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Why make status reports?

Every project needs a status report , also known as progress report, in which the status of the project is clearly, accurately and objectively reported.

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A project status report is intended to provide an evaluation of the progress and communicate execution details. Therefore, the development of the progress report is of great importance, since it is vital that it be carried out following a predetermined model. Only in this way will the users of the reports be able to compare them with each other:

Comparing status reports for different phases of the same project gives you a better idea of the distance covered, analyzing how far future projections from previous phases have been verified or denied
Comparing reports from different projects is crucial, especially among similar projects using Gantt charts, to understand where discrepancies between estimates and real data are

If you do not have a reporting model in your organization, you are missing out on the advantage of being able to compare reports. To make matters worse, homogeneous models allow users of such reports to find the information they need quickly, as they know how it’s structured. This is one of the aspects where by a Project Management Office can bring great benefits for internal communication in an organization.

A status report contains a brief description of the main elements of the report, establishing causes and explanations that justify and give context to the data. Metrics and graphics will allow the user to understand the progress of the project in a very short time.

The executive summary: Basis for monitoring a project

This section requires an objective description of how the project is running . The summary should present clearly and simply the most important results of the project, including:

Milestones fulfilled
Deliverables and quality
Risks or unforeseen events
Relationship between estimates and real, in at least three aspects: resource allocation, costs and deadlines
The difference between the estimated progress and the progress to date. If the date of delivery is considered unrealistic, this alarm signal is the first step to alert the customer and negotiate a new date with him.

On the other hand, the executive summary is very effective for a detailed follow-up of the unplanned challenges that arose during project development, as well as actions to be implemented in the short term , so that any eventuality can be mitigated.

The purpose is to ensure that the project continues on the path to success, delivering the project on time, with the expected quality.

Project progress reporting: steady progress assessment

The constant evaluation of a project is vital to know what countermeasures should be taken to make the project successful. Hence the preparation of this section outlines the most problematic areas of the project.

Likewise, suggestions and corrections can be advanced to solve a specific problem. As the project, often, cannot wait to receive feedback on these aspects, decisions are already taken, so this point can delineate already decided actions.

Registration Template: Project Control

The status report should generate relevant information about the risks recorded. It is advisable to start from a registry template by means of which you can retrieve useful information in an orderly way. This registry template will contain:

Project Risk Factors,
Probabilities
Project impact

You can visit ITM Platform’s free risk assessment matrix to compile this information quickly.

Know all about metrics: Promotes project tracking

Managing a project is only possible if you have the tools to quantify the different parameters involved, offering objective and comparable data. Thus, you can measure, for example:

Delivery times
Quality of the deliverables, based on the number of requirements included
Costs incurred to date
Percentage costs over total
Amount of unanticipated costs incurred
Hours worked, either per worker or by professional category

Result indicator

If the result is not a material product but a service, and the project covers the phases of implementation and marketing, there will be a large number of quantifiable aspects related to the result, such as the number of users, their average cost, and so on. These indicators will serve to measure the quality of delivery.

If you are interested in knowing which indicators you can use to manage your portfolio, you can continue reading these articles:

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The most common project indicators: time and budget

Traditionally the measures of cost and time have been worked with, commonly known as 'On Time and On Budget' (OTOB). This means that the project is delivered on time and within budget.

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It's normal for any project manager to consider that the most important project indicators are the elements included in OTOB, such as time compliance and the synergy between the budget and the original plan , in order to determine the profitability of the project.

However, there are many more metrics to consider when measuring management effectiveness, project profitability, and even the contribution to the long-term objectives of the organization. Cost and time measures are a start, but it is important to complement them. There are now multiple measures that monitor the project during its development and allow for a more accurate analysis.

Key Performance Indicators or KPIs serve as a execution guide to examine and evaluate the performance of a project over time, beginning to end. Their effectiveness lies in the evaluation and monitoring, whether they are normal or special projects.

An indicator is not the same as a metric. To evaluate the data captured as a KPI it is necessary to be able to look at the progression. For example, the number of projects not completed in time becomes a KPI when transformed into a percentage and when placed in the context of the total of projects; or when comparing the change from previous years.

How does distance evolve with estimation?

This starting point allows us to understand the complexity that behind the seemingly simple notion of time. Time can lead to a very high number of project indicators, so it is imperative to be able to select the most important and clear ones.

