Summary
- The project management team faced an impending workforce reduction amidst a surge in workload, necessitating operational enhancements.
- Automated key tasks in the WMS and integrated platform tools, significantly reducing the resources and effort required for project management.
- Increased team capacity by 40%, with a 45% reduction in system complexity and a 30% improvement in efficiency per input unit.
- Supported a 59% increase in workload, allowing the business to successfully implement new product initiatives and manage market consolidation effectively.
Problem
The business was grappling with a dual challenge: navigating strong inflationary pressures that were escalating production costs and managing a declining customer base, which had dropped by 2%, significantly impacting revenue growth. Despite an average revenue growth rate of 62% year-over-year (YoY) in the past three years, the reduction in active customers resulted in a 34% decrease in the rate of revenue growth. In response, the business aimed to restore profitability by reducing operational costs and improving customer engagement. This strategic shift involved consolidating operations and expanding the product portfolio to focus more on customer engagement and market penetration.
A critical issue in this strategic realignment was the inefficiency in project management workflows. Project Managers (PMs) were found to be spending over five hours weekly managing fields and configurations of projects in the Work Management System (WMS), handling hundreds of projects each year. The process was plagued by a complex metadata scheme requiring manual selection of various values for accurate reporting. This complexity was compounded by the need for constant updates to different fields throughout the project's lifecycle to ensure data accuracy. Additionally, PMs often had to invest considerable time troubleshooting whenever tasks were not marked as completed. The WMS itself, supporting different aspects of the business with varied workspaces, projects, and metadata schemes, added to the confusion, making it challenging for PMs to maintain consistency in policies and practices across multiple project categories. These operational inefficiencies not only increased the workload but also hampered the team's capacity to support the new strategic business initiatives effectively.
Solution
To tackle the challenge of increasing workload demand with a decreasing workforce in project management, a comprehensive solution was designed to automate and streamline project management workflows. This initiative aimed at enhancing efficiency and managing the growing volume of projects and tasks more effectively.
Automating PM Workflows for Increased Efficiency:
- Designing Time-Saving Automations: The primary focus was on developing automations that could significantly reduce the time spent by Project Managers (PMs) on administrative and organizational tasks. This involved a detailed analysis of existing workflows to identify tasks that could be automated, thereby freeing up PMs to focus on more critical aspects of project management.
- Streamlining Administrative Tasks: Alongside automation, the administrative and organizational tasks were streamlined. This was achieved by transferring certain responsibilities to other parties and by providing additional system tools that could aid PMs in managing their workload more efficiently.
- Research and Analysis for Tailored Solutions: The solution development began with thorough research, including surveys, interviews, and data collection, to understand the intricacies of the current project management landscape. This step was crucial in identifying areas where improvements could be made and in designing solutions that were tailored to the specific needs of the team.
- Implementing Quick-Win Solutions and Rigorous Testing: Immediate relief to the team was provided through the implementation of 'quick-win' solutions, which were small yet impactful changes introduced incrementally. Each potential solution was rigorously researched and tested, ensuring their effectiveness and alignment with the team's requirements.
- Staggered Rollout and Continuous Support: Given the scope of the project, which included over 30 individual improvements, a staggered rollout approach was adopted. This approach allowed for the gradual introduction of changes, enabling the team to adapt without overwhelming them. Regular meetings and the creation of troubleshooting and support channels facilitated smooth implementation and addressed any challenges promptly.
Transformative Impact on Project Management:
The implementation of these solutions led to a transformative change in how project management was conducted:
- A significant portion (80%) of metadata-oriented and organizational system actions were automated, leading to a substantial reduction in manual effort.
- The quality and accessibility of project information improved dramatically, making it easier for PMs to find and use data effectively.
- The standardization and automation of data input led to a 60% improvement in the quality of output data, enhancing productivity analytics and resource planning.
- PMs reported a 30% qualitative improvement in system usage, indicating increased satisfaction and efficiency in their roles.
- The introduction of standardized intra-system reports and dashboards provided PMs with essential insights for tracking the status, progress, and next steps of hundreds of projects, resulting in an 80% decrease in overdue tasks and late projects.
This comprehensive approach to automating and streamlining project management workflows not only addressed the immediate challenge of managing an increased workload with fewer resources but also set a new standard for efficiency and effectiveness in project management within the organization.
Results
Adjusting to Increased Workload: In the wake of the launch of new product initiatives and the consolidation of the Canada and US markets, the project management team faced the challenge of handling a net increase of four major product initiatives. This surge in workload was accompanied by the integration of two major systems into their tech stack, contributing to a 21% increase in workspace complexity. Despite these factors, the team's workforce grew only by 20%, setting a demanding capacity target of 39%.
Improvements in Key Performance Indicators:
- Capacity Enhancement: The team witnessed a 40% increase in capacity without any changes in workforce turnover rates. This improvement was a direct result of the operational changes implemented, including task automation and platform tool integration within the WMS.
- Complexity Reduction: The introduction of standardization in the system landscape led to a 45% decrease in overall complexity compared to a scenario without any changes. This simplification resulted in a 25% reduction in the system nodes that team members needed to manage per project.
- Efficiency Gains: The efficiency per input unit increased by 30% compared to the previous year. The time required for each project dropped from 54.5 hours to 38.61 hours, and the man-hour requirement per final deliverable decreased from 1.4 hours to 0.99 hours per asset.
- Productivity Surge: The team's productivity saw a significant boost, with nearly 519,000 deliverables produced in the following year. This meant that on average, each team member was responsible for 690 more units than in the previous year.
Strategic Business Impact: Despite challenging macroeconomic conditions, including recessionary pressures and a decline in consumer confidence, the business managed to achieve remarkable results. There was a 25% decrease in Year-over-Year (YoY) revenue growth rates and a 5% drop in revenue efficiency (Average Revenue Per Customer, ARPC). However, the business still recorded a YoY revenue increase of 1%, a notable achievement compared to the wider market trend. Additionally, there was a 5% increase in active customers. The strategic focus on product innovation not only helped retain existing customers but also attracted more engaged customers who spent considerably more than the 7-year average. The investment in reducing production costs is also expected to yield significant benefits in the future, positioning the business well for economic recovery.