Growing Your Business Through The Project Management Office
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1 Growing Your Business Through The Project Management Office Increasing Throughput Rate Achieving higher customer satisfaction Strengthening the weakest link Identifying the bottlenecks Reducing the program delivery interval A New Dawn in Information Technology Consulting Steven C. Rollins, PMP Becoming the service provider of choice
2 What is the value of Project Management? For the Organization - To deliver projects efficiently and effectively that meet or exceed business sponsor expectations regarding delivery time, total cost of ownership and quality. For the Project Manager To meet or exceed the expectations for project delivery, cost of sponsor ownership and quality in everything they do.
3 Synchronizing the Workforce! Does your work force understand the correct order of work they must perform each day?! What happens if they don t. Who then chooses the new order of work?! Can we imagine what our work culture would be like if we could apply our energies correctly, all the time, to our work, each and every work day?
4 Typical Project Failures Insufficient Resources Insufficient Funding Scope Creep Resources not sufficiently skilled Unforeseen inter-project dependencies that force work delay and/or stoppage Weak project sponsors Poor output quality Supplier delays
5 Complex Decisions at Multiple Levels Is our project portfolio aligned with Can we take on this project? the business needs? How long will it take? What will it cost? Are we meeting our commitments? What will be the impact if we miss our next milestone? What program do we do first? Are we at risk of not achieving our fiscal year strategic initiatives Who is this guy? Is there an opportunity to finish early? Does the business unit know this? What is the #1 project in the department? What if Sally moves to another project? If only we had more budget and resources to do the work!
6 PMO Mission Ensure that all stakeholders understand tactical progress of the most important project investments period-to-date. Identify tactical project delivery opportunities and threats to the business goals to stakeholders. Identify opportunity to do more work without necessarily adding more budget and within the same fiscal period of measure (ie., fiscal year). Optimize Organizational Resource Portability.
7 Value Points of the Enterprise Project Management Office Enabling Project Managers to apply PM skills to recognized project delivery acceleration opportunities and potential delivery threats. Improved down-range delivery vision of projects for accountable project managers inter/intra project. Project Portfolio Stakeholder info-center. Project tactical mentoring of Project Managers. Resource Portability. Operations Planning and Forecasting. Portfolio Governance Board Administration.
8 Proposed PMO Solution Focus PMO value towards the most significant project investments and report cyclically through to the appropriate governance board Project Portfolio Management. Standardize all Project Management Methodologies to gain consistency across the organization. Establish supplier Project Offices that collect project progress data that is forwarded to the PMO. Provide PM Mentors within the PMO and Project Offices to ensure stakeholder expectations. Identify and select an EPM Tool that provides a single repository for project data to organized in. Incremental improvements that emphasizes standardization and compliance.
9 Continuous Loop of Direction, Validation and Adjustments Direction Governance Review Board Enterprise Strategy Governance Review Board Feedback Business Unit Delivery Strategy Prioritization Feedback Program/ Project Managers Project Management Office Project Status Reports, Time Sheets, Project Schedules Feedback QA/QC
10 Total Portfolio Management Management Business Strategy Management Plan and Execute Project Management Office Validate and Adjust Project Portfolio Resource Portfolio Application Portfolio
11 Program/Project Portfolio Management Process to collect, assess and report on how tactical progress is meeting customer expectations on program/project delivery. Process is managed day-to-day through the Project Office by collecting project status from participating projects. Information is forwarded to the EPMO. Includes all significant project initiatives - Large, Medium or Small that have been identified as mission critical. Force ranks tactical work based on known strategic direction (What do you want to achieve strategically for the current and subsequent fiscal years).
