ISO 21500: Did we need it? A Consultant's Point of View after a first experience. Session EM13TLD04

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1 ISO 21500: Did we need it? A Consultant's Point of View after a first experience Session EM13TLD04 Maria Cristina Barbero, MBA, PMI-ACP, PMP Nexen SPA PMI is a registered trade and service mark of the Project Management Institute, Inc Permission is granted to PMI for PMI Marketplace use only.

2 ISO 21500: Did we need it? 2

3 Nexen Business Consultants Management consulting firm owned 95% by 6,000 employees Engineering Group, the largest Italian IT Services brand We serve the largest Italian customers in all industries.... and we work together on their most relevant projects 3

4 Nexen Business Consultants Marketing and Strategy Business Process Modeling Business Process Rengineering Enterprise Governance and Compliance Enterprise Risk Management Project and Program Management Agile Project Management Portfolio Management Change Management IT Startegy and Governance Cobit5, ITIL, CMMI, 4

5 Introduction to contents (1/5) ISO is the world s largest developer of voluntary International Standards. A standard is a document approved by a recognized body, that provides, for common and repeated use, rules, guidelines, or characteristics for products, processes or services with which compliance are not mandatory. (ISO 9453) From 5

6 Introduction to contents (2/5) Developed through global consensus, they help to break down barriers to international trade. Founded in 1947, ISO is a network of national standards bodies they represent ISO in their country. ISO Standards impact all our lives (food safety, computers, healthcare, agriculture,...) From 6

7 Introduction to contents (3/5) Before: ISO 10006:2003: Quality management systems - Guidelines for quality management in projects BS :2010: Project management Part 1: Principles and guidelines for the management of projects 7

8 Introduction to contents (4/5) ISO 21500:2012 provides guidance for project management and can be used by any type of organization and for any type of project, irrespective of complexity, size or duration. Did we need it? 8

9 Introduction to contents (5/5) The presentation introduces ISO 21500:2012 It analyses the context of already existing standards and frameworks and considers both overlapping and complementary characteristics,...presents a real case where ISO 21500:2012 drove some internal changes,... underlines benefits of working with the support of the ISO Guidance, and...presents the tool we built to support our consulting activities 9

10 Learning objectives When the session is completed, we should be able to 10

11 Learning objectives Read the ISO guidance understanding the importance for executives and for project managers and being able to link read information with other standards and frameworks 11

12 Learning objectives Drive executives to decide whether to follow ISO to improve internal maturity in project management 12

13 Learning objectives Organize your activities to evaluate the compliance of the involved organization with ISO or at least hire the right consultant 13

14 Agenda The guidance: a commente d overlook The guidance and existing standards The Excel Tool - Real Case Presentatio n - Benefits 14

15 Agenda The guidance: a commente d overlook The guidance and existing standards The Excel Tool - Real Case Presentatio n - Benefits 15

16 The guidance: a commented overlook When you approach the guidance, there are a few characteristics you immediately notice The following is the list of them They have not been ranked but only presented in the order you can observe them flipping through the pages of the document the first time 16

17 The guidance: a commented overlook Brand - The International Organization for Standardization logo dominates on the first page. The ISO logo instils trust, objectiveness, and effectiveness in readers and users 17

18 The guidance: a commented overlook Target - Target readership is stated in the Introduction. For experienced consultants in Project Management the three points clearly address groups of people they normally interface: (a) senior managers and project sponsors; (b) project managers and project team members; and (c) developers of national or organizational standards 18

19 The guidance: a commented overlook Target Readership EXECUTIVES & GOVERNANCE senior managers project sponsors Reason of Interest (the ISO states that ) To better understand the principles and practice of project management to facilitate providing appropriate support and guidance to their project managers and the project teams Related Standards and Frameworks PMI Standard for Portfolio PMI OPM3 ITGI COBIT5 (for IT Organizations only) PROJECTS project managers project team members PMO & INTERNAL PROCESSES AND POLICIES developers of organizational standards To have a common base of comparison of their project standards and practices with those of others To use in developing project management standards, which are consistent at a core level with those of others PMI PMBOK (bok) PRINCE2 (method.) Agile (method.) Both the above 19

20 The guidance: a commented overlook Terms and definitions - Most relevant Project Management terms are listed in the beginning of the document before any other explanation. They do not cover all the terminology used for describing Project Management context and processes and include only very basic Project Management concepts. We found that Terms and Definitions kept in the beginning help to well communicate the scope of the document 20

21 The guidance: a commented overlook This clause describes key concepts applicable to most projects. It also describes environments in which projects are performed It identifies the recommended project management processes to be used. The Project Manager tailors the processes for each project ISO 21500: 2012 Overview Process Groups and Subject Groups Projects Integration Project Management Stakeholder Organizational strategy and projects Scope Project environment Resource Project Portfolio Management Time Programme Management Cost Project Governance Risk Projects and Operations Quality Stakeholders and competences Procurement Project Life cycle Communication 21

