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The actual usage must be captured into the system and this helps in refinement of future project plans. During the project estimation time, people have a tendency to tell things which their managers like to hear - thus giving an overtly aggressive estimate or a conservative estimate.

But when the actual efforts are tracked against the initial estimate and the variances are discussed openly in the project meetings, people tend to become more realistic in the future projects.

In my experience, I have used tools such as Rational or Remedy to track the actual utilization and then build that into the knowledge base for future use.

Also under utilization of resource is not a good thing. This implies that the initial estimates were over blown or the project is falling behind schedule and things are not starting on time.

Tracking Resource utilization is not everything for a project manager. One also needs to know how much of work has been completed on the ground.

It is therefore a good practive to add resource contegency into the resource estimates to guard agaist resource scarcity. Resource contingency is something that's added to the initial estimates to guard against things requiring more work than expected or simply to reflect the fact that the estimate is not reliable.

It is good practive to add contingency to individual work packages. In some cases, contingency is added en bloc in form of additional work packages.

In large complex projects, It's common to incorporate contingency at both levels. Understanding how much is already built into individual, detailed estimates is part of deciding how much additional contingency you should allow for the project as a whole.

Project managers are measured primarily on the delivery of projects. To deliver projects on time and on budget, one needs to have a very tight control on the resources and time scales.

From experience I know that resource management is the key for successful projects delivery and resource utilization tracking is a key metric in measuring the quality of the project plan, monitoring the project status and this helps in taking any corrective steps.

Posted by Arun Kottolli at 3: Leadership , Project Management. Thursday, July 21, Resource Commitments in Projects. I was reading Robert G. While going through the book, I found a section that resonated with leadership of product management in Projects, and here are my thoughts.

In today's dynamic software development world things are often in a state of flux. As companies are launching several projects every quarter, the project prioritization and resource allocation becomes an ever dynamic component in any project - which can have a tremendous impact on the success or failure of a product.

Often a successful product will get all the resources at the cost of other products, which in other words implies that potentially good products will never see the light of the day.

Resources are infinitely flexible. Resources are firm only between each stages of the project. Resources are fully committed to the project till the project is completed - irrespective of the the project performance.

In today's agile world, Option-1 sounds the best. It may sound attractive to launch new projects, but such a flexible approach will lead to an case where no project ever gets completed.

Option-4, is the most common form of resource allocation. Usually the product development teams will have an allocated budgets and a long term roadmap.

Based on the budget and road map, the project teams will be staffed and the project will continue till completion - irrespective of the delays.

If the product is already successful, then there will no resource constrains for the subsequent release of the successful product, and the top management often takes a lenient stand when it comes to reviewing the project status.

This leads to wasted resources with. In my opinon, Product managment should provide leadership in such cases by demanding that the product development project teams by adequately staffed as long as the project is meeting the stated objectives.

Every project must be reviewed periodically to see if the project is on track, if not, product management should decide on the next course of action: Increase resources or kill the project or put the project on hold.

One should not hesitate to take the extreme steps if needed. Often times, the political pressures within the organization will come into play and force the project management leadership to act the other way - which eventually leads to product failures.

Having successful products requires a very strong discipline in project management. Posted by Arun Kottolli at 6: Leadership , Product Management , Project Management.

Monday, July 11, Apple's Market Positioning. In my earlier blog, I had written " How to beat iPad ". In that article, I had written primarily about having functional features needed to beat iPad, but having all the right functional features is just not enough to win, it also requires the right positioning.

One person asked me comment on the market position of Apple in today's market and its impact on Apple.

This made me think and write this article. So the best solution in such a case is to lure customers into a different market place - i.

White hot center is a market position where all the customer's attention is on. Its essentially the prime spot of customer attention, and everyone is watching every step the seller makes.

To illustrate this, imagine a market or a Mall with a large central space where seller is selling his wares, and is surrounded by people in all direction, people are hustling to get in front and buy his products, and the crowd is making a huge commotion about it.

Now, seller is at the white hot center of the market. And that's where Apple's competitors are today. Every market has one white hot center: Apple did not get to the white hot center by accident, it was culmination of a decade's hard work and mistakes of its competitors.

To understand this journey, imagine a mall of PC sellers. Certainly Apple was one of the early stores in the mall and other joined: During the last 30 years, several things changed in the PC industry.

While the rest of PC manufactures stumbled and made mistakes, Apple has been executing flawlessly. Its not that Apple did not have its share of problems: But Apple has been successful in avoiding controversies, and has been very successful in cultivating customer satisfaction, Apple has been open and transparent of its problems and has taken all the necessary steps to fix those issues.

While the competition was entrenched with operational issues that they failed to produce competitive products. The fact that the competition had failed to respond forcefully to Apple's new product introductions - had enabled Apple to gain the white hot center.

At a time when all the PC manufactures was selling white box PC, and Black colored laptops, Apple took a fresh view of things and introduced stylish iMac.

