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Unformatted text preview: THE MEASURABLE NEWS The Semiannual Magazine of the College of Performance Management 2019.01 mycpm.org INSIDE THIS ISSUE 09 13 21 31 What Skills Are Necessary for Project Managers to Manage Millennial Workforce? Applying Earned Benefit Management: The Cost of Benefits Earned Schedule Forecasting Method Selection By Crispin (“Kik”) Piney By Walt Lipke Concurrently Verifying and Validating The Critical Path and Margin Allocation Using Probabilistic Analysis By Ramkumar Arumugam By Michele King, Robin Smith THE MEASURABLE NEWS The Semiannual Magazine of the College of Performance Management 2019.01 2019 ISSUE 01 CONTENTS 05 Letter from the Editor(s) 07 Message from the President 09 Skills Every PM Needs In Managing A Millennial Workforce? By Ramkumar Arumugam 13 Applying Earned Benefit Management: The Cost of Benefits By Crispin (“Kik”) Piney 21 Earned Schedule Forecasting Method Selection By Walt Lipke 31 Concurrently Verifying and Validating The Critical Path and Margin Allocation Using Probabilistic Analysis By Michele King, Robin Smith 48 Vendors/Services mycpm.org THE MEASURABLE NEWS IS AN OFFICIAL PUBLICATION OF THE COLLEGE OF PERFORMANCE MANAGEMENT EDITORIAL STAFF Publisher: College of Performance Management Story Editors: Robin Pulverenti and Nicholas Pisano Design: id365 Design + Communications Communications VP: Timothy Fritz EDITORIAL COPY Editorial contributions, photos, and miscellaneous inquiries should be addressed and sent to the editor at the College of Performance Management (CPM) headquarters. Please follow the author guidelines posted on the CPM web site. Letters submitted to the editor will be considered for publication unless the writer requests otherwise. Letters are subject to editing for style, accuracy, space, and propriety. All letters must be signed, and initials will be used on request only if you include your name. CPM reserves the right to refuse publication of any letter for any reason. We welcome articles relevant to project management. The Measurable News does not pay for submissions. Articles published in The Measurable News remain the property of the authors. ADVERTISING Advertising inquiries, submissions, and payments (check or money order made payable to the College of Performance Management) should be sent to CPM headquarters. Advertising rates are $1000 for inside front or back cover (full-page ad only), $800 for other full-page ads, $500 for half-page ads, and $300 for quarter-page ads. Issue sponsorships are available at $2,500 per issue. Business card ads are available for $100 per issue (or free with full-page ad). Rates are good from January 1, 2018 – December 31, 2018. College of Performance Management reserves the right to refuse publication of any ad for any reason. SUBSCRIPTIONS All College of Performance Management publications are produced as a benefit for College of Performance Management members. All change of address or membership inquiries should be directed to: College of Performance Management 11130 Sunrise Valley Drive, Suite 350 Reston, VA 20191 Ph 703-370-7885 • Fx 703-370-1757 All articles and letters represent the view of the authors and not necessarily those of College of Performance Management. Advertising content does not signify endorsement by College of Performance Management. Please notify College of Performance Management for single copy or reproduction requests. Appropriate charges will apply. © 2019 by the College of Performance Management. All rights reserved. THE COLLEGE OF PERFORMANCE MANAGEMENT 2019 BOARD & STAFF PRESIDENT Gordon Kranz [email protected] EXECUTIVE VICE PRESIDENT Kym Henderson [email protected] VICE PRESIDENT OF FINANCE Brian Evans [email protected] VICE PRESIDENT OF ADMINISTRATION Michael Bensussen [email protected] VICE PRESIDENT OF CONFERENCE & EVENTS Kathy Evans [email protected] VICE PRESIDENT OF EDUCATION & CERTIFICATION Bill Mathis [email protected] VICE PRESIDENT OF RESEARCH & STANDARDS Marty Doucette [email protected] VICE PRESIDENT OF COMMUNICATIONS Timothy Fritz [email protected] PAST PRESIDENT Wayne Abba [email protected] EXECUTIVE DIRECTOR Don Kaiser [email protected] SOLUTIONS THAT BRING ALL THE PIECES TOGETHER /Ä㛽½®¦›Ä‘›ƒÄ—ă½ù㮑Ý ¥ÊÙdʗƒù͛ÝçݮěÝÝ �t S�� So�ware we have combined the latest, most powerful business intelligence technology with the exper�se of the best minds in project management to deliver powerful Business Intelligence, Business �naly�cs, and Integrated �rogram Management solu�ons. These solu�ons are transforming the way both government and industry conducts business. The fusion of COTS domain knowledge augmented by an open, powerful, business intelligence pla�orm will put your organiza�on ahead of the power curve rela�ve to your compe�tors, maximizing your return on investment and allowing you to build your corporate knowledge and exper�se to meet your current and future needs. This COTS/BI approach enables you to address your immediate