7 Secrets E-Book
7 Secrets E-Book
7 Secrets E-Book
Industry Focus: Architecture, Engineering, Research, Software/IT, Professional Services, MTO Manufacturing, Construction
Thank you
Thanks goes to David Meerman Scott whose book, World Wide Rave, inspired me to
write this ebook. You can learn more about David and the books he has written at
www.webinknow.com.
Special thanks to Jered Cady of Synergy Business Solutions for his support and valuable
input. I could not have written this ebook without Jereds expertise and insight into how best
to help project-driven organizations with their project accounting and management. To learn
more about Synergy, visit www.synergybusiness.com or project accounting resources.
The ebook is available for free by visiting www.synergybusiness.com/7secrets
Copyright holder is licensing this ebook under the Creative Commons License,
Attribution No Derivatives 3.0.
Im happy to permit free redistribution of this ebook, commercial and non-commercial, as
long as it is passed along unchanged and in whole, and Im credited for its creation.
Please feel free to post this ebook on your blog or web site
and email it to whoever you believe would benefit from reading it.
PS - If you really like 7 Secrets the Healthiest Project-driven Organizations Know That You
May Not, send it to as many people as possible.
Seven Secrets the Healthiest Project-driven Organizations Know That You May Not
Table of Contents
Summary..............................................................................................................................................4
Welcome to Your World..............................................................................................................................5
SECRET #1 - Use tools designed for the job.......................................................................................6
SECRET #2 - Enable stakeholders to use the tool most appropriate to their experience....7
SECRET #3 - Set up your tools and people to draw on the same set of data...........................8
SECRET #4 - Ensure that all your tools are integrated.................................................................11
SECRET #5 - Create role-based visibility for all your stakeholders.........................................13
SECRET #6 - Insist on a highly flexible set of tools........................................................................16
SECRET #7 - Dont allow short-term costs to prevent long-term gains..................................18
Your World Transformed..........................................................................................................................20
Take the Next Step....................................................................................................................................21
Tell Your World............................................................................................................................................22
About the Author........................................................................................................................................23
Seven Secrets the Healthiest Project-driven Organizations Know That You May Not
Summary
Project-driven organizations need reliable information and tight control over their projects to
mitigate risk and maximize profitability. Without it, job costing, project bidding, allocation of resources, materials management, accountability, cash flow, reporting, compliance controls, confident
decision-making, and a companys ability to grow all suffer.
This ebook divulges seven secrets healthy organizations use to develop open access to accurate, realtime, and highly usable information that vastly improves the above-listed aspects of project-driven
companies. It includes specific relevant examples related to each secret.
The seven secrets arent long-hidden mystical wisdom. In some cases they are common knowledge.
The healthiest project-driven companies take each of them seriously and act on them on a consistent basis. By applying the principals and following the examples found in this ebook, you can
develop a plan to streamline your project operations and boost your employees productivity, effectiveness, and morale.
Once you digest the seven secrets, consider the opportunities I offer at the end of the ebook to
evaluate how to act on what you have learned.
Seven Secrets the Healthiest Project-driven Organizations Know That You May Not
Project managers and accounting cant agree on true project costs, so your bidding suffers.
Your margins are so tight that youre concerned for the risk involved in certain projects.
The information you get from accounting is unreliable because they pull from disparate systems
that dont match and are difficult to reconcile and consolidate.
Tracking progress of projects is hard due to unsophisticated software; its difficult to determine
when and where to allocate resources.
It can take a month to get invoices out, so your cash flow suffers.
Heaven forbid if you get audited or have ongoing compliance issues. Getting information for yourself is hard enough, let alone for someone looking over your shoulder.
When you need a report, you dont know which departments numbers are most accurate. After you
roll the dice (rock, paper, scissors works too), it takes forever trying to create the report you want.
Youre hamstrung on critical decisions. It takes so long to get reliable data (youre still not sure its
accurate), when you do, the window of opportunity has passed.
At the end of the day, one or more of these keeps you up at night. Wouldnt it be nice to have some
peace of mind about your projects and business? The truth is, you dont have to do it this way. Theres
a way out. Make a commitment to implement the following seven secrets.
Seven Secrets the Healthiest Project-driven Organizations Know That You May Not
SECRET #1:
Seven Secrets the Healthiest Project-driven Organizations Know That You May Not
SECRET #2:
Oh, this is your saw? he asked. This will be difficult to use. I had a sidewinder saw, and he
was used to a worm or hypoid drive that delivers more power and torque, resulting in a much
faster and easier cut. He grumbled through the cutting portion of the job.
Executives, project
managers, and office
workers dont need to
learn a new unfamiliar
accounting program
to find real-time data,
enter it, report on it, or
send out updates.
Both tools were designed for the job, but one tool fit the experience of the worker better than the
other. Software tools are also like that. When an organization takes away the tool people are used to
and says, Here, learn this new tool, people often grumble.
