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Don’t Let Poor Project Management Set Your Go-Live Dates

Three. The typical number of bottlenecks when it comes to financial institution project management:

  • IT,
  • Marketing,
  • Compliance.

These three departments are tasked with to-do lists for many projects within the organization – on top of their own projects and priorities.

A huge concern is if go-live dates are set on a case-by-case basis, instead of from an enterprise perspective.

Think of it this way. Imagine your financial institution is planning to enhance its existing ATM network. This project is being managed by the IT department with the assistance of a third party. The IT department takes care of installing the hardware and software required. The IT department takes care of testing. The third party suggests an implementation date, and the IT department agrees with the date and time, which happens to be a Friday, the first day of the month, at 9 am.

Sounds harmless, except…

  • The launch requires full network downtime of 45 minutes and the 45 minutes must happen at 8 am
  • The 8 am downtime is actually right when the institution opens
  • The 8 am downtime was chosen for launch because that’s when the vendor said worked best for them but the IT department never pushed back and asked if other days or times were available
  • It’s a Friday, and the first of the month. This means there are typically more customers wanting to get cash because they just got paid
  • Compliance was not aware of the project until a few days after the implementation which increases the risk of a significant compliance exposure for the organization
  • The IT department did not know that, on the same day, marketing was launching a new promotion that pays customers a materially higher interest rate on their savings. If the marketing promotion gets the planned traction and the ATM enhancements don’t go as planned, customer service will suffer. Not to mention the avoidable stress on employees had there been better coordination and management of the project
  • This is not the only key deadline IT has to meet on this day

Poor Project Management Hurts More Than Just The Project.

If individual departments manage their own go-live calendars, without discussion or feedback from their fellow departments, and without consideration of the customer, the impact it could have on the customership – and employee morale – is no joke.

If your financial institution isn’t discussing high-level project timelines, with the right people, in one room, and with a visibility of how department resources and calendars are going to be affected, then you are playing a game of roulette.

The discipline to appropriately manage a portfolio of projects is no longer optional in this fiercely competitive environment. Smaller institutions without the ability to designate someone to manage the portfolio of big projects can still find ways to work the conversation into staff meetings and daily huddles. But this still requires that everyone be on the same page and paying attention to the overall picture.

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Don’t Let the “HOW” Stand in the Way of the “WHAT” in Strategic Planning

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3 minute read – We find that one of the pitfalls of the strategic planning process is that too much focus is placed on the “how” (implementation) before the “what” (strategy) has been decided. Often, decision-makers will gravitate toward the “how” because it feels more tangible but also because it seems to help determine the likelihood of success. This focus can limit a credit union’s strategy to what can we do today versus what should we do – even if we don’t know how to do it right now. The importance of not letting the “how” stand in the way of the “what” can’t be understated in light of the threats to credit unions’ relevancy and sustainability.

Take Apple’s iPhone and Quicken Loans’ Rocket Mortgage as examples. They both started with the “what.”

For Apple, the goal was to:

…develop a phone with an integrated music player, operated by a touch screen.” They’ve clearly accomplished that and more. However, consider the fact that nothing like this existed at the time. Most phones still had physical keypads and didn’t play music. The “how” was so extensive that “it involved rethinking every part of the phone from how to check voice mail to how to display a calendar.” (Apple Engineer Recalls the iPhone’s Birth, Wall Street Journal)

Rocket Mortgage likewise started with the “what” and then moved onto the “how:”

The goal was to allow a person to get a mortgage or refinance their home while standing in line for a cup of coffee.” Like the iPhone, it took Quicken years to figure out how to allow a person to apply and receive conditional approval in less than 10 minutes. Some of the “how” questions they had to answer were, “How do you pull income information…How do you pull asset information from sources that already exist? How do you pull property information? How do you give someone complete transparency into the interest rate and fees and how a person can adjust the interest rate and see what it does to the fees.” (This Could Be the Mortgage Industry’s iPhone Moment, Tech Crunch)

Apple and Quicken Loans faced a daunting amount of “how” questions but that didn’t deter them from landing on the “what” they felt was best for their company.

