How To Manage A Project Management Center Of Excellence
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1 Jennifer Baker, PfMP, PgMP, PMP Duke Energy
2 Agenda Learning Objectives Duke Energy at a Glance Project Management Center of Excellence (PMCoE) Overview PMCoE Governance Tools Should be Transferrable for Different Project Types Strategic Initiatives Take-Aways and Wrap-Up 2
3 Learning Objectives Examine the governance framework of the Duke Energy PMCoE Describe and compare the roles and relationships of the Duke Energy PMCoE and our PMOs/Major Projects Groups Understand the advantages a flexible framework for project governance 3
4 Duke Energy Overview World s largest publicly traded utility Fortune 250 company Serving 22 million people Employing 28,000+ $6B+ annual capital spend $2B+ annual O&M spend Operations in: Regulated business Renewables Commercial transmission & power International markets 4
5 Types of Projects: Shared Services Finance Financial System Integration Sales & Use Tax Enterprise nonretail Billing IT SharePoint Upgrade Workstation Refresh Active Directory Integration Enhanced Cyber Security Digital Acceleration Customer Information Systems Human Resources Job Harmonization PeopleSoft Integration PeopleSoft Self Service Upgrade 5
6 Types of Projects: Traditional Utility Renewable Energy Solar Joint Ventures in AZ, CA, NJ, MA and PA Duke Owned Solar Projects in NC, TX, CA, AZ, and FL Duke Owned Wind Projects in TX, WY, PA, KS, CO and WI Notrees Battery Storage Project Construction Coal Plant Retirement Environmental Retrofits to Existing Plants New Plant Construction Generation & Distribution Fukushima Response Transformer Replacements Capacity Upgrades Transmission Sub Stations Smart Meter & Grid Modernization 6
7 PMCoE vs. PMO/Major Projects A PMO is an important central hub with a mandate to coordinate and deliver all project activities as determined by the organization's needs. The PMO strives to standardize and introduce economies of repetition in the execution of projects. Tasks may include monitoring and reporting on active projects, programs and subportfolios, and reporting progress to top management for strategic decisions on what projects to continue or cancel. The PMCoE is a central hub with a mandate to provide a consistent framework to deliver the organization s projects consistently. The PMCoE supports the PMO in the execution of projects and continuously improves corporate governance. Policy PMCoE What Dep t Procedures How 7
8 PMCoE Mission & Vision Vision: Become the Industry Leader in Project Management Mission: The PMCoE will: Establish a consistent and scalable process leveraging best practices, Provide training, tools and oversight to enhance project performance and certainty, Engage the project management community to focus on the pursuit of excellence, knowledge sharing and skills development. 8
9 PMCoE Framework Project Management Center of Excellence Support Services Career Path Development Policy & Standards Training Tools & Templates Team Workshops Answers to Questions Best Practices PMCoE Policy & Standards Diagnostics such as Acumen Fuse Schedule Analysis Assessments Portfolio Reviews Reviews Independent Estimate Stage Gate Lessons Learned Benchmarking 9
10 Governance Hierarchy Company Policies PMCoE Standards Implementation Standards General Reference Tier 1 Policies, Laws and Regulations (POLICY) Tier 2 - Enterprise Standards (ENTSTD) Tier 3 Implementation Standards (IMPSTD) of PMOs/Major Projects groups Tier 4 General Reference Materials (GENREF) such as the PMBOK 10
11 Structure of Standards 11
12 Project Investment Lifecycle Identify Select Initiate Commit Build Commission Close Inputs Scan Assess Develop Plan Execute Operate & Maintain Value a b c d e f g h Execute Construct and Operate and Determine Refine Develop Commitments, Install Assets, Maintain Assets Retire at Impact / Candidate Project Plan Identify Refine the Plan Turn Over Assets Delivered by End-of-Life Benefit, Responses and Prepare Opportunity and Prepare for to the Receiving Project or Timing and (Projects) for Execution or Threat Construction and Asset Owner and Generate Disposition Potential and Prepare of Major Installation of Prepare for Close Return on Asset Responses for Initiation Commitments Assets of the Project Investment 12
13 Enabling a Scalable Project Management Framework Project Rank and Assignment Project Complexity Cost plus Complexity = Project Rank 13
14 Project Rank Comparison 100% 80% 60% 40% 20% 0% Project Count Project Spend Black Brown Green 3 Green 2 Green 1 White 14