Coming into the market when RIAA was suing Napster out of business, Apple created iTunes where customers could legitimately download music and enjoy it in iPods.

The competition till date has not provided a competition to iTunes. Till date, Microsoft has not been able to create a product like OS-X, Windows Vista failed in market as it was loaded with several tons of legacy code, which Microsoft could not throw away.

Apple reinvented laptops with Air Mac Books. The ultra thin laptops was revolutionary in design and size. Even after 3 years of its introduction, competition has still not produced anything like an Airbook in terms of design.

Revolution of Touch Screen Phones. Apple redesigned the cell phones with a completely new user experience, and with that Apple created a niche for itself.

With a strong position in high end cell phones, Apple changed the business environment for the incumbents - Nokia, Sony-Erricson, Motorola.

New paradigm of computing. Apple was not the first to introduce the tablet computer. HP, Nokia, Sony had experimented with that before.

Its been about 2 years since the original iPad debuted, but the competition is yet to introduce an strong contender in this space.

Nokia is no where near with its Tablet, nor is Dell or Sony. To understand market position of Apple, one needs to look at the basics: Price, Product, Place, Promotion.

Apple in general is positioned as a premium product. Apple products are generally priced higher than competition.

This position has helped Apple a lot as it avoids getting into price war. Instead of competing on price, Apple can now compete on innovation and unique value propositions.

This is a key element to be in the white hot center. This position of a premium priced superior product was once occupied by IBM and later by Sony.

Premium pricing strategy helps to make big profits without hurting the brand. Apple brand is the most valuable asset, bigger than all the technologies it controls.

Having volumes at this premium pricing helps Apple make bold design decisions and force its supply partners to comply with its design decision.

Apple simply wants to sell the best product in the class. No compromises in quality or performance.

Here Apple had its share of manufacturing mistakes: Antennagate, iPod scratches, etc. But every time such problem was identified, Apple moved swiftly to solve it completely.

Apple has taken bold decisions when it comes to product quality: Delay shipments to get quality products out, rather than compromise on quality and get more products out to customers.

As long as Apple maintains its product quality, Apple can continue demanding premium prices and people will line up to buy Apple products.

Another good point of Apple's product positioning is that there are very few variants in each class of products: This limits the number of choices the customer has to choose from and it makes it easy for customer to decide and buy.

Similarly in its Mac Pro line as well, there is a spartan range of models to choose from. Apple products are unique and does not have a similar substitute.

A Mac can be technically replaced by a PC, but the user will never accept the substitute PC because of the user experience on a PC is totally different than on a Mac.

Recently, I swapped a Dell for a Compaq without missing a beat, the user experience was the same on both laptops, but I tried Galaxy Tab - only to get back to iPad.

In the era of Internet sales, Apple moved boldly in the opposite direction and set up exclusive retail outlets, when its competitors closed retail outlets and moved to Internet based sales.

Apple has been very selective in choosing the retail partners, has made big demands on how Apple products must be placed and displayed in stores and in case of company owned retail outlets Apple has gone the whole length to design the store as a boutique store aimed at giving the best customer experience.

Apple stores are often located in prime retail places and that augurs well with its premium image.

Apple has been a though leader when to came to advertising, be it the super bowl advertisement or today's iconic iPhone 4 advertisements, Apple's advertisements have always stood apart from the competition.

Apple has been building up a very big reputation and a very strong brand, I suppose that Apple is within the most expensive brands on earth.

Everybody associates automatically Apple with innovation, design, quality, being different, etc. Apple cannot deliver products that are not innovative, well designed or top-notch quality, they would only destroy their own brand and reduce sales figures dramatically.

Innovation and quality are related with high price, the high price guarantees the customer that he is buying an excellent product, this is psychologically as well as from the business side, a typical business model.

The human psychology says that the higher the price, the better the product and otherwise. Cheap Apple products would mean low quality which would hurt the Apple brand in good times and maybe in a long term, be more dangerous than just trying to survive the hard times.

Take the case of Dell. Which had serious quality issues and that effectively destroyed the brand, and Dell lost the market leader position. Apple has positioned itself to be a lifestyle product for wealthy people, innovators and people with good jobs.

Apple has become a desired product but not easily affordable. This premium positioning helps Apple in the long term. With inflation in wages, affordability, more people can afford Apple products in future, thus increasing sales by reaching out to a larger audience with time, and when people can afford to buy Apple products they do not haggle about price, price would be secondary and the image of having an Apple product is more important.

Four years ago, very few people could afford a smart iPhone in India, but today the situation has changed, iPhone is becoming part of mainstream market as affordability has increased.

Not all things at Apple was deliberately planned and executed by Apple. Few things happened in the business environment that really helped Apple along the way.

With millions of users, third party developers are happy to develop Apple specific products. In the back end, Apple worked hard with music label companies to create iTunes.

Now Apple is building iCloud as well to create a right environment for the future. Apple is in White hot zone, that it cannot afford to make mistakes.