12 Typical Enterprise Project Types Universe Enterprise Business Unit I.T. D P/I M/E D P/I M/E D P/I M/E Large Programs Medium Programs Small Programs D = Development Projects; P/I = Package Integration Projects; M/E = Maint., Or Enhancement Projects
13 Sample Organizational Portfolio ID Program/Project Name Rank Priority Profit Market Risk Infra Mandate Portfolio as of August 6th 2 Open Projects 3 Y2K Y2K Contingency Plan Y2K Upgrade SAA Gateway Workers Compensation Y2K Phase IV Work Comp Print Y2K Unicover (Phase II) 1.6Governance 18 4 Board Y2K Project Management Risk Intelligence 1.8determines 14 2 Rank Y2K Segue Project Y2K AP/GL Y2K AS Y2K Network Testing Y2K Phase VI (PMS) Y2K TelCom Y2K PC
14 Operations Planning Assimilation of project data performed cyclically. Report on what you predicted would occur and forecast what is expected to occur next period. Interpreting the aggregated project data to understand overall tactical performance in order to predict future expectations. Identification of projects over budget, under budget, late, early, in-trouble, etc. Bottleneck identification Identify improving and degrading trendlines in project delivery of portfolio projects.
15 Linking organizational Strategic Objectives with reported tactical project progress
16 Prioritization Management Process " Identifies strategic objectives. " Quantifies each objective into scalable segments that can be independently valued. " Assigns weights to each objective based on relative importance of each initiative to one another. " Initially applies prioritization process to each project. " Governance Review Team meets monthly to caucus on true force ranking of projects relative to each other. " In mature organizations, the business community defines the strategic objectives.
17 Typical Strategic Objectives for Profit Organizations Improve Profitability Improve Market Share Reduce Cost of Business Reduce Risk of Business Improve Infrastructure Improve Workforce Mandated These become the project prioritization qualifiers for the Template
18 Project Name: Business Project Manager: Organization Project Manager: As Of Date: Strategic Priority: Project Prioritization Template Logo Profitability Market Share Infrastructure Reduce Costs Mandated Initiative creates profitability to organization Does not improve service Less than $1M in first year Greater than $2M in first year Less than $5M in first year New industry product Industry leader Initiative increase product or service market share Does not improve Market Share Strong potential to increase Market Share somewhat over next 2 years Strong potential to increase Market Share somewhat over first year New industry product Significant impact right away Market Owner 5 Initiative improves organization infrastructure Does not improve 0 Infrastructure Reduces cost somewhat of existing 1 infrastructure Reduces cost moderately of existing infrastructure Reduces cost significantly of existing infrastructure Provides competitive advantage Industry Leader Initiative enables organization to compete Does not improve competition ability Improves somewhat ability to compete Improves moderately ability to compete Improves significantly ability to compete Moderately reduces cost to compete Significantly reduces cost to compete Initiative is required Initiative is not mandated State mandated within fiscal year Federally mandated within Fiscal Year High risk of State penalty if not implemented in fiscal year High risk of Federal penalty if not implemented in fiscal year Large penalty to Business if not implemented in Fiscal Year x.4 = x.3 = x.15 = x.1 = x.05 = For further help contact the Organization Enterprise Project Management Office Generic Sample Demonstration Purposes Only
19 Organizing the Governance Review Board to direct the order of business
20 Governance Review Board Scope #The purpose of the Governance Review Board is to review and direct the forcerank and prioritization of tactical work initiatives for the Portfolio. # Accomplished through consensus of the cross-functional team of business delegates in the assignment of /Project rankings.
21 Governance Review Board Membership #The Governance Review Board membership comes from internal senior management. #These members are expected to have tactical approval authority for consenting on the force-rank of mission critical projects in this forum.
22 Governance Board Roles and Responsibilities of the Enterprise Project Management Office Administer for the Governance Board to include: $Manage the data collection and reporting of the Portfolio for the Governance Board and the organization. $Manage the data repository for Portfolio. $Facilitate Governance Board meetings including scheduling logistics, meeting agenda and report distributions. $Track and report on all key Portfolio indicators. $Administratively manage the Prioritization Model
23 Typical roles of the PMO aimed at reducing project delay and accelerating delivery
24 Typical Roles of the Enterprise Project Management Office Portfolio Management Support Information Repository Ensure Data Integrity Project Rescues Project Management Mentoring Project Prioritization Management Resource Management/Portability Operations Planning and Forecasting e-commerce Project Information Management Project Management Processes & Methodology Training in Program/Project Management Project Accounting and Financial Analysis Project Document Library/Knowledge Management PMI/PMP or Company specific PM Certification Project Assessments
25 Project Management Office Organization Model Project Management Office Mentoring & Methodology PM Tools Process Metrics & Reporting Portfolio Management Project Resource Fulfillment Financial
26 Acquiring Value Through the Enterprise Project Management Office
27 Helping the Organization % By enabling the Management Team with tactical program/project progress information linked to strategic initiatives. % By identifying the Bottlenecks so immediate corrective action can be enabled for projects and resources. % By identifying excess project capital budget and for review by the Governance Board for re-application to other mission critical projects.
