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Strategic Planning

WHAT IS VMOSA?

One way to make that journey is through strategic planning, the process by which a group defines its own “VMOSA;” that is, its Vision, Mission, Objectives, Strategies, and Action Plans. VMOSA is a practical planning process that can be used by any community organization or initiative. This comprehensive planning tool can help your organization by providing a blueprint for moving from dreams to actions to positive outcomes for your community.

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7 Step Problem Solving

Prof. Shoji Shiba is an international expert in Total Quality Management (TQM) and Breakthrough Management.[1] Globally he is best known for developing the “Five Step Discovery Process” for Breakthrough Management. In the recent years he has been guiding the transformation of the Indian manufacturing industry.

A Deming Prize winner[2] in an individual capacity for propagating TQM amongst corporates and governments, Prof. Shiba has authored books like ‘A New American TQM’ (co-authored by David Walden and Alan Graham), ‘Integrated Management Systems’ (co-authored by Thomas H Lee and Robert Chapman Wood), ‘Four Practical Revolutions in Management’ (with David Walden) in English and ‘Breakthrough Management’ (Japanese 2003; English 2006).

To handle a complex problem say for example a huge number of calls in a call center, you need the following 7 steps (defined by Dr. Shoti Shiba) to perfectly solve it:

  1. Definition: the first thing is to ask what is the problem really, without the answer of this question you cannot go any further; taking our example, you need to know what the problem really is? Is it the number of calls? Is it how long the call is taken? Or it is about something in the content of the call. Let’s decide it is the number of calls.
  2. Data Collection: next step is to answer the question “WHAT?” Get detailed data about the problem; if we are talking about the number of calls so let’s draw a graph about the number of calls over time.
  3. Cause Analysis: next step is to answer the question of “WHY?”; many techniques can help you find the cause of the problem such as Ishikawa or Pareto; or may be simple analysis, any of them will use the data collected above; in our example you found that the increase of calls synchronized with the shipment of new product, which the most of the new callas are about.
  4. Solution Planning & Implementation: “A lot of work in a simple line of writing”; after previous 3 steps you are ready correctly solve your problem by planning and implementing the solution; it worth the effort because you know you are doing the right thing; in our example you may chip to the customer a check list about the things/checks they need to go through before calling.
  5. Evaluation of Effects: Don’t stop now; you need this step as much as you need the previous 4; the question here is “DID IT WORKED?”; after shipping the check list you need to monitor and collect some data to check if the calls goes normal again.
  6. Standardization: once we found the right solution, let’s see how widely we can use it in the organization.
  7. Evaluation of The Process: after we widely spread the solution all over the organization we still not done; we need to know about the steps we have been through to solve the problem are they good to do every time we solve a problem, what are they pros and cons; so next time we do it more efficiently.
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Double-triangular Distribution

Double-triangular Distribution is the combination of two triangles, each with an area of 0.5. The mode is also the median.

The mean is:

The variance is:

Note: the variance is the same as for the triangular distribution.

The probability density is:

And the cumulative distribution function:

 

For Monte Carlo simulation random values from the DT can be generated using random numbers between 0 and 1 (here denoted as “p”) and the following formulas:

The double-triangular is quite unnatural. It is highly unlikely to be a proper representation of uncertainty. Moreover, estimating the median is, in my view, more difficult than the estimating the most likely value (mode).

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Responsibility Assignment Matrix

he first step in creating a responsibility assignment matrix is to decompose your projectand create a work breakdown structure. Once you have completed this important first step, you will know what the project deliverables will be. If you compose an organizational breakdown structure – breaking the project down into a hierarchy of departments, it will facilitate the process of assigning deliverables to responsible parties. Creating this second chart is an option that is highly recommended.

Once you have the list of deliverables, open an Excel file. Down the left-hand side list each deliverable. If there were intermediate deliverables discovered in the process of creating the work breakdown structure, list those as well.

After listing each deliverable down the side, list each resource across the top of the table.

Now, you will assign deliverables to resources using the following code for roles:

R: Responsible – this is the resource that owns the work. Each deliverable should have at least one person responsible for it.

A: Accountable – this is the person who approves the work. There is only one accountable resource.

C: Consulted – this is the person who delivers information required to complete the work.

I: Informed: This is the person who is informed of the progress of the deliverable.

S: Supportive: This is the person who provides work in addition to the responsible party.

V: Verifies: This is the person who ensures that the work meets standards.

F: Final Authority: This person gives the final stamp on the completed work.

In assigning roles, you will use at least the first four listed above RACI. Assign each deliverable to at least one responsible party. Assign each deliverable exactly one accountable party. Continue until everything has been assigned. Distribute the responsibility assignment matrix monist the staff and make explicit your expectations for each of them.

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Earned value management

Earned value management (EVM), or Earned value project/performance management (EVPM) is a project management technique for measuring project performance and progress in an objective manner.

Earned value management is a project management technique for measuring project performance and progress. It has the ability to combine measurements of the project management triangle:

  • Scope
  • Schedule, and
  • Costs

In a single integrated system, Earned Value Management is able to provide accurate forecasts of project performance problems, which is an important contribution for project management.

Early EVM research showed that the areas of planning and control are significantly impacted by its use; and similarly, using the methodology improves both scope definition as well as the analysis of overall project performance. More recent research studies have shown that the principles of EVM are positive predictors of project success.[1] Popularity of EVM has grown in recent years beyond government contracting, in which sector its importance continues to rise[2] (e.g., recent new DFARS rules[3]), in part because EVM can also surface in and help substantiate contract disputes.[4]

Essential features of any EVM implementation include

  1. a project plan that identifies work to be accomplished,
  2. a valuation of planned work, called Planned Value (PV) or Budgeted Cost of Work Scheduled (BCWS), and
  3. pre-defined “earning rules” (also called metrics) to quantify the accomplishment of work, called Earned Value (EV) or Budgeted Cost of Work Performed (BCWP).

