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Establishing the HKJC IT PMO

ISACA Forum

Roland TesmerHead of IT Strategy and PlanningThe Hong Kong Jockey Club

8 April 2008

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Introduction to HKJC IT

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Mission

Committed to “One Club, One Team, One Vision”, the IT Division will provide innovative technology solutions that contribute significantly to the Club’s mission and strategic objectives. We strive to become a Value Partner for the Club’s business by pursuing excellence in everything we do.

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The IT Division handles many projects of all sizes and shapes

Projects range from highly customised bespoke development to vanilla off-the-shelf package implementations

Project effort can range from less than 2 weeks to greater than 4,500 man-months (375 man years)

Project value can range from a few thousand to a few hundred million HK dollars

In any given year we have around 250 IT projects in the pipeline –excluding system maintenance projects

Over 2,100 man-months (180 man years) of project effort is committed each fiscal year on new systems or system enhancements

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IT division organsation chart – where is our PMO in the structure

IT ARCHITECTURE & INNOVATION

IT STRATEGY & PLANNING

APPLICATION DEVELOPMENT

SYSTEMSASSURANCE

INFORMATION TECHNOLOGY DIVISION

IT SOLUTIONS & SERVICES

IT OPERATIONS & SERVICES

IT INFRASTRUCTURE SERVICES

• Planning• Network Services• Systems Services• Enterprise

• Racing• Corporate, Charity &

Security• Membership & Finance• Enterprise• IT Programme Mgt

• CRM & Analytics• Transaction• e-Business• Enterprise Application

• Customer Services• Data Centre Operations• Field Services• Operations Support• Telecom Operations

• Transaction & e-Business• CRM and Enterprise• Systems &

Implementation• Sustaining Engineering

• IT Business Planning • IT Project Services

(PMO)• IT Project Standards

(Effective 1 July 2007)

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Department organsation chart – the majority of our resources are project and process focused

Roland TesmerHead of IT Strategy &

Planning

ITBP Team Leader

IT ProjectServicesManager

IT ProjectStandardsManager

IT Communications

IT AdminFinance/HRM

Project PortfolioAnalyst

Project ResourceAnalyst

ProcessAnalyst

IT Business Planning

Program ManagementOffice

Project StandardsOffice

IT Training &Development

PM Coaching &Mentoring X 2

Quality AssuranceAnalyst

Total = 14 FTE

PMO/Process/QA = 8 FTE

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Establishing a PMO at HKJC

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Do you need a PMO? If the case study below looks familiar then maybe you do!

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Establishing a PMO... What’s in it for you?

Reduce business risk:Better management visibility of all projectsEstablish consistent standardsImprove predictability and repeatability of outcomes

Optimize resource use:Match skills with demandMonitor resource utilisation Forecast future skills needs

Contribute to business growth:Help maximise the business value of delivered projects Knowing when to give up ... stop throwing good money after bad

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Classic warning signs at HKJC ... Why we needed to establish a PMO

Project management was fragmented by a silo mindset

Plans were made but not necessarily followed

Work was not tracked against the plan – plans were not adjusted

Requirements were not consistent – changes were not managed

Estimates were way off – over/under commitment was common

Defects were discovered in system test – or worse still, by the customer

Success often relied on the heroic efforts of a few

Repeatability was questionable

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A PMO is not just an organisational unit or a job role

PMOScope

Ensure projectshave peoplewith the right skills, training andmotivation

Provide project management tools to facilitate key project delivery processes and work activities

Define and maintain project management standards, procedures and methods detailing how projects should be managed

AC

DB

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The key roles of the HKJC PMO

Standards, methods and best practices

Centralised tracking and reporting for all projects (portfolio mgt)

Project manager mentoring and coaching

Project manager training coordination

Tool selection, implementation and support

Process development, implementation and support (CMMI SEPG)

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Critical success factors

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Critical success factor 1: A functioning governance structure is mandatory...

IT Policy / IT Strategy

Execution / Compliance

Sponsorship / Biz Strategy

Management / Compliance

IT PlanningGroup

ITDepartments

STRATEGIC LEVEL

TACTICAL LEVEL

OPERATIONAL LEVEL

ConfigurationPlanning

GroupIT Management

Forum

IT GovernanceCommittee

ForumsProject Teams

CORPORATE LEVEL

DepartmentMeetings

SteeringCommittee

BusinessDivisions

PMO

ITStrategy Committee

Board of Management

IT ArchitectureGroup

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The IT Planning Group and IT Strategy Committee provide legitimacy and authority for the PMO to act

IT Policy / IT Strategy

Execution / Compliance

Sponsorship / Biz Strategy

Management / Compliance

ITStrategy Committee

Board of Management

IT PlanningGroup

STRATEGIC LEVEL

TACTICAL LEVEL

OPERATIONAL LEVEL

IT GovernanceCommittee

ForumsProject Teams

CORPORATE LEVEL

SteeringCommittee

PMO

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Critical success factor 2: Methodology, processes and tools are standardised...

