Saved by “Plan B”
The Importance of an Effective Project Manager
The Importance of an Effective Project Manager
By: Jessica Foote
As the saying goes, “A
stitch in time saves nine.” This story from one of AJC’s clients shows how an
effective project manager can save more than nine stitches in time,
particularly when Plan A doesn’t go according to plan.
A client with a rapidly growing business engaged AJC’s Julie
Bryan to help with a new technology upgrade to their order
fulfilment system. The client had already selected a vendor for the new system,
so they urgently needed a project manager to help phase out the old system
while also making sure their facilities and employees were prepared for the new
system.
Anticipating and
effectively preparing contingency plans
The original plan had a short four-month timeline for
completion. Within a few weeks of
starting the project, however, vendor testing proved to not be as smooth as
anticipated, resulting in a projected two-month delay.
As Julie assessed the situation with the technology vendor,
she realized that the client needed to consider the possibility that the delay
would very likely be more than two months. Meanwhile, sales were increasing,
and the old system was straining to keep up with the orders.
“We didn’t know when- or if- we would get the new system,”
explained Julie. “We needed to go to Plan B. We needed to help our client use
their existing system to meet customer demand, particularly as they faced the
upcoming increase in sales volumes.”
Julie interviewed employees at the company to seek input and
she outlined her recommendations regarding the steps the client needed to take
to continue for several more months with their existing order fulfilment
system.
“Companies need to understand the risks of timelines
slipping, and what the backup plans would be if they don’t meet that timeline,”
Julie cautions. “At what point do we hit a date when the project absolutely must be complete?
A project manager needs to determine that deadline, and work backwards from
that date to determine when a company would need to reevaluate and potentially
switch gears or start putting Plan B in place.”
Keeping project
budgets on track, even when timelines shift
After Julie delivered her recommendation, AJC offered to
pause Julie’s engagement for a few months while the vendor fixed the technology. This helped the client avoid incurring costs
for a project manager during this window of time. Upon re-engaging on the project, AJC budgeted
a 20% buffer on PM work up front to cover any additional unexpected needs. Ultimately, this buffer allowed Julie to
provide an additional six weeks of support at the end of the project to ensure
a smooth transition. Even with the
increased duration of the project, AJC did not need to use the entire buffer
budget.
Maintaining
objectivity amidst competing options
When Julie returned to the project, the new technology was
ready to be delivered. However, the company still needed to ensure that
operations could continue during cut-over to the new system. As new information
came to light with the vendor, the entire team was considering changes to the
installation plan at the client’s site.
Julie explained that at this critical point, her task as the
project manager was to evaluate different layout options for how the current system
could be replaced within the existing warehouse footprint. Julie worked with
points of contact from each team in the company to go through the status of the
project, taking into account any concerns they had about how the transition
would impact their department. In her
recommendations, she provided pros and cons and cost estimates for each of the
four scenarios.
In the end, the transition to the new technology was
successful, thanks to Julie’s careful planning and flexibility.
Three Reasons to Hire an External Project Manger
1. Experience anticipating and preparing for contingencies: While an
internal project manager may be immersed in the weeds of daily operations, an external
project manager brings a high-level view to anticipate potential outcomes and prepare
for contingencies. An external project manager can determine hard deadlines to
trigger a shift in plans for Plan B when necessary.
2. Objectivity: An external project manager isn’t influenced by
internal politics, giving them the ability to provide an impartial perspective
that can be critical when organizations are planning systems that will
fundamentally change their business processes.
3. Saving time and costs: An external project manager will save time
and keep budgets on track, particularly when timelines shift due to external
factors and flexibility is required.