One of the most valuable indicators related to the measurement of time is the deviation from the initial estimates of deadlines. This indicator evolves throughout the execution of the project. For example, by default ITM Platform offers the following graph, in this case on a software development project.

It can be seen that on January 1, 2018 the deviation between expected percentage and percentage completed is 26%, although the situation was even more serious in mid-December, when the gap reached 30%.

From there, it is easy to extrapolate valuable indicators. Let's look at the following table, which compares the actual data with the nearest estimated points.

	1	2	3	4	5	6	7	8	9	10
Estimate	9%	20%	26%	46%	54%	62%	70%	78%	88%	100%
Real	6%	9%	17%	26%	31%	32%	34%	40%	62%	74%
Difference	3	11	9	20	23	30	36	38	26	26
Increase in difference	+3	+8	-2	+11	+3	+7	+6	+2	-12	0

Although the difference between estimated and actual completed percentage is an interesting value, the variation of the difference is the most important KPI because it identifies the critical points throughout the project execution, such as the inflection at point 4, from which the difference remains above 20 points.

From such a simple indicator, it is possible to examine the causes of deviations in detail, to identify the problems and to put in place measures so that this will not be repeated in the future:

If the estimates of the time needed to complete certain requirements were unrealistic, one must delve into the actual work that was necessary to complete them
If there were unforeseen delays due to avoidable reasons, these motives can be outlined as risks in future projects in order to generate contingency and mitigation plans that allow both isolation and treatment.

Of course, this isolated KPI can not tell the whole story, or may show a very different version of events. For example, the critical path could have been affected from the beginning by an external factor that, when unblocked, would generate the enormous advance between points 8 and 9; but it could also happen that the accumulated delays were due to a little integrated project team and the final advance to the commitment of the team to save the project before the imminence of the delivery.

That is why it is necessary to use this is conjunction with other indicators and with the practical information that can be gathered from conversations with the team members.

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Project cost management is one of the most important sections of the Project Management Book of Knowledge (PMBOK) and seeks, from a theoretical and practical point of view, to determine and control the costs involved in the project execution. This is an important area of knowledge since no project can be considered without having set aside sufficient resources for its execution.

For this, time is an influential factor, since the cost estimation will in principle require a project working with timelines; that is, short-term goals are proposed for each phase.

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It should be considered that if the total period for the delivery of a project is taken as an independent variable, there will be different risks associated with costs as a dependent variable. Namely: if you decide to carry out the project in the shortest possible time, you will be incurring the maximum cost, which requires impeccable coordination between all processes and a very high risk exposure in the appearance of deficiencies in coordination. If, on the other hand, the decision is made to extend the duration, the exposure to environmental risk increases: external circumstances are more likely to affect the initial budget.

How to estimate the costs of a project

The actions that revolve around this go beyond a mere quantitative estimate by a manager or project management team, since internal and external aspects that directly influence the achievement of the project must be carefully estimated.

Obviously, costs cannot be estimated without an exhaustive and accurate collection of requirements. The first reference of the project manager, therefore, is the Work Breakdown Structure (WBS).

Define the cost of each requirement. In many cases, these requirements will have a known cost and a trusted supplier; in other cases they will be more difficult to determine and should be roughly estimated;
Define the amount of work needed to complete all requirements and the cost per hour of each type of worker involved. This calculation serves as the baseline for the human cost of the project.
From the total of the two sums, the project manager must make the necessary adjustments related to the project inconsistencies and its plan, taking into account the duration of the project and how it affects the organization of the tasks. Estimation of costs. This implies the calculation of various circumstances and factors available and foreseeable during its lifetime, such as risks and price increases (in case of products involved), rents, materials, equipment, facilities, etc. For this, a "Reference Line" is created based on the time that they estimate the tools and economic resources that would be provided to each activity. This connects the aspects as mentioned above.

The more narrow the scope, the more reliable the budget will be for the project. Of course, the project manager should not impose his estimates, but rely on a team of experts and experts in this field, who should evaluate the tasks that create the plan, and perform these assessments.

From Utopia to Facts

The area of knowledge of the project costs is not exclusively financial, but requires techniques, specialized analysis and knowledge that allow to be aware of all the factors that can modify a project. These include execution schedules, the assessment of possible risks, coordination of meetings with stakeholders, which may need to address suggestions that affect the scope or mode of delivery, respect for the internal policies of a company, Attention to market conditions, experience in similar past projects, etc. Among the more strictly financial aspects are exchange control and fiscal aspects, which can be especially complex in international projects, inflation, and the corporate structure of financial control.

