The Value Of Project Management Joe Findlater Michael Coyne.

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Presentation transcript:

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 State of Michigan Examples of Project Control Offices Project Control Office Return On Investment Next Steps: Creating A Project Control Office

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

Re-thinking IT 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! Do you know this guy?

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

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

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

What’s Required For Success?

Your IT Project experience

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

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

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

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 processes defined Tools & environments set up Communication & training Driving Ownership, Accountability & Focus

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

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

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

Project Control Office Tools & Templates

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

Rigorous Methodology

Master Project Plan / Timeline

Project Status: Project Phase: UAT (71%) Weeks to Pilot:07 Timeline Accomplishments/Major Milestones l H1 – Disaster Recovery Plan – Submitted l I2 – I5 – Training Preparation - Submitted Key Activities This Week l Application Development - Continue fixes UAT Work Requests, CR Development l Conversion – Work Requests, Benefit Match Rate, Interim Conversion, Pilot Dry Run l Technology Management – WR fixes, Pilot CR’s, Vblock patches, Database Vault l Implementation - Training Materials, Data Clean up, Office Readiness, Pilot Readiness, Training Room l Testing – Recorded QTP Scripts, UAT Testing Key Activities Next Week l Technology Management – Apply Exadata patches, Performance Testing, VBLOCK patches l Application Development - Work request fixes, UAT, Change Request Development l Conversion - Resolve work requests, Benefit match rate, conversion defects l Implementation/Training –Data Conversion, Training Materials, Ideal Office, Train the Trainer ProjectTime 1. Requirements 2.Design 3.Development 4.Conversion 5.QAT 6.UAT 7.MCI 8.Pilot 9.Wave 1 10.Wave 2 11.Wave 3 12.Training & Imp 3Q12 2Q12 4Q12 2Q13 1Q13 3Q13 1Q12 On Track At Risk Off Track Not Started On Hold Completed Duration G G A A R R N N H H C C G G Progress XXX Project Status Week Ending XX/XX/XXXX C C N N N N N N 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 N N N N Risks/Issues l External System interfaces changes may not be completed on schedule l Impact of HIX on the ASPEN Project 4Q13 C C G G C C C C G G

ProjectsAgency BRIDGESDHS Treasury Modernization ProgramTreasury CHAMPSDCH MiTALENTMEDC Michigan Health Data ExchangeDCH Medicaid Compliance Program DCH MiACTSDLARA Identity Management InitiativeDTMB Unemployment ModernizationDLARA BAM ModernizationMDOS MiLAMP DTMB Examples of SOM PCOs

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

Assumptions: Projects with a PCO come in +/- 5% (budget/schedule) Projects without a PCO come in +10%-50% (budget/schedule) 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 PCO Your $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

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

Questions & Answers ?