PowerPoint Presentation

The Value Of Project Management Joe FindlaterMichael Coynepeople who deliverAgendaThe 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/TemplatesState of Michigan Examples of Project Control Offices Project Control Office Return On InvestmentNext Steps: Creating A Project Control Office people who deliver

Think you know IT? Think again!

Todays focus: The changing role of IT in a changing worldWhat it means for you (as an IT professional) What it means for DTMB (think business transformation)And some advice to enable successpeople who deliverRe-thinking ITIT traditionally plays asupport roleProvide technical backboneKeep the shop running

You know us as the geek squad. But that is so yesterday!

Do you know this guy?people who deliverToday, 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 EnablerAgility / Speed to Market A new era in Information Technology is unfoldingpeople who deliverTechnologyPeopleProcessesIT Projects Dont ExistTheyre Business Transformation Projectspeople who deliverCritical Components of World Class OrganizationsInnovate MoreTightly integrate business units with ITInnovate and Transform leveraging TechnologyBusiness and IT Portfolio, Program and Project ManagementReduce Speed To MarketAre extremely agile (Business and IT)Business and IT Portfolio, Program and Project Management

people who deliverWhats Required For Success?

people who deliver8Your IT Project experience

people who deliverWhy do big IT projects fail? Part one: The professionalswww.computerweekly.com/news/2240106569/Why-do-big-IT-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 www.hks.harvard.edu/m-rcbg/ethiopia/Publications/Top%2010%20... PDF fileThe 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-2Why Do Projects Fail? Posted by Brad Egeland. This topic always interests me. Mainly because so many projects fail. ... please contact us at advertise@pmtips.net!Why Big IT Projects Fail - Enterprise Technology News and www.cioinsight.com/c/a/Project-Management/Why-Big-IT-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 approvalUnrealistic timeframesPoor business sponsorship & participationFlawed governance structurePoor requirementsPoor communicationLack of business involvementNo methodologyPoorly skilled staffNo testing phaseChanging requirementsCustomizing commercial off the shelfAmbiguity of roles and responsibilitiesLack of buy inPoor change managementWhy Do Large Projects Fail?Bing Search 150,000,000 resultspeople who deliver10What 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. PCOs 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 pictureManaging the budgetEstablishes a Project Governance structureProviding coordination and communication across projects and agenciesIdentifying issues, risks, benefits, and scope changes Resolving escalated issues and mitigating risksManaging to a high-level milestone scheduleManaging scope changeMaintaining project sponsor support and alignment with the Agency objectives people who deliverProject Control Office ResponsibilitiesThe PCO is responsible for:Managing a detailed project plan Managing budgetsManaging 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 projectspeople who deliverProject Control Office GoalsSchedule ControlTracking, monitoring processes definedStatus, issues, change managementTools & environments set upCommunication & training

CommunicationStatus meetings, schedules, agendasTools & environments set up (web site)Technical ControlConfiguration management processesdefinedTools & environments set upCommunication & trainingDriving Ownership,Accountability & Focuspeople who deliver13Current structure has no accountability = Slide 6No one is in chargePCO GovernanceStrategy: To provide an organization with governance and processes that recognizes all stakeholders (Business and Technology) to create:

InvolvementCommitmentBuy-inAccountabilityOwnershippeople who deliverManagement TeamsProject LeadershipTeamSubProjectSubProjectSubProjectExecutive Steering Committee

SubProject

StrategicTacticalProvides 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.OperationalGovernance Model Overviewpeople who deliverSeniorTechnicalManager

Project Managers

SeniorPCOManagerSenior ProgramManagerExecutiveBusinessOwnerBusiness LeadBusiness LeadTechnical SolutionsOwnerTechnical InfrastructureOwnerSubProjectSubProjectSubProjectSubProjectSubProjectSubProjectSubProjectSubProjectSubProjectSubProjectSubProjectSubProjectExecutive Technology OwnerProject Leadership Team SubProjectSubProjectSubProjectSubProjectBusiness Analyst

SubProjectExecutive SteeringCommitteeProject Control Office Team Structurepeople who deliver16Project Control Office Tools & Templatespeople who deliverWeekly Schedule

Collect MetricsResolve ScheduleAnd Status Issueswith TeamsExecutive StatusTracking Metrics Provided to PCOMetricsValidated /SchedulesUpdatedIssue and Risk Identification and ResolutionScorecardsChange ControlMtgManagersMtgStatus ReportsSubmittedCollect Timesheetspeople who deliverRigorous Methodology

people who deliverMaster Project Plan / Timeline

people who deliver20Project Status: Project Phase: UAT (71%) Weeks to Pilot:07Timeline

Accomplishments/Major MilestonesH1 Disaster Recovery Plan SubmittedI2 I5 Training Preparation - Submitted

Key Activities This WeekApplication Development - Continue fixes UAT Work Requests, CR DevelopmentConversion Work Requests, Benefit Match Rate, Interim Conversion, Pilot Dry RunTechnology Management WR fixes, Pilot CRs, Vblock patches, Database VaultImplementation - Training Materials, Data Clean up, Office Readiness, Pilot Readiness, Training RoomTesting Recorded QTP Scripts, UAT TestingKey Activities Next WeekTechnology Management Apply Exadata patches, Performance Testing, VBLOCK patchesApplication Development - Work request fixes, UAT, Change Request DevelopmentConversion - Resolve work requests, Benefit match rate, conversion defectsImplementation/Training Data Conversion, Training Materials, Ideal Office, Train the TrainerProjectTime RequirementsDesignDevelopmentConversionQATUATMCIPilotWave 1Wave 2Wave 3Training & Imp

3Q12 2Q12 4Q12 2Q13 1Q13 3Q13 1Q12On TrackAt RiskOff Track

Not StartedOn HoldCompleted

DurationGARNHCG ProgressXXX Project Status Week Ending XX/XX/XXXXCNNN Sept 2011 Dec 2011Jan 2012 Apr 2012May 2012 Oct 2012Oct 2011 Dec 2013Nov 2012 March 2013Mar 2013 June 2013June 2013July 2013Sept 2013Nov 2013Jan 2014Oct 2012 March 2014

NNRisks/IssuesExternal System interfaces changes may not be completed on scheduleImpact of HIX on the ASPEN Project

4Q13 C

GC CG 21 ProjectsAgency BRIDGESDHSTreasury Modernization ProgramTreasury CHAMPSDCHMiTALENTMEDCMichigan Health Data ExchangeDCHMedicaid Compliance Program DCHMiACTSDLARAIdentity Management InitiativeDTMBUnemployment ModernizationDLARABAM ModernizationMDOSMiLAMP DTMB

Examples of SOM PCOs

people who deliverPCO 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 people who deliverAssumptions: 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?Lets look at a $10M (2) year project:

So what does this mean:Worst Case without a PCOYour $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 deliverpeople who deliverNext Steps: Creating An Effective PCOBuy-In & Commitment To Governance Structure and ModelOrganizationallyKey Processes

Dedicated Business & Technical ResourcesExecutive OwnersKey Leads

Dedicated Team Tools & Facilitiespeople who deliverQuestions & Answers?people who deliverMondayTuesdayWednesdayThursdayFriday

Sheet1Project XCost $10,000,000.00Best CaseWorst CaseTime in days730Low endHigh endWithout a PCO10 percent over50 percent overCost$11,000,000.00$15,000,000.00Time8031095With a PCO5 percent under5 percent overCost$9,500,000.00$10,500,000.00Time693.5766.5

Sheet2

Sheet3