ProjectPortfolio

Governanceby the

Executive Governance Committee

(EGC)

The EGC

Jim Kneeland ©

Agenda

1. Define Organizational Project Management

2. Define the Executive Governance Committee

3. Review the ten step approach to organizational Project Governance

Project Size People Time (mos)

Success Rate

Less than $750K

6 6 55%

$750K to $1.5M

12 9 33%

$1.5M to $3M

25 12 25%

$3M to $6M 40 18 15%

$6M to $10M +250 +24 8%

Over $10M +500 +36 0%

*The Standish Group International, Inc. CHAOS report

Project SuccessSuccess is defined as on-time and within budget

Why do Organizational Project Management?

Levels of Project Management

PortfolioALL Projects, Programs and Maintenance

SPO

ProgramA group of inter-related projects with a common benefit

Division

Projects

a temporary endeavor with a defined start and end date which results in a unique product or service

Project Manager

The Relationship between

Portfolios, Programs and Projects

Mobilization Strategic Objectives Strategic OptionsSPO

Strategic Portfolio

Strategic Vision – Governance Committee (SPO)

Pre-Program Set-Up

Program Set-IpProgram Mgt

Techincial Infrastructure

Deliver Incremental Benefits

Close the Program

TransitionOngoing

Operations

Divisional Programs & Projects (PMOs)

PROJECTS

Organizational GovernanceStrategic Planning

Management of Projects

Managementof

Operations

Portfolio Management

Governance CommitteeSPO

Program Management

Divisional PMOs

Project Mangement

ProcessesTools Metrics

Drivers to Obtain Organizational Strategic Objectives

The Project PortfolioManaged by the SPO

A collection of All Projects All Programs (inter-dependent

projects) other work such as

maintenance

grouped together to facilitate effective management to meet strategic business

objectives.

Projects

A Project is defined as a temporary endeavor with a defined start and end date which results in a unique product or service

All Projects have 5 phases:1. Initiation – Project Charter2. Scope- Project Plans3. Execution4. Monitoring & Control5. Closing

Most large companies have hundreds of projects valued in millions (a routinely overlooked investment)

The Governance CommitteePrimary Role

1. ‘Steer’ the project into the organization

2. Remove obstacles

3. Optimize Resources

4. Manage the critical success factors

5. Remediate project or benefit-realization shortfalls

6. Prioritize

Governance Committee Responsibility

Reviews projects on an ongoing basis to determine that they are aligned with the strategy of the organization, effectively managed, prioritized according to strategic objectives, sufficiently funded and proceeding appropriately

It selects , prioritizes and evaluates the entire portfolio of projects & programs

Governance Structure

ExecutiveGovernanceCommittee

SPO2 to 3 personnel

BankingDivisional Liaison

TBD

InvestmentsDivisional Liaison

TBD

Purchasing & Contracts

Divisional LiaisonTBD

InsuranceDivisional Liaison

TBD

ITDivisional Liaison

TBD

MiscDivisional Liaison

TBD

EGC Members

Committee Includes: Executive Director’s Office Divisional Directors Legal Purchasing & Contracts

Functions of the EGCbut not limited to

Initiation of the project Approval of project plans and authorizing

deviations from the plans or terminate the project

Review of the progress, benefits delivery and costs

Guidance on issues that the PM has been unable to resolve

Assurance that resources are available Establishment of frameworks and limits for

making decisions about investments in the endeavor

Compliance with legal policies, procedures, standards, and requirements of MetLife

Steps to Governance10 step process

1. Develop a methodology & Templates

2. Establish a reservoir for information (DB)

3. Make DB available4. Inventory ALL projects5. Establish Governance Process6. Establish Governance Committee7. Train Committee8. Begin Inventory review9. Prioritize ALL projects10. Periodic reviews

1. Establish Methodology

Developed during Q1 &Q2 of 2009

Finalized by SPO in Q2 09 and presented for adoption

2. Establish a project Database

Either COTS or Proprietary.

There are several high quality packages available.

I have a home-grown access system we could use in the interim

3. InventoryAll Projects

Start Q2 2009

Complete inventory by June 2009

4. Establish a Governance

Process

See next page & handout

6. Establish Governance Committee

A list of candidates list will be created and promoted during Q2

7. Train Committee

8. Begin Inventory

Each Division will review all their projects

Each Division will Prioritize their list of projects

Each Division along with the divisional Liaison and whatever managers they would like to bring will present their project list to the EGC.

These project list presentations will be in priority order and are meant to be an open forum discussion

9. Prioritize Projects

Once all divisional project reviews are done the EGC will meet to provide a prioritization schema

Every project will be reviewed and prioritized.

Note: SPO will attempt to group to help make the process easier – categorization grouping is available in the DB.

10. Periodic Reviews

The EGC will meet periodically to review updates on existing

projects and approve or deny any new

ones.