high performance project management

Is “High Performance” Project Management Possible?

SimmTech Management Solutions

Mike Simmering OPM3-CC, PMP

Government Sector Interest GroupNorth Carolina PMI Chapter

What Would “High Performance” PM Look Like?

• Reliably meets expectations• Achieves deliverables• Happy Stakeholders• Happy Customers• Within budget• Within Schedule• Better performance with each project

2© 2010 SimmTech Management Solutions, Inc

What is the Project Management Reality?

• Roughly 40 percent of all IT projects fail to meet business requirements

• The average cancelled IT project – Scheduled to last 27 weeks and is cancelled on week 14

– at least $1 million wasted each year on work that does not lead to successful business outcomes

– The average organization annually ties up 10 percent of its IT staff on work that contributes no value to the business

– Project team members are aware of a project’s doom a full six weeks before it is finally cancelled by management, who failed to recognize it as quickly

Gartner Group, Inc. 20003© 2010 SimmTech Management Solutions, Inc

More Project Management Reality?

• Project Management training and creating a PMO is associated with lower failure rates

• 60 percent of organizations don’t offer such training

• 61 percent of firms don’t have a PMO in place

Gartner Group, Inc. 2000


Another View of Reality

• “…771 projects included in the fiscal 2004 budget – with a total cost of $20.9 billion – are currently at risk.” (OMB)

• Nearly 70 percent of projects fail (Standish);

• A staggering 39% of projects with budgets over $10 million failed. (Standish 2007)

• 50 percent are rolled back out of production (Gartner);

• 40 percent of problems are found by end users (Gartner);

• 25-40 percent of all spending on projects is wasted as a result of rework (Carnegie Mellon).

PM World Today 20075© 2010 SimmTech Management Solutions, Inc

Top 10 Reasons Projects Fail• Inadequately trained and/or inexperienced project managers• Failure to set and manage expectations• Poor leadership at any and all levels• Failure to adequately identify, document and track requirements• Poor plans and planning processes• Poor effort estimation• Cultural and ethical misalignment• Misalignment between the project team and the business or other

organization it serves• Inadequate or misused methods• Inadequate communication, including progress tracking and

reporting

Ganthead; Frank Winters6© 2010 SimmTech Management Solutions, Inc

Success or Failure: What does it mean?

• Has the project satisfied the business requirements of the primary stakeholders?

• Were the deliverables produced on time and within the budget?

• Do the business owners believe the project was successful?

• Has the project delivered the business value promised?


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Fundamental Truth

© 2010 SimmTech Management Solutions, Inc

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OPM3

• Designed to integrate PM knowledge base with the organization goals & objectives (including profitability)

• Adaptable and scalable model

• Designed to drive performance in project and program management


OPM3 Basics

• Globally Accepted Standard– PMI– Open Standard

• Based on Best Practices– 488 Industry Best Practices– Deming quality concepts

• Global Input– 800 Experts– 35 Countries


Linking Projects to Corporate Strategy


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OPM3 Domains


Project Project Program

Program Program

ProjectPortfolio

ProjectPortfolio

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OPM3 Improvement Stages


Conti

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Impr

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Stan

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Mea

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Cont

rol

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Processes/Knowledge Areas

Project •Integration (6)•Scope (5)•Time (6)•Cost (3)•Quality (3)•HR (4)•Communication (5)•Risk (6)•Procurement (4)

(42)


Program•Integration (8)•Scope (8)•Time (6)•Cost (3)•Quality (3)•HR (4)•Communication (3)•Risk (5)•Procurement (4)•Financial Mgmt (5)•Stakeholder Mgmt (4)•Pgm Governance (8)

(47)

Portfolio•PPM Governance

(10)•Risk (4)

(14)

OPM3 Continuum

OPM3 Domain

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The OPM3 Cycle

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How does it work?• Define your processes!

• Operate by your processes!

• Measure your processes!

• Fix them when they are broke!

• Improve your processes!


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Let’s Get Real !

• My company is small. We just do projects and have no need for Program Management and definitely not Portfolio Management.

• Choosing the right projects isn’t important?


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Let’s Get Real !

• Our projects are very unique and we cannot plan for all the things that might occur. There is no way to create a process!

• Any methodology (process) can be at least loosely defined. Every process has different levels of control. Processes that are out of control have unpredictable results.


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Let’s Get Real !

• We operate with a very lean staff. We do not have resources to do this stuff.

• If you are really strapped for resources wouldn’t it be better to assure you are doing the right things and that you are doing them correctly?


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How do I Start?

Method 1: OPM3 Assessment & Improvement Plan

Method 2:Project Management Process Definition and

process management


Method 1Assessment Scoring Methods


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Method 2

• Identify critical processes• Standardize• Measure• Get under control• Continuously Improve• Take on the next group of processes


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Does it Work?

• Pinellas County +16% 14+ months(Method 2 Self Assessment)

• AmeriHealth Provided needed jump start

• Sony Ericsson RTP +355% 10 months(Method 1 OPM3 Consultant)


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Questions?


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Presented At

Government Sector Interest GroupNorth Carolina PMI Chapter

February 4, 2010

SimmTech Management SolutionsMike Simmering OPM3-CC, PMP

[email protected]


mailto:[email protected]

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