The Value Of Project Management

Joe Findlater Michael Coyne

Agenda

• • • • • • • • The Changing Role of IT Critical Components of World Class Organizations What Is a Project Control Office?

Project Control Office Structure & Governance Model Examples of Project Control Office Tools/Templates State of Michigan Examples of Project Control Offices Project Control Office Return On Investment Next Steps: Creating A Project Control Office people who

Think you know IT?

Think again!

• • • • Today’s focus: The changing role of IT in a changing world What it

means for you

(as an IT professional) What it

means for DTMB

(think business transformation) And some

advice

to enable success people who

Re-thinking IT

IT traditionally plays a • •

support role…

Provide technical backbone Keep the shop running

Do you know this guy?

You know us as the geek squad.

But that is so yesterday!

people who

Today, IT is infused in everything we do, transforming how we live and work.

The

role

of IT is changing from support to: •

Innovation / Business Transformation

•

Strategic Enabler

•

Agility / Speed to Market

A new era in Information Technology is unfolding

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IT Projects Don’t Exist… They’re Business Transformation Projects

People Technology Processes people who

Critical Components of World Class Organizations

Innovate More • Tightly integrate business units with IT • Innovate and Transform leveraging Technology • Business and IT Portfolio, Program and Project Management Reduce Speed To Market • Are extremely agile (Business and IT) • Business and IT Portfolio, Program and Project Management people who

What’s Required For Success?

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Your IT Project experience

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Why Do Large Projects Fail?

Bing Search – 150,000,000 results • • • • Unrealistic budget for approval Unrealistic timeframes Poor business sponsorship & participation Flawed governance structure • • • Poor requirements Poor communication Lack of business involvement • • • • • No methodology Poorly skilled staff No testing phase Changing requirements Customizing commercial off the shelf • • • Ambiguity of roles and responsibilities Lack of buy in Poor change management people who

What Is A Project Control Office?

The purpose of the Project Control Office is to provide comprehensive and consistent project management practices and reliable, metrics based statuses. PCO’s provide value to all types and sizes of IT projects and can be delivered by teams of 1 up to 20+ depending on the size and complexity of the project.

• • • • • • • • •

PCO value is delivered by:

Managing the big picture Managing the budget Establishes a Project Governance structure Providing coordination and communication across projects and agencies Identifying issues, risks, benefits, and scope changes Resolving escalated issues and mitigating risks Managing to a high-level milestone schedule Managing scope change Maintaining project sponsor support and alignment with the Agency objectives people who

Project Control Office Responsibilities

• • • • • • • The PCO is responsible for: Managing a detailed project plan Managing budgets Managing blocks of work for specific product delivery Tracking a schedule that addresses day-to-day detailed tasks and activities Escalating issues that cannot be resolved at the project level Escalating risks that have a high probability of occurring and affect multiple, related projects Escalating scope changes that cannot be resolved at the project level or that effect multiple, related projects people who

Project Control Office Goals

• • • Schedule Control Tracking, monitoring processes defined

Status, issues, change management

Tools & environments set up Communication & training • • • Technical Control Configuration management processes defined Tools & environments set up Communication & training • • Communication Status meetings, schedules, agendas Tools & environments set up (web site)

Driving Ownership, Accountability & Focus

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PCO Governance

Strategy:

To provide an organization with governance and processes that recognizes all stakeholders (Business and Technology) to create:

• • • Involvement Commitment Buy-in • • Accountability Ownership people who

Governance Model Overview

Provides strategic direction. Ultimately accountable for strategic decisions and successful outcome of the project.

Accountable for overall tactical coordination, implementation and focus.

Executive Steering Committee Project Leadership Team

Strategic Tactical

Accountable for operational execution to provide delivery of goals and objectives.

Sub Project

Management Teams

Sub Project Sub Project Sub Project

Operational

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Project Control Office Team Structure

Executive Steering Committee Project Leadership Team Senior Program Manager Executive Business Owner Business Lead Business Lead Senior PCO Manager Technical Solutions Owner Senior Technical Manager Executive Technology Owner Technical Infrastructure Owner Sub Project Sub Project Sub Project Sub Project Sub Project Sub Project Sub Project Sub Project Project Managers Sub Project Business Analyst Sub Project Sub Project Sub Project Sub Project Sub Project Sub Project Sub Project Sub Project

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Project Control Office Tools & Templates

