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The Value Of Project Management

The Value Of Project Management. Joe Findlater Michael Coyne. Agenda. The Changing Role of IT Critical Components of World Class Organizations What Is a Project Control Office? Project Control Office Structure & Governance Model Examples of Project Control Office Tools/Templates

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The Value Of Project Management

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  1. The Value Of Project Management Joe Findlater Michael Coyne

  2. Agenda • The Changing Role of IT • Critical Components of World Class Organizations • What Is a Project Control Office? • Project Control Office Structure & Governance Model • Examples of Project Control Office Tools/Templates • State of Michigan Examples of Project Control Offices • Project Control Office Return On Investment • Next Steps: Creating A Project Control Office

  3. Think you know IT? • Think again! • Today’s focus: • The changing role of IT in a changing world • What it means for you (as an IT professional) • What it means for DTMB (think business transformation) • And some advice to enable success

  4. Re-thinking IT • Do you know this guy? IT traditionally plays a support role… • Provide technical backbone • Keep the shop running You know us as the geek squad. But that is so yesterday!

  5. Today, IT is infused in everything we do, transforming how we live and work. The roleof IT is changing from support to: • Innovation / Business Transformation • Strategic Enabler • Agility / Speed to Market A new era in Information Technology is unfolding

  6. IT Projects Don’t Exist…They’re Business Transformation Projects People Technology Processes

  7. Critical Components of World Class Organizations • Innovate More • Tightly integrate business units with IT • Innovate and Transform leveraging Technology • Business and IT Portfolio, Program and Project Management • Reduce Speed To Market • Are extremely agile (Business and IT) • Business and IT Portfolio, Program and Project Management

  8. What’s Required For Success?

  9. Your IT Project experience

  10. Why Do Large Projects Fail? • Bing Search – 150,000,000 results Top 10 Reasons Why Systems Projects Fail - Harvard Kennedy … www.hks.harvard.edu/m-rcbg/ethiopia/Publications/Top%2010%20... · PDF file The sad fact is that software projectsfail because we do not ... the advice in the book largely mirrored the way that largeprojects are managed in the ... Why do big IT projects fail? Part one: The professionals www.computerweekly.com/news/2240106569/Why-do-big-IT-projects-fail... Academics, CIOs, lawyers, a professor of outsourcing, a consultant and an investigative journalist answer the question on the minds of many a business and IT ... • No methodology • Poorly skilled staff • No testing phase • Changing requirements • Customizing commercial off the shelf • Unrealistic budget for approval • Unrealistic timeframes • Poor business sponsorship & participation • Flawed governance structure Why Big IT Projects Fail - Enterprise Technology News and … www.cioinsight.com/c/a/Project-Management/Why-Big-IT-Projects-Fail... Whydolargeprojectsfail to deliver? Project Leadership Associates' survey of more than 200 CEOs, COOs and CIOs suggests there is a high correlation between lack of … Why Do Projects Fail? | Project Management Tips || Project ... pmtips.net/projects-fail-2 WhyDoProjectsFail? Posted by Brad Egeland. This topic always interests me. Mainly because so many projectsfail. ... please contact us at advertise@pmtips.net! • Poor requirements • Poor communication • Lack of business involvement • Ambiguity of roles and responsibilities • Lack of buy in • Poor change management

  11. What Is A Project Control Office? • The purpose of the Project Control Office is to provide comprehensive and consistent project management practices and reliable, metrics based statuses. PCO’s provide value to all types and sizes of IT projects and can be delivered by teams of 1 up to 20+ depending on the size and complexity of the project.PCO value is delivered by: • Managing the big picture • Managing the budget • Establishes a Project Governance structure • Providing coordination and communication across projects and agencies • Identifying issues, risks, benefits, and scope changes • Resolving escalated issues and mitigating risks • Managing to a high-level milestone schedule • Managing scope change • Maintaining project sponsor support and alignment with the Agency objectives

  12. Project Control Office Responsibilities • The PCO is responsible for: • Managing a detailed project plan • Managing budgets • Managing blocks of work for specific product delivery • Tracking a schedule that addresses day-to-day detailed tasks and activities • Escalating issues that cannot be resolved at the project level • Escalating risks that have a high probability of occurring and affect multiple, related projects • Escalating scope changes that cannot be resolved at the project level or that effect multiple, related projects

  13. Project Control Office Goals Schedule Control Tracking, monitoring processes defined Status, issues, change management Tools & environments set up Communication & training Communication Status meetings, schedules, agendas Tools & environments set up (web site) Technical Control Configuration management processesdefined Tools & environments set up Communication & training Driving Ownership, Accountability & Focus

  14. PCO Governance • Strategy: To provide an organization with governance and processes that recognizes all stakeholders (Business and Technology) to create: • Involvement • Commitment • Buy-in • Accountability • Ownership

