Transcript Considerations in Selecting & Protecting Your IT Investment

Considerations in Selecting and
Protecting Your IT Investment
Helene Heller
Senior Director
Office of the CFO
New York City Housing Authority
copyrighted © 2005 NYCHA
Agenda
• Enterprise IT
• IT Governance
• IT Portfolio Selection And Management
Methodologies
• Making the Business Case
• Project Management at NYCHA
• PMO Automation
More…
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Why is this an important topic?
• Fiscal realities dictate selective IT investment
• Technology/tools chosen need to support the business
problem/challenge or opportunity
• Project management should guarantee that the selected
technology works, the business problem has been
solved, and the investment was contained
• Projects utilizing technology should support improved
business processes and therefore be led by a business
owner
• Business owners shouldn’t have to be professional
project managers
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How To Balance IT and Business
Drivers: Client Funded Model
IT
Drivers
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Infrastructure
Costs
Business
Value
Client
Drivers
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How does an Enterprise IT Structure Fit?
Business Challenges:
• Project requests are often “siloed” resulting in
limited benefits to the organization
• Requests address only a slice of an end-to-end
business process
• Projects aren’t supported by a strong and consistent
business case often resulting in unclear scope and/or
failed completion
• Multiple technology platforms and solutions
supporting similar business functions in different
departments, are expensive and inefficient to support
More…
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Enterprise IT Structure Example
Mapping IT Support to Business Objectives
Effective Business Vision, Objectives,
and IT
Business Results
Collaboration
Processes, support, and
Infrastructure tools that enable business
functions
Services
Project
Management
Discipline
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Supporting
Foundation
Accountability
Metrics
Strategic Plans
Application
Development
Enterprise
Architecture
More…
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What is IT governance?
As Defined by Gartner:
• IT governance provides a framework in which the decisions made
about IT issues are aligned with the overall business strategy and
culture of the enterprise
• Governance is concerned with setting directions, establishing
standards and principles, and prioritizing investments.
• The process of assigning decision rights is influenced by corporate
culture, business orientation, stakeholders' opinions and the
knowledge required of decision makers.
• Effective it governance involves the assignment of decision-making
rights and accountabilities regarding behavior in the desirable use
of it.
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IT Governance Example
© copyright NYCHA 2003-2005
Role of the Project Management Office (PMO)
NYCHA Board
NYCHA
General Manager
NYCHA
CIO/CFO
Input &
Feedback
Provide
Membership
GM’s Operations
Committee
NYCHA
DGMs
Monthly Executive Project Status Reports
PMO
Project Repository
PM Consulting & Advice



PM Standard Methodology &
Tools
PMO Reporting Standards
Assistance & Coaching
Provide
Liaison
Project
Manager
or
Project
Team
or
Weekly/Monthly Project Manager Status Reports
Dept. Project
Manager(s)
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Project
Steering
Committee
Business Unit Staff
Reporting
Structure
More…
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Why is a Portfolio Approach Relevant?
• An organization must understand its goals, have
a flexible process to determine priorities based
on changing environments, and select projects
that will provide meaningful improvement to:
–Customer satisfaction
–Employee productivity
–Business process improvements
–Cost take-out from the operating budget
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Portfolio Management Approach –
Ongoing Process
Portfolio
Management
GM
• Portfolio scope
• Prioritize& optimize overall IT cost, benefits, risk
• Actively monitor Portfolio performance
• Adapt to business environment changes
Annual
Planning
Quarterly
Portfolio
Reviews
Program
Management
Quarterly
Planning
•
•
•
•
•
Comprehensive program planning
Change and risk management
Coordination of project delivery
Measurement of results
Corrective actions
Monthly
Program
Reviews
Project
Management
Monthly
Planning
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•
•
•
•
Initiate
Budget
Schedule
Resources
•
•
•
•
Deliverables
Scope
Risks
Measure
DGM
Weekly
Project
Reviews
PM
More…
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How to select the enterprise portfolio – Before
•
•
•
•
•
Key Care-Abouts
Identify key stakeholders who run
the business
Understand their goals and
priorities, what keeps them up at
night, and what gets in the way of
doing the job that supports their
goals
Use this knowledge to brainstorm
potential IT solutions
Enterprise Solutions
Look for patterns among
solutions of all stakeholders
interviewed
Identify opportunities to
implement one solution for
multiple functions or department
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Investment Criteria
•Identify criteria for IT investment:
improve business process, save
money, break-down business
silos, etc.