22 The guidance: a commented overlook Project Management Context - The Project Management Context is described in six full pages only 22

23 The guidance: a commented overlook Stakeholders - Stakeholders and relationships among stakeholders are presented using an exhibit we were familiar with in PMBOK Third Edition 23

24 The guidance: a commented overlook Project Management Competences - Categorized as: (a) technical competencies for delivering projects in a structured way, including the project management processes defined in this standard, (b) behavioral competencies, and (c) contextual competencies 24

25 The guidance: a commented overlook Project Management Competences: Dimensions I know I can do ISO Technical Contextual Technical Contextual PMI Competence Framework Knowledge Performance I am Behavioral Personal 25

26 The guidance: a commented overlook Tailoring - the project manager should tailor the management processes for each project or project phase by determining what processes are appropriate and the degree of rigor to be applied for each process (page 9) 26

27 The guidance: a commented overlook Project Management Processes - They are appropriate to projects in all organizations. 27

28 The guidance: a commented overlook Project Management Processes - They are organized into process groups and subject groups. 28

29 The guidance: a commented overlook Annex A - Overview of interactions of the individual processes in each process group. 29

30 The guidance: a commented overlook Clauses 3 Clauses 4 Clauses 3 are about organization and context. Our opinion is that: in few pages these clauses provide consultants with all what they need to address in an organizational assessment before considering how projects were managed and led clauses look like a checklist Clauses 4 are about project management. Our opinion is that: the description of processes is effective and synthetic the description of processes is more for experienced people than for new comers the 39 processes presented can be easily matched with PMBOK processes to obtain more details on inputs and outputs and the needed information about tools and techniques process groups interactions bring a useful whole picture that interconnects process groups and main inputs and outputs Annex A offers concise useful sequences of the processes of each process group 30

31 Agenda The guidance: a commente d overlook The guidance and existing standards The Excel Tool - Real Case Presentatio n - Benefits 31

32 The guidance and existing standards The following is the table structure that we used to present the comparison between the ISO 21500:2012 guidance and existing standards and frameworks Standard or Framework What items the standard or framework does cover How ISO covers the same items Short comparison and possible use of the two 32

33 The guidance and existing standards ISO PMI Portfolio 2 4 PMI PMBOK 3 PMI OPM3 COBIT 5 33

34 The guidance and existing standards Clauses 3 of ISO 21500:2012 overlap introduction and definitions in the PMI Standard. In our opinion, while ISO helps to understand whether portfolio practices are in place and can guide an early assessment, the PMI Standard for Portfolio Management is essential for building an effective Portfolio Management system

35 The guidance and existing standards OPM3 and ISO do not overlap. But they both consider project management, program management until portfolio management in a whole document

36 The guidance and existing standards COBIT 5 and ISO do overlap in IT Organizations. They both emphasize the importance of alignment with business needs through portfolio management; they both state similar principles for project management inspired to PMBOK of PMI

37 The guidance and existing standards PMBOK of PMI and ISO do overlap on Project Management Processes In October 1998, PMI was accredited as a standards developer by the American National Standards Institute (ANSI). The processes outlined in Annex A of the PMBOK Guide Fifth Edition, provide the standard for project management of a project

38 Agenda The guidance: a commente d overlook The guidance and existing standards The Excel Tool - Real Case Presentatio n - Benefits 38

39 Real Case Presentation (1/4) November 2012 Nexen got involved in some Project Management consulting activities for an important 1,350 Million- Euro-sales spirits, wines, and soft drinks Italian Group and its Global IT Organization below called client or generally company 39

40 Real Case Presentation (2/4) Nov 12 Dic 12 Client stated that goals were: Build a common Project Management terminology for Global IT Define shared Project Management best practices Formalize some common templates and tools to support shared best practices Focus on Project Management training needs for the whole organization Build a Project Management Handbook for Global IT describing how the company IT deals with projects, programs and project portfolio 40

41 Real Case Presentation (3/4) Nov 12 Nexen led some interviews with main Company Global IT Units and analyzed some documentation to assess the degree of maturity of the organization vs Project Management (Portfolio, Program, and Project management). We discovered that at present both Portfolio and Project Management processes are not stated and often projects follow single project managers and/or suppliers project management recommendations. Dic 12 41

42 Real Case Presentation (4/4) Jan 13 In January 2013 Nexen suggested to work on processes, roles, and responsibilities of the Organization for IT Projects and proposed some aspects of a partially new Organization. Nexen worked on these themes with a guideline in mind that is keeping compliance with and seeking inspiration in the following international standards: Mar 13 ISO 21500:2012 published in September 2012 New COBIT5 that integrates COBIT41 + VALIT20 PMBOK of PMI, PRINCE2 as needed 42

