Producing Consistent Value with the Project Business Plan

10/10/2022

AEC LEAD

Thank you for your interest in Producing Consistent Value with the Project Business Plan

We hope to see you at our upcoming training event in Arlington, Texas on November 2, 2022. Scan this code for a special discount. 1

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AEC LEAD

Producing Consistent Value with the Project Business Plan

Justin Smith, P.E. Consultant and Advisor

2022 SEAoTState Conference Fort Worth, Texas October 7, 2022

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• Name • Firm • Role • How do you define “project success” at your firm?

Let’s get to know each other

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Who am I?

• B.S., M.S. Civil Engineering, SMU, Dallas, Texas • M.B.A., Executive, USF, Tampa, Florida • P.E., S.E.; 15 years working with engineers and architects • National speaker, trainer, and advisor on Project Management, Leadership Development, Quality Assurance and Risk Management, Staff Development and Performance Management

Justin Smith, P.E. jsmith@zweiggroup.com

Principal, AEC LEAD Consultant, Zweig Group Trainer, Consultant, Strategist

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About Zweig Group • Established 1988, sold in 2004, bought back in 2012

• Re-branded from Zweig White in 2015 • Focused solely on the architecture, engineering, planning, environmental consulting and construction industry. • We come from your industry! • Three times named to the Inc. 500/5000 list of the fastest growing privately held companies. • We are here to make you more successful – as individuals and companies.

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About Zweig Group

elevate the industry

celebrate promote diversify educate change

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Brainstorm: Value Opportunities

Consider a typical project at your firm.

1.For the next 5 minutes, brainstorm the most common potential problems or conflict zones that exist between your firm and your clients and write them on your white index card. 2.Take 7 minutes, turn to the 4 people around you and discuss what you came up with in your small group.

3. As a group, identify the most common issue among the group. Write that issue on your blue index card.

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What is Project Management?

• “The discipline of initiating, planning, executing, controlling, and closing the work of a team to achieve specific goals and meet specific success criteria .” – Project Management Institute • “The use of specific knowledge, skills, tools, and techniques to deliver something of value to people.” – Project Management Institute

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What is a Project Plan?

What are the most important elements of a Project Plan?

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“What firm-specific PM training does your firm provide to project managers?”

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How many of these items focus on leading the work of a team to create value?

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Courtesy Zweig Group’s 2019 Project Management Survey

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“What do you think are your firm’s biggest training needs for project managers?”

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Courtesy Zweig Group’s 2019 Project Management Survey

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// PROJECT LEADERSHIP SKILLS AND BEHAVIORS //

LEADERSHIP AND TRUST BUILDING Building an environment of trust, respect, and innovation where the team shares openly and brings out the best ideas for the project. CONFLICT RESOLUTION AND PROBLEM SOLVING Collaboratively solving the challenges that arise on projects in ways that build the team up, rather than tear it down.

COMMUNICATION Gathering and sharing the right information with the right people in the right way at the right time and ensuring that your message is understood.

01 02

TIME AND TASK MANAGEMENT

Having the right people do the right things in the right amount of time at the right time to advance the project to success.

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// THE SCIENCE OF PROJECT MANAGEMENT //

Expectations Management

• Communication • Listening

Verbal communication

People skills

People skills

People skills

Leadership

Expectations management

Leadership

Leadership

Novel project requiring innovation

Large project with large scope

Project with high uncertainty

Krahn and Hartment (2006)

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If you were starting a business today, what would you include in your business plan?

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A formal document that defines a company’s objectives and how it will achieve them.

AEC LEAD

Attributes of a good business plan: 1. A clear Value Opportunity . 2. A clear set of goals . 3. A clear roadmap to get there.

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What is a Project Business Plan?

The integrated set of events , behaviors , and tools that systematically uncover and capitalize on the key value drivers of your projects.

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Step 1. Value Opportunity.

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Willingness-to-pay (client)

What is Value?

Value is the difference between the amount paid and the perception of worth of the services received.

Value Created

Willingness-to-sell (employees)

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The Project Value Stick

Willingness-to-pay

Maximizing Project Value by either:

Customer delight

- Raising willingness to pay - Lowering the cost to deliver your services

Price of services

Firm Value (margin)

Compensation

Employee Satisfaction

Willingness-to-sell

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What does it mean to drive high value projects?

1) What percentage of service providers feel that they deliver a “superior experience” when compared to their competitors? 2) What percentage of clients feel believe that their service providers deliver a “superior experience” when compared co their competitors?

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What does it mean to drive high value projects?

What percentage of clients would pay more if they knew they would get a good experience? How much more would those clients pay if they knew they would get a good experience?

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DIGITAL MARKETING STRATEGY // DRIVING PROJECT VALUE //

Performance

Experience

Value

Your project experience. Degree to which you delivered desired experiences.

Perception of value by client. The value that clients perceive when they work with you.

Your project results. The degree to which you achieve desired outcomes and meet desired success criteria.

Consistent, desirable experiences

Client perception of working with YOU.

Successful outcomes

Found, P. and Harrison, R. (2012)

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DIGITAL MARKETING STRATEGY // DRIVING PROJECT VALUE //

Performance

Experience

Value

Establishes clear success criteria for your services.

Provides a roadmap to consistently achieve success

Delivers high value projects

YOUR PROJECT BUSINESS PLAN

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// Your Value Opportunities //

A place in a project where you can turn a potential conflict or issue into a peak moment that drives your client’s perception of value working with you.

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Exercise #1: Value Opportunity Consider a current project at your firm, or that you are working on currently: 1.Considering the brainstorm from earlier, identify the greatest Value Opportunity on this current project. 1.Write this in the box under item 1. 2.Considering this Value Opportunity, identify how this might play out on this project. 1.Jot down some notes in the second box under item 1.