Weekly Schedule

Monday Collect Timesheets Tracking Metrics Provided to PCO Tuesday Status Reports Submitted Resolve Schedule And Status Issues with Teams Wednesday Manager’s Mtg Thursday Executive Status Scorecards Change Control Mtg Issue and Risk Identification and Resolution Friday Collect Metrics people who

Rigorous Methodology

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Master Project Plan / Timeline

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XXX Project Financials

$64 365 813 $105 060 012 $40 694 199 XXX Project Status Week Ending XX/XX/XXXX Budget Spending Balance

Project Status: Project Phase: UAT (71%) Weeks to Pilot: 07 Risks/Issues

 External System interfaces changes may not be completed on schedule  Impact of HIX on the ASPEN Project

Accomplishments/Major Milestones

 H1 – Disaster Recovery Plan – Submitted  I2 – I5 – Training Preparation - Submitted

Key Activities This Week

 Application Development - Continue fixes UAT Work Requests, CR Development  Conversion – Work Requests, Benefit Match Rate, Interim Conversion, Pilot Dry Run  Technology Management – WR fixes, Pilot CR’s, Vblock patches, Database Vault  Implementation - Training Materials, Data Clean up, Office Readiness, Pilot Readiness, Training Room  Testing – Recorded QTP Scripts, UAT Testing

Key Activities Next Week

 Technology Management – Apply Exadata patches, Performance Testing, VBLOCK patches  Application Development - Work request fixes, UAT, Change Request Development  Conversion - Resolve work requests, Benefit match rate, conversion defects  Implementation/Training –Data Conversion, Training Materials, Ideal Office, Train the Trainer

G A R

On Track At Risk Off Track

N H C

Not Started On Hold Completed

Project

1.

2.

Requirements Design 3.

4.

5.

6.

7.

8.

9.

Development Conversion QAT UAT MCI Pilot Wave 1 10. Wave 2 11. Wave 3 12. Training & Imp

Timeline

Duration Progress

Time

Sept 2011 – Dec 2011 Jan 2012 – Apr 2012 May 2012 – Oct 2012 Oct 2011 – Dec 2013 Nov 2012 – March 2013 Mar 2013 – June 2013 June 2013 July 2013 Sept 2013 Nov 2013 Jan 2014 Oct 2012 – March 2014

G N N N N N G C C C C G 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

Examples of SOM PCOs

• • • • • • • • • • •

Projects

BRIDGES Treasury Modernization Program CHAMPS MiTALENT Michigan Health Data Exchange Medicaid Compliance Program MiACTS Identity Management Initiative Unemployment Modernization BAM Modernization MiLAMP

Agency

DHS Treasury DCH MEDC DCH DCH DLARA DTMB DLARA MDOS DTMB people who

PCO Return On Investment

• • • • It was discovered that projects which had PCO related processes saw their projects completed (on an average)

+/- 5% of the target schedule and budget

for the current stage. Projects that did not properly utilize effective PM/PCO processes completed their project anywhere from

+10 to +50% over their

project budgets and target schedules. Also noted, the projects totaled a savings of

+$250M (with PM/PCO) compared to a total loss of $655M

use of PM/PCO). (without or limited

This savings was largely due to effective project management and controls, which gave the project teams the ability to

identify issues early enough to minimize impacts.

Source:

“Measuring ROI on Project Management - Project Controls “ - JAMK International Business School

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What Does This Mean To Your Project?

Let’s look at a $10M (2) year project:

Project X Cost Time in days $ 10,000,000.00

730 Without a PCO With a PCO

Cost Time Cost Time

Best Case Low end Worst Case High end

10 percent over 50 percent over $ 11,000,000.00

$ 15,000,000.00

803 5 percent under $ 9,500,000.00

693.5

1095 5 percent over $ 10,500,000.00

766.5

•

So what does this mean:

Worst Case without a PCO

Your $10M, 2 year project costs you $15M and takes (36) months to deliver •

Worst Case with a PCO

Your $10M, 2 year project costs you $10.5M and takes (25) months to deliver • •

Assumptions:

Projects with a PCO come in +/- 5% (budget/schedule) Projects without a PCO come in +10%-50% (budget/schedule)

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Next Steps: Creating An Effective PCO  • • Buy-In & Commitment To Governance Structure and Model Organizationally Key Processes  • • Dedicated Business & Technical Resources Executive Owners Key Leads  Dedicated Team Tools & Facilities people who

Questions & Answers

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