For credit unions, the message is clear – start with the “what.” Answer questions like:

  • What is happening in the environment around us?
  • What are potential threats, opportunities, etc. that could occur in the future that we want to test drive today?
  • What should our business model be (target market, value proposition, core purpose)?
  • What are our long-term decision filters and strategies for moving the organization forward?
  • What are our measures of success?

Once these questions have been answered and the “what” has been decided then shift to questions of “how,” such as:

  • How will we implement our strategy?
  • How will we improve our processes and manage our projects in order to implement our strategic planning initiatives?
  • How will our mindsets and talent need to evolve?

With the myriad of threats to relevancy and sustainability, it is critical for decision-makers to not let the “how” hinder the “what” that is best for the credit union’s future.

This post was originally published in May 2016, and has been republished due to its current relevancy. 

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Keep Risk Concerns in Mind with New Uses for Blockchain Technology

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Blockchain and digital currencies continue to gain more attention and traction in the market.  As this happens, the uses and applications of blockchain are becoming more varied as companies and people think innovatively about how to use this technology to enhance their businesses and lives.  While this is happening, it’s important to consider the risks of blockchain and be intentional in decision-making.

Graphic showing how blockchain technology connects businesses and consumers.

We recently discussed some ways in which blockchain technology could change the way consumers and companies conduct business, making it easier and more efficient for both.  This trend is evident in the Eastman Kodak Company’s recent announcement that they will be offering KODAKCoin which will help photographers address a long-time pain point, tracking unlicensed use of their work.

With all this attention, it is easy to forget that the broad use of blockchain technology is still new.  While blockchain is supposed to be more secure because of its shared record of transactions, questions still remain about its security.

Bloomberg recently highlighted this question in an article that reports hackers have compromised more than 14% of Bitcoin and Ether (another digital currency) supplies in less than a decade.  This equates to about $1.2B.  Security experts note in the article that blockchain’s vulnerability is similar to that of software in some cases, especially as there are thousands of entrants, each with its own concerns.

The “so what” for credit unions is no different than when evaluating any new technology or software.  Start by understanding the technology as much as possible.  While blockchain is more secure in some ways, it is still vulnerable.  On the other side, organizations are just beginning to recognize the amazing uses and applications of blockchain technology, and how they can benefit consumers and businesses.

The risks of blockchain should be weighed against the opportunities to provide additional member benefits and enhance relevancy.  Being aware of this, and keeping the organization’s strategy in mind, can help decision-makers make conscious choices about how they want to enter the market and better position the credit union with this technology.

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c. notes – How A High-Performing Credit Union Upped Their Game

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REDWOOD CREDIT UNION: A PROJECT MANAGEMENT CASE STUDY

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This is the story of a highly successful organization that wanted to up their game. After taking a look in the mirror, they decided to change their approach to project management. Headquartered in the lovely town of Santa Rosa in Northern California, $3 billion plus Redwood Credit Union (RCU) always has lots of big initiatives in motion. At the time, they were converting a number of key systems, including the loan origination system, account opening system, phone system, and rolling out mobile deposit capture.
In the three years since completing their project management engagement with c. myers, the credit union has flourished.

RCU’s vastly improved project management processes have stayed firmly in place, so we checked in to see what helped make them stick. But first, the backstory.

RCU recognized that the environment is changing swiftly and that those changes will not slow down. Remaining relevant in this highly competitive environment requires the ability to flawlessly execute on multiple high-stakes initiatives, nonstop. To that end, RCU asked c. myers to help address opportunities for improvement in project portfolio management and project management, ultimately landing on a series of customized processes that work for RCU’s structure.

Knowing that the ultimate objective was the ability to continuously execute well on multiple strategic projects, we got to work on identifying the friction points in project management. One that rose to the top was resource burnout. In reality, lots of projects were getting done, but in some cases there was a crunch to make it happen. In the organizations we work with, there is no single reason why resources become stretched too thin, so this issue was addressed from several angles. In the process, other friction points were addressed as the team honed in on the areas that made it possible to take project management to the next level.

The first big takeaway? Having a good process for managing the overall portfolio of projects is key.