  15. Executive Steering Committee Strategic Governance Model Overview Project Leadership Team Tactical Provides strategic direction. Ultimately accountable for strategic decisions and successful outcome of the project. Management Teams Accountable for overall tactical coordination, implementation and focus. Sub Project Sub Project Accountable for operational execution to provide delivery of goals and objectives. Sub Project Sub Project Operational

  16. Project Control Office Team Structure Executive Steering Committee Project Leadership Team Executive Business Owner Senior PCO Manager Executive Technology Owner Senior Program Manager Senior Technical Manager Business Lead Business Lead Technical Solutions Owner Technical Infrastructure Owner Project Managers Sub Project Sub Project Sub Project Sub Project Sub Project Sub Project Sub Project Sub Project Sub Project Sub Project Sub Project Sub Project Sub Project Sub Project Sub Project Sub Project Sub Project Business Analyst

  17. Project Control Office Tools & Templates

  18. Issue and Risk Identification and Resolution Weekly Schedule Collect Timesheets Executive Status Collect Metrics Manager’s Mtg Tracking Metrics Provided to PCO Status Reports Submitted Scorecards Change Control Mtg Metrics Validated / Schedules Updated Resolve Schedule And Status Issues with Teams

  19. Rigorous Methodology

  20. Master Project Plan / Timeline

  21. XXX Project Status Week Ending XX/XX/XXXX Project Status: Project Phase:UAT (71%) Weeks to Pilot:07 • Risks/Issues • External System interfaces changes may not be completed on schedule • Impact of HIX on the ASPEN Project • Accomplishments/Major Milestones • H1 – Disaster Recovery Plan – Submitted • I2 – I5 – Training Preparation - Submitted Timeline • Key Activities This Week • Application Development - Continue fixes UAT Work Requests, CR Development • Conversion – Work Requests, Benefit Match Rate, Interim Conversion, Pilot Dry Run • Technology Management – WR fixes, Pilot CR’s, Vblock patches, Database Vault • Implementation - Training Materials, Data Clean up, Office Readiness, Pilot Readiness, Training Room • Testing – Recorded QTP Scripts, UAT Testing • Key Activities Next Week • Technology Management – Apply Exadata patches, Performance Testing, VBLOCK patches • Application Development - Work request fixes, UAT, Change Request Development • Conversion - Resolve work requests, Benefit match rate, conversion defects • Implementation/Training –Data Conversion, Training Materials, Ideal Office, Train the Trainer N G On Track At Risk Off Track Not Started On Hold Completed Duration A H R C Progress Project Time Requirements Design Development Conversion QAT UAT MCI Pilot Wave 1 Wave 2 Wave 3 Training & Imp Sept 2011 – Dec 2011 Jan 2012 – Apr 2012 May 2012 – Oct 2012 Oct 2011 – Dec 2013 Nov 2012 – March 2013 Mar 2013 – June 2013 June 2013 July 2013 Sept 2013 Nov 2013 Jan 2014 Oct 2012 – March 2014 C C C C G G N N N N N G 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

  22. Examples of SOM PCOs • ProjectsAgency • BRIDGES DHS • Treasury Modernization Program Treasury • CHAMPS DCH • MiTALENT MEDC • Michigan Health Data Exchange DCH • Medicaid Compliance Program DCH • MiACTS DLARA • Identity Management Initiative DTMB • Unemployment Modernization DLARA • BAM Modernization MDOS • MiLAMPDTMB

  23. PCO Return On Investment • It was discovered that projects which had PCO related processes saw their projects completed (on an average) +/- 5% of the target schedule and budget for the current stage. • Projects that did not properly utilize effective PM/PCO processes completed their project anywhere from+10 to +50% over their project budgets and target schedules. • Also noted, the projects totaled a savings of +$250M (with PM/PCO) compared to a total loss of $655M(without or limited use of PM/PCO). • This savings was largely due to effective project management and controls, which gave the project teams the ability to identify issues early enough to minimize impacts. Source: “Measuring ROI on Project Management - Project Controls “ - JAMK International Business School

  24. What Does This Mean To Your Project? • Let’s look at a $10M (2) year project: • So what does this mean: • Worst Case without a PCOYour $10M, 2 year project costs you $15M and takes (36) months to deliver • Worst Case with a PCO Your $10M, 2 year project costs you $10.5M and takes (25) months to deliver • Assumptions: • Projects with a PCO come in +/- 5% (budget/schedule) • Projects without a PCO come in +10%-50% (budget/schedule)

  25. Next Steps: Creating An Effective PCO • Buy-In & Commitment To Governance Structure and Model • Organizationally • Key Processes • Dedicated Business & Technical Resources • Executive Owners • Key Leads • Dedicated Team Tools & Facilities

  26. Questions & Answers ?

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