Portals are very effective for information dissemination

They provide a simple gateway to an “approved”information repository

They are cheap to build and maintain

They are user friendly and, if well designed, engaging

They minimise the incentive for “C” drive process stockpiles

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Deliverable templates make the job of process compliance easier

We use our portal to deliver our methodology

Drill down capability is provided from the Level “0”view

Process and procedure assets are aligned to key methodology steps

The Portal tells them what they need to do now – but they can also see what is coming next

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Critical success factor 3: What gets measured gets done...

All projects have on-line dashboards that report project level performance metrics and statusGreen, yellow and red “traffic lights” communicate healthHigh level visibility

Project dashboard

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Top line project metrics enable performance to be benchmarked and issues followed up

Defects per project man-month provides a common quality metric that allows different projects to be comparedA threshold value triggers a deeper investigation into below parperformance

Project dashboard

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Critical success factor 4: Communicate, educate and train...

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Regular communication at the PM level to share information and motivate improvement

Invite middle level managers to speak to the IT executive teamGive senior IT management an opportunity to provide “leadership”Regular Project Manager Forum for best practice sharingFace-to-face communications sustains interest

Project Manager Forum

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Training is helping to “enlighten” IT staff and the staff of our business partners

Nine IT Project Managers have successfully achieved Project Management Professional (PMP) certification – a certification program for the remaining PMs is in progress

Over 150 IT and business staff have attended PMO arranged training, i.e. requirements definition, process improvement, inspections/reviews, estimation, etc...

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Critical success factor 5: Don’t stand still ... invest in and develop your PMO

HP PPM (Hewlett Packard) PPM will help our PMO deliver more effective governance of IT projects and programs

Track and manage user demand

Assign and monitor IT resources

Manage:PipelinesProject budgetsProject costsTrack issues/risks/changesStaff timesheetsStaff utilisationCapacity utilisation

PPM to be launched in July 2008

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Software estimation tools

SLIM Estimate (QSM, Inc.)

Staffing & Probability Analysis

Avg Staff (people)<Current Solution>

1 2 3 4 5 6 7 8 9 10 11 12 13 14Jan'01

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan'02

Feb Mar

0

2

4

6

8

10

12

14

Avg Staff (people)

8741

R&DC&TWARTY

Milestones 1 - HLDR 4 - SIT 7 - GA 8 - EW

Milestones 1 - HLDR 4 - SIT 7 - GA 8 - EW

SOLUTION PANEL <Cur r ent Solution>

DurationEffortCost

Peak StaffMTTD

Start Date

C&T12.0106

1059.112.01.2

2/5/2001

Life Cycle14.8127

1273.412.02.7

1/1/2001

MonthsMM$ (K)peopleDays

PI=15.1 MBI=2.5 Eff Obj=274

RISK GAUGE <Current Solution>

LC Duration <= 12 Months LC Cost <= 1500 $ KPeak Staff <= 20 ppl Life MTTD >= 3 Days

DurationCost

Peak StaffQuality

% 0 10 20 30 40 50 60 70 80 90 100

CONTROL PANEL <Current Solution>

PI 9.1 21.1

15.1

Peak Staf f 0.5 23.9

12.0

Ef f Obj 0 548

274

Project: B2B site development

To support more effective budgeting, require more accurate estimates at the project proposal stage

Home grown tools have proven to be ineffective while PM estimates are inconsistent and highly experience based

Best-of-breed tool has been acquired to drive consistency and support estimate benchmarking

Will be used to supplement PPM by providing estimate input data on a role basis

Launched in November 2007

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Results achieved after establishing our IT PMO

QC & UAT Fatal/Critical/Minor SQ Raised per Project Man Month

1.4

2.7

2.0

2.83.1

1.31.7

1.5

4.4

1.51.0

0.6

4.3

1.52.1

2.52.2

2.8

0.8

1.8

4.3

3.73.1

4.0

3.0

3.63.84.1

2.2

0.8

2.93.5

6.1

2.7

5.3

4.1

6.7

2.9

3.6

6.7

3.5

4.4

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Oct-04

Dec-0

4

Feb-

05

Apr-0

5

Jun-0

5

Aug-0

5

Oct-05

Dec-0

5

Feb-

06

Apr-0

6

Jun-0

6

Aug-0

6

Oct-06

Dec-0

6

Feb-

07

Apr-0

7

Jun-0

7Au

g-07

Oct-07

Dec-0

7Fe

b-08

Last Year Average (3.8) SQ Raised / Project Man Month 6 month moving average

Q205Q305

Q405Q106

Q105

Q206Q306

Q406

Q107

Q207 Q307

Q407Q108

Q208

Launched PMPortal + New Methodology

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Q&A

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Thank You