Friday, January 10, 2014

A Project Manager in Vigg Voss: Project Costing Task

  • Vigg Voss asks a Project Manager to prepare a proposal
  • Project Manager prepares the proposal keeping in mind the client requirements
  • Vigg Voss suggests that more deliverables should be included to make the project bigger
  • Project Manager points that other deliverables are not the core requirements and if we suggest them, the client would…..want them…. in the same budget
  • Vigg Voss smiles and says “Yaaaaa”
  • Vigg Voss then takes the Project Manager through his own experiences and how he became the Vigg Voss
  • The additional deliverables are included
  • Project Manager calculates the effort required
  • The required hours are entered against the required resources in the project costing tool i.e., Project Form A
  • The tool gives the project cost and also indicates the profitability
  • Vigg Vosses gets excited about the prospect of making that money
  • However, at the same time Vigg Voss is not sure whether the client has that kind of budget
  • Project Manager points that with the existing scope, the costing cannot be reduced without impacting the profitability
  • Vigg Voss points that the project costing tool is flawed……but needs to be followed
  • Vigg Voss suggests that the number of hours should be reduced to be able to reach a figure that Vigg Voss believes the client would be ready to pay
  • Project Manager points that with the current scope, the hours cannot be reduced
  • Vigg Voss smiles and says “Yaaaaa”
  • Vigg Voss suggests that the hours should be reduced in costing tool but in the productivity tool, the resources would get the required number of hours
  • Project Management finds this….’wrong’….but Vigg Voss is THE BOSS
  • The reduced costing is prepared and submitted to the client
  • Client says it is ‘slightly’ out of budget
  • Vigg Voss decides to reduce the costing…without reducing the scope
  • Project Manager points that the client may think that we had a high margin earlier and that is why we have been able to accommodate the reduction. This will impact future business as well and thus, we should defend our costing…at least slightly
  • Vigg Voss smiles and says “Yaaaaa” and reduces the costing. Still no reduction in the scope
  • The reduction means even lesser hours for each resources in the project costing tool….but as per Vigg Voss, the tool itself is flawed
  • Client commissions the project
  • Project Manager assigns ‘required hours’ to each team member in the productivity tool and sends it for approval to Vigg Voss
  • Vigg Voss approves the hours….though they are more than double than what has been shown in the costing tool….and when the policy is that the hours should match in both systems
  • Project Manager gets the required hours and thinks that Vigg Voss is fair
  • After few days, Vigg Voss has another project for the Project Manager
  • Project Manager points that he is completely tied up with the existing project and he has full time billing
  • Vigg Voss points that the hours in the costing tool are much lower so Project Manager MUST find a way to deliver the same scope in much lesser hours!!!
  • Project Manager is confused
  • Project Manager asks that how come the effort to be put in should be proportional to what is being charged to the client and the scope has no correlation to the costing?
  • Vigg Voss smiles and says “Yaaaaaa”
  • Vigg Voss comes up with a solution….he suggests that “since the client is paying us less….we should tell the client that we will drop a few deliverables”
  • Project Manager points that it is not fair to do that after the project has been commissioned
  • Vigg Voss smiles and says “Yaaaaaa”
  • Vigg Voss comes up with another solution….he suggests that “since the client is paying us less….we should spend less time…..but at the same time ensure that all the promised deliverables are taken care of……but spend less time on the project…..but that does not mean we should compromise the quality”
  • Project Manager asks that how can the exact same work with the same quality be done in …for example…both 300 and 150 hours? Lesser hours would translate into lesser work or lesser quality
  • Vigg Voss says “Yaaaaaa”
  • Vigg Voss tells the Project Manager that the Project Manager is the best judge and he should take care of it. If it requires more hours, it requires more hours
  • Project Manager is not convinced and is sure that it will impact his prospects in the company…err…the show
  • As expected, later the Project Manager is given a feedback that he should “learn to multi-task” and “should add more value” and “should not over-deliver”
  • Project Manager points that he could not multi-task as the existing project involved (and required) his full time involvement
  • Project Manager points that he did not over-deliver…he just delivered what was promised to the client
  • Project Manager reasons that he has been adding more value as happy and satisfied clients are more likely to come back with more projects and his clients have indeed been coming back
  • Project Manager points that in consulting, one has to nurture existing relationships instead of going for a new relationship every time
  • Vigg Voss says “Yaaaaaa”
  • Project Manager feels he would soon be eliminated

1(Note: Management Consulting version of the popular reality show, Bigg Boss)

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