Office of Project Scope

& Cost Management

Creating a Culture of
Project Management

ACEC Mn/DOT Consultant Conference March 2, 2010

 Presentation Outline
Introduction/background; Mn/DOTs objectives; national
DOT trends and perspectives (Jean Wallace
Mn/DOT)
Project management peer review process; Mn/DOT best
practices and the panels best practices and observations
(Jim Grothaus CTS)
Consultant perspective; organizing around project
management (Doug Abere CH2M HILL)
Construction industry perspective; issue management
(Kendall Griffith Mortenson Constr.)
Next Steps
Q&A

Project Management
 Introduction/Background (jean 5-7
mins)

Why do this peer review?

Improve project delivery performance =
on time and on budget (issue we share
with peers)
Benchmark Mn/DOTs project
management practices
Initial step in a change management
process
Check for best industry practices
Build from our success
Mn/DOTs strategic vision and
strategic directions

Project Management
 Project Management Aligns with
Mn/DOTs Strategic Vision
Project Management is viewed as a key
element to successfully implement the
Strategic Directions of Safety, Mobility,
Innovation, Leadership, and
Transparency
A Project Management Culture is
Mn/DOTs Goalto create, implement,
support, and sustain this culture
Project Management
Mn/DOT Steering Committee and

Project Team Leadership

Project Oversight Project Team
and Champions for Advisory to Steering
Change Committee
Steering Committee Developed the Peer
Commissioner Review agenda
Deputy Commissioner Communicated with
3 Division Directors stakeholders
1 Asst. Div. Director Cross-sectional
representation of
2 District Engineers Mn/DOT and
FHWA external partners

Project Management
Priority Recommendations/Actions
(see handout)
Clarify the authority and responsibilities of PMs
More broadly establish the use of Project Mgmt. Plans
Implement team charters
Complete project-level risk management plans
Update training for PMs
Explore PM core competencies
Explore project management and other career tracks
with Human Resources
Develop an Implementation Plan for long-term sustained
change

Project Management
 How Can We Develop a
Project Management Culture?
Increase the organizational value
project management
Address issues that impact the
effectiveness of project managers (as
supported by US industry peers and similar reviews)
note: Jim/Doug to follow up
Emphasize the use of project management
plans
Clarify the authority and responsibilities of
project managers (and team members)
Project Management
 Industry-wide Reviews
Recent National Work in Transportation
Project Management
NCHRP 20-68A, AASHTO Domestic Scan
07-01, Best Practices in Project Delivery
Management
NCHRP 20-69, NCHRP Web-only
Document 137, Guidance for
Transportation Project Management

Project Management
 The Peer Review Process and
Observations

Jim Grothaus
U. of MN Center for Transportation Studies (CTS)

Project Management
 Peer Review Process
Background documents provided context
White Paper (current practices; national studies)
Survey of Mn/DOT staff (180+ responses)
Peer Review Panel (visited wk. of Oct 5-8, 2009)
Pasco Bakotich, Washington DOT
Sidonia Detmer, Virginia DOT
Tucker Ferguson, Pennsylvania DOT
Larry Langer, Arizona DOT
Jim McMinimee, Utah DOT
George Jones, FHWA
Laurie McGinnis, Univ. of Minnesota, CTS
John Conrad, CH2M HILL
Tim Neuman, CH2M HILL
Mike Paddock, CH2M HILL

Project Management
 Panel Members Learned
How Mn/DOT Does Business
Conducted 20 1. Project Phases
Planning through
Group Interviews Maintenance
Interviewed 100+ 2. Functional/Program
Mn/DOT Staff Areas
e.g. Environment,
Interviews focused Traffic, Design-Build
on program delivery 3. Initiatives and Support
in four categories: CSS, HEV, Risk/Conflict
Management, Metro
Matrix
4. Specific Projects
TH 10 in Detroit Lakes
Project Management TH 62/I-35W Crosstown
 Best Practices Exist in Mn/DOT
Widespread implementation of scoping
process and support for total project cost
estimating, includes:
Routine project reviews
Scope amendment process
There is a strong project delivery focus and
culture
Informal networks for resource sharing
Empowered to use consultants
Training programs are valued and
encouraged
Project Management
 Best Practices Exist in Mn/DOT
(cont.)
Innovation is promoted, for example:
Contracting (contractor incentives, Design-Build
process)
Utility group process; Right-of-Way REALMS
IT Program Office PM organization and use of
PMBOK processes
Hear Every Voice and CSS are valuable tools
Annual reporting of schedule delays and
reasons given helps overall program review

