Best Practices in Project Management Ben Sady, Principal Kelly Dao, Senior Consultant

Meet your facilitators Leader of DHG Risk Advisory Services in Richmond Experienced in internal audit, IT audit, SOX, project consulting, process improvement and cybersecurity Has led approximately 20 pre- and post-implementation assessments Has led requirements gathering projects Ben Ben Sady, CIA, CISA, PMP Principal Risk Advisory Services Richmond, VA

Meet your facilitators More than seven years of financial industry experience Clients range from mortgage providers to insurance and energy companies Knowledgeable throughout project management, root cause analysis and process improvements Kelly Kelly Dao Senior Risk Consultant Risk Advisory Services Richmond, VA

Presentation Overview Ben

Why does project management matter? DHG: The Project Management Institute is recognized as an industry leader worldwide Helps organizations complete projects on time, on budget and within the original scope Uses consistent, standardized processes Has more than 750,000 certified project managers Ben Source: Project Management Institute

The DHG experience Case study overview DHG reviewed a company’s Project Management Office to uncover problems and deliver solutions Client’s deadlines regularly were missed and projects consistently were over budget This presentation highlights DHG’s observations and recommendations based on the Project Management Book of Knowledge (PMBOK) Kelly

Project management basics What constitutes a project? Defined as a temporary endeavor to create a unique product or service, projects: Deliver products or services based upon an agreed set of expectations relating to scope, cost and timeline Includes a start and end date Help standardize processes Have 5 stages Kelly Developing a new product Merging 2 businesses Obtaining and implementing new software Source: Project Management Institute

The 5 stages of project management Initiate Plan Execute Control & Monitor Close Kelly Source: Project Management Institute

Projects start with a business need Initiate Projects should: Tie back to organization’s strategy and mission Facilitates value creation To initiate a project, it should ideally fit into one of the below criteria: Meet regulatory or legal requirements Satisfy stakeholder requests and needs Implement or change business or technological strategies Create, improve, fix products, processes or services Plan Execute Control & Monitor Kelly Close Source: Project Management Institute

The business case Kelly Importance of the business case to not only get the ball rolling, but to establish funding, resources, and scheduling needs of the project

Develop your project charter Initiate Plan Execute Control & Monitor Close Obtain formal authorization to begin the project (required) Define success/completion criteria Identify constraints and assumptions Key milestones Budget Loop in stakeholders early Stakeholders = anyone with vested in the project Seek project approval from sponsors and key stakeholders Kelly Source: Project Management Institute

The project charter Kelly

Project management plan Initiate Plan Execute Control & Monitor Close Proper project management can prevent “scope creep.” Be sure to: Involve stakeholders early and consistently Engage all appropriate parties Stick to the scope! Kelly

Project management plan Initiate Plan Execute Control & Monitor Close Requirements Management Create checklist to help ensure project scope is met Validate during testing process Work Breakdown Structure Work packages Sub projects Kelly Source: Project Management Institute

Project Management Plan Initiate Plan Execute Control & Monitor Close Develop a Communication Plan Correlation between communication and project success Be transparent Deliver a one-page template so stakeholders know what to expect and can get through it easily Kelly

Project management plan Initiate Develop a Robust Risk Management Plan Create a Reliable Change Management Plan Process changes may require different tiers of review and approval based on how they impact project timeline, costs and scope Plan Execute Control & Monitor Kelly Close

Execute Initiate Plan Execute Control & Monitor Close Kelly

Execute Initiate Plan Execute Control & Monitor Close Kelly

Control and monitor Initiate Plan Execute Control & Monitor Close The development of cost and schedule forecasts are crucial to successful project completion and scope management. They help ensure project plan changes are well-documented. Where possible, track estimated versus actual values for: Financial Tracking Plan Project Schedule Ben

Control and monitor Initiate Plan Execute Control & Monitor Close Ben

Close Initiate Plan Execute Control & Monitor Close Ensure all closure reports have documented stakeholder approval Verify documentation confirms project requirements have been met When applicable, provide updated and finalized documentation, including contracts, requirements testing results, cost forecasts, schedules, risk registers and change logs Host a “Lessons Learned” meeting Ben

No such thing as ‘best practices’ Process recap Initiate Plan Execute Control & Monitor Close A business case study justifies how the project relates to the organization’s strategy and mission Create the charter with key stakeholders Build your project management plan and define your scope Move through your planned process to help ensure changes go through the proper channels Confirm criteria for success has been completed and approved No such thing as ‘best practices’ Ben No such thing as ‘best practices’ = “generally accepted practices”

Key recommendations Perform necessary quality assurance checks and use proper performance metrics to ensure consistency throughout: Phase Gate Reviews Customer Surveys Use a consistent process to prioritize and assess new projects that enter the project portfolio Kelly Source: Project Management Institute

Key recommendations Kelly

Key recommendations Maintain consistent processes and documentation Develop project management policies and procedures Make sure stakeholders sign critical documents (i.e. charters and closure/acceptance document) Store documentation in a central location Kelly Software tool to implement and standardize the process

Key recommendations Have a Third Party Vendor Risk Management Program to review potential vendors Do your research! A TPRM team can help in assessing, measuring, managing, and controlling risks associated with third party vendors Ensure contracts are reviewed by a legal and risk representative Kelly

Internal Audit’s Role Stay in the loop on the schedule of all planned major changes Attend and participate in key meetings Perform project audits for major changes to project scope, budget and schedule Ben

Project audits Validate projects are completed based on requirements Validate output/deliverable functions as designed Validate project management documentation is available and completed throughout the project (i.e. initiating, planning, executing, monitoring and controlling and closing) Validate appropriate approvals for authorizing documents Control project costs and reduce the risk of going over budget Audits can occur “in-progress” (multiple times) and “post-implementation” Ben

Metrics to monitor Budget to actual variance Number of defects or performance issues after cutover Schedule / milestone variance Number of change orders Audit recommendations related to the implementation Timeliness of user training End user satisfaction rating Timeliness of cutover to production Return on Investment Ben

Summary & Wrap Up Ben

Summary Lack of project management controls can: Cause projects to misalign with organizational goals Result in deliverables that don’t meet project objectives because requirements gathering is not done properly Lead to poor project management (planning, executing, monitoring), extend deadlines and increase costs Minimize vendor oversight Limit controls on who can make changes Create teams that are not sufficiently trained Ben

Q&A Ben The information in this presentation is based upon the internal revenue code and other relevant legal authority as of a specific point in time. These authorities are subject to change or modification retroactively and/or prospectively and such changes may affect the validity or correctness of this information. Additionally, the information contained within the presentation may be tailored to a specific audience and therefore may not be applicable to all taxpayers or all situations. This presentation does not constitute tax advice by DHG.