DELIBERATE PROJECT PORTFOLIO MANAGEMENT

Before focusing on project plans or project management tools, RCU needed to reach clarity on how projects should be initiated, vetted, prioritized, monitored, and closed out. It is this high level view that makes it possible to understand resource capacity and it is the process itself that defines the rules of engagement in project management. Case in point, it’s okay to say no to a project. This is an organization that is full of excited people who constantly push forward and are willing to take on a lot. There is a desire to say yes and who wants to discourage that? Of course, allowing too many projects to move forward reduces the likelihood that the right projects will get done at the right time. Well-placed no’s actually strengthen the organization and support the push forward.

17-04-c-note5-5We didn’t like to say no to projects. Now we have well-defined rules of engagement and a common language for handling project management – everyone now knows that “underground” projects are not okay.

– Cynthia Negri, EVP/COO

RCU had already partially rolled out a process for vetting and monitoring projects, which served as a base for ideas as they built their project portfolio management process. A Project Review Committee was created and was tasked with project portfolio management, including defining clear roles and specific processes for the committee to follow. The Project Review Committee is successful, in part, because the right people have visibility to the right projects. This sounds simple, but a great deal of thought went into defining the right people and the right projects.

JUST START – GETTING A HANDLE ON RESOURCES

This is a common sticking point because most organizations have an imperfect view of their available resources, but a perfect view is not required to greatly improve the situation. Becoming good at resource allocation is something that comes with practice, so it’s important to just start. Some of the simplest practices can begin to alleviate stress.

One example is staggering the scheduling of strategic initiatives. Many organizations start their big initiatives in the first quarter or have them all due at the end of the fourth quarter, but a good overall view of projects makes it possible to improve on the scheduling, which ultimately reduces resource burnout.

RCU started by mapping out the things that are no secret:

  • Project planning time that is needed right after strategic planning
  • Big IT updates (since IT is a resource for almost all projects)
  • Busy times for departments
  • Vacations for key individuals

This easily obtainable information was taken into account as projects were scheduled. Starting with broad-brush estimates of when departmental resources are required for different projects, then combining the projects and baseline information as a whole started them on the path of getting their arms around resources.

This example chart aggregates high-level resource usage estimates for big initiatives plus other known resource draws. The overall resource requirement rankings show IT over-allocated in August.

Overall Resource Requirement Rankings
(Selected departments only)
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With this high-level view, project timing can be adjusted to relieve resource
over-allocation, before it happens, by shifting certain tasks to be done earlier or later, or even adjusting project due dates.

In our project management work, we often hear, we have too many projects. In reality, plenty of organizations do, but without at least a high-level idea of resource allocation, how do you know? This view, combined with carefully choosing and prioritizing projects, and saying no or not now to projects allows RCU to get more done – with higher quality, while reducing project stress and pain.

CLARITY – GETTING STAKEHOLDERS ON THE SAME PAGE

It’s not that project stakeholders actively disagreed on issues; in fact, they generally thought they were already on the same page. As is often true, each person held unstated beliefs which they assumed were common understandings. For example, is a mobile app “launched” when all mobile users can access it, or are Android and Apple users phased in at different times? Will all loan types be part of the initial rollout of the loan origination system, or are there some types that will be considered for inclusion later? The watchword here is clarity, and clarity comes from systematically having structured conversations geared toward getting those assumptions out into the light of day.

Clarity started with formally defining roles for the business owner, project manager, team members, and other key stakeholders. These definitions include the functions and responsibilities of each role so there is no misunderstanding about who should be doing what. The definitions must also include how issues should be escalated, and who is ultimately responsible for roadblock removal. No project manager should have to take responsibility for situations outside of their control, as long as the project manager follows the process and escalates the issue to the proper authority.

Clarity was also greatly enhanced by delving into project details to ferret out assumptions by asking what was not part of the project. Having a well-defined scope at the outset is a necessary first step in avoiding the dreaded scope creep. Examples include getting a clear understanding of how electronic signatures and document imaging are affected by the project, and whether any changes in these areas are part of the project.

