business calender is filled with important meetings, whenever you get to one where a key person is just not prepared, you going to be miffed. Should we flog them?

Should we walk out early in disgust? Stamp our feet impatiently? Stomp around the room steaming? Rattle something on the table or chair? Hit them in the back of the head with hastily scrawled note in a paper airplane?

What if this is a remote meeting, with people from all across the country? You just cannot flog, stamp or stomp enough to get their attention! At least in a live meeting there is some satisfaction. Remote meetings require more tact.

Our new business modus operandus includes more and more remote meetings using Internet-based technologies for meetings. We can share voice, text and desktop applications. It works well…if everyone is prepared. Being prepared means if there is a large document to discuss, everyone has a copy of it. If your meeting has desktop or application sharing, the facilitator has a copy to display, if necessary, or some form of presentation, like PowerPoint slides.

The time should be appropriate in length and everyone informed well in advance.

If you’re leading this meeting, be proactive – get to know the technology, understand what information needs to be disseminated, review what you are delivering. In essence, be prepared!

If you have slides and or notes, great; forward them, but DO NOT just read the content. The slides are supposed to awaken the presenter’s deepest, inner thoughts. These should trigger the speaker to spew out enrapturing, imaginative prose. Assume I, and everyone else, can read what is on the screen.

Also, assume that I cannot read your mind across the Internet. If you have something that requires a depth of knowledge, it’s is probably a good topic to review closely, to detail verbosely.

I have had several meetings in the past week. Most of the time, the speakers were prepared, except for this one reallllllly unprepared facilitator. An hour filled with ummms and ahhhs. It was almost painful. The speaker read directly from the slides -  information we already generally knew. He failed to realize and address the real issue, which was the differences between the old version and the new version of a document.

Being a live meeting, we could ask questions. Only then could we further prepare ourselves for our next client meetings. Reviewing the obvious, or material that we already had access to, was a waste of time. Not to mention boring.

Think to the next meeting you have, are you prepared, and will the audience be prepared? Do they already have the material they need? Are you prepared to discuss the changes, the highlights, the specific issues and not the mundane? Did you give enough notice and a good reason for them to attend?

You should be pleasantly surprised at how efficient a well-prepared meeting will seem.


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