Execution Management Minute

F= rom: &= nbsp; &nbs= p; R= ealization Technologies [emm@realization.com]

S= ent: &= nbsp; &nbs= p; = 04 March 2008 10:12 PM

T= o: &= nbsp; &nbs= p; &= nbsp; D= eon Van Zyl

S= ubject: &= nbsp; &nbs= p; E= xecution Management Minute From Realization

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<= /o:p>

Dear Managers,

With this issue we are sta= rting a series of 10 “execution management minutes” on the basics= of an execution management system – from solution to implementation. If you fin= d them useful, please feel free to forward them to your colleagues. <= /p>

Sanjeev Gupta, CEO, Realiz= ation

EMS 01

Pursue “Time Efficiency”, Not “Resource Efficiency”=

While the common practices are driven by resou= rce efficiency, making efficient use of time is the key to success in projects. This is true from both operational and business perspective= s. Here’s why.

Operational Performance. When projects run= out of time, you experience more than just project delays. There are cost overruns and, all too often, compromises in scope and quality. Consid= er the following –

	Even though managers attack cost overruns by making resources more efficient, it is well documented – and common sense – that the longer a project takes, the more resources it will consume. In fact, pursuing “resource efficiency” actually stretches projects, thus increasing costs.
	Once projects fall behind, expediting costs are often incurred.
	For capital-intensive projects, the longer the proje= ct takes, the higher the cost of the tied-up money.<= /p>
	In multi project organizations, time also equals throughput. Simply put, the faster that a project gets completed, t= he faster resources become available for the next project.<= /span>

There is no argument that processes and disciplin= e are needed to ensure that customer requirements are understood, and that = work gets done with high quality; BUT these goals are easily compromised w= hen projects come under time pressures. Thus, having enough time is vital= for high quality.

Business Performance. Whether you are developing new products, constructing infrastructure, overhauling aircraft or shutting down pl= ants for maintenance, the faster the project gets done, the more value it delivers.

	As product life cycles shrink, faster time-to-market translates into higher pricing and la= rger market shares.
	The faster the infrastructure projects gets finished, the faster their benefits st= art accruing.
	Faster turnaround in aircraft and ship MRO equates to higher fleet availability with a smaller fleet.
	Faster maintenance means longer availability of the plant and machinery for production.

Project-based businesses that feed into the above= value chains can create a competitive advantage by guaranteeing on-time delivery of their sub-projects. And, if they are on the critical path= of overall projects, they can even charge a premium!

It can be frustrating, that despite all the best efforts, rarely do projects finish on time, stay within budgets and deliver the full scope. In such a situation, how can we even think ab= out doing more projects faster, oftentimes, with fewer resources?

There is no doubt about it; more of the same is n= ot working and a fresh approach is needed. We need to change how we mana= ge project execution. The change begins with a major recognition. Time is the most precious resource in projects.

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