Profit as a measure of project success

@safason
Czech expanding company since 2006

design and implementation of corporate application

in CRM / Project Management & HR / Recruitment

using advanced Web 2.0 technologies from Adobe

focus on mid-sized and smaller organizations

more than 100 implementations

Customers
Profit

Is it possible to manage profit size?

Profit is complex unit, influenced by indefinite
number of factors
Is profit the only success criteria?
Suggestion: plan the profit and focus all your
activities to achieve it
Profit management?

Plan Do Check Act

Success criterium for project
management
Quality

Time Price
Quality
Do you have precise project specification?
Higher quality brings lower profit? Or vice
versa?
Who bears the risk? What is the relation to sub-
suppliers? How it will affect future?
There is evil hidden in details
Suggestion: focus to less extent from the
beginning
Time
Do you have flexible time schedule?
(Flex scope vs. Fix time)
Who will pay incorrectly estimated time?
Are there penalties for missed deadline?
Is this project your best alternative?
Do you take in part sub-suppliers? Does it have
relations to other projects as well?
Suggestion: make shorter phases confirmed
and paid by client
Price
Did you agree fixed / floating remuneration?
What is more important for client: price / date?
Who bears the project risk?
How is the price split in time? (Cash Flow)
Pay attention to small changes in
specifications
Suggestion: do not focus on price competition,
but bring the value of service
How to fight risk?

Agree good contract Be disciplined

Focus on key Build strong

activities relationships
Agree good contract
Is based on agreement on sharing the risk
Precisely defines what is / is not included
Try win-win principle, is good in long term
Involve your client as much as you can
Do not promise undeliverables
Evangelize your client to avoid damage (write
your own rules, if they are not, the customer is
always right)
Be disciplined
Plan, plan, plan
Communicate your plan soon to involved
Watch the budget fulfillment ASAP (preferably
in real time, after the project ended, it is too
late)
Do not underestimate details (they are most
expensive)
Hand over part of the risk to sub-supplier
Hire Financial Manager
Focus your core activities
Separate grain from chaff
Dedicate your time to activites, which are most
valuable
Attempt to fulfill long term plans
Select your customers
Encourage yourself to refuse the project (both
current & potential)
Build good relations

Involve customer into game

Identify key person, who will fight for you
Keep positive relationships in the team
Put individual’s goals in complience with the
corporate & customer’s goals
Be ethical
How will IT help you?
Provide you with unified data source
Provide you with profitability analysis in real
time
Will help you handle large amount of data
Will help you identify problem before it is too
late
Will make communication with your people
easier
Suggestion: contact Atollon :-)
What if project gets failed?
You made your best to have project successful
& it still stucks?
Communicate in timely manner
Involve key people in the resolution
If client does not cooperate, stop the project
Suggestion: better to properly prepare than to
regret later