Project Success Through Project Assurance
David Tilk, Senior Manager, PMP, CISA, PricewaterhouseCoopers L.L.P.
Introduction organization, and ultimately to your career, the more information
you can arm yourself with the better. Your personal experience
Congratulations! You have just been named as the manager for one combined with your organization’s collective experience will help
of the largest, most important projects your organization has un- you see what has, and has not, worked in the past. Hopefully this
dertaken. It is your turn at the helm to have a successful project and helps prevent previous problems from recurring.
to realize the benefits planned for your organization. Given the im- External project performance data can help us learn from others’
portance of this effort, you have been personally selected for this en- experience, and provide input to self evaluate what risks may be ap-
deavor based your ability to deliver and your experience in devel- plicable in our project. These sources are useful to gauge your proj-
oping high performing teams. As you enjoy the momentum and ex- ect and environment with others in the industry to draw compar-
citement of the project start-up, and as you visualize your ultimate isons on risks you may face and how they can be minimized. Many
success and rewards, have you considered the impact to you and to sources of information are available. You may rely on your network
your organization if the project is not successful? As you look back, of project management professionals, or you may belong to a re-
you recall that some previous projects have not gone so well for var- gional or vendor product user group. All of these contain useful
ious reasons. You know there is a lot at risk with your new assign- nuggets of information to help us prepare and navigate the risks we
ment, and what can you do now to help you improve your chances may face in our project. There are also industry benchmark sources
for success and avoid having a career limiting—or ending—project? that collect project statistic information such as the Standish Group
Today’s economic environment has changed. There is a greater International, Inc. and Forrester Research.
emphasis on producing more with reducing budget dollars. As According to the latest benchmark study published by the Stan-
such, your project must produce results more quickly than ever. The dish Group (2000 CHAOS Report), overall project success metrics
nature of projects has changed as well. As the organization has be- have improved from the 1994 study; however, this is not all-good
come more interconnected with its business partners, there are ad- news. In summary, their project performance research shows that:
ditional complexities in balancing the needs of many areas internal • 49% are challenged, of these:
and external to your project and organization. This is a tumul- • 63% experience time overruns
tuous business environment and success has a new meaning. Today, • 45% realize cost overruns
project success goes beyond the traditional “on time, on budget, and • 23% fail
to specifications” measuring stick. Project success now means • 28% succeed, and only
clearly accomplished project objectives, well-managed change and • 67% of functionality is delivered.
transition, exceeded stakeholder expectations, and measurable re- Overall, the odds are not in your favor. Considering that your
alized benefits. When you look at industry project performance sta- project is probably similar to others in the statistics, it is likely that
tistics, you roughly have a 50% chance of being over budget or late, you may face similar performance. Although many project man-
a 25% chance of failing, and only a 25% chance of succeeding. agers exclaim that “it won’t happen on my project,” you can rea-
Given the complexities in project delivery, an effective process to an- sonably expect similar challenges. It is important to understand how
alyze your project’s likelihood for success, potential barriers, and key challenges may arise and how you can manage them so your proj-
success indicators is a must. ect is not part of the wrong statistics.
Trends Project Challenges
If you were fortunate enough to have a device that would enable you Project challenges and risks can arise for many reasons. The types
to foresee future problems you would be able to prevent them be- of challenges are many, and the impact can vary depending on the
fore they happened. But since you do not have such a tool, you can scope and project approach. As organizations become more “pro-
utilize information to prepare yourself to anticipate where you jectized” (i.e., distinguishing between functions that are opera-
may have problems. Given the importance of your project to your tional and projects that are special purpose) the complexity of
Proceedings of the Project Management Institute Annual Seminars & Symposium
October 3–10, 2002 • San Antonio,Texas, USA
Exhibit 1
Business Environment Project Framework Project Execution Processes
External Supplier/Technology
Project Integration Mgt. Selection
Marketplace
Project Scope Mgt. Requirements Analysis
Regulatory Environment
Project Time Mgt. Design
Competitors Quality Management Development
Internal Suppliers/Customers Cost Management Testing
Human Resources Mgt. Implementation
Mgt. & Operations Production Support
Communication
Organizational Culture Risk Management Data/Interfaces/
Procurement & 3rd party Conversion
Stakeholders Dependency Mgt. Security and controls
Strategic Alignment Issue Management Technical infrastructure
Project Sponsorship Training
Project Governance Benefits realization
Organizational change
managing risks increases. As an example, Tom Peters’ book the Where to Look
Project50 emphasizes that everything can be viewed and ap-
proached as a project. No matter how big or small the undertaking, As you step back to consider the landscape of your project, where
every thing (project) has the opportunity to be leveraged into an can you look to anticipate potential trouble spots? Experience
impactful project that transforms and improves everything from shows us that you will face challenges emanating from three pri-
policies and procedures to a new e.business effort. mary areas relative to your project:
The complexities of your project, and the maturity of your proj- • Business environment (external, other internal functional areas
ect processes will have a direct bearing on your project risk profile. and divisions)
You may recognize your current project, or previous projects that • Project Framework (team structure, composition, vendors)
had characteristics such as: • Execution (legacy systems, products part of your project, interfaces).
