SOA 09 Annual Meeting & Exhibit October 25-28, 2009 Session 124 L, Project Management Success Strategies Moderator:

Ruth Ann Woodley, FSA, MAAA Presenter: Doris Orr

Project Management
Simple yet tricky success strategies
Doris Orr, SVP Project Director, XL Capital October 2009

October 2009 Doris W. Orr, SVP Project Director, XL Capital

doris.orr@xlgroup.com
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Project Management Simple yet tricky success strategies Presenter Doris Orr
SVP, Project Director at XL Capital Mediates equitable win/win solutions; then responsible for delivering them Change catalyst Global / international team management 10 years at XL involved in a myriad of projects and major change management, including:
Disposition of subsidiary Operational Transformation project Process re-engineering and organization structural changes System implementations; controls review and implementations Post-merger integration

Chartered Accountant (Canada) 10 years at KPMG; Senior Manager in Vancouver, Canada and Wellington, New Zealand Learned the critical importance of billable time and value add of each hour spent/billed Through client relationships, obtained solid grounding in win/win solution orientation Her Passion Help others get excited about adding maximum value which in turn ignites their career paths Achieve the impossible and helping others with this also Help others learn what she learned through the school of hard knocks
October 2009 Doris W. Orr, SVP Project Director, XL Capital

doris.orr@xlgroup.com
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Project Management Simple yet tricky success strategies Seminar coverage

This session will show you how to: Outline your project initiative so that it starts with the best chance to succeed Structure your project initiative effectively different structures for small and large projects will be reviewed Keep your finger on the pulse of the project and identify early warning signals for projects that are starting to derail Motivate yourself and your team by celebrating interim milestones as part of the change psychology of projects

Begin with the end in mind

October 2009 Doris W. Orr, SVP Project Director, XL Capital

Stephen Covey

doris.orr@xlgroup.com
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Project Management Simple yet tricky success strategies The Pain of Change

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CHANGE

e ez fre un e ez fre un
Emotional detachment Confusion and transition

Making the new world your reality

Status quo

Future state

We cannot become what we need to be by remaining what we are. Max Dupree

October 2009 Doris W. Orr, SVP Project Director, XL Capital

doris.orr@xlgroup.com
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Project Management Simple yet tricky success strategies Why do projects fail?

Pain point not painful enough Scope creep list of expected project deliverables grows Poor planning lack of resources, e.g. budget, personnel, facilities Not reading the early warning symptoms, e.g. team in-fighting No commitment failure to get it in writing Time erosion all projects have an End Date Under estimating the essentials of communication Getting caught off-guard by obstacles No contingent planning etc etc etc

"The successful man (project) is the average man (project), focused. Source Unknown doris.orr@xlgroup.com October 2009
Doris W. Orr, SVP Project Director, XL Capital Page 5

Project Management Simple yet tricky success strategies A Winning Foundation The Fundamentals

Definition
a finite endeavor having specific start and completion dates undertaken to create a unique product or service which brings about beneficial change or added value (from Wikipedia, the free encyclopedia)

when is your task a project? When not?

5 critical questions: 1) 2) 3) 4) 5) why? what? when? how? who?

need to understand what the impetus/driver behind this is critical to understand scope; what you will (and will not) achieve deadline flexible or non-negotiable?; funding may impact timing approach and funding; will be impacted by timeframe and vice versa resources; commitment for these resources; stakeholders those impacted

Begin with the end in mind

October 2009 Doris W. Orr, SVP Project Director, XL Capital

Stephen Covey

doris.orr@xlgroup.com
Page 6

Project Management Simple yet tricky success strategies Life without Project structure (aka ad-hoc-ism or chaos)

Undefined project organization

Unclear roles and responsibilities, accountability Poor resource requirements and commitment

Poor communication
Definition, requirements, status, change, issues, expectations Inadequate information provided to stakeholders