15 The Project Delivery System Select Initiate Close Develop Plan & Execute [1] Determine Project Profile Matrix Rank [2] Assign Rank- Appropriate Organization & Project Management [3] Use Rank- Appropriate Processes, Tools & Templates [4] Deliver Products & Services According to Plan Green III Brown Brown Black Black Brown Senior Project Director Principal Project Controls Specialist Project Director Senior Project Controls Specialist Black Brown Required Compliance with PMCoE Standards including additional requirements defined in Attachments Green II Green III Brown Brown Green III Senior Project Manager Senior Project Controls Specialist Green III Green I Green II Green III Brown Green II Green I Project Manager II Project Controls Specialist Project Manager I Associate Project Controls Green II Green I Required Compliance with PMCoE Standards White Green I Green II Green III White Associate Project Manager Associate Project Controls White Compliance with PMCoE Standards at Department Discretion 15
16 Change Management Approach Sponsor Engagement Coaching & Org Transformation Coalition Building (Executive Level Presentations) Active & Visible Participation (EGC Meetings) Direct Communications (Up, Down and Across Organization) Identify Change Agents in Each Department Collaborate with Change Agents to Align Department Processes Workshops with Project Teams Communication Enterprise-Wide Cascading Communication Recurring Communications Training Executive Series Management Series Performance Series Resistance Management 16
17 The Relationship Between Change Management & Risk A holistic process for managing change within the portfolio does not magically solve the problem of change collision and change saturation. No matter how well executed, the more change introduced in an environment increases risk. 17
18 Managing Change within a Portfolio Helps Manage Risk There are a number of reasons organizations need an approach for managing the portfolio of change underway. The most common reasons for such an approach include: The ever increasing amount of change organizations are facing. The potential for change saturation. The consequences of change collision. Leadership Manage Change Execution Strategy 18
19 Portfolio Performance Within Duke Energy, Portfolio Performance is observed at many levels: At the PMO Level At the Line of business level Across the Division Across the Enterprise Portfolio Performance should be transparent and facilitate decision making. Portfolio Performance should not only include cost and schedule but also include potential risks and escalated issues. Enterprise Division Business PMO 19
20 Governance Tools Decision Matrix Decision Matrix What can project teams decide? Decisions that align with current, approved scope Decisions that align with corporate processes that do not impact items listed below Project Team Program Management Team PMO and/or Steering Committee Executive Sponsor Funding Body and/or Division Executive Board of Directors and/or Senior Executives Endorse N/A N/A N/A N/A Endorse N/A N/A N/A N/A What must project teams escalate? Decisions that impact other projects or initiatives within the Program Decisions that impact schedule such as major milestones or critical path (Positive or Negative) Recommend Recommend Endorse or N/A N/A N/A Recommend Recommend Decisions that impact scope other than what is approved Decisions that impact regulatory, safety, or compliance Decisions that impact the business beyond the original Program Management Plan boundaries Recommend Recommend Recommend Recommend Recommend Recommend Decisions that impact budget Recommend Recommend 20
21 Governance Tools Independent Estimate Review The Independent Estimate Review includes elements that should be reviewed to determine the success of the project at certain stage gates. Some elements are not applicable for every project given their stage in the project life cycle and others are more important than others at certain phases. Schedule Performance, Quality, Estimations Financials Budget, Forecasting, Variance Analysis Risks Contingency, Estimate Uncertainty, Monetization, Risk Register, Level of Certainty, Escalation Process Issues - Issue Log, Resolution Process, Escalation Process Scope - Change Control Process, Number of pending and approved Estimate Basis, Assumptions / Inclusions / Exclusions, Class discussion / validation, Contracting Strategy Lessons Learned Benefits / Value Management 21
22 Future Initiatives Continuously Improved Project Management Framework Mature Management of Tail and Reputational Risks Mature our benefits realization process Highly Skilled and Effectively Utilized Workforce of Project Professionals Comprehensive Workforce Strategy Match portfolio to human capital Attract > Develop > Retain > Re-Deploy Business Analyst Addition to Project Management Job Family Transparent Project and Portfolio Performance PPM Deployment A consistent enterprise framework enables maturation of the project management competency 22
23 Key Take-Aways PMOs and PMCoEs must adapt to business needs and culture of their organization Effective governance should be scalable and aim to provide transparency in decision making Tools should be transferrable for different project types Excellence is a journey actively benchmark and don t work in a vacuum! 23
24 Thank you! Jennifer Baker Session Evaluation on Mobile App PMI will enter instructions for session evaluation here 24
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