•Apply criteria against list of
potential projects
Business Case
•Identify executive sponsor and
project manager from the business
•Project manager completes a
project concept document
•Project concept documents are
presented to IT governance
committee for selection
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How to select the enterprise portfolio - After
Step One:
Step Three:
•
Started with NYCHA's published “5 year
• Six categories of aggregation emerged:
plan for fiscal years 2005 – 2009” as
– Compliance
submitted to HUD
– Cost takeout/employee productivity
– New partnerships
•
Extracted business goals from these plans
– New revenue
and hypothesized on Executive’s business
– Nycha-wide initiatives
goal correlation and opportunities
– Resident care
• Each goal was analyzed based on the key impact
•
In partnership with NYCHA's CFO
areas of people, process, & technology. Goals
conducted 1:1 sessions with DGMs to
where technology could play a role were
validate business goals, key success
identified and presented to the GM who
metrics and solutions, in the context of
requested a policy planning offsite
spring financial planning – 60 solutions
resulted
Step Four:
Step Two:
• Building on all of the above planning and using
the same planning matrix as step one – portfolio
•
Results Were Aggregated & Refined After a
methodology was developed
Review with the General Manager
• Impact categories were refined:
•
Example:
– Customer satisfaction
Hugh Spence – DGM for Community Operations
1.
One Voice Portal
– Resource enhancement
2.
Automated DOH Licensing Information
– Financial savings
3.
Automated Social Services Case Management
• Information sets such as: category, sponsoring
4.
Resident Employment Training & Tracking System
department, forecasted cost & benefits, & FTE
5.
Community Center Internet Connectivity
NYCHA project resources were presented in
6.
Reduce Duplicate Function – Community Center
chart, graph & pivot table format to enable a GM
Construction Operations
review of 26 projects for prioritization
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Application & Solutions Portfolio – NYCHA Today
Step Five:
• Balancing resource impact, risk, funding,
departmental involvement & customer
improvements, A tiered approach was developed
by the General Manager
• Application / Solution Portfolio
• Tier 1 Top Priority Business Initiatives
• Tier 2 Emerging Business Initiatives (business case
this year)
• Tier 3 Managed by IT (limited or no business PM
involvement)
• Tier 4 Future Year Initiatives
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How to Make the Business Case
• Elevator pitch: what is the business problem, challenge
or opportunity? Why should the executive care?
• Describe in layman’s terms a credible potential solution
• Define metrics that will show the executive that the
solution has successfully addressed the business
problem/challenge/opportunity
• Document the cost of doing business the current way v.
the new way that the solution will promote
• Compare to best practice examples
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Business Case Components
Project Team and Stakeholders
• Executive Sponsor
• Project Owner/IT Partner
• Impacted Personnel
Business Context
• Business Problem
• Business Goals
• Business Functional Objectives
• Metrics
Proposed Solution
• Solution Description
• Alternatives Considered
• Rational for Selection
• Product Selection
• Consistency with IT Strategy
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Project Approach
• Estimated Project Resource
Requirements
• Implementation Approach
• Estimated Duration of
Implementation
• Procurement Recommendations
Cost/Benefit Analysis
• Methodology and Analysis
Results/ROI
• Estimated Project Cost
• Funding Source(s)
Risk Management Plan
• Barriers
• Probability of Risk
• Mitigation Strategy
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The Goal of the IT PMO Discipline at NYCHA
Provide the end-to-end project
delivery and project management
processes, standards, best
practices, and tools to enable the
organization to achieve far higher
levels of performance, rapidly
delivering big wins with positive
financial impact.
