IBM Journey to Becoming Project Based Enterprise

| KnowledgeNow Executive Breakfast Seminar | June 6, 2007 | 1

IBM Global Business Services

© Copyright IBM Corporation 2007

IBM's Journey to Becoming a Project Based Enterprise

Tony DeBellisProject Management Center of Excellence

Catherine HoopleApplication Services Ottawa Delivery Excellence Lea d




Changes to the business environment influenced development requirements

Worldwide Movement to a

Project Orientation

MATRIXORGANIZATION

FUNCTIONAL ORGANIZATION

INDIVIDUALPRODUCTS

INTEGRATEDSOLUTIONS

1980's 1990's - Today




Project Based Constructs laid the groundwork for Organizing Work and PM development

Delivers Tactical Solutions

ProvidesBusiness Views

Manages Strategic Objective(s)

PROGRAM

PROJECTS

PORTFOLIO(S)




Project management was identified as key to reliably delivering commitments

Lack of project management discipline was identified as a major factor in failure ...

... contributed to by the entire organization

IBM recognized its Internal Challenge...




The Charter: Raise Project Management to a Core Competence with IBM

… and developed its Approach

The Agent: PM Center of Excellence

•One Consistent PM Approach

•Qualified PMs on Significant Projects

•Project Performance Measurements

•PM and Executive Accountability

•A PM Community

The End Result: A Project Based Enterprise




Executive Steering Committee

Project ManagementCenter of Excellence

We Defined the Organizational Structure to Manage the Change

Ensure 'Decision to change' Happens in Their Business Unit

Provide Guidance

Work Through Deployment Leaders and Business Unit Management

Remove Obstacles

Communicate the Message

Business UnitDeployment

Leaders

Business Deployment Networks

Line OrganizationsPM Community

•Develop and maintain programs, tools, method and policies needed to develop and support the systemic use of project based disciplines across the corporation

•Deploy and integrate the use of PM discipline by the business units based on the programs, tools, method and policies that have been developed at the corporate level




A community of qualified PM Professionals that lead teams and manage on-time, delivery within scope and cost, reducing risk by the use of project based disciplines.

PM Methods and PM tool set, scalable and adaptable to customer program and project needs, that provide the right level of control to match risk and ensure delivery.

Management Systems, infrastructure and process, that provide visibility to project and program information needed to manage the business effectively.

IBM Documented its Desired Outcomes

Community

Enablers

Infrastructure




The Value of Building PM Skills

•Projects and teams can start more quickly through:ƒ reuse of intellectual capitalƒ common language and reportingƒ an understanding of project roles and responsibilities

•Risks are reduced by:ƒ PM Professionals who do not rely on heroics to deliverƒ better planning and prediction capabilitiesƒ using proven intellectual capital

•PMs help our customers by managing:ƒ delivery cost ƒ product quality ƒ schedule integrity




•Incorporate Recognized Industry StandardsƒPMI ƒSEI CMMƒISO 10006

• Desired CapabilitiesƒScalability: small projects --> programs ƒAdaptability: internal development ---> external deliveryƒUsability: aids as well as procedural guidanceƒIntegrated with tools and other processes

•Foundation for Internal AssessmentsƒPM Professional Self-AssessmentƒOrganizational Baselines

Consistent methods enable effective project managers




IBM Worldwide Project Management Method

• Defines the way all projects will be managed in IBM• Describes a broad range of project management

activities adaptable to each project• Facilitates the sharing of project management

information, knowledge and experience.• Improves the identification and use of best practices• Improves results through avoidance of common

pitfalls




• PM Professional Centered

• Support Base PM Processes

• Improve Project Manager Efficiency and Effectiveness

• Resource Management

• Program Management

• Portfolio Management

• Link to business strategy

• Supports PM and business processes

• 360-degree visibility

• Interface with Financials,HR systems

Program/Project

Portfolio

Project

ProjectExecution

Focus

Management& Business

Focus

Enterprise Integration

ProjectPortfolio

Repository

ProjectPortfolio

Repository

Using Project Data to manage the Business




Corporate Value

• Single investment stream in project management methods and tools

• Reduce duplicate training, technology and documentation

• Portability of Project Managers

• Tied to project management profession, education, certification, community

Project/Engagement Value

• Improved efficiencyƒProject start up, status,

reconciliation

• Improve effectivenessƒExecution of best practicesƒCollaborationƒEarned Value techniques