Project Management
 What are Good PM Skills?
Good communication skills
Big picture point of view; ambiguity
about project details will not hinder
progress
Understanding of Mn/DOT processes to
ground decision-making
Able to manage project change

Project Management
Project Management Challenges
and Opportunities
The Panel identified several
opportunities for change
Two major themes help organize the
findings:
Development of a project management
organization and culture
Enhancing project management tools,
technology, training, and methods
Project Management
 Panel Observations
(1 of 3)

There is no definition of a Mn/DOT

Project Manager, resulting in:
unclear transitions in the PM role
no performance measures to work
from
Build understanding of baseline
schedules and cost estimates
Early involvement of construction and
maintenance staff
Project Management
 Panel Observations
(2 of 3)

Include tools for risk and conflict

management
Develop resource/knowledge
management systems and networks
Gaps exist in training for experienced
PMs

Project Management
 Panel Observations
(3 of 3)

Project Management Plans are not used on a

regular basis
PPMS (Mn/DOTs project tracking
software/system) does not provide the
capabilities needed for advanced project
management
Other potential areas for improvement:
Track and keep project commitments
Integrate project lessons learned; enhance
closeout
Project Management
 Consultant Perspective

Doug Abere
CH2M HILL

Project Management
 Project Management Culture
Leadership thoughts on
creating a project management
culture (Jim H1owland, 1982)
There is no more important work
in the firm than project
management.
Respect should follow those who
voluntarily move down or
sideways on the org. chart.
No matter what the
organizational structure, if the
people in it want it to work, it will.
Project Delivery System (PDS)
1990s: A process for project
delivery success
Project Management
 Project Management Defined
See the Peer Reviews White Paper
Selected definitions:
A methodical approach to planning and guiding project
processes from start to finish and involves many
processes organized into five groups: initiation,
planning, executing, controlling, and closing. (PMI,
PMBOK)
Includes: (1) chartering, building and sustaining the
team; (2) developing the work plan; (3) endorsing the
project; (4) executing work and managing change; and
(5) closing the project. (CH2M HILL PDS)
Many definitions also reference resource limitations,
financial objectives, and managing risks
Project Management
 How Do Organizations Approach
Project Management?
Centralized (Hierarchy) Distributed (Flat)
Organizational priorities Priorities set from the
set at the top bottom up and the top
down
Project decisions Project decisions
managed by positions in managed according to
the organization project-specific plans,
roles, and status
Quote from sr. executive (re. distributed org.): The only
way to lose your authority around here is to exercise it
(firms typically blend both models)
Project Management
 The Peer Review and Project
Management Effectiveness
Address distinctions between project
objectives/processes and project management tools
(every project is unique)
All approaches and tools should be appropriately
scaled (no one size fits all)
Highlight: More broadly establish the use of Project
Management Plans (PMPs)
Rigorous work plans are not only for complex projects; risks
add up across portfolios of small/mid-sized projects
Mn/DOT will consider mentoring and portfolio management
approaches
Changes can only be managed with reference to a plan
(team member roles, tasks, schedule, and decision-making)
Project Management
 The Peer Review and Project
Management Effectiveness (cont.)
Highlight: Explore project manager core
competencies
Competency framework for Mn/DOT project management
is the subject of review/revision
Be careful to address project management vs. technical
capabilities and alternate career paths; how do staff
develop into PMs
Highlight: Implement team charters
A charter is typically led by the PM and is developed early
by the team
It is focused on stakeholders and related project
objectivesimportant for all team members to participate
Strong tie to the PMP
Project Management
 Construction Industry
Perspective
Kendall Griffith
Mortenson Construction

