The Value Of Project Management

Joe FindlaterMichael Coyne

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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

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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

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Re-thinking IT

IT traditionally plays asupport 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?

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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

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Technology

People

Processes

IT Projects Don’t Exist…They’re Business Transformation Projects

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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

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What’s Required For Success?

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Your IT Project experience

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Why do big IT projects fail? Part one: The professionals

www.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 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 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 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

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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

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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

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Project Control Office Goals

Schedule Control• Tracking, monitoring processes

definedStatus, 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

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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

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Management Teams

Project LeadershipTeam

SubProject

SubProject

SubProject

Executive Steering Committee

SubProject

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

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SeniorTechnicalManager

Project Managers

SeniorPCO

ManagerSenior ProgramManager

ExecutiveBusinessOwner

Business Lead Business LeadTechnical Solutions

Owner

Technical Infrastructure

Owner

SubProject

SubProject

SubProject

SubProject

SubProject

SubProject

SubProject

SubProject

SubProject

SubProject

SubProject

SubProject

Executive Technology

Owner

Project Leadership Team

SubProject

SubProject

SubProject

SubProject

Business Analyst

SubProject

Executive SteeringCommittee

Project Control Office Team Structure

Project Control Office Tools & Templates

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Weekly Schedule

Monday Tuesday Wednesday Thursday Friday

Collect Metrics

Resolve ScheduleAnd Status Issues

with Teams

Executive Status

Tracking Metrics Provided to

PCO

MetricsValidated /SchedulesUpdated

Issue and Risk Identification and Resolution

Scorecards

Change ControlMtg

Manager’sMtg

Status ReportsSubmitted

Collect Timesheets

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Rigorous Methodology

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Master Project Plan / Timeline

Project Status:

Project Phase: UAT (71%)

Weeks to Pilot:07

Timeline

Accomplishments/Major Milestones

H1 – Disaster Recovery Plan – Submitted I2 – I5 – Training Preparation - Submitted

Key Activities This Week Application Development - Continue fixes UAT Work

Requests, CR Development Conversion – Work Requests, Benefit Match Rate, Interim

Conversion, Pilot Dry Run Technology Management – WR fixes, Pilot CR’s, Vblock

patches, Database Vault Implementation - Training Materials, Data Clean up, Office

Readiness, Pilot Readiness, Training Room Testing – Recorded QTP Scripts, UAT Testing

Key Activities Next Week Technology Management – Apply Exadata patches,

Performance Testing, VBLOCK patches Application Development - Work request fixes, UAT,

Change Request Development Conversion - Resolve work requests, Benefit match rate,

conversion defects Implementation/Training –Data Conversion, Training

Materials, Ideal Office, Train the Trainer

Project Time1. Requirements2. Design3. Development4. Conversion5. QAT6. UAT7. MCI8. Pilot9. Wave 110. Wave 211. Wave 312. Training & Imp

3Q12 2Q12 4Q12 2Q13 1Q13 3Q13 1Q12

On Track

At Risk

Off Track

Not Started

On Hold

Completed

DurationGAR

NHC

G

Progress

XXX Project Status Week Ending XX/XX/XXXX

C

N

N

N

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

N

N

Risks/Issues External System interfaces changes may not

be completed on schedule Impact of HIX on the ASPEN Project

4Q13

C

G

C

ASPEN Project Financials

C

G

$105,060,01

2

$40,694,19

9

$64,365,813

XXX Project Financials

BudgetSpendingBalance

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Projects Agency • BRIDGES DHS• Treasury Modernization Program Treasury • CHAMPS DCH• MiTALENT MEDC• Michigan Health Data Exchange DCH• Medicaid Compliance Program DCH• MiACTS DLARA• Identity Management Initiative DTMB• Unemployment Modernization DLARA• BAM Modernization MDOS• MiLAMP DTMB

Examples of SOM PCOs

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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

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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:Project X

Cost 10,000,000.00$ Best Case Worst Case

Time in days 730 Low end High end

Without a PCO 10 percent over 50 percent over

Cost 11,000,000.00$ 15,000,000.00$

Time 803 1095

With a PCO 5 percent under 5 percent over

Cost 9,500,000.00$ 10,500,000.00$

Time 693.5 766.5

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

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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

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