In the same vein, team members created clear working agreements for each project. Working agreements might include being seated at the meeting start time, or how and when team members will make the project manager aware of off-track tasks. Working agreements were also defined for effective project meeting structure and vendor meeting structure. One thing that was helpful here was starting the project team meeting 30 minutes before the vendor meeting so the team could be fully organized before the vendor joined. They also extended the meeting past the time when the vendor signed off so meeting documentation could be completed and any new tasks assigned.

Setting and agreeing on clear expectations doesn’t guarantee accountability, but it certainly sets the stage for it.

NO NEWS IS NOT GOOD NEWS

When applied to projects, the old adage, no news is good news, tends to lead to unpleasant surprises. Good project communication prevents surprises and has some additional benefits that might not be as obvious. RCU chose a format for regular status updates to stakeholders that is easy to deliver and understand. It includes a condensed view of project status and pertinent details on outstanding issues, accomplishments, and current tasks. It also includes the project objective which helps to keep everyone focused on the bigger picture, even while they are knee-deep in tasks.

The obvious benefit is that stakeholders receive a regular update that gives them a quick, at-a-glance view of the project. To produce these regular updates, working agreements were created for how and when team members would provide status updates on their tasks to the project manager. This is where the less obvious benefits come into play. Individual team members were motivated to provide their updates timely because, if they didn’t, they risked having their tasks reported to all stakeholders as off-track. This prevented the project manager from having to chase down individual team members. Also, the act of creating the update required the project manager to make sure the project plan was up-to-date and to spend some time on the bigger picture view.

But there’s another factor that deserves mentioning here. No matter how diligent the updates, every project requires engaged stakeholders who will ask tough questions for the sake of clarity and uncovering hidden issues. Don’t go on autopilot just because a task or a project is deemed “on track” in an update. We find that the definition of on track varies between individuals. For example, a task that is due tomorrow is often reported as on track, even though it would require heroic efforts to complete, simply because it isn’t due yet. The project manager should be digging deeper, but there is no substitute for an engaged business owner who will doggedly pursue those questions.

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THREE YEARS LATER

Now that RCU has been practicing their improved project portfolio management and project management for three years, they find that they still do lots of projects but those projects run more smoothly, are done with more quality, and there is less cleanup that needs to be done at the end. It still requires discipline to follow the process, but that discipline is habit now and the payoff is enormous. They sometimes overcommit, but far less than before, and they always consult their high-level view of resource capacity before saying yes to a project.

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It’s OK to not be perfect, especially in the beginning 

Have a little blind faith – follow the process and the gains will come

– Cynthia Negri, EVP/COO

On reflection, RCU identified these keys to success in creating their new organizational habits and making them stick:

  • Buy-in. Buy-in is essential – especially at the top. In this case, the CEO was behind the project management initiative all the way
  • Project Portfolio Management. Creating the structure for the Project Review Committee so the right people have visibility to the right projects, prioritizing projects and saying no or not now when necessary
  • Discipline. Discipline in following all the steps of the project management process, especially in the beginning. It’s a continuous learning curve and tweaks to the process will be made along the way, so it’s okay if it’s not perfect at the start
  • Clarity. Following a process that demands clarity on stakeholder roles, meeting structure, project communication, and working agreements
  • Practice, practice, practice. It’s not easy to change behaviors on a large scale quickly. It takes focus, consistent correction, and a few repetitions before new organizational habits can be created

In the end, a successful organization that was doing a lot of things right found ways to get more done, and improved the member and employee experience at the same time.  The first step was making a choice to devote the brain power and resources to figure it out.

As a result, the credit union is able to deliver on initiatives faster, with higher quality, and with less strain on the organization. Knowing that big changes will keep coming at the industry, Redwood Credit Union made a conscious choice to position themselves to respond swiftly, strategically, and tactically, in order to remain relevant to its membership as our industry’s exciting future unfolds.

Every organization is different. This case study has focused on some of the specifics that helped RCU push their project portfolio management and project management to the next level. This was not intended to offer a comprehensive overview of all aspects of project management. We hope that you have found the learnings helpful.

ABOUT c. myers

We have partnered with credit unions since 1991. Our philosophy is based on helping our clients ask the right, and often tough, questions in order to create a solid foundation that links strategy with desired financial performance.