28 Growing Your Business Through The Project Management Office! By improving standard project management processes that enables the project to always be delivered on time or ahead of schedule. This is how it should be! - Improving Customer Satisfaction!! The difference in time between when the customer requested project completion and when the Proj. Mgr. delivered can be translated into real $$$ and improved opportunity to secure more follow-on project work with remaining budget - More work, same planned budget resources, time is money!! As your projects in a fiscal year development portfolio are delivered on schedule or early, credibility limits expand within your organization, much like your own credit card. Improved Trust!
29 Adding Value through the PMO If FY00 IT Budget is $100M for development projects that are expected to produce $400M in business revenue and: $ 100 projects are planned to be delivered in FY00 $ IT actually delivers 125 projects in FY00 that result in an additional $100M in business revenue $ IT has exceeded business unit expectations because they assisted the business units in making money much earlier than expected! Planned Budget $100M = Planned Revenue $400M Actual Cost $100M = Actual Revenue $500M Increased productivity = Increased profitability
30 Adding Value! - Continued o Assume your Project Portfolio is currently at 100 projects in development and 20 awaiting startup. o Assume your average Project Budget is $500K and the average duration is projected at 200 work days. Thus the Portfolio has a $50M tactical value. o If the PMO could save you 10% on budget and time per project (average) per fiscal year, how important would this be for you? o 10% improvement would mean your Project Portfolio would save $5M over time and allow for 10 additional projects to be started earlier than was expected provided resources are available in the same fiscal year.
31 Implementing a Value-Add Enterprise Project Management Office Step 1 Step 2 Step 3 Project Managers & Resources Department Management City Management Board Project Plans Status Reports Project Prioritization Iterate Iterate Project Management Office Iterate Portfolio Mgt Operations Plan to accelerate delivery
32 The PMO Challenge " What would you do as a Project Manager, if Senior Management came to your department and questioned the value of your department to the Organization? " Your department was instructed to deliver 3 times the department expense budget for the next twelve months in documented $$$ value or your jobs would be eliminated. " How?
33 Delivering the Value " Seek out strategic and tactical consulting to the PMO/Project Offices and the PM Community through internal/external customers. " Ensure PMO/PM processes are tool independent for later upgrades. " Mentor the PMO and their Project Managers on how to optimize their project delivery through effective mentoring and improved PMO/PM Processes. " Establish a base Enterprise Portfolio Management process that will return minimally 10% of your planned fiscal year budget in costs and time over the subsequent 12 months. " Establish Organizational Supplier Project Offices that collect and report on tactical project progress, resource utilization while providing a Project Help Desk to the Project Teams in the Organization.
34 Delivering the Value (Continued) " Implement Project Prioritization Processes that uncover hidden opportunities in delivery opportunity or uncover hidden delivery threats among important yet-apparently unrelated projects. " PMO leads in determining EPM Tool value and selection. " Mentoring in Project Management to all areas of the business. Teaching and performing QA on significant project progress. " Project Management Basic training 1 day class > Teaching the basics and/or enhanced version. " Look for valued processes - Pre-Project Process Improvement Most companies waste significant developing their wish list only to reject the proposals later on in the budget planning cycle could this be improved?
35 Delivering the Value (Continued) " Project Recovery When good projects go bad, you need skilled help to step in and help the project recover. Who will the Executives go to in obtaining rescue help for a troubled project? Should that be the PMO? " PMO works with your team, training and transferring skill knowledge the PMO partners with you over a short period to help you get started. " Staff Augmentation for scarce resources and just-intime support. " PMO the internal project out-sourcing provider. " Networking for you with other best-in-class internal/external vendors.
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