needs, realizing immediate ROI, while providing flexibility for new and emergent requirements. Our �roteus and Envision solu�ons eliminate redundancy, transform, and op�mize data, regardless of size, or source, or format. �e have moved organiza�ons away from needing to manage the confusion of di�ering terminologies and applica�on, to an organiza�on with one source of truth that provides mul�ple pathways of analysis. S��’s fourth genera�on so�ware is agnos�c to underlying data, and provides an open system that puts your organiza�on and SMEs back in the driver’s seat in determining how and which analysis they view. Our low-code environment allows changes and new func�onality to be released in a ma�er of days or weeks, rather than the structured yearly or bi-yearly releases that require new applica�on installa�ons found in tradi�onal third genera�on so�ware. B������� I����������� P������ P�������� ���������� S�������������� E�� S������ P������ ���� I���������� ��� A�������� ����������� S����� A��������� � C��������� 866-389-6750 sna-so�ware.com � �0�8 S�� SO�T��RE, ��C ��� R����� R�������. O�� T�� ����, ��� ��� ����� ���������� ��� ��� �������� �� ����� ���������� ������ THE MEASURABLE NEWS 2019.01 LETTER FROM THE EDITOR Nicholas Pisano Our efforts in providing a new approach in delivering content to the College of Performance Management is inaugurated with this issue of Measurable News. From this point on, Measurable News will be a biannual publication that presents contributions to the literature of integrated project, program, and portfolio management, while “Knowledge from the College” will focus on more frequent and timely news from our membership and chapters. The articles in this issue reflect the diversity of thought in our community. We have an article by a new author—Ramkumar Arumugam— who discusses the soft skills required in attracting and managing a Millennial workforce. In the article Ramkumar defines generational identity and the perspectives that distinguish each of the generations, and how those differences are best addressed by managers. This is a compelling article and is provided in this issue because soft skills are most often the most important aspect of success and failure in any enterprise. Years ago, when my own generation of Baby Boomers were in their prime working years—having been tagged the “TV Generation” by our elders when we were in our youth—we tried to project how the world would change when, what we dubbed as the “Nintendo Generation”, reached their prime working years. We now realize that world through the advance of social media, streaming technologies, and the acceleration of information. Engaging with millennials will provide us with an on-ramp to the next generation of technological change and knowing how to harness the creativeness and unique perspectives of this new generation will be essential in our roles as mentors, leaders, and managers. We also continue the series of articles by “Kik” Piney regarding extending the assessment of project and program performance beyond earned value toward “earned benefit.” That is, the potential benefits that result from work that is completed at each stage of measured effort, as opposed to the financial value of completion to date. In this article Mr. Piney provides a basis for measuring earned benefit by presenting the results of an actual case study where the concept was applied. I hope you find it as interesting and compelling as I do. In returning to our role as a forum for new and groundbreaking ideas, we have new research from Walt Lipke regarding the use of Earned Schedule (ES) in project performance management. In his article, Mr. Lipke discusses the possible conditions under which SPI(t) as opposed to other ES factors may be preferable as a predictor of schedule duration forecasting. As opposed to an assertion of a particular method being superior to another, Mr. Lipke, to his credit, reliably (as always) takes a scientific approach to the subject and suggests additional research using large datasets. Finally, we have an article from Michel King and Robin Smith, both of NASA, regarding critical path and margin allocation in using probabilistic analysis on integrated master schedules that proposes a process description on how these elements are to be applied across the life-cycle of the program. As such, their proposal suggests an important bridge between integrated master schedule specifications and real-life application of those specifications. All of our articles are well-sourced, well-written, and logical, derived from primary sources and original research. As such, I want to personally thank our contributors. As a forum for new proposals, new perspectives, and new research, Measurable News strongly encourages alternative views, perspectives, experience, and interpretations of our project and program management performance systems, even those that may contradict or take issue with any of the articles in this issue. We only ask that articles