Centers for IBM e-Business Innovation :: Chicago © 2005 IBM Corporation IBM Project Management May 2006

Centers for IBM e-Business Innovation :: Chicago © 2005 IBM Corporation Studies show that lack of good project management often leads to failed projects. According to a study by Metagroup ('Why Operation Projects Fail?' November 2002) 70% of large IT projects fail or do not meet the expectations. The most common reasons refer to project management, project planning and communication.

Centers for IBM e-Business Innovation :: Chicago © 2005 IBM Corporation Failure to set and manage customer expectations / satisfaction. Failure to reach common understanding of requirements or completion criteria. Failure to reach understanding of the proposed solution. Failure to establish appropriate contractual baseline. Failure to adhere to published pricing guidelines, failure to assign adequate "risk" contingency and illegitimate "investment pricing" (i.e., low-balling, low margins, etc.). Poorly constructed or unauthorized subcontractor SOWs. Failure of key subcontractor to deliver. Inaccurate project estimates. Failure to plan for risk containment. Failure to perform QA reviews. Lack of DOU with other IBM organization(s).Failure to properly handle multinational issues. Inability to acquire properly skilled resources. Ineffective project initiation. Lack of or inadequate project management. Lack of Project Management Reviews and effective follow-up on action plans. Lack of management oversight / support. Unfulfilled customer responsibilities. Failure to implement / exercise proper change control process. Starting a phase prior to completing a preceding phase. Customer unprepared to support the new system. Customer represented by Third Party. Change in customer management team. Continuous / constant change in scope. Ineffective relationship between IBM and customer. Technology / architecture issues. Ineffective relationship between IBM and subcontractor. Subcontractor cost overruns. IBM project team morale or organizational issues..

Centers for IBM e-Business Innovation :: Chicago © 2005 IBM Corporation Project Management is usually seen as managing the interrelationship of three critical success factors for each project. Scope Schedule Budget It is essential to find the optimal balance to maximize the value of projects related to the company's success considering budget, schedule and scope.

Centers for IBM e-Business Innovation :: Chicago © 2005 IBM Corporation But it is not that simple, in order to manage to those three critical success factors it also involves...  Planning  Communication  Coordination  Integration  Execution  Tracking  Budgeting  Control  Reporting  Quality Control

Centers for IBM e-Business Innovation :: Chicago © 2005 IBM Corporation For IBM to become a project based enterprise it was necessary to integrate project management disciplines into the fabric of IBM.  In 1997, IBM committed to becoming a project based enterprise for integrating project management disciplines across the IBM enterprise.  Since then, IBM has developed and deployed a number of worldwide Project Management initiatives for establishing the Project Based Enterprise Charter. These project based initiatives focused on: –Project Management Professional Development - Education –Project Management Methods & Tools –Project Management Process  IBM’s Project Management Approach –Processes/Methodology (WWPMM) –PM Tools – Rational Portfolio Manager –PM Education

Centers for IBM e-Business Innovation :: Chicago © 2005 IBM Corporation Process and Methodology WWPMM IBM Methodology to Support PM

Centers for IBM e-Business Innovation :: Chicago © 2005 IBM Corporation IBM’s Project Management Method is a broad, robust and integrated approach to projects  IBM’s PM method (Worldwide Project Management Method – WWPMM) drives consistency and quality by focusing on three aspects of PM best practices –Work Domains –Work Products –Work Patterns  Work Domains provide detailed guidance on how specific types of PM activities should be carried out –PM must understand how to manage across 13 domains (change, quality, risk, etc.)  Work Products are verifiable outcomes that are used to manage projects –IBM’s method identifies 51 PM work products that could be used on an engagement –Standards, templates, and ‘how to’ guidance included in browser enabled tool  Work Patterns are a series of steps designed to meet project management goals or in response to particular project situations –Includes 39 different process steps spread across 7 phases –Equivalent to a Standard Operating Procedure (SOP)

Centers for IBM e-Business Innovation :: Chicago © 2005 IBM Corporation World Wide Project Management Methodology - WWPMM WWPMM helps define the PM System, a collection of plans, procedures and records that direct all PM activities and describe the current state and history of the project. Generic templates are provided in downloadable form, from the WWPMM reference page and through various PM tools. Reusable assets are available for PMs to apply to projects. When used with appropriate tools and integrated with business and technical management systems, this material provides a comprehensive PM environment. How the project is shaped, and how its execution is managed How the work is done

Centers for IBM e-Business Innovation :: Chicago © 2005 IBM Corporation

Centers for IBM e-Business Innovation :: Chicago © 2005 IBM Corporation

Centers for IBM e-Business Innovation :: Chicago © 2005 IBM Corporation Project Management Tools IBM Rational Portfolio Manager

Centers for IBM e-Business Innovation :: Chicago © 2005 IBM Corporation Typical Tool Challenges for Project Managers - BEFORE Many projects have manual and semi-automated processes, characterized by unnecessary data manipulation, inadequate information flow and sluggish cycle time.

Centers for IBM e-Business Innovation :: Chicago © 2005 IBM Corporation Rational Portfolio Manager is IBM’s Solution of Choice - AFTER Rational PM provides process automation, thereby increasing efficiency and reducing the complexity of project and portfolio processes. One stop shop” project repository, including the project control book Support more effective project startup Superior project tracking and control capabilities Project management process support Collaborative and communicative project environment

Centers for IBM e-Business Innovation :: Chicago © 2005 IBM Corporation Project Management Education and Certification IBM Rational Portfolio Manager

Centers for IBM e-Business Innovation :: Chicago © 2005 IBM Corporation IBM can supply skilled Project Management Mentoring and Staffing Capability Certification ElementIBM Certification ProgramPMI Certification Program PMI Examination PM Experience6, hrs4,500 hrs (2+ years) Technical Experience- - - People Management Experience- - - PM Education hrs35 hrs Technical Specialties- - - Professional Contributions (“Giveback”) Detailed Qualification Criteria based on required skills IBM’s certification process is more demanding than the standards set by the Project Management Institute