Also, turning information into knowledge requires tools that facilitate an approximation to the facts.

Units of measure: Depending on the object to be monitored, it will be estimated whether it can be measured with units of time (man hours, days, weeks, months), metric units (meters, centimeters, millimeters, tons, liters), and even in units of payment (monthly, fortnightly, single payment, etc.).
Accuracy: It varies according to the scope of the project, rounding figures around each aspect or phase that gives certainty of the costs that will be required for each one.
Cost limits: It is essential to determine this amount so that, in each cost review, there is a precondition
Cost limits: It is essential to determine this amount so that, in each cost review, there is in advance a conditioning of what is going to be required in each case. With this tool it is intended to keep the investment within the premeditated parameters and, if not, to take the corresponding corrective actions.
Measurement of the effort granted: These are performance indicators that are analyzed in the costs.
Management of information about cost management: Stakeholders should be fully and regularly informed of the management that is being carried out, either periodically (daily, weekly, fortnightly, monthly) and by providing reports Or any other ordinary means of communication.

Determination of the budget

Taking as a starting point the costs related to each activity, each of the estimates is added individually or jointly, to stabilize the reference line or cost, for the sole purpose of determining the budget of a project, Which will influence the funds allocated to it.

Costs control

It is necessary to monitor the consumption of costs in any situation of the project and to update them, if necessary, according to the cost baseline adjustment that was created. Any increase that is deemed relevant in project costs should be reviewed under an integrated perspective of the changes. However, its effectiveness lies in the management of the baseline, which maintains the cost performance and estimates the deviations occurred.

The aforementioned constructs the way towards an effective estimation of the costs of the project from the beginning. Successful budgeting is not as important as accurately picking up activity notifications. From the exhaustive control of deviations, it is possible to allocate the necessary resources to compensate for the unplanned under-coverage.

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Like all sciences and disciplines, project management and change management have a particular language. Hence, a better understanding of professionals in this field is achieved, which can be communicated without creating ambiguities. However, for newcomers in these areas, the terminology can be complex and confusing. We will define some of the main terms and concepts related to project management and change management to facilitate their understanding.

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Change management

In a dynamic world and market, it is assumed that any company or business must be constantly changing to adapt to the specific needs that customers can present at any given time.

This constant change is what makes it necessary to have an active policy of change management within the company.

Traditionally, change management has been understood as the transition from an original state, in which the company is before the change, to a definitive state, in which the company finds itself after the change. The aim of change management is to make the change with agility, adapting to the needs of the market, and at the same time in the most gentle and simple way for the workers, to avoid altering their attitude towards their work and optimizing their adaptation.

At present, there is a new, more dynamic concept of change management, which involves a gradual, transitional change from one working system to another on an ongoing basis. It is assumed that there will never be a perfect match between work methodologies and market needs, so it becomes necessary to be in permanent change.

According to this second, more modern concept, the change management of the company aims to detect the directions of the market and direct the methodologies of work towards them.

Communication strategy

Communication is the vehicle that allows people and companies to be contacted. Good communication is necessary to successfully implement any work strategy.

In the case of change management, ensuring efficient communication channels between the different services, departments and personnel involved is an essential condition for the change to take place effectively.

Therefore, in addition to adequately clarifying the change management, it is necessary to decide the communication systems that will allow it to be applied properly.

Company culture

A company is like a living being formed from the sum of all the people who constitute it. Therefore, it has its own personality, its own internal culture, and is formed by the employees' attitudes, values, behavioural norms and the illusion and hope for the future that they all have.

It is desirable to develop a company culture because it contributes to generate a sense of belonging and involvement and, therefore, to improve productivity and interaction between workers.

ROI (Return On Investment)

It is probably the most useful indicator to measure how successful a change is in a business. In practice, it means how much of a result is being drawn from the effort and capital that is being invested initially. Therefore, it is a direct measure of the performance of the effort and the work of the company. More efficient work management systems and methodologies will allow for a higher return on a smaller investment, that is, increase the ROI.

Therefore, quantifying the ROI before and after implementing a new work methodology allows us to study the real impact that this has had on the company and its productivity.

Stakeholder analysis

It means exactly what the word says, to analyze all the people in the company who can be affected by a change initiative, whether they are the ones who have to implement it or who are the beneficiaries or recipients of this change.