meet our standards of intellectual integrity and ethics, clear writing that reflects clear thinking, taking an academic and civil approach to the subjects at hand. Only under a healthy intellectual environment that encourages a diversity of voices will CPM and performance management continue to be essential and vital to our community and the public interest. After all—that is what it is about—as opposed to ego or personal enrichment. I look forward to seeing you all at the Integrated Program Management Workshop in Baltimore in December. Onward and upward. The Semiannual Magazine of the College of Performance Management | mycpm.org 05 31st Annual International Integrated Program Management Workshop IPMW 2019 The Premier Workshop on Earned Value Management DECEMBER 10 - 12, 2019 • BALTIMORE, MD • Learn from… • Special Guest Speakers • Professional Education Training Seminars • Topical Workshops • Practice Symposia Socialize and network at… • Newcomers’ Orientation • Speakers-Only Reception • All-Attendee Reception Promote your organization… • Sponsorship and exhibiting packages now available For more information… • Don Kaiser [email protected] 703-234-41167 The College of Performance Management is a PMI Registered Education Provider The PMP, PMI, and R.E.P., and the Registered Education Provider logo are registered marks of the Project Management Institute, Inc. THE MEASURABLE NEWS 2019.01 MESSAGE FROM THE PRESIDENT Gordon Kranz At the approach of my first anniversary as President of the College of Performance Management (CPM), I am writing to invite you to share in my vision of CPM – a world-class authority and realtime resource in all aspects of Integrated Program Performance Management (IPPM). A lot of changes and new developments have occurred in this past year (nationally and internationally) that directly impact every person who is in some way related to IPPM. Within the CPM Board, we are working feverishly to adapt our organization to meet and expand beyond the new and growing needs of our constituents in the acquisition environment. And it is for that reason that I write to you today. Our vision for CPM is to be the crossroad to the world of IPPM through enhanced professional development, implementation, and certification. Our strategy is to engage you – our members and stakeholders – so that we may leverage and maximize our collective energy. In this way, we can expand our IPPM reach to collaborate directly with both U.S.and international organizations. We succeed by your success. The first evidence of this strategy’s value was the keynote speakers at CPM’s EVMWorld 2019 in May of this year. At that event, we included Ms. Stacy Cummings for the Office of the Secretary of Defense (OSD), Shohreh Ghobani from Project Controls Academy (a commercial teacher of earned value to non-Defense organizations), and Mr. Jeff Gravatte who introduced Building Information Modelling (BIM), a graphicallyintegrated visualization of project data for project control. Current evidence of this strategy is to connect with our members through their personal or corporate involvement in CPM chapters. We intend to undergird and support our members by helping them to offer local opportunities to share best practices among their peers. Also, we continuously look for new, technology-enabled, ways to get to communicate with our members. For example, through STREAM, we provide our members access to the latest news directly impacting IPPM. And, we endeavor to continually expand our methods of more effectively meeting our members’ needs. Who knows? Maybe we will be conducting “Flash Mobs” at some not-too-distant point in the future. Your active and involved membership is a must to make our CPM vision work. Look for a near term list of opportunities in which we will invite you to participate. In the meantime, if you have any suggestions, no matter how far out of the box, please do not hesitate to contact me directly at [email protected] I look forward to working with you all over the next several years, and I look forward to seeing you at IPMW 2019, December 10th-12th at the Hyatt Regency Baltimore Inner Harbor in Baltimore, Maryland. Gordon M. Kranz The Semiannual Magazine of the College of Performance Management | mycpm.org 07 Since 1978, Humphreys & Associates, Inc. has passionately advocated and promoted the integration of technical, schedule, and cost components to achieve the full benefit of using a performance measurement system to enhance management visibility and control. We have a long tradition of leadership in the industry and creativity seeking a balance of proven and innovative EVMS processes to apply to project management challenges. H&A is unique in the common sense approach we bring to organizing, planning, and controlling projects. We use proven methods and techniques that have been honed over decades of hands-on experience to achieve the most appropriate, timely, and cost effective results. Our solutions are always compliant with the