Transcript IAPPM Governance document

Project Management Office (PMO)
Observations 2004
Vision – Mission - Realization
International Association of Project and Program Management
IT Credibility
 Recent research* has indicated that 70% of Global
2000 IT operations struggle with the business-side
perception of value from IT services.
– Even when 99.9% SLA compliance and IT balanced scorecards
are reported, the IT operations organization’s credibility is low.
 Reasons
– Uncoordinated IT requirements/initiatives
– Project success not measured in terms of business success
– Business KPIs have weak alignment with IT metrics
 Our challenge is to improve the IT value perception of
our customers
*META Group
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Intent
 To drive Projects/Programs to move
– from operations efficiency to business effectiveness,
– from cost to revenue, and
– from project providers to business partners
Real Value
Cost of IT operations
Role of IT
Perceived Value
IT is supporting the business Efficiency
Contribution to business goal IT is a value added partner
Ability to enable business change
Market value of IT
Ability to drive business change
IT is a strategic partner
*Table courtesy of the META G
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Achieved through Value Mgmt
Transformation
Conception
Definition
Deployment
Value
Value
Value
Creation Proposition Realization
Management
Life cycle
Improvement
Value
Sustenance
Value Management
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Retirement
PMO – Value Realization
Transformation
Conception
Definition
Deployment
Value
Value
Value
Creation Proposition Realization
Management
Life cycle
Improvement
Retirement
Value
Sustenance
Value Management
Providing the “Motion” to turn “Vision” into “Reality”
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Project Management – IAPPM view
 As Core Competency
– Project & Program Management is a Competitive edge for Organization
– Issue: We promote technical people to project managers because they
are good in their technical work!
– Project & Program Management is a Profession! Core skills that warrant
specialization, formal training and recognition
 As Value Realization
– Not just about completing the projects & programs on time, budget,
quality, but also what value they bring to the business
– Alignment of project & program metrics against business results
 As Flawless Execution
– Project Management is THE model of execution due to cross-functional
virtual teaming, matrix reporting, ability to react to constant changes
– From Vision to Motion to Realization
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PMO Roles & Responsibilities
 Project Portfolio management
– Facilitate the process of selecting and de-commissioning of projects
in the Project Portfolio
– All projects are recognized by their customers as a positive impact
(value) to their businesses – financially and functionally (capabilities).
 Project & Program management
– Enforce PMLC methodology, project management disciplines and
other relevant project processes such as Change Management, etc
– Direct project managers and technical consultants
– Work with Business owners, global PMO and key customers to align
project deliverables and business metrics
– Conduct post implementation reviews to verify the sustainability of
the service/system in the first 6 months of production
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PMO R&R (2)
 Customer satisfaction
– Ensure delivery of project that meets or exceeds customer
expectations
 Process excellence
– Improve project management processes to drive process excellence
– Using the IAPPM project Dashboard (or…your own)
 Value realization
– Capture and communicate benefits and any positive/negative change
to the business resulting from the project
 Compliance
– Security and regulatory requirements must be able to be built in as
part of the deliverables of the project results. Not an after-thought,
but planned activities.
 Transition management
– Manage transition of People,Processes to close the loop of project
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completion
Observations
 Strength
– Customer Oriented
– Strong Commitment
 Performance
– Rubber band management
– “Favor” management
– Base business vs Projects
 Energy
– “Hands are tied” / “Beyond my control”
– “People get away with non-delivery”
– “Weak unity in the leadership”
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Phase 1
 Objective is to clearly define the project boundaries
and resources, and put in simple processes to ensure
consistent reporting and change management.
 Deliverables
–
–
–
–
–
“What is a Project” defined
PMO Handbook developed (IAPPM objective for 2004)
Projects documented in an Enterprise Project System
Project Resources clearly identified
Project Change process incorporated
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Phase 2
 Objective is to clearly capture business values and
impact to your customers
 Deliverables
– Regular update of project status to customers
– Project value documented
•
•
•
•
•
Financial benefits
Cycle Time improvements
Customer Satisfaction
Change in the way “we” do business
Market results
– Project Management funding model defined
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Phase 3
 Objective is to select projects/programs that have the
greatest returns of investment and/or strategic values
to your organization and/or clients
 Deliverables
–
–
–
–
Project prioritization process must be implemented
Time tracking must be implemented
Project metrics and business metrics must be aligned
Resource allocation methodology proposed
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Phase 4
 Objective is to install a governance model to review
and approve project progress at each stage of the
project life cycle. (applies to all methodologies)
 Deliverables
–
–
–
–
–
Project portfolio management review process implemented
Project start-up phase review process implemented
Development/Solutioning review process implemented
Project closure process implemented
Post implementation review process implemented
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PMO Roadmap
Q2, 2004
Q3, 2004
Q4, 2004
Objective is to clearly define the project
boundaries and resources, and put in simple
processes to ensure consistent reporting and
change management.
Phase 1
Projects Under Control
Objective is to clearly capture
business values and impact to our
customers
Q1, 2005
Phase 2
Project Value Proposition
Objective is to select projects that have
the greatest returns of investment
and/or strategic values to the operating
companies
Phase 3
Portfolio Management
Phase 4
Objective is to install a governance model to
review and approve project progress at each
stage of the project life cycle.
Project Management Governance
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Organization (Short)
Short-term (6 - 12 months)
PMO
Director
Project Admin
General Admin
Finance Admin
Project
Managers
Consultants
Managing projects
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Organization (Medium)
Medium-term (1 – 2 years)
PMO
Project Admin
General Admin
Finance Admin
EP
PM Champ
Tools
PM Champ
Metrics
PM Champ
“Work along side”
Project
Managers
Benchmark
PM Champ
PM Champion
• EP = Enterprise Projects/Programs
• Works alongside with project
managers and consultants to train,
coach, support them.
Consultants
Managing projects
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PMO Funding
 PMO cost should be fully funded by projects
– Customer projects – by customers
– Internal Projects – by Department sponsoring the project
– Global projects – by the Global Capital Budget – fund allocation.
 Short term to leverage technical consultants who have strong
project management skills, and engage contract project
managers
 Long term to recruit permanent resources justified by demand,
and supplemented by contractors
 Run like a “business”
– Generate demand through effectiveness
– Driving cost down through Internal Projects and skills development
– Strive for cost transparency to manage the right cost drivers
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Partnering with PMO
To Leverage Strengths