Customers are willing to forgive one rare mistake, but not too many of them. Apple has been able to execute extremely well all through the last decade, and has corrected several glitches, come out openly and admit the mistake and fix them.

Apple products are never positioned to be a low market products, its only in the premium segment mind share.

Do not respond to competition in obvious ways, instead make the competition respond to your moves. Apple works doubly hard to find out what customers want and then delivers on the key requirement.

Once in execution, it must be a flawless execution. Influence the customer to move in that direction. Best way to be a leader is to find a group of people walking in one direction, and then walking in front of them.

Always be seen with the winning horse. Always be associated with success and never get associated with controversies or losing propositions.

Product Management - How to beat the iPad? Product Management - Paradox of choices. Posted by Arun Kottolli at 1: Leadership , Marketing , Product Management.

Congratulation for the launch. Its a bold move by HP, but a necessary one in the present conditions. So I won't do any comparison or write a review of TouchPad.

Instead I will use HP as an example in identifying lessons on product management and write about that. Pick any business strategy text book and you will find a chapter on pricing and product positioning.

What the text book says about product positioning can be summarised in three points:. Positioned at a superior product than the market leader - but the product must acheive parity in terms of pricing.

Positioned as a premium product, priced very high when compared to the market leader - but it must appeal to market as a luxury premium lifestyle product.

HP TouchPad is priced on par with iPad, but it falls way short in terms of functionality or features. TouchPad runs on WebOS, which is a new platform and as a result the security, stability of the platform is still untested in the marketplace.

As a new platform, HP TouchPad has far too fewer apps - which makes the device less valuable. HP TouchPad has failed to create a superior positioning in the marketplace - even though it has achieved price parity.

This is a clear blunder, tablets are seen as totally mobile personal device. Also in the global makets, 4G is not yet popular, in most places there is only 3G network, and often 3G is the preferred Internet connectivity like in India.

Lack of 3G connectivity simply means that HP has deliberately chosen to ignore the vast Asian market. This to me is a meaningless feature. Instead, HP could have opted for 3G and 2.

Every product must be designed and positioned to an appropriate market position. In case of Apple - its primarily positioned as a lifestyle product aimed at the consumer.

HP has not explicitly designed the table for consumer market nor is it positioned for enterprise market. This lack of calrity in positioning will spell doom for the device.

There is no supporting eco-system designed and built to support the TouchPad unlike its main competitors: Apple had a head start with iPod, iPhone devices, and accordingly built an active ecosystem with iTunes, App Store, and iCloud coming soon.

Only die hard fans of HP will buy it. Which can run in several thousands - when you count all the HP employees, Distributors, sales partners, etc.

HP designers should go back to the drawing boards and fix some of the design flaws, HP product management should start building a robust eco-system designed for enterprise markets see: Posted by Arun Kottolli at 5: Monday, July 04, Product Management Leadership.

As product manager, I face the issue of project executions on daily basis. Today in most companies, there are dedicated Project manager, Engineering manager, QA manager, Program manager and a product manager overseeing various aspects of the project.

Having multiple managers overseeing a project of developing new products creates its own set of challenges. There will be multiple teams working on developing a new product, but often there is no designated project leader.

Program management office is a conduit between the project teams and upper management, the PMO does not have the right expertise to provide leadership for the projects.

The best role for PMO is to provide a platform for leadership building and consensus in project execution. In a typical product development project there are several moving components.

Changing market requirements force changes on the scope of the project. The changes to the project team composition due to attrition or changing engineering priorities can lead to changes in the project schedules.

This results in a very dynamic environment which has many moving parts and that leads to changes to both the scope and schedule of the project.

In waterfall model, the product manager would sign-off the product requirements to the development team and define the release date. The project team would work on those requirements and release the product when the features are completed.

Any changes to the product requirements would have a direct impact on the released dates. This methodology had several disadvantages - mainly the release dates change when the product requirements change or when resources allocated to the project change.

Leadership in project management is often an undiscussed matter, people tend to assume that there will be a project leader who is some else but not them.

In product development projects, the role of leadership in projects fall naturally on product manager. Only if the product manager abdicates this role, the leadership position must be taken by project manager or program manager.

In my experience, the main areas of leadership that a product manager needs to provide are as follows:. The product owner or the product owner must be a visionary.

The leader must have a clear vision of the future and must know how the product fits into that future. Great leaders have the ability to articulate their vision and inspire other to work towards realizing their vision.

Visionaries always challenge the status quo and thrive on bringing in a change. A leader should be able to communicate with people at all levels.

Project leader must clearly communicate about goals, responsibility, performance, expectations and feedback at all levels in the team and to all stake holders.

Leaders place a great value on openness and directness. The project leader is also the team's link to the larger organization. The leader must have the ability to effectively negotiate and use persuasion when necessary to ensure the success of the team and project.

Through effective communication, project leaders support individual and team achievements by creating explicit guidelines for accomplishing results and for the career advancement of team members.

The Project leader always plays the cheer leader for the project team. People do not like leaders who are negative and who keep criticizing others - it brings down the morale.

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