The answer is to ensure that all your software toolsaccounting, project management, financial
reporting, spreadsheets, email, web portals, office productivity, CRMcan be tied together and
utilized to perform key tasks. Then people use the tool they are most familiar with to enter or access data. For instance, executives, project managers, and office workers wont need to learn a new
unfamiliar accounting program to find real-time data, enter it, report on it, or send out updates.
Programs like Microsoft Outlook, Excel, Project, and Web Portals can all be used for tasks related
to project management and accounting.
The outcome is improved efficiency, productivity, and employee morale.
Seven Secrets the Healthiest Project-driven Organizations Know That You May Not
SECRET #3:
Drawing on the same set of data that is accessible by all is essential to quickly getting real-time accurate information into the hands of executives, controllers, and project managers. How can your
people be truly accountable for project estimating, budgeting, staffing, scheduling, management, and
crucial decision making without timely and reliable data at their disposal (based on what is happening now, not what happened weeks ago)?
A central, secure database solves this problem. For small-to-midsize companies, there are other
options to accomplish this besides an expensive ERP system.
Not only will this ensure the most dependable information is made available to all, it gives you the
ability to tie together your accounting software and other software tools that are familiar to your
people.
Seven Secrets the Healthiest Project-driven Organizations Know That You May Not
SECRET #3:
Set up your tools and people to draw on the same set of data
In many organizations, project managers and accounting departments are using business software
that doesnt draw on the same data set (or if it does, some software tools lack functional depth), and
data becomes isolated and unmanageable. Project and financial managers run in circles trying to procure and distribute information to and from all stakeholders.
Seven Secrets the Healthiest Project-driven Organizations Know That You May Not
SECRET #3:
Set up your tools and people to draw on the same set of data
Healthy, project-driven organizations set up all their tools and people to have equal access to one
central database so no one has to run in circles. Access to real-time data can be anytime-anywhere
and is a foundation for the integration of multiple technologies (including software your people
already use) and collaboration among major stakeholders.
Seven Secrets the Healthiest Project-driven Organizations Know That You May Not
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SECRET #4:
Seven Secrets the Healthiest Project-driven Organizations Know That You May Not
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SECRET #4:
Kevin Sullivan,
Controller,
Vista Engineering Technologies
Do you think the idea of a seamless solution is pie in the sky? Well, think again. Here are just a few
ways it can happen. Imagine these scenarios applied to your business:
No more duplicate data entry or access. The data you create in one application automatically
passes to others. When project managers create a project in their tool of choice, that information
immediately flows to the accounting software and vice versa. Accounting staff have the same
flexibility. Projects can be initiated and updated in more than one program. In addition, customer
information is integrated into project and financial tools and is one click away.
No more fretting about time and effort to produce and distribute in-depth reports. You
incorporate a technology that enhances a tool you already use (Microsoft Excel) to stay in sync
with your accounting system. It allows quick and easy report creation, flexible formatting, and
delivery to users anywhere throughout your organization for review, analysis, or decision support.
No more hassles collaborating and sharing documents. You set up a collaborative tool that
enables your users to coordinate calendars, organize documents, and receive important notifications with ability to set role-based document controls. Users can manage their documents within
a program they already use (Microsoft Office).
No more wasted time with inventory control. You use a bar-code-based tool to record inventory issues and counts, which reflects automatically in the balance sheet.
Seven Secrets the Healthiest Project-driven Organizations Know That You May Not
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SECRET #5:
Unfortunately, this scenario is all too common. Companies get completely bogged down with an
endless stream of routine tasks and ongoing requests for information because only a handful of
people have visibility and access to the data.
Do these issues and complaints sound familiar to you?
Timecard entry, expense reports, and database queries take an inordinate amount of time and
paperwork.
The flow of routine requests from employees for business facts and custom reports burns out
your accounting staff.
Customers, suppliers, and other partners are pining for payment data, project status, and
inventory levels.
Project managers, field managers, and executives cant easily find project and profitability data or
analyze performance to make informed business decisions.
Seven Secrets the Healthiest Project-driven Organizations Know That You May Not
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SECRET #5:
And something will give unless you implement the fifth secret. Heres how it works:
Using a web-based
portal opens up the
flow of useful business
information to general
employees, managers,
executives, customers,
suppliers, and other
partners and frees up
valuable resources in
IT, accounting, and
support departments.
You must align the right information with the right individual. The way to do that is to add a webbased portal tool to your system that draws on your one database and integrates with the other tools
you already use.
Using a web-based tool opens up the flow of meaningful business informationanytime, anywhereto general employees, managers, executives, customers, suppliers, and other partners and will free
up valuable resources in your IT, accounting, and support departments.
But its not an uncontrolled flow. Choose a tool that enables you to assign role-based privileges to information, so data stays secure and each stakeholder has access only to the data appropriate to them.
