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Transcript of Project Management Office (PMO) Observations 2004 Vision – Mission - Realization International...
Project Management Office (PMO) Observations 2004
Vision – Mission - Realization
International Association of Project and Program Management
2
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
3
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 Role of IT Perceived ValueCost of IT operations 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 IT is a strategic partner Ability to drive business change
*Table courtesy of the META Group
4
Achieved through Value Mgmt
Definition Definition Conception Conception Deployment Deployment Improvement Improvement Retirement Retirement
TransformationTransformation
ValueCreation
ValueRealization
ValueSustenance
Value Management
ValueProposition
Management Life cycle
Management Life cycle
5
PMO – Value Realization
Definition Definition Conception Conception Deployment Deployment Improvement Improvement Retirement Retirement
ValueCreation
ValueRealization
ValueSustenance
Value Management
ValueProposition
Providing the “Motion” to turn “Vision” into “Reality”
Management Life cycle
Management Life cycle
TransformationTransformation
6
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
7
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
8
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
completion
9
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”
10
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
11
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
12
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
13
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
14
PMO Roadmap
Q2, 2004 Q3, 2004 Q4, 2004 Q1, 2005
Phase 1Projects Under Control
Phase 2Project Value Proposition
Phase 3Portfolio Management
Phase 4Project Management Governance
Objective is to clearly define the project boundaries and resources, and put in simple processes to ensure consistent reporting and change management.
Objective is to clearly capture business values and impact to our customers
Objective is to select projects that have the greatest returns of investment and/or strategic values to the operating companies
Objective is to install a governance model to review and approve project progress at each stage of the project life cycle.
15
Organization (Short)
PMODirector
ProjectManagers
ConsultantsManaging projects
Project AdminGeneral AdminFinance Admin
Short-term (6 - 12 months)
16
Organization (Medium)
PMO
ProjectManagers
ConsultantsManaging projects
Project AdminGeneral AdminFinance Admin
Medium-term (1 – 2 years)
EP PM Champ
ToolsPM Champ
MetricsPM Champ
“Work along side”
BenchmarkPM Champ
PM Champion • EP = Enterprise Projects/Programs• Works alongside with project
managers and consultants to train, coach, support them.
17
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
18
Partnering with PMOTo Leverage Strengths
Customer Oriented More visibility with Customer
Strong Commitment Enhance skills development
To Fortify Performance
Rubber band Mgmt PM Methodology, Processes, & Tools
Change Mgmt
“Favor” Mgmt Teaming & Accountability
Base Biz vs Projects 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” Make connections and alignment
19
PMO Metric
Opportunities
Baseline project commitment and Institute Project change control.
Definition: Number of projects with Green schedule statusTotal number of projects
Project Management OfficeMeasure: Meet Project Schedule Project Management Office
Measure: Meet Project Schedule Monthly
75% to 85%
Above 85%
Below 75%
Vision –Motion –Realization
Meet Project Schedule
0%
20%
40%
60%
80%
100%
Jun Jul Aug Sep Oct Nov Dec
2003
26%21%
47%
69% 68%
81%
Action Plan
1. Present all projects to PMOManagement Team for approval of all projects in the portfolio
2. Bring in other projects into PMO
20
Value Realization
Initiative What did we do Original CostNew Cost Value Start date 2003 Impact 2004 Impact
Network Center upgrade Negotiation $3,000 $2,500Cost Reduction 1-Nov-04 ($1,000) ($6,000)
Network Backbone Negotiation $152,000 $112,000Cost Reduction,End-to-end management
1-Oct-04 ($10,000) ($40,000)
Circuit Provisioning RFP $1,331,028 $1,065,012Cost Reduction,Increased bandwidth
1-Nov-04 ($61,550) ($266,016)
Project ABC) RFP $290,000 $150,000Cost Reduction,Improved vendor management
1-Nov-04 ($25,000) ($140,000)
Project BCD Build End node $98,544 $74,808Cost Reduction,Increased bandwidth
1-Sep-04 ($386) ($23,736)
Project CDE Introduced new ISP $91,750 $53,600Cost Reduction,Increased performance
01-Oct-04 ($6,300) ($38,150)
Lost City Project Build network Better performance to enable ERP applications, desktop management
01-Oct-04
Total ($104,236) ($513,902)
21
PMO Maturity level*
*Based on META Group Project Management Office Capability Maturity Model
5
Incorporated
Value Management
Business Continuity Planning
Procurement Management, Contract Management
PM Center for Excellence
4
Managed
Program Process Management
Project Integration Management
Customer Relationship Management
Career Path
3
Defined
PM Methodology
Change Management
Risk/Issue Management
PM Training
2
Stable
Planning
Tracking
Schedule Management
Progress Reporting
1
InitialAcquisition of Project Managers
You are
here
You are
here
20042004
20052005
22
PMO Value
PMO strives to be a full-service provider
Project SupportTools
Administrative work
Project SupportTools
Administrative work
Consulting &MentoringEffectiveness
Consulting &MentoringEffectiveness
Methods &Standards
Efficiency
Methods &Standards
EfficiencyTraining
Core Competency
TrainingCore Competency Project Managers
Flawless Execution
Project ManagersFlawless Execution
PMOPMO
PMO MindsetPMO 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
IAPPM
www.iappm.org
Advancing Project and Program Management
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