GBA IT Project Management Final Project - Establishment of a Project Management Management Office 10 July, 2003

Page 1 GBA IT Project Management Final Project - Establishment of a Project Management Office 10 July, 2003r Introduction2 Project Plan and Schedule6 Return on Investment14 Risk Management and Communication Plan19 Table of Contents

x. Page 2 GBA IT Project Management Final Project - Establishment of a Project Management Office 10 July, 2003r Introduction

Page 3 GBA IT Project Management Final Project - Establishment of a Project Management Office 10 July, 2003r Project Overview Introduction Company background ABC Corp is a software and system development company that conducts multiple IT related projects on an ongoing basis. Recent research has shown that a best practice is to establish an office to lead and manage IT projects. PMO background and Justification It was determined that a Project Management Office (PMO) would improve ABC’s ability to appropriately and effectively manage and staff IT projects and reduce costs. Over the last five years projects have experienced trouble either in the form of:  Scope creep, resource shortages, increase in costs and delays in project completion, and project failures. Overall ABC incurs an average cost of $348,000 annually. High Level PMO Responsibilities Consistent project management methodology A standardized project management tools. Instituting a project governance process Project oversight of IT projects company-wide.

Page 4 GBA IT Project Management Final Project - Establishment of a Project Management Office 10 July, 2003r Project Overview Introduction Project Team Project Manger Project Team Member 1 – Direct support to Project Manager and workshops Project Team Member 2 – Development of materials and deliverables Project Team Member 3 – Administrative support Executive Review Member – Member from Executive Management to conduct ongoing (weekly status) reviews. Management – Final PMO Action Plan Review and Signoff.

Page 5 GBA IT Project Management Final Project - Establishment of a Project Management Office 10 July, 2003r Current PMO Research Introduction Current Research for PMO Project offices will be established in more than 60 percent of IS organizations by 2003 and will often plan and control project resources beyond IS (0.7 probability). IT projects undertaken using a proven project management methodology carry less risk and have a greater chance of success than unstructured projects. A consistently used methodology improves productivity by at least 30 percent (0.8 probability)”. An organization (of any size) needs a project management methodology when it desires consistent, predictable results and a process that is open to improvement. In the absence of a stable process for IT project delivery, there is no possibility that project management will be consistently improved, because improvements are random and non-repeatable. Source: Gartner

x. Page 6 GBA IT Project Management Final Project - Establishment of a Project Management Office 10 July, 2003r Project Plan and Schedule

Page 7 GBA IT Project Management Final Project - Establishment of a Project Management Office 10 July, 2003r Project Objectives Project Plan and Schedule The Project Team and Management have identified the following objectives for the PMO and future company projects: Objective #1: Enhance ABC abilities to and capabilities in managing IT projects and services in order to ensure project success (resources, time, cost). Objective #2: Increase the business value derived from IT projects and services through utilizing project synergies and resources. Objective #3: Provide a standard methodology and approach to implementing, managing and executing projects. Objective #4: Establish a collaborative project management environment. Objective #5: Ability to effectively manage ABC’s IT projects portfolio.

Page 8 GBA IT Project Management Final Project - Establishment of a Project Management Office 10 July, 2003r Project Plan and Schedule The Project Team will be staffed with the following positions: Project Manger Project Team Member 1 – Direct support to Project Manager and workshops Project Team Member 2 – Development of materials and deliverables Project Team Member 3 – Administrative support Executive Review Member – Member from Executive Management to conduct ongoing (weekly status) reviews. Management – Final PMO Action Plan Review and Signoff. Staffing

Page 9 GBA IT Project Management Final Project - Establishment of a Project Management Office 10 July, 2003r Project Schedule Project Plan and Schedule Project Schedule The project will be split into two overall phases:  Phase I. will be the establishment of the PMO foundation  Phase II. will be the actual implementation of the PMO. Project Timeframes are as follows:  Phase I. – Two Months  Phase II. – Four Years The two phases will be treated, overall, as two separate projects. This report represents those components of Phase I. The PMO Project Team will develop the following through consensus building workshops:  PMO mission, vision, goals and objectives  PMO initiatives and objectives  PMO roles and responsibilities.  PMO Organizational Structure and Functions  PMO Framework and Processes  PMO Action Plan  Define short term strategies and quick wins to optimize project management capabilities given existing resource limitations

