Emerson Exchange 365

Independent Project Analysis‘ Paul Barshop highlighted the importance in using the stage-gate process for process manufacturing and production capital projects during his plenary presentation at the Petrochemical Engineering & Construction conference in New Orleans. The typical project loses 22% of the expected net present value when not following the process.

He’s working on a book targeted to a senior executive audience to be released this fall, but here are his top 10 things to teach executives on the path to successful projects:

1. Critical importance of project sponsor role (owns business objectives)
2. Benefits of framing a project before identifying scope (now, how we get there, where we want to be)
3. Steps for developing clear business objectives (trade offs scope, schedule, cost)
4. Requirements for building and supporting the owner project team
5. Relationship between project definition and project risk
6. Ingredients for an effective steering committee
7. How to use risk management effectively
8. Rules for setting cost contingency
9. Cost = project scope = cost
10. Stage-gate process doesn’t work w/o strong stage gates

The post Top 10 Things to Teach Executives about Stage-Gate Process appeared first on the Emerson Process Experts blog.