Project Management
 Construction Industry
Perspective
Most everything that we do is project management
Though our roles and scope differ from those of
Mn/DOT, our priorities and focal points are often
similar a shared focus on the delivery of project
Critical to our Project Management is a careful
balance between structured project management
processes (technical aspects), and the importance of
softer skills and forward-looking strategies

Project Management
 Highlight: Clarify the authority and
responsibilities of Project Managers

The PM is the leader of our project team

CEO of the Project, with full responsibility
for the success of the project:
Preconstruction and design-phase management
Safety, quality, productivity management
Scheduling and budget management
Procurement, insurance, billings, etc.
Customer relationship

Project Management
 Highlight: Clarify the authority and
responsibilities of Project Managers

Where do our project managers come from?

Typically grown within the Company, trained by peers
4 year degree, 5-10 years in the business
Establish themselves as leaders early in their careers

How do we groom them?

Experience with other Project Managers
Trial by fire
Estimating and scheduling training programs
Constant safety and quality training efforts
Periodic soft-skill training
Project Management
 Highlight: Clarify the authority and
responsibilities of Project Managers
(cont.)

Our PMs are responsible to deploy our project

management control systems (PMCS), including:
Primavera Expedition (documentation)
Primavera Project Planner (scheduling)
Our PMCS tools support what we do, they do not
define what we do. They are our 3rd most important
tool.
Our second most important PM tool is verbal
communication
Our most important PM tool is in-person, face-to-face
communication
Project Management
 Highlight: Complete project-level
risk management plans
While the following are key
fundamentals to successful
project management:
Cost awareness and
responsibility
Schedule foresight and
discipline
Quality Management
Planning
Good planning and
communication
On-site presence, attention to
progress
Project Management
The PRIMARY determinant of our
project management success is
how effectively we manage
through issues that arise on the
project.
Establishing plans for cost
schedule, and quality
management early in the project
clears the deck to allow primary
PM focus on Issue Management
Proactive identification of issues
Team collaboration on solutions
Timely communication and
resolution
 Highlight: Complete project-level
risk management plans
Issues are specific circumstances or occurrences that can
potentially affect the project in any way

Issue management involves:

Identify, track, and report on any potential issue on the project
Assess budget and schedule implications; analyze multiple
scenarios
Advise Owner and design team to facilitate timely decision-making

Our project management focus is Issue Management

Pro-active Issue Management is good
Re-active issue management is bad (traditional cost issue
management)

Project Management
 Highlight: Complete project-level
risk management plans
Three simple mechanisms for issue management
(risk management planning) are implemented on
our projects:
IDENTIFY - Pre-project risk and hazard analysis
(large projects or unusual risk = many people)
TRACK - Fundamental database with simple
numbering scheme tracks every issue on a project
MONITOR - Periodic issue review meetings to ensure
issues are identified and resolved in a timely manner
(scaled to project size and scope)

Project Management
 Highlight: Complete project-level
risk management plans
Issue management is our most critical project
management effort
If we plan well - schedule and cost goals will be
accomplished. Issues create the only exposures.
If issues are effectively managed - Zero injuries arise
in the workplace; Zero defects occur in the work
during and after construction
If issues are managed effectively - our project team is
focused on the success of the total project
throughout, to provide an exceptional experience for
our Customers and design partners.

Project Management
Construction Industry perspective
on Project Management success:
understand the Customers goals and
priorities
start with a well-planned schedule and
budget framework that support Customer
goals and priorities
build a relationship that ensures clear
communication of status of all project issues
actively manage the issues on the project
to ensure the Customers goals are achieved

Project Management
 Next Steps / Discussion

Jean Wallace
Mn/DOT

Project Management
 Next Steps
Action Items
Clarify the authority and responsibilities of PMs
More broadly establish the use of PM Plans
Implement team charters
Complete project-level risk management plans
Update training for PMs
Explore PM core competencies

Explore project management and other career tracks with

Human Resources
Develop an Implementation Plan for long-term sustained
change

Project Management
 Comments/Questions

?
Project Management