Wellingtone Project Management

1. Wellingtone Project Management “What are you worth, NOW?” Vince Hines BSc MAPM MACostE MIoD PRINCE2 Practitioner Managing Director Recruitment Training Consultancy

2. Introduction • Given the economic situation… • What are the current recruitment conditions • How does this impact Programme Management? • When will it recover? • What opportunities are there now? • What are average salaries? • What should I be doing? • Strategy and programme management

3. Wellingtone Project Management • Specialist Project Management recruitment, training and consulting company • + 10 years experience • Average 50 live perm / contract roles • All industry sectors & across UK • On average 2 out of every 3 candidates we submit to our clients are invited to interview

4. Our Clients • EDS • GE Money • GlaxoSmithKline • Johnson & Johnson • Westinghouse Rail • The Collinson Group • London Underground • Parsons Group International • UCB Homeloans • Interserve • Salford County Council • Dept for International Development • The Environment Agency • Land Securities • Cheshire Constabulary • Monsoon Accessorize • Ladbrokes • Sonus Network • Clarks • Infratec • BAT • News International • The Boots Company • Save The Children • Oxford University • Columbus Insurance • Apple “Wellingtone helped us quickly recruit a Project Manager that matched our needs exactly. Thank you!” Head of Communications Save the Children “A very quick, friendly and professional service” HR Manager Security Industry Authority

5. General Recruitment Conditions • Permanent staff recruitment at slowest for 7 years. • Permanent placements by recruiters fell at the sharpest rate since November 2001. • Temporary billings by recruiters declined at the highest rate since 1998. • Declining demand & rising candidate availability has dampended pay pressure. • Salary growth the weakest for over 5 years. Source: REC / KPMG

6. Wellingtone Vacancy Data • Demand for permanent in 2008 is slightly down compared to 2007. • January, April & Sept/Oct are traditionally the spike demand periods • August and December are traditionally the quite periods. • Not as significant as general recruitment conditions • Oct spike is 2/3rds of demand in 2007

7. Candidate Data • Project and Programme Management candidate registrations with major job board do not reflect a particular positive or negative trend. • No huge increase in supply of professional Programme Managers

8. Programme Management Recruitment Conditions • Clients have put roles on hold, part driven by industry (construction & financial services) and now driven by time of year. • Some are moving to contract PMs rather than taking the plunge with permanent staff • Employers perhaps more selective & less willing to negotiate on pay. • Clients are taking longer to make recruitment decisions – often requiring approval from higher authority during general recruitment freeze.

9. Vacancy Behaviour • Demand for Programme Managers has not crashed • Perception of “hirers market” although supply has not increased • Candidates becoming unwilling to enter recruitment market place, preferring to stay in current position

10. Can Programme Management be more resistant? • During economic slowdown programmes will be postponed • Existing programmes will already be budgeted for & less likely to be cancelled • Other programmes are being initiated as part of strategic change to deal with new economic conditions – cost reduction, off-shoring, site closure, business restructuring

11. Can Programme Management be more resistant? • Evidence suggests many organisations undertaking strategic reviews. • “Mature” organisations translate strategic change into programmes. • Most significant demand we are current seeing is from the need to establish strategic programmes & programme offices.

12. Trends in Project Management

13. When will recruitment recovery take place? Historical Analysis of periods of falling permanent placements Start of Fall Bottom Recover Complete Jun 98 Dec 98 May 99 Jan 01 Oct 01 April 02 Nov 02 May 03 Sep 03 Nov 05 Mar 06 May 06

14. When will recruitment recovery take place? Historical Analysis of periods of falling permanent placements Start of Fall Bottom Recover Complete Jun 98 6 Dec 98 5 May 99 Jan 01 9 Oct 01 6 April 02 Nov 02 6 May 03 4 Sep 03 Nov 05 4 Mar 06 2 May 06 Recovery is quicker than fall, on average two thirds as long

15. When will recruitment recovery take place? Current downward trend started in July 2007 with slight pickup in March 2008. Stated Sept 08 Assume bottom is December 2008 then June 2009 would see 50% return & November 2009 full return. Given natural spikes in recruitment demand September 2009 looks like a realistic return date. Current View Bank of England projects GDP at lowest in March 2009 with improvements back to current position and beyond by end 2009. Given natural spike in recruitment demand October 2009 looks like the first possible step of improvement with January 2010 being a realistic return date