We have the experience of working with over 550 credit unions, including 50% of those over $1 billion in assets and about 25% over $100 million, facilitating more than 130 process improvement, project management, and strategic planning engagements each year, and providing A/LM, interest rate risk, liquidity, and budgeting services.

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Project Management: 180,000 Definitions of On Track

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Have you ever noticed how projects start out Domino Effectso well with everything on track until suddenly, out of the clear blue sky, there’s a giant problem? The project is unexpectedly off track and you’re scrambling to slow the resulting domino effect.

What happened? It’s likely that things weren’t nearly as on track as you were led to believe. Wouldn’t it have been great to know all this earlier?

Good project management dictates that project communication includes regular updates on status – for tasks as well as projects as a whole. As long as you open the email update and it says “on track” you’re good to go, right? If you, like many others, find it’s not that easy, read on.

What’s on track to one person is rarely the same as what’s on track to another. There are approximately 180,000 definitions of on track (which may be a slight exaggeration). Here are 5 of them:

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Like unexploded mines, if these inaccurate status assessments aren’t ferreted out early, they can blow a project up.

Status updates aren’t enough to increase a project’s chance for success – they must be quality updates. How do you get quality updates? Foster these organizational skills and habits:

  • Overcome the fear of hurting people’s feelings or making someone look bad
  • Ask challenging/probing questions – don’t go on autopilot
  • Talk about it – it’s ineffective to ask challenging/probing questions via email
  • If something doesn’t seem right, keep digging

It’s a shared responsibility. The commitment to reveal hidden issues must be supported at all levels; task owners, project managers, business owners, and other stakeholders.

The truth is that many people lack the proper mindset to accurately assess whether their own—or others’—tasks, milestones, and projects are on or off track. The mindset needs to be one of truly thinking through what is happening, identifying concerns, and discussing roadblocks. If you’re really firing on all cylinders, people will actually think through and voice their forward-looking concerns, not just the ones they’re facing at the moment.

This mindset can be cultivated by asking open-ended questions that are devised to reveal potential problems. When you’re asking about critical tasks and milestones, especially complex ones, the answers should be suitably detailed. A project update should not be a simple “Yep, all good!” Much like asking a youngster what happened in school today and hearing the answer, “nothing,” is a cue to dig deeper. For example:

  • Can you walk me through it?
  • What can you envision that might go wrong?
  • I’m not sure I understand.  Can you explain?
  • How many hours do you think are still left on this task?
  • What could get in the way?
  • Where are we most vulnerable on this project?
  • Can you show me where we stand with the vendor?
  • How likely is it that this milestone will be completed on schedule?

Brainstorm your own questions to draw out the details and make a practice of handling the off track items in a positive, solutions-oriented way.

One of the biggest hurdles to overcome in getting quality status updates is the reluctance to hurt people’s feelings or make someone look bad by asking questions that reveal something that is off track. In fact, asking challenging questions in a matter-of-fact way without alienating team members is a crucial skill. This is part of the art of project management.

Even if you have the most organized project planning process, the best project plan, and perfectly structured project meetings, inaccurate status assessments can still jeopardize projects. Building the organizational skills and habits to support quality project updates is an important key to keeping projects truly on track.

Events

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NAFCU Webinar

Critical Do’s and Don’ts of Effective Project Management and Process Improvement

Learn how effective project management and process improvement can boost profitability

Thursday, August 17, 2017 | 2:00-3:30 p.m. ET

Speaker: Adam Johnson, EVP/Principal

Effective project management, and a diligent focus on creative process improvement, will enable you to provide your vital services better and faster – leading to happier members and more engaged employees. Join this webcast to learn why some projects fail and how you can avoid these pitfalls. You’ll explore how to use data to improve processes and sustain improvement, discover ways to avoid overlaying old processes on new technology, and more.

Key Takeaways:

  • Discover how deliberate project management and creative process improvement can be turned into a competitive advantage
  • Explore the use of data you already own to improve processes
  • Learn practical process changes that can have an immediate impact on member satisfaction
  • Understand the steps to engrain creative process improvement into your culture