In order to analyze the personnel involved, the first step is to ask the correct questions to identify each one, to understand their specific needs, what they expect from the changes that will be introduced and where is the most correct place for each one of them In the company, taking into account the tasks they perform, their training, their place in the hierarchy and their attitude towards change.

Risk Mitigation

The introduction of any change in the company implies the introduction of a risk. One of the functions of project management is risk management.

Prior to the execution of any project, it is necessary to carry out a unified analysis of the risks that can appear and the attitudes that must be taken to avoid them or at least to diminish the impact they have on the project as a whole.

In the case of change management, its very essence implies a risk, since it has an impact on the company and its operation, although in principle it is expected to be positive.

However, risk must be constantly monitored to enhance the positive impact that change can have and avoid or minimize possible negative impacts.

Resistance to change and training

All changes involve some sort of apprehension from the workers, who are accustomed to the working methodologies. To reduce these resistances and facilitate the adoption of changes, the best tool is training. A conscientious, motivated and trained worker, who knows the contributions and advantages of the new work systems, is an employee willing to change and improve progressively.

Conclusion

Project management and change management have their own glossary. Knowing the terminology will help to understand the concepts and, therefore, to apply them properly.

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A project management office (PMO) can fulfill multiple functions related to the supervision of an organization's project portfolio, often with managerial functions and with a strategic orientation that is added to the simple control and monitoring layer.

However, it is not clear what an agile PMO is or how it is structured. It is becoming increasingly urgent to clarify this aspect, since many teams and even entire organizations, especially in the field of software and application development, rely entirely on agile methodologies such as SCRUM.

Before entering into the matter, it is necessary to clarify three different senses of what can be understood by agile PMO.

Disambiguation: What do we mean by agile?

An agile PMO can refer to several situations, such as:

1. The agile implementation of a PMO

As the start-up process is long, complex and may have difficulties in demonstrating its benefits to stakeholders with a high capacity for influence, some experts advise that the start-up approach be agile and be protected from criticism towards a structure that it is not working 100% yet. In addition, it is possible that the difference stakeholders do not agree on what should be the role of the PMO in the organization, in which case their scrutiny on the development of the implementation will necessarily be uneven.

Reference: https://www.pmi.org/learning/library/agile-project-management-office-expectations-7069

To combat this disadvantage, a PMO whose implementation is conceived as an agile project must deliver processes and functions useful for the operation of the PMO in a continuous and early manner.

The measure of the progress of the project, as is logical, is given by the functionality of the PMO itself.

An agile implementation is usually characterized by an initial diagnostic phase, followed by phases of planning, execution and closure that can be iterated several times until the PMO has the desired maturity.

However, in the first iteration of the execution, the PMO already assumes characteristics that allow it to operate in one or more of its functions.

2. The role of a PMO whose objectives is to manage the project portfolio following agile principles

It is not essential to have adopted SCRUM throughout the organization so that we are interested in benefiting from some of the advantages of agile principles at the corporate level.

For example, the agility applied to the entire portfolio of projects allows for early decisions and rectifies the initial planning of projects when the context that justifies them is modified.

3. The role of a PMO in an organization that has exclusively adopted agile project management methodologies

What happens when an organization that worked with classical methodologies or waterfall becomes guided by SCRUM or other agile methodologies?

What is the role of the PMO in this new situation? Is the mission aborted and the office deleted, or is it given a new meaning?

The cultural and change management role of the PMO can be fully maintained. In the new context, the PMO facilitates the deployment of the agile culture in the different areas of the organization.

The predominant areas are the following:

Training: includes training new people in agile methodologies, preparing meetings and workshops, deepening for key embers, as well as coaching services.
Work monitoring: although the agile philosophy is very horizontal and does not require so much external control, a PMO can support the performance of the teams helping them to manage the backlog, offering clarity in the performance of the teams through an impartial external vision, and helping to that the documentation that works in the organization is productive and does not produce unnecessary work.
Interlocution with the business: One of the fundamental aspects of the manifest agile is the constant efforts to understand the need of the client and guide the work to the delivery of utility. In internal projects, it is essential that there is a well-oiled transmission chain with those who administer the corporate strategy so that they know that the engineering teams are working on the most critical aspects and that they deliver the most value to the business.

Next, we detail better what the work of an agile PMO consists of in this last case.