Business Unit Value

• Portfolio Managementƒ Executive reports

and decision support

• Maximum utilizationof resources

• Early detection of troubled projectsƒReduced loss,

improved gross profit

Value to IBM




Provide a modular scaleable solution

Project Size & ComplexityLarge

Complex

Small

Simple

Fully

Enabled

Inexperienced

PP

M M

atur

ity

Project Portfolio Management Maturity Continuum

� High-level planning� Scheduling� Document Management� Risk Management� Scorecard Health

Assessments

TRANSFORM

IMPROVEOptimize& Sustain

Continuous linkage of strategy& execution

� Project Prioritization� Detailed Planning� Resource Leveling� Issue & Change

Management� Workflow� Schedule/Cost Variance

GET STARTED

� Portfolio Analytics� Effort-based Planning� Service Requests� Time Phased Actual� Earned Value

Assessments




An Enterprise-wide Tool EncouragesWork Management and Knowledge Sharing

Collaboration Support

Project StaffingSearch and AssignResource Reports

Principals, Business ManagersMonitor progress

across portfolioFocus on Business

Resource Managers

Customer Team Members

Receive Reports

Vendors/SuppliersShare Documents

Project Team Members

Report progress

Project Managers

Plan projectsMonitorprogress

Project Support OfficeSupport Project ManagersAddress Organization IssuesProvides Admin Support

Program OfficeSupport Business Mgrs.Ensure ConsistencyPerform AnalysisDistribute Reports

Rational Portfolio Manager




• Business Process , defined in your Management System and driven by your business model provides the CONTEXT for your project

• Project Management provides the CAPABILITY to manage the project

• Technical Methodology , driven by the specifics of the project provide theCONTENT for your project Business

ProcessTechnical Methodology

Project Management

Processes

ContentContext

Capability

Three Process and Method elements integrate in a project environment




Project Based Enterprise Characteristics

Managing the Organization through projects• Produces products and provides services using projec ts.

• Ties project selection and performance to business strategy

• Sets organizational goals and measurements in terms of projects, and tracks progress by measuring and tracking proje cts

• Allocates responsibility and authority for managing the projects to their project managers

• requirements, cost, schedule, sponsor interface




IndirectControl

(Context)

DirectControl

(Content)

Stakeholdersare committed

Business benefitsare being realized

Risks arebeing

mitigated

Delivery organizationbenefits are

being realized

Work and scheduleare predictable

Scope is realisticand managed

Team is highperforming

Red: urgent, remedial action required

Yellow: warning, corrective attention required

Green: progressing in accordance with plan

Seven Keys to Success: a holistic approach

Integrated Project Plan

• Stakeholders

• Business Benefits

• Work and Schedule

• Scope

• Team

• Risks

• Delivery Organization Benefits

Key information this period

• Major Points…..

Plan

ActionsActions

Actions ImplementImpact

Assess

Generally a monthly

cycle




Stakeholders are committed

Healthy Signs

• Executive incentives linked to project results

• Investments in change management and training

• Stakeholder resources dedicated as planned

• Stakeholders engaged as planned

Unhealthy Signs

• Executive sponsor not visible

• Lackluster Stakeholder interest

• People sabotaging efforts

• Resistance to new ideas

• Experts not available

1. Stakeholder management plan is fully implemented and maintained.

2. The right sponsor is appropriately engaged and fu nded.

3. Regular Steering Committee meetings are being hel d, decisions and actions are being taken in a timely fashion and are effective.

