The number of distressed projects have increased over the years particularly in the corporate sector. In fact, recovery request comes frequently from this sector and that too on an urgent basis. There are various causes for project recovery ranging from financial to emotional and situational. It is important to analyze the project rising beyond the chaos without bias so that it can be recovered. The best approach to recover a distressed project is by using a life-cycle approach. This deals with recovering the original project expectations and objectives as far as possible. Distressed project management in Sydney uses this approach for distressed projects in any industry.
What is Distress in Terms of Project Management?
Every project has to meet certain standards and goals. A distressed project generally deviates from its path in respect to deadlines, milestones, cost and scheduled targets as far as 20% or more at times. To recover majority of its original expectations early identification is necessary. In most cases, recovering starts even beyond the beginning phase and additional budget is also allowed. For particular projects distressed project management consultants in Sydney decrease the scope to reduce the cost. Project management is a difficult area in itself and recovering without cost and time support can be a tall task.
Fundamental Life-Cycle
Distressed projects have unique problems but a life-cycle approach mostly covers all those issues thus providing most efficient recovery options. There are 4 basic steps to this approach which has been developed with practical implementation over time. It constitutes of ways to solve problems fast and accurately to get the project back on track. The 4 steps are:
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Entering- This stage includes scope of work while scheduling initial interviews and collecting data
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Analysis & Assessment- The second stage constitutes of the first stages along with documenting data review, evaluation and subsequent interviews. Developing conclusions based on solution and gaining consensus on approval are also done here.
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Execution Control- This stage involves executing the plans, rules and responsibilities. Budget and schedule development along with project controls, strategies deliverable execution and validation of all these is also done during this stage.
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Closing- This is the last stage where transfer, handoff, implementation plans solidify. Implementing executive phase, project signoffs and final audits are done in the final stage. Lessons are also learned at this stage after completion of everything.
In this post, the first phase that is the ‘entering’ phase will be discussed.
Entering Phase
This is the ‘entering’ and not the initiation phase because the project has already started but has faced some deviations at various stages due to which it has strayed. The project is failing and adequate professionalism, insight, patience, critical thinking and tact is required to get it back on track.
Scope Re-Development
Whether outsourced consultants or in-house resources, the scope of the ongoing project must be redesigned to bail out the project from a troubled state. Achieving clarity is required on the following grounds:
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Initial expectations from the projects
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Current evaluation of the project
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Expectations from the recovering agent
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Review of scope of authority
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Primary resources and internal contacts
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Agreement on the path resorted to
Proper project assessment is done at this stage. In order to do it, interviewing a motley group of professionals involved in the project is required. Here is a list of those people that you should interview to get the project back on track.
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Project manager
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Project financier
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project customer
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Important Functional Managers
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team Leads/SMEs
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PMO, controls resources and schedulers
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Project Team
Each will have their own version for the failure. However, the key is to not get swayed by them and analyze it clearly. The consultant must learn to get passed the emotions to have a clear and objective view of the distress. This is generally a challenge and to overcome this, you must not become subjective and nod to what others say. Calling a spade a spade should also be avoided because no one likes to listen to direct criticism. Also this helps the project team to come across unguarded providing better factual information which will help to find out the relevant solution.
Project Management Consultants Sydney 