ANSI-748 Standard for Earned Value Management Systems. We are the “911” of EVMS because government and industry both call us when they absolutely and positively must resolve an issue with an EVMS. Humphreys & Associates offers a complete range of EVMS consulting services for the entire project life cycle. From proposal preparation and management system gap analysis to mock compliance reviews or contractor selfsurveillance and third party validations, H&A is the authority in EVMS. Because of our unparalleled breadth of knowledge and hands-on experience, H&A is the industry recognized leader in EVMS training and hands-on mentoring for project managers and control account managers. Interested in learning more? Visit our website at or call us today at (714)685-1730 THE MEASURABLE NEWS 2019.01 SKILLS EVERY PM NEEDS IN MANAGING A MILLENNIAL WORKFORCE By Ramkumar Arumugam ABSTRACT What skills are necessary for Project Managers to manage millennial workforce? In the world where millennials that begin to outnumber baby boomers Abstract and bring in divergent possibilities to the workforce, the managers who In the world where millennials that begin to outnumber baby boomers and bring in divergent possibilities to manage them on their teams must be well equipped with proper skills the workforce, the managers who manage them on their teams must be well equipped with proper skills to to lead them. The millennials possess unique traits and behaviors which lead them. The millennials possess unique traits and behaviors which needs to be well understood by the needs to be well understood by the managers to lead them effectively. The managers to lead them effectively. The managers who could themselves be millennials should focus on managers who could themselves be millennials should focus on developing skills like fostering creativity, trust, creating an environment to fail fast and communicating the skillsdeveloping like fostering creativity, trust, creating an environment to fail fast and vision would help in steering the project towards rightindirection. communicating the vision would help steering the project towards right direction. Introduction Human workforce and its intelligence have been at the forefront of all major shifts or transformations right INTRODUCTION from the inventionand of the to the current digital era. at Thethe effort to advanceof the (user) experiences Human workforce itswheel intelligence have been forefront allhuman major shifts or in all sectors like healthcare, banking, retail etc. will continue for ages to come (as long as humans exist) transformations right from the invention of the wheel to the current digital era. The effort to advance the human (user) experiences in all sectors like healthcare, banking, retail etc. as more and more digital natives join the workforce. Industries are going to witness more and more will continue for ages to come (as long as humans exist) as more and more digital natives millennials joining their journey of digital transformation initiatives. These millennials are going to bring in join the workforce. Industries are going to witness more and more millennials joining their newof perspectives and skills to the workplace which will be profoundly different fromto thebring earlierin generation journey digital transformation initiatives. These millennials are going new perspectives the workplace which will bebeings profoundly different the earlier workforce.and Let’sskills look attothe different generations of human to understand better.from The figure below generation workforce. Let’s look at the different generations of human beings to understand depicts the different generations from the last century. better. The figure below depicts the different generations from the last century. the timeline givenabove, above, we we can can see millennials are the born in the early In theIntimeline given seethat that millennials areones the who oneswere who were born in80s. the Statistics says millennials are expected to overtake Baby Boomers in population in the U.S. in 2019 as their in early 80s. Statistics says millennials are expected to overtake Baby Boomers in population the U.S. in 2019 numbers swell to 73 million and Boomers decline to 72their million. With numbers swellastotheir 73 million and Boomers decline to 72 million. With these vast numbers, presence these vast numbers, their presence will have immense influence in shaping the workplace will have immense influence in shaping the workplace cultures, while their well-being will continue to define cultures, while their well-being will continue to define the workforce productivity for years the workforce foryoung years to come. As more the and more young inhabit the and world,values their to come. As moreproductivity and more people inhabit world, theirpeople expectations continue to evolve the traditional ways theofyoung minds would have to expectations and and values continue to...
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