• Complex transactions or initiatives that have a significant orga-
nizational impact, such as mergers and acquisitions, spin-offs, and Business Environment
global initiatives Because projects and change initiatives do not operate in isola-
• Significant dollar investments, such as enterprise system imple- tion, but, rather, as part of a larger organization that influences their
mentations conduct and outcome in many ways, there many factors beyond the
• Customer and supplier initiatives such as technology imple- scope of your control that will impact or influence your success. It
mentations, portal implementations and e-markets is important to consider the environmental factors of the business
• Compliance or regulatory-related initiatives that require strict as- in which your project operates. This factors included in this area is
surance that objectives will be met within acceptable timelines also very similar to the scope and content referred to as the Project
• Cost reduction through outsourcing and shared services Context by A Guide to the Project Management Body of Knowledge
arrangements (PMBOK® Guide, 2000).
• Lack mature internal project methods and processes, or poor
track record of project delivery Project Framework
• History of budget, schedule, status and overall project success The Project Framework includes areas within the project man-
• Solutions that may not be realizing expected benefits. ager’s direct control—or ability to influence—such as project man-
But you say that your project is vanilla, and will therefore be low agement structures, sponsorship, dependencies, staffing, etc. These
risk because we are using an experienced vendor. Accordingly you are often guided by internal policies and procedures, but they can
anticipate customization will be minimal and not present any risks. be significantly altered by the use of external vendors that usually
You also expect that the vendor will backfill your IT organization utilize their own approach and tools.
with technical and methodology expertise. Given that only 5% of
packages are purchased and implemented with no modifications ac- Project Execution
cording to the Standish Group, and that managing contractors This area focuses on the execution of project activities. The over-
presents its own unique challenges, it is a good bet that your proj- all project scope and execution approach carries inherent risks.
ect is not vanilla and worth a closer look. The scope includes all processes that are required to complete the
Proceedings of the Project Management Institute Annual Seminars & Symposium
October 3–10, 2002 • San Antonio,Texas, USA
Exhibit 2
Project
• Formalizes risk monitoring
Stakeholders
process
• Defines monitoring and quality
Project
criteria
Assurance
• Monitors performance and
delivery
Project Manager
• Risk assessment tools (pre- and
post-implementation)
• Assesses risk in multiple
dimensions
• Leverages IT best practices
• Provides advice, guidance,
Team Lead Team Lead Team Lead
support, information
Team Team Team
effort and develop the product or produce the planned benefits. The sponsibilities of quality control with quality assurance. You may
execution processes include the activities performed to achieve the have experienced that the role was integrated in the project team;
project’s product and realize the expected benefits. Although the while in other cases it has been an external entity or functional area
processes can be considered separately, these activities often occur (e.g., Internal Audit) within your organization. If you are using a
concurrently. The actual execution is often guided by a particular vendor to assist with your project, it is common that they have a QA
development life cycle (SDLC) but also covers project activities role as an integrated component in their project approach. But if
outside of a standard SDLC, such as organization change manage- you look into the actual process and approach employed, you may
ment and benefits realization. find that the QA scope is tailored for your vendor’s interest, not the
success of your project.
The bottom line: there are many contributing factors to why
What is Project Assurance? projects succeed or fail. Our experience shows that project success
rates increase when a project assurance function has been utilized.
As depicted in the Exhibit 2, Project Assurance is an independent How you chose to implement a project assurance function, and how
process that assesses the health and viability of a project. It is de- you align it with other functions in your organization and project
signed to provide you and executive management with a clear sense team will greatly influence the type and independence of the in-
of whether a project will accomplish its objectives and if there are formation it produces.
significant risks. The objectives of a project assurance function can
include:
• Assessing the risks and strengths of new or existing projects How Can it Be Implemented?
• Ensuring known requirements for project success are present-
skills, processes, structures and culture There are a variety of models (e.g., consultative, audit, phase end,
• Providing unbiased, independent evaluation of the project’s quality gates, etc.) that can be used to implement a project assurance
prospects for success function depending on the type of information you need and other
• Keeping you firmly in control as the project matures roles within your project. One size does not fit all, as no two proj-
• Working closely with project teams stakeholders to ensure that ects are the same. So, you will need to adapt an approach that best
risks are collected, prioritized, and mitigated. fits the risk profile of your project. However, one of the critical suc-
Project assurance is broader than quality assurance in that it cess factors is that the assurance function should be independent to
spans the three areas that can impact your project (e.g., Business En- fairly represent the project risks. The objective of the project assur-
vironment, Project Framework, Project Execution). Quality assur- ance process is to provide a risk, status, quality review, and assess-
ance typically focuses on the processes and products within the ment mechanism over the activities and structure of your project.
project team. Although there are industry standards and definitions You can achieve this through formal reviews and risk assessments of
for quality activities, there are many interpretations and imple- the project processes and organization, project execution activities,
mentation variations of the scope of quality assurance in a risk project deliverables, and the environment within which the project
management role. Many have used this term to define the project operates. Using a project assurance methodology may provide a
activities associated with testing. While others use it to define the framework and wide range of support materials for undertaking the
adherence to quality procedures. In other cases, some blend the re- appropriate set of reviews and risk assessments for your project.
