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How
To Sell Executives On Project Management
By Dennis Sommer (www.dennissommer.com)
Selling executive management on the need for project management
in your organization is one of the most important steps
in the implementation of organizational project management
practices. Unfortunately, this will also be one of the
most difficult tasks you undertake. Your success or failure
will be determined based on the approach you take with
executive management. You can not take this lightly. To
gain the “GO” decision from executive management,
follow this successful 3 step PM executive selling process
called the “ASP - PM Executive Selling Model”.
ASP - PM Executive
Selling Model
The ASP (Assess, Solve, Produce) PM Executive Selling
Model is a new process model, never seen before. This
method to gain executive buy-in was produced by project
managers in the field who have successfully implemented
project management throughout an enterprise. This method
provides a solid step by step process that will deliver
what is needed to get the executive buy-in.
The ASP PM Executive Selling Model is broken down into
the following steps. Assess
– Understanding the Project management need,
organization and sponsorship.
Understand The Need
Focusing on the organizational need for project management
is the first step in the process. Each level in the organization
will have their own list of what their priority needs
are. To gain executive buy-in you must focus on the executive
needs. The best way to undercover the executive needs
is to understand what the key strategic priorities are
for the organization. This can be obtained through annual
reports, posted strategic initiatives or discussions with
senior executives. Understand their strategic priorities,
goals and objectives.
After coming up a with a prioritized list of executive
needs, review their goals and objectives and determine
how project management could help with the success of
those initiatives and what risks there may be for introducing
project management. For example, if a retailer’s
top priority was rolling out 100 new stores this year,
could project management help make this initiative be
successful by reducing the time to open each store, reduce
costs by better organizing the process, etc.
Coming up with the high priority executive needs and a
solid idea on how project management can help achieve
this goal is critical before moving on to the next step.
Assess The Organization
Understanding how project management is currently being
used must be determined in both small and large organizations.
You need to find out which business units and departments
are using project management and which are not. Most of
the units you talk with will be using project management
in one form or another and at different levels. The assessment
will help you uncover how each unit practices project
management, determine the differences throughout the organization
and start formulating the best practices followed.
Assessment data gathering can be performed in different
manners and should be customized based on the organization
culture. Written surveys are great for getting information
from a large number of people over multiple locations.
This data can be summarized quickly to determine what
procedures are deployed. Focus group discussions is a
useful way of gaining cooperation across different units,
focusing on the successes and difference between departments.
Individual interviews provide the most detail and honest
information on what works well and where the problems
are.
Final results from an assessment will provide a complete
picture on how project management is used within the organization.
Obtain Executive Sponsorship
Executive sponsorship will be the most important piece
of the process to implement project management across
the organization. A VP or C-Level executive sponsor will
be critical for this to succeed. Many times you will find
that the organization already has implemented project
management throughout multiple departments but there is
no top level executive acceptance of the practice.
Select a sponsor the will be most affected by the benefits
and value produced by project management. This individual
will become obvious from the review of organization needs,
strategies and goals. Find a sponsor that is responsible
for a critical business initiative for the current year.
If this same individual was also responsible for troubled
projects from the past it will even be easier to gain
sponsorship when you can relate back to those projects
and explain how project management could have save his
initiative. Solve
– Develop the appropriate project management solution.
Define The Scope
Defining the scope of “Project Management”
for this initial rollout should focus only on the high
priority, high value needs of the organization. The key
to the plan is proving the value of project management
to the organization. After selecting the needs to focus
on, determine the appropriate best practices currently
used, staffing needs, tools, and processes that would
be most effective.
Lets take our retail example. For one organization, it
might be most prudent to only implement project management
planning, estimating and scheduling to help layout the
resource needs and schedules for the rollout of new stores.
In another organization, implementing change and risk
management might be of most value to the organization.
Develop A Communication
Plan
Communication with business leaders and those in need
of project management is often forgotten. The organization
must be over informed with information about the value
and capabilities of project management and the willingness
of your group to help the business units meet their goals.
The plan should include the target audience, frequency
and type of information presented. The type of messages
should include, how issues will be mitigated, rollout
goals, progress updates, features, capabilities, and benefits.
Keep your initiative in front of everyone. Advertise,
advertise, advertise. Prepare
Business Case
A business case and rollout plan should be completed jointly
with all key business unit personnel. Producing the business
case as a team will help get buy-in from all departments
involved and their senior executives. This business case
document will be your selling tool for gaining funding
approval.
The business case should include: • Key business
challenges, goals, and objectives you want to address.
• Proposed project management solution strategy.
Your approach, expectations, resources needed, etc
• Benefits & value project management will bring
to the organization • Proposed cost including,
staff, hardware, software, consultants, travel, etc.
• Rollout plan. Broken down in small phases.
Obtain Approval
“Scary” is most often the word used when
going in front of executives for funding approval. The
secret to selling an executive is to focus on the primary
business needs and the value project management can bring
the organization. The primary business needs comes from
the first step, Understanding The Need. The two key value
items that executives want you to focus on are 1) how
project management can reduce costs and 2) how project
management will increase revenues. The business case should
focus on these two value items and provide a sound description
of the needs, proposed solution, cost and rollout plans.
This meeting or presentation should go smoothly if you
have buy-in from the business unit personnel who worked
on the business case with you and when the executive sponsor
steps up in support of your initiative. Produce
– Prove your solution works in the organization.
Pilot Program
Rolling out a new project management initiative across
the enterprise at one time will most likely end in failure.
Successful programs are first perfected in a pilot phase
(small portion of the organization), usually within the
business unit of the executive sponsor. Pilot’s
will encounter some setbacks, therefore support from the
business units involved will be critical. Critically analyze
the pilot results and make appropriate changes to your
processes and plans for the next steps. Communicate all
the positive benefits along the way and keep doing this
on a regular basis. Roll Out Program
Organizations who haven’t used project management
consistently across the enterprise most likely will not
need it delivered overnight. Rolling out project management
across the enterprise will require you to continually
sell the concept and benefits to each business unit or
group. The roll out should proceed slowly, building on
prior successes. As successes accumulate, more business
units will want this service. As new units request this
service, you can go back to Step 1 – Understanding
The Need, to help identify the best area or project that
will provide the most successful implementation of project
management. **
Success Secret **
To gain executive buy-in, the project management value
must address the following:
1. How project management will reduce costs.
2. How project management will increase revenues.
About The Author
- Dennis Sommer
Dennis Sommer
is the founder and CEO of Executive Business Advisers,
a management consulting firm specializing in business
growth, sales and profit improvement. www.executivebusinessadvisers.com
Dennis helps companies increase sales revenue, reduce
sales and marketing costs, improve marketing ROI, and
drive new business growth by improving and optimizing
their sales, marketing, company strategy and financial
health.
Dennis is a highly sought after business keynote and seminar
speaker www.dennissommer.com
and author of several highly popular sales, marketing,
leadership and professional development international
articles and books www.advisersecrets.com
.
Contact Dennis at 800-627-6512.
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