Inadequate expectation management

Not understanding stakeholders expectations Not having finger on the pulse
`

Projects are out of control

No standard, no firm ground, no comparability, no information, no consensus, no commitment No evidence vagueness everywhere Project management feels like a swamp "The first part of success is "Get-to-it-iveness"; the second part of success is "Stick-to-it-iveness.
Orison Swett Marden
October 2009 Doris W. Orr, SVP Project Director, XL Capital

doris.orr@xlgroup.com
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Project Management Simple yet tricky success strategies A Winning Foundation Advanced (pg 1 of 2)

Measurement
Critical success factors (success criteria for project) Time project plan (timeline); Internal milestones Resource map AvE (actual versus expected); and impact of shortfalls Budget AvE Cost / benefit ROI; payback period

Structure
Planning phase Scope documentation (objective; scope; deliverables, benefits, dependencies, risks and timeline) Execution Phase Status reporting weekly or bi-weekly (incl Red/Amber/Green status, explanation for status; milestones achieved in this reporting period and planned for next); high level timeline (aka project plan) Steering Committee to establish direction; validate (or make) critical decisions; establish accountability

"In the confrontation between the stream and the rock, the stream always wins not through strength, but through persistence." Buddha
October 2009 Doris W. Orr, SVP Project Director, XL Capital

doris.orr@xlgroup.com
Page 8

Project Management Simple yet tricky success strategies A Winning Foundation Advanced (page 2 of 2) Soft Skills (when project involves more than just yourself)
Change catalyst Conflict resolution Coach / cheerleader Constant finger on the pulse Relationship manager supreme Win / Win focus

Chief Inspiration Officer!! Chief Communication Officer!!!

Project management requires the balancing of several skills:

Goal attainment

Excellent interpersonal and communication skills Leadership skills Assessing risks Estimating, budgeting, negotiating, tracking Change catalyst Enthusiasm Juggling conflicting demands and priorities
Doris Orr

Project management is change management

October 2009 Doris W. Orr, SVP Project Director, XL Capital

doris.orr@xlgroup.com
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Project Management Simple yet tricky success strategies Life Cycle of a Project 1. Initiate effort depends on degree of change pain
Generate idea Define and get approval for concept

2.

Plan approx 20% of total project effort

Define scope, deliverables, benefits, risks Budget always build in contingency for the unexpected

3.

Execute the Plan

Manage the work watch out for scope creep it comes in all shapes and sizes Keep your finger on the pulse Change psychology motivate; make it fun Communication / reporting against plan

4.

Close approx 10 to 15% of total project effort

Post implementation review / lessons learned Celebrate!!

"Obstacles can't stop you. Problems can't stop you. Most of all, other people can't stop you. Only you can stop you." Jeffrey Gitomer doris.orr@xlgroup.com October 2009
Doris W. Orr, SVP Project Director, XL Capital Page 10

Project Management Simple yet tricky success strategies Summary of winning strategies Initiation and Planning phases
Focus on What? Why? and What? again Understand severity of current pain point Get buy-in and commitment; lobby key executives Create clarity scope document, project plan (timeline) Communicate! Communicate! Communicate!

Execution phase
Keep your finger on the pulse Do dashboard status reports Formalize process for scope change Celebrate small successes motivate the troops Resolve conflict early Communicate! Communicate! Communicate!

Closing phase
Honest session of lessons learned Feedback from stakeholders Transition from project to BAU Communicate! Communicate! Communicate! Celebrate teams success!!

Begin with the end in mind

October 2009 Doris W. Orr, SVP Project Director, XL Capital

Stephen Covey

doris.orr@xlgroup.com
Page 11

Project Management Simple yet tricky success strategies Actuarial examples pricing of a new ULI product (page 1 of 6)

1.

Overall project New ULI product launch

2.

Example 1: Actuarial component of project large company / large project Pricing of new ULI product

3.

Example 2: Actuarial component of project consultant / small project Pricing advice for new ULI product

"Obstacles can't stop you. Problems can't stop you. Most of all, other people can't stop you. Only you can stop you." Jeffrey Gitomer doris.orr@xlgroup.com October 2009
Doris W. Orr, SVP Project Director, XL Capital Page 12

Project Management Simple yet tricky success strategies Actuarial examples pricing of a new ULI product (page 2 of 6)

Example 1: Actuarial component of project large company / large project Title Pricing of new ULI product

Example 2: Actuarial component of project consultant / small project

Performing competitive scan and recommending pricing strategy of new ULI product to client

Purpose / objective (what? why?)