16. Project Management Salaries • How are salaries impacted? • Average salaries for 3 standard role types • Project Coordinator • Project Manager • Programme Manager

17. Project Coordinator • Role & responsibilities • Maintaining logs • Running project schedule • Liaising with team members • Working within PSO or direct for PM • Skills & Experience • PRINCE2 Foundation • 1 – 5 years experience • Excel, MS Project, Word, Visio, Access

18. 18k 20k 22k 24k 26k 28k 30k 32k Project Coordinator Permanent Salaries EXPERIENCE 1 year 3 years STANDARD ROLE 24.8k average LONDON ROLE 28.1k average SENIOR ROLE JUNIOR PM

19. Project Manager • Role & responsibilities • Responsible for timely project delivery • Not total budget authority • Matrix environment / competing priorities • Monthly reporting • Skills & Experience • PRINCE2 Practitioner • 3 – 10 years experience • Communicator / owner

20. Project Manager Permanent Salaries EXPERIENCE 3 year 10 years 66k 34k 38k 42k 46k 50k 54k 58k 62k JUNIOR PM STANDARD PMs 45.05k average IT PMs 51.43k average SENIOR PMs

21. Programme Manager • Role & responsibilities • Responsible for multiple projects • Budget ownership • Line management authority • Executive reporting • Skills & Experience • MSP • +10 years experience • Senior manager

22. Programme Manager Permanent Salaries EXPERIENCE 10 year 25 years 90k 50k 55k 60k 65k 70k 75k 80k 85k SENIOR PMS PROG MGRs 68.2k average IT PROG MGRs 74.3k average PROG DIRECTORS

23. Contracting • Paid £x / day basis • Higher risk, higher reward • What are you worth? • Conversion Rule of Thumb • Divide by 100 • Minus “E” (economic conditions variable) • If E = 50 75 100, then £40k = £300 / day • pressure on E, depending on sector x x

24. Project Coordinator Contract Rates EXPERIENCE 1 year 3 years 150 180 210 240 270 300 330 360 19% JUNIOR ROLE £264 average 57% STANDARD ROLE 10% SENIOR / LONDON JUNIOR PM

25. Project Manager Contract Rates EXPERIENCE 3 year 10 years 260 300 350 400 450 500 18% JUNIOR ROLE 61% £378 average STANDARD ROLE 12% SENIOR / LONDON JUNIOR PM

26. Programme Manager Contract Rates EXPERIENCE 10 year 25 years 440 500 560 620 680 740 800 860 9% JUNIOR ROLE £591 average 67% STANDARD ROLE 18% SENIOR / LONDON JUNIOR PM

27. Contracting versus Permanent • PermContractEquiv. • Project Coordinator £24.8K £264 £57k • Project Manager £45.0k £378 £81.6k • Programme Manager £68.2k £591 £127.6k • Calculate based on 18 days / mth • Allow for training & sick days • Additional costs

28. Contracting versus Permanent • Contracting • Higher Risk, Less Security • No Benefits • No Career Development • Greater Flexibility • Higher Income • Broader Experience • Permanent • Lower Income • Less Flexibility • Lower Risk, More Security • Benefits • Career Development • Sense of Belonging

29. Your career • Ensure you have ability to justify your title of Programme Manager • Recognise the skills of a Programme Manager – do you have those skills? • Gain appropriate qualifications • Engage with your industry • Look beyond the way of working in your organisation • There are opportunities for Programme Managers with strategic business change experience

30. 7 Key Considerations for Strategic Programme Success • Visible and fully committed senior sponsorship. • Clear, well defined strategic objectives against which projects can be aligned. • Appropriate governance structure, particularly around project approval and change control. • Recruitment of suitably experienced project and programme management resources. • Consistent use of appropriate “fit for purpose” project management tools and techniques across programme. • Management by exception. Ability to identify and focus on areas of concern. • Pro-active intervention for failing projects.

31. Strategic Programme Dashboard - Example Project Metrics Programme Headcount Cost Forecast Benefits Forecast Delivery Schedule Project Alpha Beta Project x Project y Project z HR project Finance project R G G G G G A G A G G G G G A G G G G G A >£5m variance <£5m variance < £250k Overall Cost Overall Benefit

32. Wellingtone Project Management Please visit www.wellingtone.co.ukfor more information. Don’t forget to subscribe to our newsletter and vacancy bulletins. Vince Hines BSc MAPM MACostE MIoD PRINCE2 Practitioner Managing Director Wellingtone Project Management Recruitment Training Consultancy