About this Video

• Video Title: What mismanaging Small Projects Will Cost You | Episode 153
• Channel: CorneliusFichtner
• Speakers: Cornelius Fichtner, Kurt Finch
• Duration: 00:30:07

Introduction

This podcast episode discusses the often-overlooked issue of mismanaged small projects and their significant cost to organizations. The host interviews Kurt Finch, CEO of Jix, to explore the definition of a small project, the reasons for their neglect, best practices for managing them, and the consequences of mismanagement.

Key Takeaways

• Small Project Definition: Small projects are generally defined as those involving fewer than 10 people, lasting less than 3 months, and manageable with simple tools like email or spreadsheets, rather than complex software. However, the definition can vary depending on the organization and industry.
• The Importance of Small Projects: While large, strategic projects often receive the most attention, small projects collectively constitute a substantial portion of an organization's workload and impact its success. Neglecting them can lead to significant cost overruns and inefficiencies.
• Best Practices for Small Project Management: Three key best practices are highlighted: 1) Tracking actual costs, 2) Understanding resource allocation, and 3) Managing work requests. These practices should be adapted to the project's size, avoiding unnecessary paperwork or complex tools. Focusing on remaining time estimates is more effective than tracking percentage completion.
• Consequences of Mismanagement: Ignoring best practices for small projects can lead to significant financial losses, wasted resources, and overall organizational inefficiencies. A study mentioned in the podcast indicated a 12% project failure rate, with only 55% of those failures being addressed due to a lack of proper cost and time tracking.
• Prioritizing Time Tracking: The podcast emphasizes the importance of implementing time tracking as a first step to improve small project management. This creates a foundation for data-driven decision-making, improving estimates, understanding profitability, and identifying resource allocation issues.

According to the interview, Kurt Finch's definition of a small project, based on his interviews with project managers worldwide, typically involves:

• Less than 10 people involved (often less than 5).
• Less than 3 months duration.
• Management using simple tools like email or spreadsheets, not complex software like Microsoft Project or Primavera.

Organizations ignore small projects due to several factors:

• Focus on large projects: A myopic focus develops where large, high-profile projects receive disproportionate attention and resources, overshadowing the importance of smaller ones. This is often linked to career advancement, where individuals are recognized for contributions to significant initiatives.
• Political dynamics: The inherent political nature of organizations can lead to smaller projects being overlooked, as they may not align with the priorities or agendas of influential individuals or departments.

According to Kurt Finch, Project Managers should not necessarily manage small projects identically to large projects, but rather adapt their approach. He suggests using appropriately scaled tools and methods: bulleted lists and email for the smallest projects, Excel for mid-sized projects, and dedicated project management software (like Microsoft Project) only for large projects. The key is to customize the methodology to the project's size. While some aspects remain constant (understanding costs and risks), the level of formality and complexity of tools should be adjusted.

The key is to avoid confusing templates and forms with the underlying methodology. Understanding costs is crucial, but doesn't require an excessive number of tasks or overly detailed reports. A risk mitigation strategy is necessary, but doesn't need to adhere to rigid templates, especially for smaller projects. Focusing on practical application rather than strict adherence to prescribed forms helps reduce overhead while still maintaining best practices. For instance, instead of asking for percentage completion, inquire about remaining time, which is a more effective and less burdensome method of assessing progress.

Project managers often overlook best practices on small projects because they:

• Overfocus on large projects: Their attention and resources are consumed by larger, more visible initiatives, leading them to underestimate or undervalue the importance of smaller projects.
• Perceive them as easier: They may assume that small projects are inherently simpler and require less rigorous management, leading to a casual approach and the omission of best practices. This often stems from past success with similar projects, leading to a false sense of security and underestimation of potential problems.

The podcast mentions Jix (not Journyx) software offers several solutions to address small project management issues:

• Automated billing and payroll: The "Time Sheet" product automates these processes, simplifying project accounting and handling complexities in time accounting.
• Resource management and planning: The "Project Execute" product (built on top of Time Sheet) offers resource management capabilities, integrating with MS Project and Excel to provide a centralized view of resource availability.
• Cost data collection: The software facilitates easy collection of cost data, which is crucial for understanding project costs and resource utilization.
• Estimate revision: The software allows for easy revision of estimates as the project progresses, helping to track how much time tasks actually take, and adjusting schedules accordingly.
• Visibility into project completion: The software provides a clear overview of project status, highlighting potential resource shortages, task completion, and scheduling issues.
• Work request management: The software includes a system to manage work requests, allowing for prioritization and efficient resource allocation, preventing the spread-thinning effect of handling too many small projects at once.

By providing these tools, Jix aims to improve visibility, control costs, and manage resources more effectively, thereby mitigating the risks associated with mismanaging small projects.

Kurt Finch (the interviewee) doesn't specify a size threshold for using Jix software. He emphasizes that Jix is designed to track all employee activities, including non-project work, to provide a holistic view of resource availability. Therefore, even the smallest project where an employee spends any time is worth including in the system, as it contributes to a complete picture of resource allocation and project planning. The software aims to track time and costs for all tasks a worker performs, not just those designated as formal "projects".