Determine correct pricing strategy for new ULI market to achieve optimal profit targets

Performing a competitive scan as a basis to provide pricing advice for clients new ULI product, based only on competitive information

October 2009 Doris W. Orr, SVP Project Director, XL Capital

doris.orr@xlgroup.com
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Project Management Simple yet tricky success strategies Actuarial examples pricing of a new ULI product (page 3 of 6)
Example 1: Actuarial component of project large company / large project Scope (what?) Determine pricing of the new ULI product; specifically: o analyze mortality experience o perform risk analysis to assess how this products risk profile fits into the companys existing product mix o determine risk mitigation strategy to fit into companys overall risk profile o build projection models o develop projections of investment performance and admin expenses for this new ULI product o interactions with marketing/sales dept to assess pricing impact on volume estimates and vice-versa (pricing sensitivity analysis) Prepare documentation and materials to present data / findings to broader project team Involvement in cross-department coordination effort, specifically: o active contribution in cross-dept workshops and meetings Re-pricing of existing products Cross-department review of all existing products. Secondment to marketing team to write marketing literature Everything else not included in Scope Involvement in client cross-dept meetings Everything else not included in Scope Example 2: Actuarial component of project consultant / small project

Obtain sufficient market data to offer client advice on correct price range Perform detailed market research on 10 companies Obtain market data from selected sample Analyze market data, specifically: o analyze mortality experience o perform risk analysis o build projection models, including sensitivity analysis, ie what-if scenarios Prepare presentation to client of detailed findings and recommendation of pricing

Scope exclusions (what?)

October 2009 Doris W. Orr, SVP Project Director, XL Capital

doris.orr@xlgroup.com
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Project Management Simple yet tricky success strategies Actuarial examples pricing of a new ULI product (page 4 of 6)

Example 1: Actuarial component of project large company / large project Deliverables (what?) Determine methodology to use in-house data and expertise Gather data, undertake research and analyze data Undergo internal review process Prepare pricing strategy and related documentation Agree your involvement in cross-department coordination effort; action given deliverables Final deliverable will be documentation, materials and presentation of data / findings of pricing strategy

Example 2: Actuarial component of project consultant / small project Final deliverable to client will be presentation to client of detailed findings and ultimate recommendation of pricing strategy of new ULI product

Approach (how?)

Determine and document methodology for developing list of sample companies to be approached for involvement in the market research Prepare and execute communication with this sample base Meet and agree with each company to determine what, when and how they will deliver source data

October 2009 Doris W. Orr, SVP Project Director, XL Capital

doris.orr@xlgroup.com
Page 15

Project Management Simple yet tricky success strategies Actuarial examples pricing of a new ULI product (page 5 of 6)

Example 1: Actuarial component of project large company / large project Project team (who?) Owner CUO as owns product profitability Stakeholders Chief Actuary (your boss); risk arises if he/she has other priorities for your team which conflict with time requirements for this project Team pricing actuarial team

Example 2: Actuarial component of project consultant / small project Owner client Stakeholders client, consultancy firm (engagement management, ie managing client relationship and fees for engagement Team you

Dependencies and Risks (how?)

Resources not getting the right skill sets at the right time for the right duration required Scope creep overall project needing actuarial team to perform more tasks than outlined, which will impact resourcing, deadlines and/or quality of deliverable

Reliance on sample companies being used for the market research Scope creep temptation to analyze full data set from sample companies, rather than just the portion (eg 60%) that relates specifically to this project

October 2009 Doris W. Orr, SVP Project Director, XL Capital

doris.orr@xlgroup.com
Page 16

Project Management Simple yet tricky success strategies Actuarial examples pricing of a new ULI product (page 6 of 6)

Example 1: Actuarial component of project large company / large project Costs / Benefits
(how much?)

