Project ManagementProject Managementat the Bundesbankat the Bundesbank

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AgendaAgenda

Definition: What is a project?

Project Organisation, Roles and Structures

Project Modules

Project Monitoring and Reporting

Project Calculation and Controlling

IT supportive tools

Conclusion

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A project– has a defined target (quality, due date, efficiency)– has defined resources (time, tools, budget, personel)– is separated from other projects and daily business activities– has a defined and timely limited project organisation

At Bundesbank an IT-project– is a single non-repetitive process to generate a beneficial change of

IT systems/application characterised bya start and an enda specific organisationconstraints of costs, time and qualitya unique scope

Definition Definition –– WhatWhat is a is a projectproject??

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Project Project typestypes

Classified by investment and effort– Midget projects < € 50.000

– Minor projects = € 50.000 and < € 250.000

– Major projects > € 250.000

TOP 10 Projects at the Bundesbank– Projects with outstanding importance

– Decision on classification taken by Corporate Controlling

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Project Project organisationorganisation

Key factors for a good project organisation

Robustness– Ability to work independently and in sense of the project also under

exceptional circumstancesModular organisation– The organisational structure is

Understandable for all stakeholders of the projectFault-tolerant, meaning an incident in one part of the project does not strike through the whole projectMotivating staffDefining the right interfaces in order to adress information

Project organisation must fit the needs of the project itself as well as the management culture of a company

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Project Team

Project steering committee

System-owner

Internalaudit IT Org.

dept. Other involved business units.

Project management

Projectcontrolling

Sub-project manager Sub-project manager Sub-project manager

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OverviewOverview

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Project Project organisationorganisation -- RolesRoles

System Owner– Task: coordination of activities, acceptance of results, initiation and

project review– Competence: apply project organisation, change target, resources and

dates– Responsibility: for the project during development and operation phase

Project Steering Committee– Task: assessing reputation, receiving reports, intermediary, crisis

management, dissolving project organisation– Competence: change target, resources and dates, end project– Responsibility: steering and deciding authority, responsible for the

compliance with the target, time and costs

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Project Project organisationorganisation -- RolesRoles

Project Manager– Task: planning and steering of project, evaluating and reporting, inform at an

early stage, ensure quality, manage risks– Competence: managerial authority, distribution of work packages, bugdet– Responsibility: planning, organising and steering of project work to achieve the

specified targets

Sub-project Manager– Task: steer sub-projects, inform project manager, support in report creation– Competence: managerial authority within the sub-project– Responsibility: planning, organising and steering of project work to achieve the

specified sub-targets, responsible for results of the sub-project

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Project Project organisationorganisation -- RolesRoles

Project team– Task: execute tasks in predefined time frame, regular reporting on

time consumption for tasks– Responsibility: comply with business and qualitative requirements,

inform project manager or sub-project manager on problems

Other involved parties– Internal Audit– IT-Security– Organisations department– Security / data protection– Procurement Office– Corporate Controlling

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Project organisation Project organisation -- StructuresStructures

Functional/virtual project organisation– Members of the project team remain in their division

– Functional/business authority of the project manager

– If necessary, assignment of tasks and steering of staff via linemanagement

Matrix– Formal assignment of staff to the project

– Functional/business authority of the project manager

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Project organisation Project organisation -- StructuresStructures

Specific project organisation– Temporarily assignment of staff to an independent project

organisation

– Conflict management between line and project management via superior management

Independent project organisation– Staff will be assigned to project organisation on a full time

basis

– Functional/business and disciplinary authority of the project manager

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Project organisation Project organisation -- StructuresStructures

Bundesbank– Uses functional/virtual project organisation

– Project manager has functional/business authority

– But all staff related matters, such as bonuses, promotions, personnel review remain in the line management (involvement of project manager is foreseen)

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Project ModelsProject Models

Depending on the kind of project different kind of models can be usedExamples:– Spiral model

– Prototype-based approach

– Fountain model

– Cluster-model

– Accelerated SAP

– Waterfall model Bundesbank

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InitiativeInitiative

Preliminary studyPreliminary study

ImplementationImplementation

Main studyMain study

FollowFollow--up studyup study

LaunchLaunch

AcceptanceAcceptance

Preparation Preparation phasephase

Development phaseDevelopment phase

„The waterfall model“

„The waterfall model“

BundesbankBundesbank‘‘ss projectproject modelmodel

Project initiative

-The idea behind the project

-Estimation of first effort –> „go or no go“ decision

-Decision on project manager

-Request budget for preliminary study

Preliminary study

-Description of present and potential future structure

-Cost and time estimate

-Alternatives?

Report proposing way forward

Main study

-Precise preliminary study „ready for realisation“

-Description and assessment of project risks

-Project calculation with cost-benefit analysis

Project application paper

Implementation

-Build a „ready to go“ product as defined in the main study

-Functional and technical specification

-Test concept, user manual, operator manual, training

-Acceptance statement from system owner

Acceptance

-test, if system/product fulfils defined requirements

-Result: acceptance, no acceptance, partly acceptance

Launch

-Start of production

-Pilot phase in some situations advisable

Follow-up study / project closure

-Target reached?

-Quality, cost and time perspective

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Reporting within the project– No formal requirements– Within project hierarchy: Project team project manager steering

committee executive board– reporting on discretion of steering committee

External reporting (to other Bundesbank areas)– internal regulations for minimum content and form– reporting during development and launch phases– all projects with outstanding importance for BBK (Top 10)

regular reporting intervals: end of the quarteradditionally report on deviations from original plan

– other ProjectsMajor projects (not TOP 10): half-year reportingReport on deviations from original plan only

– Project closure report: one year after implementation

Current development: milestone-based

reporting

Project Project monitoringmonitoring and and reportingreporting

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Project calculationProject calculation

Calculation for stages project development (implementation & acceptance) and launchCalculation for business unit, IT and internal auditProject budget in €– Staff costs– External support– Non-staff operating expenses

Lump sum for administrative costsIT expensesOther non-staff operating expenses

– Investment– Calculation of costs for recurring services (annual maintenance costs,

operating costs)– Funds for preliminary and main study (calculated before)

Detailing of calculation depends on the volume and importance of the project

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Calculation sheetCalculation sheet

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Project controllingProject controlling

Project Controller– Early identification of deviation to the project plan

– Suggest measures to already materialised problems

– Inform project manager

Responsibility– Monitoring of budget and time

Projection whether project targets can be reached within restrictions (time, budget, quality)

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IT IT supportivesupportive toolstools

SAP/PS– Budget planning and actual costs

MS-Project– Critical path analysis, resource planning, milestones

VITPRO– Lotus Notes based workflow system for projects– Proprietary development for administration and application of IT-

projects– Contains all relevant information

Function point analysis– Supportive tool for resource planning on the basis of function point

analysis

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Well-known toolbox is helpful under uncertain conditionsCommon guidelines make projects comparableGiven framework supports project’s successFramework should provide adequate room for manoeuvrePlanning is necessary, but not sufficientUnexpected problems need creative solutions

ConclusionConclusion

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Any questions?Any questions?