4. All appropriate stakeholder groups are effectivel y represented and engaged.




The 7 Keys Report (Heads-Up Display, “HuD”):

Scope is realistic and managed

Team is high performing

Issues HuDThe 7 Keys Corrective Actions


Business Benefits are being realized

Work and Schedule are predictable

Risks are being mitigated

Delivery Org. benefits are being realized




The Seven Keys to Success™

� A yardstick for measuring project’s health

- A way to review all aspects of a project at any stage

� Delivery health

� Delivery excellence

- Familiar and easy to assess and interpret

- Basic terminology

- Improved communications

- Early warnings

- Basis for decisions, actions, commitment and sponsorship

Work and schedule are predictable



Business benefits are realized

Risks are mitigated

Delivery organization benefits are realized


7 Keys to Success

Highly Effective becauseit is simple! Resist the

temptation to redesign or over complicate it!

� … Covers the key factors which impact your project's health




Tips from the “pros” who are using the 7 Keys:

• With practice, anything and everything about a project or program failure or success will fit under the Seven Keys dimensions

• Even good projects are not green on all keys all the time, but good projects are always assertive and quick to identify and address issues and always take timely corrective action

• On the other hand, poor projects generally have one or more keys go "red" early, and they stay red for the duration

• Don’t over engineer the 7 Keys, they are a simple communication and collaboration tool that provides a highly effective view of critical project dimensions




Findings across the practice

• Of the 7 Keys, the one most commonly in trouble is “Work And Schedule Are Predictable”

• The root cause behind most of these symptoms is a problem with “Stakeholders Are Committed”

• The average length of time it took for effective actions to improve the health of any key was one and a half months




Back Up Slides




IBM's Project Based Transformation Journey continues

Build SkillsDeliver Key

EnablersMake PM Systemic

SkillsEducationQualificationKnowledge

Sharing

MethodsToolsAssessmentsFinancial Systems

Executive InvolvementMeasurementsCommunicationsIntegration:

Business, Cultural, Organization

Individual Enterprise




Project Managers grow their skills as their careers progress.

New 1st Level 2nd Level 3rd Level

Basic Enabling Program Mgt

IBM's PM Developmental Path

First Project --------------> Program Mgt

Accreditation ------> Certification

Experience

4th Level Exec

Qualification

Education




Education and ExperienceDevelop Skills

Skills DefinitionEstablishes the Baseline

Qualification ProcessesValidates Knowledge and Experience

Individual PM Development:The Building Block to a PM Community

Skills Levels

3 4 5 4

2 3 4 5

xxxxx

xxxxx

xxxxx

1 2 3 4

Mentoring

Knowledge Sharing

Recognition

Experience

Education

Basic

Advanced

PM Community




PM Curriculum Architecture




IBM's Project Based Transformation Journey




Sharing








Business benefits are being realized

Healthy Signs

• A compelling reason to implement

• The solution doesn’t have to be fancy

• Before and after difference can be measured

Unhealthy Signs

• “Why are we doing this?”