Here are the benefits and some of the strategic value you will receive:
You eliminate the hassle of common tasks and requests: HR tasks, and more, can be done
online; employees enter time cards with automatic routing for approval. You create an employee
and manager self-service culture as stakeholders view, change, approve, and evaluate information.
No more of those pesky requests for business facts, custom reports, etc.
Teamwork is fostered with information-sharing and collaboration tools: Deploy one web
portal site and enable employees to work together on documents and store, share, and edit common Microsoft Word and Excel files. Choose a tool that allows you to create and execute version
control and workflow rules.
Project and Field Managers gain free access to project and profitability data: Take your
project and accounting data that is already integrated and link it to the web-based portal for realtime access to pertinent data.
Seven Secrets the Healthiest Project-driven Organizations Know That You May Not
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SECRET #5:
Executives get free access to business metrics: Create individual key performance indicators for each executive, depending on their area of responsibility that can be kept current. When
conditions change, their view is refreshed and information remains accurate. Choose a tool that
enables them to drill down and expose the underlying causes of problematic conditions.
You can share information with customers, suppliers, and other partners: Even stakeholders outside your company can have secure, appropriate access to the business information they
want to see, e.g., payment data, order status, and invoice information.
Seven Secrets the Healthiest Project-driven Organizations Know That You May Not
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SECRET #6:
Seven Secrets the Healthiest Project-driven Organizations Know That You May Not
One morning, an
insurance auditor was
in the office, looking
for some information
that was not on a standard report. I was able
to adjust an existing
report to find the right
information, publish the
report, export the data
to Office Excel, and
send it as an e-mail to
the auditor. The entire
process took less than
five minutes.
John Wheeler
Controller
Alpha Development
16
SECRET #6:
Integrate with other products - Allows you to take advantage of third-party tools that integrate with your system, such as a project management dashboard, a document management
module, an audit utility that assists with Sarbanes-Oxley compliance, a corporate tax module, a
barcode-based inventory control tool, and more.
A flexible partner:
Puts industry-specific expertise at your finger tips - They know your industry well, have
deep domain expertise, and already support a long list of pre-integrated third-party software.
*Configurations of a system do not require programming, the changes they make are predictable, and they are usually guaranteed to
survive upgrades to software. Customizations do require programming and changes are not predictable; they typically need extensive
testing and are not guaranteed to survive upgrades; they must be re-implemented.
Seven Secrets the Healthiest Project-driven Organizations Know That You May Not
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SECRET #7:
Second-time buyers say the product and the partner are more important than price
Undoubtedly, the
initial price of software
is an important consideration but more
critical is the long-term
gains derived, potential
future savings and ROI,
and whether it and the
partner you choose can
deliver strategic value
to your organization.
The Standish Group did a study of companies with less than $200 million in annual revenue to determine the success rate of IT projects. Standish found the majority of IT projects among this survey sample were not successful. Twenty two percent were canceled, and 50 percent were challenged.
In addition, it also surveyed the top ten criteria for selecting software for these companiestwice.
The findings are eye-opening.
For their first software selection project, companies named the price of the software and its implementation as their number one criterion. But for the second survey, price had dropped to the number five position. The top three criteria were now (1) the support of the implementing partner, (2)
the partners performance record (previously number ten), and (3) the ability of the software product to fit the business. Apparently the lesson these companies learned was that product fit and partner expertise would serve their long-term goals better and were more important criteria than price.
An information technology leader, The Standish Group provides investment planning research services to improve the
value of IT investments.
Seven Secrets the Healthiest Project-driven Organizations Know That You May Not
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SECRET #7:
Cultural Benefits
Competitive advantage
Meeting customer demands
Speed to market
Leadership
Company growth
Financial Benefits
2 Strategic values and benefits are concepts developed by Rick Page in his book Hope is Not a Strategy.
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Knowing these seven secrets is only the first step. The healthiest project-focused firmsarchitects,
engineers, researchers, pharmaceutical labs, software/IT companies, professional services firms,
make-to-order manufacturers, and contractorsnot only know these secrets but regularly implement them within their organization.
They consistently purchase and use tools that have these characteristics. They:
The healthiest firms also set this priority when purchasing their tools:
They do not allow their concern for a low-cost solution to prevent them from realizing long-term
strategic business value.
The truth is you dont have to live with the complexities of a project-driven organization without
the tools you need. Change starts with developing a new mindset about how to procure and use the
tools in your organization and then having the will to take action.
The question is, can you afford not to act?
Seven Secrets the Healthiest Project-driven Organizations Know That You May Not
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*A Project Accounting Check Up is a phone call with a Solution Specialist to diagnose your project
operations health and how to improve it. Companies must qualify for the free check up.
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Seven Secrets the Healthiest Project-driven Organizations Know That You May Not
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