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The nuance is important, as our readers are well aware that managing agile projects involves ongoing guidance to customer requirements and very frequent evaluation cycles. The question is how the responsibilities of methodological guidance, centralization, control and direction of the PMO can be connected in these cyclical structures, maintaining customer orientation and business perspective.

The fundamental risk, let's face it, is to create a small bureaucratic monster that coagulates methodological demands without adding value.

Failures in the conception of a PMO

The main problem arises when, in order to achieve agile projects, an attempt has been made to establish rules of action that have merely pigeonholed and limited decision-making.

Despite falling under the range of agility, SCRUM requires the production of a lot of documentation with a very high frequency, including the requirements of user stories.

A recurring error when creating PMO in agile environments is utilizing them as centralized offices that impose internal policies and norms. Keep in mind that circumscription to certain standards at work can marry poorly with the completion of certain complex projects. There is the risk of restricting the freedom of action and the margin of manoeuvre that are fundamental to produce value in all sprints.

A PMO cannot be confused with merely a controlling body that seeks to fit agile projects into tactics, methodologies and master projects of the manager that have been preconceived without special attention to the changing nature of agile projects.

First correct interpretation of the agile PMO

In contrast to the centralized and bureaucratic PMO, the most attractive in an agile environment is the performance of a facilitation function.

This can be done by establishing recommendations to help manage the workload, distinguishing between priority and ancillary tasks, helping project managers determine how much they can rely on experts, and even set basic standards of performance and work ethics that are in line with the values and mission of the organization. So that all projects, besides providing value to the client, are oriented to the common benefit and growth and consolidation of the organization.

One difficulty of any multi-project organization is the barrier to sharing knowledge, both within the same project team and between different projects. In the first case, the difficulty is that the experience and specialization accumulated by the veterans is not limited to the tasks they perform - which would create bottlenecks; In the second, the difficult thing is that the experience in the development of a project is not forgotten with its completion, but rather to increase the experience accumulated by the organization.

An agile PMO, among other things, faces the specific knowledge challenges that hinder operational improvement in agile performance.

And one of the main goals of an agile PMO is to make all parts of the organization that take part in a project as a unit, as a team, and even as a team of teams. In this sense, it is important that whoever is going to coordinate the work of the PMO accredits the following virtues:

- Relationships. Good contact with leaders of other departments as well as people integrated into other projects.

- Trust. Openness in dealing with those who are going to influence the project is key to its success.

- Experience. Undoubtedly, having previously faced similar projects provides sufficient evidence to address future projects.

The goals of an PMO agile

Once we have analyzed some guidelines of an agile PMO , we are going to offer you the primordial purposes of these organs. Take note.

1. Manage new project entries

It makes no sense to approve projects above the delivery capacity of development teams. The PMO can function as the housekeeper to resist the temptation to start projects too soon. You have to wait to finish projects to start others of equal size.

2. Validation of the planning rules

The probability of unexpected and unnecessary changes must be reduced to the maximum, due to the overall understanding of the program.

3. Creation of training programs

Training is fundamental so that the knowledge of the equipment is truly complementary and there are no empty areas. The detection of gaps should be the basis for proposing training to members.

4. Limit waste

Only the PMO will have aggregated information on where time and effort is wasted. It is possible that different projects have similar patterns that point to the inefficiency of the processes. Drawing attention to them is the first step to rectifying them.

5. Delivery report

Reporting to consolidate an accredited view of the status of part of a project or its overall vision will facilitate the interpretation as to whether the affairs of the organization are being carried out in the most functional way. Without going further, conclusions that can be drawn from these reports may become important in the allocation of personnel for certain tasks or working schedules.

6. Business rules related to the benefits of the project

When making a commitment on a project, it is imperative to keep in mind that there are minimum results that have to be fulfilled. This duty also facilitates the adjustment to content that is compatible with existing quality projects. A uniformity that you do not have to understand as negative, but as an orientation towards excellence.

7. Validation of a resource plan

Every project requires a realistic allocation of resources. You have to keep in mind that the amount of resources of an organization will always be insufficient to delivering all the projects that can be generated, hence it is necessary to select, analyze conscientiously and not to precipitate. The allocation must be reasonable (it is fundamental to minimize the risks) and must be based on the fact that, in a final global calculation, the investment and achievement are compensated.

In short, we hope this text has helped you understand how an agile PMO has to works.