Page 10 GBA IT Project Management Final Project - Establishment of a Project Management Office 10 July, 2003r Project Workshops Project Plan and Schedule Workshop 1 - Review Background Information During the first workshop, workshop participants will review background information and relevant trends, methodologies and practices. Workshop 2 – Assess Current Environment Ensure that internal and external factors are considered Current resources (e.g., staff skills, funding, project tools), organizational readiness (e.g., culture, organizational support), governance, and project management maturity. Identify strengths and weaknesses relative to project management, as well as perceived opportunities and threats in the establishment of a PMO (SWOT Analysis). Workshop 3 – Vision and Mission Statements, Goals and Objectives Based on input solicited from the interviews, research, trends and best practices Develop draft Vision and Mission Statements along with associated Goals and Objectives.

Page 11 GBA IT Project Management Final Project - Establishment of a Project Management Office 10 July, 2003r Project Workshops Project Plan and Schedule Workshop 4 – Organizational and Staffing Structure Development of proposed organizational structure for the PMO Develop recommendations for staffing roles and responsibilities and organization structure Workshop 5 – Identify PMO Framework and Processes Review best practice PMO framework material and implied PMO processes Review project lifecycles and processes Focus on consensus-based adoption of project management lifecycle

Page 12 GBA IT Project Management Final Project - Establishment of a Project Management Office 10 July, 2003r Project Plan and Schedule Project Schedule - Phase I.

Page 13 GBA IT Project Management Final Project - Establishment of a Project Management Office 10 July, 2003r Project Deliverables Project Plan and Schedule Project deliverables include the following: Develop of workshop materials Conducting workshops Documentation and dissemination of workshop results PMO Action Plan  Document high-level action items necessary to establish the PMO and implement its initiatives.  PMO Requirements (resources, timelines, functions, organization, responsibilities, etc.)  Implementation Strategies  Implementation Schedule

x. Page 14 GBA IT Project Management Final Project - Establishment of a Project Management Office 10 July, 2003r Return on Investment

Page 15 GBA IT Project Management Final Project - Establishment of a Project Management Office 10 July, 2003r Expected Benefits Return on Investment The primary benefit to establishing the PMO is the improved control and management of projects including the reduction of: Delayed projects Scope creep Resource increase Cost overruns Project failure Average total annual loss due to the above factors: Delayed Projects$55,000 Scope Creep$64,000 Resource Increase$26,000 Cost Overruns$78,000 Project Failures$125,000 Totals$348,000

Page 16 GBA IT Project Management Final Project - Establishment of a Project Management Office 10 July, 2003r Expected Costs Return on Investment Phase I Costs

Page 17 GBA IT Project Management Final Project - Establishment of a Project Management Office 10 July, 2003r Expected Costs Return on Investment Phase II Costs

Page 18 GBA IT Project Management Final Project - Establishment of a Project Management Office 10 July, 2003r Break Even Analysis Return on Investment Total first year costs are $235,950, this represents a return on investment in 8.6 months after implementation.

x. Page 19 GBA IT Project Management Final Project - Establishment of a Project Management Office 10 July, 2003r Risk Management and Communication Plan

Page 20 GBA IT Project Management Final Project - Establishment of a Project Management Office 10 July, 2003r Risk Management and Communication Plan Risk Management will be assessed on an ongoing basis throughout the project from the project planning phase through project closeout. Project risk will be divided into the following areas and assessed: Strategic Risk – Alignment with overall business strategy, objectives being met, and management commitment Financial Risk – Staying within project budget, cost and benefits being realized, payback period defined and on target. Project Management Risk – Ongoing team experience and balance, on schedule, milestones being met, scope changes, and issues. Change Management and Operational Risk – Ongoing acceptance of deliverables, stakeholder acceptance, impact of project failure and are staff issues being addressed. Risk Management

Page 21 GBA IT Project Management Final Project - Establishment of a Project Management Office 10 July, 2003r Risk Management and Communication Plan Communication Plan will address the following: Organizational Structure  Organizational Chart  Contact Information Roles and Responsibilities Regularly Scheduled Meetings  Meetings  Description  Participants  Frequency Project Documentation  Project Documents  Responsibility  Frequency  Distribution Group Escalation Procedures Communication Plan

GBA IT Project Management Final Project - Establishment of a Project Management Management Office 10 July, 2003