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Exercise #1: Example

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Step 2. Clear goals.

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DIGITAL MARKETING STRATEGY // PART 2: CLEAR GOALS //

WHY

Why is this opportunity important?

WHAT

What do we want to accomplish?

WHEN

When do we want to achieve this?

HOW

How do we define success?

WHO

Who do we need to engage to achieve this?

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DIGITAL MARKETING STRATEGY // VARIABLES IN PROJECT MANAGEMENT //

Independent Variables

Dependent Variables Project success:

Communication Leadership Style PM Characteristics Innovation Conflict Management Change Orientation Self-monitoring

Time Cost Quality Scope Team

Moderating Variables

Organizational Structure Organizational Incentives Organizational Project Management Maturity

(Creasy & Anantatmula, 2013)

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Poll

What percentage of the workforce, on average, does not understand your strategic goals?

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Poll

What percentage of firms that set strategic goals outperform their peers?

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Poll

How much more profitable are firms using goal-directed plans?

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Strategic focus -Just the stats

PROFITABILITY UNDERSTANDING TIME SPENT

EXECUTION

95%

70%

12%

86%

Courtesy Zweig Group

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DIGITAL MARKETING STRATEGY // DRIVING PROJECT VALUE //

DOMAIN PERFORMANCE EXPERIENCE

Key Driver #1

Quality

Responsiveness

Proactiveness and Helpfulness

Key Driver #2

Schedule

Clarity / Accuracy

Key Driver #3

Scope and Fees

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Exercise #2: Clear Goals

Refer to your Value Opportunity from Exercise #1.

1. Review the topics from exercise #1.

2. Using the worksheet, complete the following sections:

1. What needs to be accomplished to capitalize on this opportunity? 2. How do we define success for this opportunity? 3. Why is this important to the project? 4. When do we want to achieve this? 5. Who do we need to engage to achieve this?

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Exercise #2: Clear Goals; Example

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Step 3. Shared Roadmap.

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What does it mean to drive high value projects?

How many undesirable experiences will your clients tolerate before they look for an alternate service provider?

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What is the definition of an undesirable client experience?

An outcome that does not meet the client’s expectations, whether the expectations are known or unknown.

Found, P. and Harrison, R. (2012)

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// YOUR PROJECT PROCESS //

LAUNCH & EXECUTE

MONITOR & CONTROL

INITIATE

PLAN

CLOSEOUT

The process through which an opportunity is established as a project and expectations are set and communicated and success criteria is established.

The process through which the work of the team is planned in order to achieve identified success criteria.

The process through which the plan is communicated, and work is launched.

The process through which work

The process through which the project is completed, and the focus is shifted to long

is monitored, variables are controlled, and problems are solved.

term client relationship maintenance.

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// MANAGING EXPECTATIONS //

EXPECTATIONS MANAGEMENT

Fuzzy

Precise

Focusing

Implicit

Explicit

Revealing

Unrealistic

Realistic

Calibrating

Long-term value

(Ojasalo 2001)

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AEC LEAD // DISCOVERY SKILLS: UNCOVERING EXPECTATIONS //

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OPEN-ENDED QUESTIONS

SUMMARIES

AFFIRMATIONS Build rapport with conversational partner and shows support Can enhance motivation, engagement, and well-being “I can tell you really take pride in this” .

REFLECTIONS

Repeating or paraphrasing back Builds trust, engages others Can increase understanding of motivations in empathetic way and provide opportunities for clarification

Special application of reflective listening Helpful to begin with phrase signaling summary, “let me see if I’m understanding all of this”

Questions that are not YES/NO responses Gain information Use to convey mutual understanding

• •

Impacts client experience

Be concise

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// MANAGING EXPECTATIONS //

EXPECTATIONS MANAGEMENT

What does it look like?

Fuzzy

Precise

What are you thinking?

Implicit

Explicit

How do you see this working?

Unrealistic

Realistic

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Exercise #3: Building the roadmap

Refer to your Exercise #2.

1. Why does this opportunity exist? What questions can I ask to uncover the expectations at the heart of this opportunity? ( Discovery ) 2. When does this opportunity occur? When will the team deliver on this opportunity? ( Event )

3. How will your team deliver on this opportunity? What are the key behaviors that will capitalize on this opportunity? ( Behavior )

4. What does your team need to deliver on this expectation? ( Tool )

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Exercise #3: Building the roadmap; Example

Systemize and embed in every project.

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Step 4. Putting it all together.

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YOUR PROJECT AS A BUSINESS

What are we trying to accomplish with this project? What are the key events that need to happen to achieve our goals? Which tools do we use to support our process? What behaviors and skills do we need to be able to accomplish this?

Skills

Tools

Process

Goals and Objectives

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// YOUR PROJECT BUSINESS PLAN: PART 3; ROADMAP //

LAUNCH & EXECUTE

MONITOR & CONTROL

KEY ELEMENTS INITIATE PLAN

CLOSEOUT

VALUE OPPORTUNITY

EVENT

BEHAVIOR

TOOL

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// YOUR PROJECT BUSINESS PLAN: PUTTING IT ALL TOGETHER //

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// TAKE AWAY //

Successful AEC Project Management is not about task lists and metrics. Successful AEC Project Management is about: 1. Identifying value opportunities during your projects. 2. Establishing clear expectations and goals for those moments. 3. Executing on a shared roadmap to achievement.

Your Project Business Plan is the roadmap to consistent delivery across your firm and across your projects.

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What questions can I answer for you?

jsmith@zweiggroup.com Justin Smith, P.E.

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