EVM implementations for large or complex projects include many more features, such as indicators and forecasts of cost performance (over budget or under budget) and schedule performance (behind schedule or ahead of schedule). However, the most basic requirement of an EVM system is that it quantifies progress using PV and EV.

There is a measurement limitation for how precisely EVM can be used, stemming from classic conflict between accuracy and precision, as the mathematics can calculate deceptively far beyond the precision of the measurements of data and the approximation that is the plan estimation. The limitation on estimation is commonly understood (such as the ninety-ninety rule in software) but is not visible in any margin of error. The limitations on measurement are largely a form of digitization error as EVM measurements ultimately can be no finer than by item, which may be the Work Breakdown Structure terminal element size, to the scale of reporting period, typically end summary of a month, and by the means of delivery measure. (The delivery measure may be actual deliveries, may include estimates of partial work done at the end of month subject to estimation limits, and typically does not include QC check or risk offsets.)

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matrix management

Strictly speaking matrix management is the practice of managing individuals with more than one reporting line (in a matrix organization structure), but it is also commonly used to describe managing cross functional, cross business group and other forms of working that cross the traditional vertical business units – often silos – of function and geography.

A lot of the early literature on the matrix comes from the field of cross functional project management where matrices are described as strong, medium or weak depending on the level of power of the project manager.

Some organizations fall somewhere between the fully functional and the pure matrix. These organizations are defined in A Guide to the Project Management Body of Knowledge[1] as ’composite’. For example, even a fundamentally functional organization may create a special project team to handle a critical project.

However, today, matrix management is much more common and exists at some level, in most large complex organizations, particularly those that have multiple business units and international operations.

Key advantages that organizations seek when introducing a matrix include:

  • To break business information silos – to increase cooperation and communication across the traditional silos and unlock resources and talent that are currently inaccessible to the rest of the organization.
  • To deliver work across the business more effectively – to serve global customers, manage supply chains that extend outside the organization, and run integrated business regions, functions and processes.
  • To be able to respond more flexibly – to reflect the importance of both the global and the local, the business and the function in the structure, and to respond quickly to changes in markets and priorities.
  • To develop broader people capabilities – a matrix helps develop individuals with broader perspectives and skills who can deliver value across the business and manage in a more complex and interconnected environment.

Key disadvantages of matrix organizations include:

  • Mid-level management having multiple supervisors can be confusing, in that competing agendas and emphases can pull employees in different directions, which can lower productivity.
  • Mid-level management can become frustrated with what appears to be a lack of clarity with priorities.
  • Mid-level management can become over-burdened with the diffusion of priorities.
  • Supervisory management can find it more difficult to achieve results within their area of expertise with subordinate staff being pulled in different directions.

The advantages of a matrix for project management can include:

  • Individuals can be chosen according to the needs of the project.
  • The use of a project team that is dynamic and able to view problems in a different way as specialists have been brought together in a new environment.
  • Project managers are directly responsible for completing the project within a specific deadline and budget.

The disadvantages for project management can include:

  • A conflict of loyalty between line managers and project managers over the allocation of resources.
  • Projects can be difficult to monitor if teams have a lot of independence.
  • Costs can be increased if more managers (i.e. project managers) are created through the use of project teams.

Representing matrix organizations visually has challenged managers ever since the matrix management structure was invented. Most organizations use dotted lines to represent secondary relationships between people, and charting software such as Visio and OrgPlus supports this approach. Until recently, Enterprise resource planning (ERP) and Human resource management systems (HRMS) software did not support matrix reporting. Late releases of SAP software support matrix reporting, and Oracle eBusiness Suite can also be customized to store matrix information.

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Work Breakdown Structure

The work breakdown structure approach allows us to visually see the work that is needed in order to complete a project.

According to the Project Management Body of Knowledge (PMBOK®), and the Practice Standard for Work Breakdown Structures – Second Edition from the Project Management Institute (PMI), the work breakdown structure can be used to effectively decompose the project scope, to improve estimating, to better control the project execution and to more accurately verify project completion. In addition, using a work breakdown structure approach summarizes project information to improve the opportunity for use of historical information, which, can aid in both speed and accuracy of future projects. The work breakdown structure is a repeatable process that can be used as a template for future projects.

the PMBOK® describes the work breakdown structure as “a deliverable-oriented hierarchical decomposition of the work to be executed by the team”. This is a way of describing the work so that the team knows exactly what work is needed in order to meet the goals of the project. In many cases, a work breakdown structure is the first transition of organizational goals into real work that people can actually perform. It helps to provide clarity of the scope for the project and “breaks down” the scope into whole work units.

A work breakdown structure is deliverable-oriented. So what is a deliverable? In a word, it can best be described as a noun.

A work breakdown structure is a hierarchy. That means that deliverables can be further decomposed into parent and child relationships.

The work breakdown structure technique is described in the Project Scope Management section of the PMBOK and further elaborated in the Practice Standard for Work Breakdown Structures – Second Edition. A scope definition is necessary to decide what all should and should not be covered with in the project. When complete, the work breakdown structure lowest level components called “work packages” can be delegated to teams for further development and estimating and a work breakdown structure dictionary can be developed. In this way, project responsibilities can easily be distributed and committed to. This information can then be placed into a scheduling tool. In addition, the work packages can be used to create a project baseline that assures all the work can be evaluated for completeness.

A work breakdown structure is typically presented in the form of an organization chart-like structure. It can be presented as a list, idea map or outline form as well. The key is to put it in a form that can most easily be used by both the team members and organizational leaders with the tools that your company uses most easily.