August 1997                                         www.smalloffice.com

Plan Ahead, Get Ahead

Ellen DePasquale                 Business Writer

       The 19 employees at Marshall Technical Services, software developer in Annapolis, Maryland, were halfway through a two-year assignment when disaster struck:  A lead programmer fell ill and had to be hospitalized.  The unexpected setback could've derailed the project---but it didn't.  Working from a preset contingency plan, president Bob Erwin lined up an independent contractor to replace the employee and the team forged ahead.  Irwin credits the company's quick recovery to his project management software, which helps him keep tabs on all his projects.  At the outset, Irwin fixed up TurboProject from IMSI to develop what-if scenarios, including the possible loss of a key employee.  When what-if turned into reality, the program offered several solutions --- including replacing the employee with an independent contractor --- and cost estimates for each one.   "The software let us be proactive rather than reactive," says Irwin.

       In today's turn-on-a-dime business climate, the difference between success and failure can be as miniscule as a 5 percent cost overrun or a mistimed delivery of spare parts.  That's why more small businesses are riding herd on critical projects with what used to be primarily a big-company tool:   project management software.  What's more, companies of all sizes are stretching the definition of "project" from its traditional meaning (work for clients) to internal business functions such as hiring, sakes incentive programs, and other activities that benefit from tracking costs and results over time.   "Everything can be viewed as a project," says Stanley Hurd, president of Fina Corp., a Hamden, Connecticut, project management consultant.

       The basic purpose of project management software is to design a schedule and monitor your progress.  You supply the software's database with a breakdown of the tasks involved, time estimates for each task, and a list of project resources (for example, raw materials, employees, parts, and supplies).  With this information, the program produces status reports in various formats.  Turbo Project, for example, offers six different viewing formats, including the classic Gantt chart --- a bar chart with an adjacent calendar that shows when each task is expected to start and finish and the interdependent relationships between various project activities.

       As the project moves forward (and you update the relevant information) the software oversees spending, tracks resources, uncovers bottlenecks, and even calculates your return on investment.  "It's especially useful in a small business environment where so many people wear several hats," says Hurd.  "The information in the software crosses all boundaries of operation and helps cultivate more of a team effort.  Each person's role is identified and published for everyone to see and reference."

       These days, you can choose from a wide range of software targeted at, and in some cases priced for, smaller businesses (see the accompanying box, "Picking a Project Program).  But before you place your order, its important to understand what you're getting into.  To make project management software work for you, begin with a clear idea of what you want to accomplish.   Also keep in mind that the software itself has a fairly steep learning curve; many small business owners recommend hiring a consultant to help set up and provide basic training to key employees.  Finally, since the ongoing analysis is only as good and timely as the data that's entered, experts say you'll probably need one full-time employee to collect and update key project information.

       So when is a project complex enough to justify such a significant investment of employee time?  Dr. John Fennig, an Edina, Minnesota,  psychologist and management consultant who uses Microsoft Project, offers a two-pronged test:  First, the project should involve more than two people (because anything over two people boosts the teamwork and communication requirements).   Second, it should encompass more than 10 separate tasks, some of which occur simultaneously (10-plus overlapping tasks, Fennig reasons, is more than most people can keep track of without assistance).

       But even if you can't justify a full-time person just to monitor a project, consider using these applications for the initial setup, suggests Jennifer Cioffi, group project manager for Microsoft Project.   The Gant chart alone provides an excellent visual tool for explaining the project to employees or clients.  Of course, the more you use the software, the more you'll benefit.  Some of the more common positive results are outlined here.

       Bolster your bottom line.   Kenneth Goldman, president of Goldman Group, a Madison, New Jersey, real estate development company, used TimeLine to transform the town's 90-year-old YMCA building into a high tech office showplace with maple floors and 35-foot ceilings.

       Because the town center, including the YMCA, had obtained historic preservation certification from the National Park Service, the project was particularly complicated.  Just to get the right lighting fixtures, Goldman had to buy from 15 different manufacturers.  Although the order was placed through a single distributor, he used TimeLine to record each fixture as a separate task to be completed by each manufacturer.  As the fixtures trickled in, the software let Goldman compare his orders against the distributor's invoices, which in many cases were incorrect.  The system helped him keep a lid on expenses (since he paid only for fixtures he received) and track outstanding orders.

       Goldman first discovered project management software seven years ago.  "I was working on a custom design project that had a great deal of finish cabinetry work," he recalls.  "There was a fantastic carpenter on the job, and I asked him how he bid the project so that he'd turn a profit," says Goldman.  The carpenter, who was then using an early DOS version of TimeLine, pointed to his PC.  Today, Goldman pulls up the latest version of TimeLine whenever he's pricing a job.

       Motivate employees.  Once your staffers become familiar with project management software, you may discover some hidden benefits. On one large construction job, for instance, the project manager didn't like having his schedule tracked by computer, and initially resisted using TimeLine.   But as the project progressed, the manager began to see TimeLine's schedule as a challenge.  Determined to beat the software's projection, he wrapped up the project on time and under budget.

       Make smarter decisions.   Another key advantage to using this application is the ability to predict the long-range impact of a change n project resources. When the ill programmer at Marshall Technical Services was ready to return to work, Irwin faced another dilemma:  He didn't want to lose the knowledge the independent contractor had accumulated while working on the project.  So Irwin consulted Turbo Project to see how much sooner the project would be completed if he kept both the employee and contractor on the job.  Turbo Project 's analysis pointed to an alternate solution:  Using the extra programmer to expand the project's scope.  With both workers on the job, the team turned out a new program with more functionality than the original.

       Boost productivity.   Many managers find that using Gantt charts to oversee projects increases participation among their participants.  The format is particularly good for highlighting particular obstacles, leading to higher participation and higher productivity.  "Project management software minimizes the need for team meetings.  And if you do have meetings, it limits the time spent getting people up-to-date," says Irwin.  "Ours are shorter and more productive because we now focus on issues."

       Build company loyalty.  Project management software can also help bolster espirit de corps --- an essential component of any project.  When tasks are clearly laid out in black and white, the participants are less likely to feel left out of the loop.  By knowing what each member is supposed to do, how well she or he is progressing, and when each stage of a project is due, the team can quickly see when a task is falling behind schedule, and can come up with a group strategy for keeping on track.

       Don't forget though, that different personality types will react differently to automation.  Highly extroverted employees, for example, may balk at having to put every aspect of a project into writing, says psychologist Fennig.  Introverted employees, on the other hand, usually adept more easily because of their preference to work independently.  For best results, introduce the software to all team members and explain its benefits.  "Let your employees know what your trying to do before you thrust a new piece of software and a new management system upon them," advises Goldman

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