43 Delivered Contents (1/6) ISO / COBIT5 sentence It may be appropriate to conduct the opportunity identification, selection, approval and management of projects through a project portfolio management system (ISO page 10) APO05 Manage Portfolio process (COBIT5) Most important driven changes Project Portfolio Lifecycle introduction 43

44 44

45 Delivered Contents (2/6) ISO / COBIT5 sentence Pre- and post-project activities may include activities such as preparing the business case, conducting feasibility studies and transition to operations. Projects may be organized within other related structures such as programmes and project portfolios (ISO page 10) Most important driven changes Adoption of the Business Case as a communication tool with business 45

46 Delivered Contents (3/6) ISO / COBIT5 sentence The project stakeholders, including the project organization, should be described in sufficient detail to enable project success. The roles and responsibilities of stakeholders should be defined and communicated based on organization and project goals (ISO page 11) Most important driven changes Appropriate terminology for stakeholders introduction Use of a standardize stakeholder register 46

47 Delivered Contents (4/6) ISO / COBIT5 sentence Most important driven changes To ensure efficient management of the project during the entire project life cycle, a set of activities should be performed in each phase. Project phases divide the project into manageable sections, collectively known as the project life cycle (ISO page 12) Definition of different project lifecycles for projects of different size: Heavy Project Lifecycle Light Project Lifecycle 47

48

49

50 Delivered Contents (5/6) ISO / COBIT5 sentence Therefore, the project manager should tailor the management processes for each project or project phase by determining what processes are appropriate and the degree of rigor to be applied for each process. This should be accomplished in collaboration with the project team and in accordance with the organizational policies (ISO page 14) BAI01 Manage Programmes and Projects process (COBIT5) Most important driven changes Configuration and selection of processes to adopt for a project Process check lists 50

51 Delivered Contents (6/6) 51

52 Agenda The guidance: a commente d overlook The guidance and existing standards The Excel Tool - Real Case Presentatio n - Benefits 52

53 Benefits of working with the support of the ISO Guidance Easy access the main project management concepts The document is concise and easy to read also for people whose first language is not English. concepts are concentrated in the first 20 pages well supported by less than 10 figures. easy access the main project management concepts (need basic knowledge) 53

54 Benefits of working with the support of the ISO Guidance One document, different target readership It doesn t matter whether you are an executive with a specific interest in getting orientation on portfolio management and organizational project management or a project manager and/or a PMO member who want to learn more 54

55 Benefits of working with the support of the ISO Guidance Tailoring emphasized Organizations and project managers must and can configure the methods they follow, tailoring the content of the guidance. 55

56 Benefits of working with the support of the ISO Guidance Process Groups Maps Annex A provides a depiction of the interactions of the individual processes in each process group The five maps support the actions of tailoring. The five maps bring organizations and project managers clear basic flows for project management activities. 56

57 Benefits of working with the support of the ISO Guidance Project Management Life Cycle linked with main project management deliverables Process groups interactions showing main inputs and outputs brings readers the whole flow of the management of a project. 57

58 Agenda The guidance: a commente d overlook The guidance and existing standards The Excel Tool - Real Case Presentatio n - Benefits 58

59 The Excel Tool In our experience of consultants we noticed that in organizations some Project Management processes are more relevant than others for good management of projects. In other words, there is a good management of projects organizations must discover, different for any organization, and consultants should help in this research of the best configuration of Project Management efforts and activities 59

60 The Excel Tool First Purpose: The tool was thought first to interpret what an organization believe to be good management of projects given its culture, values, beliefs, and mission. The tool considers the 39 ISO 21500:2012 processes and invites the organization to assign its percentage of importance to each process. In order to get a double level of depth in evaluation, the sum of percentage of importance must make 100 for each process group: Initiating, Planning, Implementing, Controlling, and Closing. 60

61 The Excel Tool Second Purpose: The tool describes a three level model of evaluation to allow classifying how each process is implemented. Level 0 means not yet implemented, Level 1 means basically implemented, and Level 2 means advanced implemented. This feature adds to ISO 21500:2012 a rough model of maturity. 61

62 The Excel Tool Input Process Output Level 0 Level 1 Level 2 Level Weight Final Score % 0,5 : Project statement of work, contract, business case or previous phase documents Develop Project Charter : Project Charter Charter is not formalized Charter is formalized in the Project Form Charter is formalized in the Project Form and Risks are listed and identified 1 30% 0,15 : Project Charter : Project Organization Chart Identify Stakeholders : Stakeholder Register Stakeholders are not formally identified and described in writing Stakeholders are listed in the Project Form Stakeholders are listed in the Project Form, a stakeholder register is kept, Stakeholder Analysis is conducted and startegies for stakeholder management are formalized 1 40% 0,2 : Resource Requirements : Project Organization Chart : Resource Availability : Project Plans : Role Descriptions Establish Project Team : Staff Assignments : Staff Contracts Staff Assignments are not formalized, contracts are general contracts Staff Assignments are formalized and more specific contracts signed Staff Assignments are formalized and contracts signed + staff roles described for internal staff and contractors 1 30% 0,15 62