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PMO Roles
Project Coach
Project Repository
•
Source of information on project
•
Best practice sharing across
organization functions and
coordinates communication
•
Raises organizational performance
-- mentoring relationships may be
established across business
boundaries between high and low
performing project managers
•
The PMO is a permanent structure
and has some supervisory
responsibility for all enterprise
business projects
•
A "dotted line" reporting
relationship from business-staffed
project managers and to the CIO
methodology and standards
•
Facilitates the use of a cohesive
set of tools for project design,
management and reporting
•
Empowers distributed, business-
centric project ownership
•
A first step to enfranchise the idea
of consolidating or sharing
management practices but does
NOT provide direct project
management
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Functions of a Virtual IT PMO
IT PMO
Project
Management
Standards
1. Developing a
standardized PM
methodology,
process and
tools for
effective project
management
across the
organization
Resource
Evaluation
Project
Planning
2. Ensuring the
optimization of
organization
resources in
projects
3. Responsible
for guiding
each project’s
planning
efforts
Project
Review
& Analysis
4. Consistently
monitoring
projects to
ensure they
are kept on
track and are
completed
successfully
Communication
and
Collaboration
5. Providing
continued
program
visibility to the
Executive Team
and facilitating
maximum
multi-level
collaboration
Vendor Info. Database
Resource Database
Collaboration Software
PM Methodology
Tools and Templates
Knowledge Management
Exec. Info. System (EIS)
Education Mgmt System
Slide modified from two Gartner concept slides © copyright Gartner, Inc. 2002
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NYCHA IT Project Lifecycle
© copyright NYCHA 2003 - 2005
Evaluation and
Enhancement
Metrics, Status, and Change Management
Initi
atio
Concept Commit
n
Plan
Executionning
Commit
Select
Prioritize investments
initiatives
Strategic Planning
And Analysis
Align
objectives
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Execution
Design/Dev/Test/Deploy
Close Out
Lessons Learned
Support/
Maintenance
Production
Refine
Project
Course
Metrics & Reviews Review
Portfolio
Communicate
status
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The IT PMO Functional Blueprint at NYCHA
© copyright NYCHA 2003-2005
Executive Sponsorship
Concept, Justification,
Execution, and Operations
Executive Management Team
Business
Units
Application Development
Procurement
Collaboration,
Orchestration, and
Coaching
Change Management,
Standards, and Policy
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IT Infrastructure
Quality
Assurance
IT PMO (Includes Budget Partner)
Exec. for Policy
CIO
Enterprise
Technology
Architect
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Initiation Phase
Overview © copyright NYCHA 2003-2005
Evaluation and Enhancement
Metrics, Status, and Change Management
Initia
tion
Concept Commit
Plan
Executionning
Commit
Execution
Exec
ution
Design/Dev/Test/Deploy
Clos
eLessons Learned
Out
Supp
ort /
Production
Phase Overview
Maint
enan
ce
•
The Initiation Phase sets the tone for the project
•
The Initiation Phase is a collaborative approach of presenting a particular NYCHA business problem,
challenge or opportunity defining a particular project to address the business issues(s) and identifying
anticipated benefits which NYCHA expects to realize by undertaking the project.
•
A Project Concept is required by an executive sponsor in order to get a sense if the project should be
pursued.
•
The Enterprise Portfolio IT selection process utilizes the materials in the project concept document to
determine appropriate project next steps, including Pilot, Process Re-engineering or Business Case
Development prior to commitment to move to the Planning Phase
•
If a commitment is not provided, NYCHA may decide to revisit the project at a later date, re-define the
project scope or terminate the project
Entry Criteria
Business Unit Executive Sponsorship
Exit Criteria
GM’s Operations Committee Decision to Sponsor Project to Planning Phase
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Initiation Phase
Activities and Deliverables © copyright NYCHA 2003-2005
File In KMR
CANCELS
GM’s Operations
Committee
(GMOC) Reviews
APPROVES
Present To GM’s
Operations
Committee
(GMOC)
CANCELS
Initiation Phase
Yes
START
Requesting
Department
Completes
INITIATION FORM
(Items 1-3)
CREATE
PROJECT
Project Manager
Submits PCD To
CIO For Review
1.
PROJECT
CLASSIFICATION
CHECKLIST (PCC)
1. PROJECT
DEFINITION
CRITERIA
2..
PROJECT
CONCEPT
DOCUMENT (PCD)
2A. GO TO
ACTIVITY WEB
PAGE
CIO Performs
Budget & PCD
Review
APPROVES
GMOC
PROJECT?