• Time is not important

• Cost is too important

1. The business case is clearly and convincingly art iculated.

2. The solution will appropriately support the desir ed outcomes and costs.

3. The quality of work products is appropriate.

4. Benefits tracking is ongoing and meaningful.




Work and schedule are predictable

Healthy Signs

• Everyone gives the same definition of finished

• Good evidence of control

• Slippage, when it happens, is predicted

Unhealthy Signs

• Can’t describe what finished means

• Uncontrolled — poor plans, controls, tracking mechanisms

• Slippage comes as a surprise

1. Project plan is accepted and maintained.

2. Interim and final milestone and deliverable accep tance criteria and roles are accepted.

3. Approach is appropriate, adequate, followed; reso urces have been scheduled.

4. There is confidence in progress report accuracy a nd estimates to complete.





Healthy Signs

• Evidence of healthy negotiation

• Lengthy issues log

• Written agreements

• Scope documents are compiled and readily available

Unhealthy Signs

• “Issue” is a bad word

• Not clear what documents define scope

• Confusion over scope document versions and updates

1. Scope management plan is implemented.

2. Organizational, system, and geographic boundaries are appropriately defined.

3. Scope exclusions/assumptions are clear.

4. Proposed/agreed changes to terms are appropriatel y reflected in costs, schedules, and responsibilities.





Healthy Signs

• Morale is good

• The team is diverse

• High energy and enthusiasm for the project

Unhealthy Signs

• The tension can be felt

• Turnover is high

• Working conditions are poor

1. Breadth, depth and caliber of PM and team skills ar e appropriate for all phases.

2. Morale, motivation, energy, and collaboration acro ss teams are high.

3. Environment and facilities support productive and effective teamwork.

4. Roles and responsibilities are clear.




Risks are being mitigated

Healthy Signs

• Documented plan

• Test-it-first tactics

• Regular and systematic probing for risks

• Risk and issue follow-up is taken seriously

Unhealthy Signs

• “What risks?”

• All-or-nothing tactics

1. Risk management plan is fully implemented, maint ained, and supported.

2. Risks are proactively sought in meetings and disc ussions and are dutifully identified, documented, and assigned for follow-up.

3. Risk tracking and reporting are timely.

4. Mitigations are effective.




Delivery organization benefits are being realized

Healthy Signs

• People feel they are learning

• Willingness to invest in the project

• Good press is being created

Unhealthy Signs

• Good staff are not available

• Negative remarks about project

1. The project will help the delivery organization’ s reputation.

2. The project will help financially; billing and co llections are current.

3. Project will help team members’ careers.

4. Project will contribute to the organization’s kno wledge and lessons learned.




The Seven Keys to Success Heads Up Display:Most “status” colors involve opinions on how much trouble you may be in

However, with the 7 Keys:

• You are “Green ” if the planned resources working under the current plan can be expected to successfully complete the project (you expect to handle whatever problems come up)

• You are NOT “Green” if either the plan or the resources needs to be adjusted if the project is to be expected to succeed, and furthermore

• You are “Red” if you have a serious problem and need to take corrective action immediately to avoid an unacceptable outcome (adjust either plans, resources, or both)

• You are “Yellow/Amber ” if you have an emerging serious problem and need to take corrective action in the near term to avoid an unacceptable outcome (adjust either plans, resources, or both)

• Because the 7 Keys indicator asks whether corrective action is or is not required, it is much more objective than typical ‘status’ schemes




Concern Recommended Action

Concern

Concern

Concern

Concern

Recommended Action

Recommended Action

Recommended Action

Recommended Action

A Board Room Agenda

What executives need to know, what they need to do

Stakeholders are Committed

Business Benefits are being Realized

Work and Schedule are Predictable

Scope is Realistic and Managed

Team is High Performing

Risks are being Mitigated

Del. Org. Benefits are being Realized

R

G

Y

Y

Y

G

R




No time for any new ‘complicated’ processes?

• Using Seven Keys to Success does not require any complicated worksheets, equations or templates

• It only requires understanding the terminology and application of a couple of simple forms, usually one-pagers, and you can begin applying the 7 Keys to your proposal or project at any time

• The hard parts about implementing the 7 Keys are

ƒ Getting comfortable with being much more assertive, open, and honest with ourselves and our clients about what needs fixing, and

ƒ Having the character and intestinal fortitude to face the yellows and reds and not look the other way

• Users report that a few hours to get the 7 Keys up and running will pay off many times over in diminished troubles and enhanced successes on projects as well as much stronger client relations

IBM Journey to Becoming Project Based Enterprise

Documents

Transcript of IBM Journey to Becoming Project Based Enterprise