63 The Excel Tool Input Process Output Level 0 0 : Project statement of work, contract, business case or previous phase documents Develop Project Charter : Project C harter Charter is not formalized : Project Charter : Project Organization C hart Identify Stakeholders : Stakeholder Register Stakeholders are not formally identified and described in writing : Resource Requirements : Project Organization C hart : Resource Availability : Project Plans : Role Descriptions Establish Project Team : Staff Assignments : Staff Contracts Staff Assignments are not formalized, contracts are general contracts

64 The Excel Tool t Process Output Level 0 Level 1 Level 2 Level W nt of work, s case or ocuments Develop Project Charter : Project C harter Charter is not formalized Charter is formalized in the Project Form Charter is formalized in the Project Form and Risks are listed and identified 1 3 ation Chart Identify Stakeholders : Stakeholder Register Stakeholders are not formally identified and described in writing Stakeholders are listed in the Project Form Stakeholders are listed in the Project Form, a stakeholder register is kept, Stakeholder Analysis is conducted and startegies for stakeholder management are formalized 1 4 irements ation Chart ability ns Establish Project Team : Staff Assignments : Staff Contracts Staff Assignments are not formalized, contracts are general contracts Staff Assignments are formalized and more specific contracts signed Staff Assignments are formalized and contracts signed + staff roles described for internal staff and contractors

65 The Excel Tool 0 Level Input 1 Process Level 2 Level Output Weight Final Score Level 0 Lev % 0,5 0 rmalized : Project statement of work, Charter is formalized in the contract, business case or Project Form previous phase documents Charter is formalized in the Develop Project Project Form and Risks are Charter listed and identified : Project 1 C harter 30% 0,15 Charter is not formalized Charter is for Projec not formally scribed in Stakeholders : Project Charter are listed in the : Project Project Organization Form C hart Stakeholders are listed in the Project Form, a stakeholder register is kept, Identify Stakeholder Analysis Stakeholders is conducted and startegies for stakeholder management are formalized : Stakeholder 1 40% Register 0,2 Stakeholders are not formally identified and described in writing Stakeholders a Projec ts are not tracts are tracts : Resource Requirements : Staff Project Assignments Organization are C hart formalized : Resource and Availability more specific : Project contracts Plans signed : Role Descriptions Staff Assignments are formalized and contracts Establish Project signed + staff roles described Team for internal staff and contractors : Staff Assignments 1 30% 0,15 : Staff Contracts Staff Assignments are not formalized, contracts are general contracts Staff Assig formalized and contract

66 The Excel Tool 4 Implementation 3 Improvement Path Design 2 Assessment of Levels 1 Assessment of what good Project Management is 66

67 Conclusion (1/2) Did we need it? Yes No 67

68 Conclusion (2/2) There is strong request for a certification tool Some people say in 5 years, some others in a couple of year Thank you to Theofanis C.Giotis for sharing these information with me! 68

69

70 Contact Information Maria Cristina Barbero, MBA, PMI-ACP, PMP Phone: Session Number: EM13TLD04

71 The guidance and existing standards PMI OPM3 OPM3 Second Edition continues to provide the tools necessary for organizations to measure their maturity against a comprehensive set of best practices. What s new? Greater alignment with other PMI Standards. Introduction of Organizational Enablers to promote smooth transitions within the domain, stages and process groups and to achieve a higher degree of organizational maturity. Categorization by Knowledge Area, by Business Results and by Balanced Scorecard. Consolidated best practices to eliminate duplication ISO is actually not associated to a Maturity Model. However ISO considers both aspects of managing single projects (clauses 4) and handling a portfolio of projects and a portfolio lifecycle (clauses 3) in the same document at a high level of detail 71

72 The guidance and existing standards COBIT5 COBIT 5 is the latest edition of ISACA s ( globally accepted framework, providing an end-to-end business view of the governance of enterprise IT that reflects the central role of information and technology in creating value for enterprises. The principles, practices, analytical tools and models found in COBIT 5 embody thought leadership and guidance from business, IT and governance experts around the world COBIT 5 merges two previous frameworks: COBIT41 that gives directions on project and service management and VALIT20 that gives directions on portfolio management. COBIT 5 includes detailed description of process steps and RACI matrixes for each process ISO covers both organization and context and project management ISO is not only for IT Organization. 72

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