Customer Oriented
Strong Commitment
More visibility with Customer
Enhance skills development
To Fortify Performance
Rubber band Mgmt

PM Methodology, Processes, & Tools
“Favor” Mgmt


Teaming & Accountability
Base Biz vs Projects
Change Mgmt
Value & Portfolio Management
To Turn into Positive Energy
“My Hands are tied”

Being Integrator, Facilitator, Accountability
Expert
“Non-delivery Get away”


Metrics
“Weak leadership unity”
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Make connections and alignment
PMO Metric
Monthly
Above 85%
Project Management
Management Office
Office
Project
Measure: Meet
Meet Project
Project Schedule
Schedule
Measure:
75% to 85%
Below 75%
Definition: Number of projects with Green schedule status
Total number of projects
Opportunities
Baseline project commitment
and Institute Project change
control.
Meet Project Schedule
100%
81%
80%
Action Plan
1. Present all projects to
PMO
Management Team for
approval of all projects in
the portfolio
69%
60%
47%
40%
21%
26%
20%
0%
Jun
Jul
Aug
Sep
2003
2. Bring in other projects
into PMO
Vision – Motion – Realization
68%
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Oct
Nov
Dec
Value Realization
Initiative
What did we do
Original CostNew Cost Value
Network Center upgrade
Negotiation
$3,000
Network Backbone
Negotiation
$152,000
Circuit Provisioning
RFP
Project ABC)
RFP
Project BCD
Build End node
$98,544
$74,808Cost Reduction,
Increased bandwidth
Project CDE
Introduced new ISP
$91,750
$53,600Cost Reduction,
Increased performance
Lost City Project
Build network
$2,500 Cost Reduction
1-Nov-04
($1,000)
($6,000)
1-Oct-04
($10,000)
($40,000)
1-Nov-04
($61,550)
($266,016)
$150,000Cost Reduction,
1-Nov-04
Improved vendor management
($25,000)
($140,000)
1-Sep-04
($386)
($23,736)
01-Oct-04
($6,300)
($38,150)
$112,000Cost Reduction,
End-to-end management
$1,331,028 $1,065,012Cost Reduction,
Increased bandwidth
$290,000
Start date 2003 Impact 2004 Impact
Better performance to enable 01-Oct-04
ERP applications, desktop
management
Total
($104,236) ($513,902)
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PMO Maturity level*
Value Management
2005
5
Incorporated
Business Continuity Planning
Procurement Management, Contract Management
PM Center for Excellence
Program Process Management
4
2004
Managed
Project Integration Management
Customer Relationship Management
Career Path
PM Methodology
You
are
here
3
Defined
Change Management
Risk/Issue Management
PM Training
Planning
2
Stable
Tracking
Schedule Management
Progress Reporting
1
Acquisition of Project Managers
*Based on METAInitial
Group Project Management
Office Capability Maturity Model
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PMO Value
PMO strives to be a full-service provider
PMO
Project Support
Tools
Administrative work
Consulting &
Mentoring
Methods &
Standards
Effectiveness
Efficiency
Training
Project Managers
Core Competency
Flawless Execution
PMO Mindset
Integrator - Assimilating technology, people, process, equipment to a common goal
Facilitator - Creating collaborative opportunities to turn intentions to actions
Accountability Experts - Embracing the ownership of results to meet expectations
in time, budget, quality and customer satisfaction
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IAPPM
www.iappm.org
Advancing Project and Program Management
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