Proceedings of the Project Management Institute Annual Seminars & Symposium
October 3–10, 2002 • San Antonio,Texas, USA
Exhibit 3
Example – Project Assurance Intervals
2002 2003
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
Preparation
Design & Prototype
System Development
Testing
Training
Risk
Assessments Cut Over
Go-live
Review Production Support
Post
Implementation GO/ No Go Decision
Based on your objectives, there are several assessment variations of review can help identify major risks that may affect the project’s
that are proven to help you understand and mange project risk. success and allows the organization to plan accordingly.
Based on your project life cycle, you may consider mapping any
Post-Implementation
number of the following reviews to help you assess your risk as
noted in Exhibit 3. These include the following. A necessary last step toward ensuring project success, these reviews
enable management to confirm the benefits of the project by eval-
Risk Assessments
uating whether the business and system goals have been achieved.
Performed at any time during the course of the project, risk as- These reviews help identify areas that may need additional atten-
sessments help management identify risk areas and evaluate their tion to promote project benefits, such as organizational change
potential impact on project success. Key drivers of project success adoption, operational support, or revising new processes and pro-
are used to evaluate the project and provide a scorecard on relative cedures. Post-implementation reviews also provide an opportu-
project performance. The evaluation will facilitate identification and nity for accumulating lessons learned and best practices that can be
prioritization of key project risks that are most relevant to the proj- applied to ongoing project initiatives.
ect’s success.
Quality “Checkpoint” Reviews
Benefits
Also know as Gate reviews, these can be executed in a series of re-
views. Checkpoint reviews are focused on evaluating the high level The value of project assurance approach compared with other al-
and detailed project processes and outcomes. The reviews occur ternatives is that is provides you with a holistic view of risk facing
over the life of the project and are focused on the critical tasks at you and your project. Many project challenges are evident from the
the particular time in the project. These tasks can be used to rec- start, and building processes to help you monitor and manage proj-
ommend improvements to critical processes and deliverables and ect risk will help you reduce the cost of your project. As project
to focus management attention on project risks and developing mit- manager, a project assurance function is another tool in your tool
igation strategies where appropriate. kit to help you reduce risk associated with your project invest-
ments and your tactical project activities. Your confidence will in-
Operational “Go-Live” Readiness
crease knowing that your project will meet targeted goals and
Performed shortly before implementation or project completion, achieve expected outcomes. Project assurance activities will give you
this type of review is used to confirm that the people, processes, and clear visibility of your project risks and strengths and help you:
systems are ready to adopt the changes to be implemented. This type • Clarify and assess the accuracy and relevance of scope
Proceedings of the Project Management Institute Annual Seminars & Symposium
October 3–10, 2002 • San Antonio,Texas, USA
• Validate and communicate project progress and risks
• Evaluate and quantify project processes against benchmarks
• Ensure project accountability and stakeholder management.
Armed with proactive information about your project status you
will be in a better position to anticipate and prevent issues that lead
to cost and schedule overruns. The focus of project assurance is pre-
ventive vs. detective. Not only will you understand where you have
been, but also you will clearly see where difficulties exist going for-
ward. Preventing downstream defects and project delays will help
you improve the performance of your project delivery by:
• Identifying strengths and weaknesses of project approach
• Recommending effective project, process and technology controls
• Validating progress and potential to meet goals
• Enabling effective project reporting and communication.
Given today’s economic drivers, projects must not only accom-
plish the project objectives successfully, but they must also add mea-
surable value back to the organization while effectively managing the
risks associated with the change and transition. Your project assur-
ance will help you realize anticipated project benefits by:
• Measuring achievement of business case and strategy
• Focusing on operational readiness
• Assessing change integration and organization acceptance.
References
Peters, Tom. 1999. Project50. Alfred A. Knopf Inc.
Standish Group. 2001, CHAOS Chronicles, The Standish Group.
Project Management Institute. 1996. A Guide to the Project management
Body of Knowledge (PMBOK® Guide). Upper Darby, PA: Project Manage-
ment Institute.
PricewaterhouseCoopers L.L.P. Project Assurance Methodology, April
2002.
Proceedings of the Project Management Institute Annual Seminars & Symposium
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