Example 2: Actuarial component of project consultant / small project Costs o effort / FTE, ie time and materials o opportunity cost, ie what could you be doing if you werent doing this pricing project Benefits o monetary compensation for this engagement o increased expertise in this area o other sales opportunities resulting from this engagement either with this client or with your sample companies used for market research (intangible) Identification of milestones/deadlines for the activities outlined in approach, above

Costs o effort / FTE, ie time and materials o opportunity cost, ie what could this team be doing if they werent doing this pricing project Benefits o company profit targets o new challenge for existing team (intangible) Payback period

Timeline (when?)

Identification of milestones/deadlines for the activities outlined in approach, above

October 2009 Doris W. Orr, SVP Project Director, XL Capital

doris.orr@xlgroup.com
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Project Management Simple yet tricky strategies for success Tools for large and small projects

Tools for large projects Tools for small projects

(single-person project team)

Planning / Measurement Communication

MS Project Scope document Milestone schedule Status reports Portal Conference calls / video conferences Stakeholder group Steering committee Advisory committee

Excel spreadsheet Scope document Milestone schedule Status reports Emails In-person meetings Stakeholder group Client (if consultant) or boss

Project Structure

Ambition is the path to success. Persistence is the vehicle you arrive in. Bill Bradley doris.orr@xlgroup.com October 2009
Doris W. Orr, SVP Project Director, XL Capital Page 18

Project Management Simple yet tricky success strategies Project Tools MS Project benefits of this tool over Excel Actuaries (and Accountants) like Excel, however, MS Project is has some very good features Tool specifically designed for running projects Very intuitive to use (uses Excel functionality) Features include: Pictorial view of tasks ie Gantt charts, calendar, network diagram, resource usage Good reporting functionality resource usage/assignments, current activities, workload management and ability to customize own reports Critical path identification based on predecessor and successor activities

Other tools "The difference between what we do and what we are capable of doing would solve most of the world's problems."Gandhi doris.orr@xlgroup.com October 2009
Doris W. Orr, SVP Project Director, XL Capital Page 19

Project Management Simple yet tricky success strategies Project Management Certification PMI (Project Management Institute) PMP CAPM PgMP PMI-SP PMI-RMP Project Management Professional Certified Associate of Project Management Program Management Professional PMI Scheduling Professional PMI Risk Management Professional

Relevance of PM credentials Establishes benchmark of your knowledge / abilities Can create new opportunities for you

"We are what we repeatedly do. Excellence, then, is not an act, but a habit."Aristotle
October 2009 Doris W. Orr, SVP Project Director, XL Capital

doris.orr@xlgroup.com
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Project Management Simple yet tricky success strategies Summary of winning strategies Initiation and Planning phases
Focus on What? Why? and What? again Understand severity of current pain point Get buy-in and commitment; lobby key executives Create clarity scope document, project plan (timeline) Communicate! Communicate! Communicate!

Execution phase
Keep your finger on the pulse Do dashboard status reports Formalize process for scope change Celebrate small successes motivate the troops Resolve conflict early Communicate! Communicate! Communicate!

Closing phase
Honest session of lessons learned Feedback from stakeholders Transition from project to BAU Communicate! Communicate! Communicate! Celebrate teams success!!

Begin with the end in mind

October 2009 Doris W. Orr, SVP Project Director, XL Capital

Stephen Covey

doris.orr@xlgroup.com
Page 21

Project Management Simple yet tricky success strategies Wrap Up

Review of seminar coverage: Outline your project initiative so that it starts with the best chance to succeed Structure your project initiative effectively different structures for small and large projects will be reviewed Keep your finger on the pulse of the project and identify early warning signals for projects that are starting to derail Motivate yourself and your team by celebrating interim milestones as part of the change psychology of projects

Begin with the end in mind

October 2009 Doris W. Orr, SVP Project Director, XL Capital

Stephen Covey

doris.orr@xlgroup.com
Page 22

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Project Management Simple yet tricky success strategies

Q&A

October 2009 Doris W. Orr, SVP Project Director, XL Capital

doris.orr@xlgroup.com
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