No
Update PCD
Open Issues &
Approval
Section
BC Required?
No
3.
BUSINESS
CASE (BC)
2B. GENERAL
PROJECT
INFORMATION
3. PROJECT PLAN
TEMPLATE
CREATED
CIO Bypasses BC
Requirement In
INITIATION
4.
COLLABORATION
SPACE (UPDATED
OR CREATED)
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Initiation Phase
Activities and Deliverables © copyright NYCHA 2003-2005
File In KMR
POC, Pilot, RFI/
RFP Completed
(From Planning)
Need More
Info Before
BC?
No
Proceed To
BUSINESS CASE
(BC)
Planning
No
Project Team Collaborates With
Subject Matter Experts (SME) To
Develop BUSINESS CASE (BC)
And EXECUTIVE
PRESENTATION (EP)
Project Manager
Finalizes
BUSINESS CASE
And EXECUTIVE
PRESENTATION
PM And PMO
Present BC And/
Or EP To GMOC
Or CIO
GMOC Or CIO
Review BC And/
Or EP
Proceed?
Update
BUSINESS CASE
Yes
Approval And
Result Sections
Planning
Yes
Conduct Proof
Of Concept
(POC), Pilot, Or
RFI/RFP
Planning
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How to Scale a PM Standard Throughout the
Enterprise: The Role of Automation
• Project Dashboard
• Knowledge Management &
Collaboration Repository
• Planning/Tracking
• Risk Management
• Reporting/Issue Management
• Automated Compliance
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PMO: Project Dashboard
•Overview: The Virtual IT PMO: a
comprehensive view, defined by user
role, for all the news and information
about NYCHA projects
Illustrative
•Users: Project team, executive
sponsors and anyone who needs to
learn more about the projects, or
need to know about status
•Elements: Workflow navigation
that guides the project manager
through the required project lifecycle.
Provides current project status,
project plan and timeline, issues and
risks logs, and link to repository which
stores past status reports and other
project-related information.
•Owner: PMO
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PMO: Collaboration Space
•Overview: A common repository for all
project related document storage and
collaboration facilitation
Illustrative
•Users: PMO, project managers and
team members, and anyone needing
access to knowledge management
•Elements: Contains current and
historical documents and completed PMO
templates, past status reports, updated
issues and risk logs, etc. Provides version
control and authentication. Information
clearly segregated in open and protected
folders with links provided to any other
required website (e.g., NYCHA intranet).
•Owner: PMO with project managers for
their specific folders (collaboration spaces)
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PMO: Planning/Tracking
•Overview: The overall detailed,
activity-based plan for the project using
Microsoft Enterprise Project Server
•Users: PMO, project managers and
delegated team members, steering
committee, executive sponsor
•Elements: Planning and tracking
information in Web-based views as
detailed a view as selected by the user.
Information comes from Project Server.
Data is hierarchical and can be expanded
or collapsed to view a snapshot of the
entire project. This is what feeds the
dashboard.
•Owner: Project managers maintain the
ownership of each plan
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PMO: Risk Management
•Overview: Automated Compliance to
Ensure Risk Management Plan
Adherence and Regular Review
•Users: Project manager leading their
team, executive sponsor, other
executives
•Elements: List of all the project risks,
their severity, impacted areas, likely
impact (delay, budget increase) and
mitigation strategies. Starts in Initiation
Phase to populate the required
documentation throughout the lifecycle,
includes the risk management plan, risk
log and status reports.
•Owner: Project managers
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PMO: Reporting
•Overview: A set of templates to
report the status of the project and
overall portfolio throughout the lifecycle
Automatically Completed for you!
(can be edited)
Illustrative
•Users: PMO, project managers,
steering committee, executive sponsor,
governance committee, CFO, Board
•Elements: InfoPath templates, SQL
database and web-based reporting.
Project level template for each project.
Three status reports depending on the
audience - includes an overall
red/yellow/green status assessment with
the high level explanation followed by
major accomplishments, key issues and
upcoming milestones.
•Owner: Project Manager with PMO
review on monthly and quarterly reports
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