copyrighted © 2004 NYCHAcopyrighted © 2004 NYCHA
NEW YORK CITY
HOUSING AUTHORITY
Considerations in Selecting and Protecting Your IT Investment
Presenter: Helene Heller, Senior Director Moderator: Avi Duvdevani, CIO
Project & Information Management Deputy General Manager, IT
New York City Housing Authority
Panelists:
Marilyn McMillan Leonard Boscia Faisal Hanafi
Associate Provost & CITO PMO Executive Advisor, IBSG
New York University NYPD Cisco Systems
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Agenda
• Introductions
• Information Technology Portfolio
Selection Priorities And Methodologies
• Project Governance
• Project Management
• The Virtual IT PMO
• Q&A With the Panel / Audience Lessons
Learned
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Why is this an important topic?
• Fiscal realities dictate selective IT investment
• Technology/tools chosen need to support the business problem/challenge or opportunity
• Project management should guarantee that the selected technology works, the business problem has been solved, and the investment was contained
• Projects utilizing technology should support improved business processes and therefore be led by a business owner
• Business owners shouldn’t have to be professional project managers
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What is IT governance?
As Defined by Gartner:
• IT governance provides a framework in which the decisions made about IT issues are aligned with the overall business strategy and culture of the enterprise
• Governance is concerned with setting directions, establishing standards and principles, and prioritizing investments.
• The process of assigning decision rights is influenced by corporate culture, business orientation, stakeholders' opinions and the knowledge required of decision makers.
• Effective it governance involves the assignment of decision-making rights and accountabilities regarding behavior in the desirable use of it.
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Role of the Project Management Office (PMO)
PMOProject Repository
PM Consulting & Advice
PM Standard Methodology & Tools
PMO Reporting Standards Assistance & Coaching
Dept. Project Manager(s)
Weekly/Monthly Project Manager Status Reports
Provide Liaison
Monthly Executive Project Status Reports
Business Unit Staff Reporting Structure
GM’s Operations Committee
NYCHA CIO/CFO
NYCHA DGMs
Provide Membership
Input & Feedback
NYCHA Board
NYCHA General Manager
Project Manager
Project Team
Project Steering
Committee
or or
IT Governance Example © copyright NYCHA 2004
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Why is a Portfolio Approach Relevant?
• An organization must understand its goals, have a flexible process to determine priorities based on changing environments, and select projects that will provide meaningful improvement to:
–Customer satisfaction
–Employee productivity
–Business process improvements
–Cost take-out from the operating budget
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ProgramManagement
ProgramManagement
ProjectManagement
ProjectManagement
• Comprehensive program planning• Change and risk management• Coordination of project delivery• Measurement of results• Corrective actions
• Initiate• Budget• Schedule• Resources
• Portfolio scope • Prioritize& optimize overall IT cost, benefits, risk • Actively monitor Portfolio performance • Adapt to business environment changes
PortfolioManagement
PortfolioManagement
• Deliverables• Scope• Risks• Measure
Quarterly PortfolioReviews
Quarterly PortfolioReviews
Annual Planning
Annual Planning
MonthlyPlanning
MonthlyPlanning
MonthlyProgram Reviews
MonthlyProgram ReviewsQuarterly
Planning
Quarterly Planning
WeeklyProject Reviews
WeeklyProject Reviews
Portfolio Management Approach –Ongoing Process
PM
DGM
GM
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How to select the enterprise portfolio
Key Care-Abouts• Identify key stakeholders who run
the business• Understand their goals and
priorities, what keeps them up at night, and what gets in the way of doing the job that supports their goals
• Use this knowledge to brainstorm potential IT solutions
Enterprise Solutions• Look for patterns among
solutions of all stakeholders interviewed
• Identify opportunities to implement one solution for multiple functions or department
Investment Criteria
•Identify criteria for IT investment: improve business process, save money, break-down business silos, etc.
•Apply criteria against list of potential projects
Business Case
•Identify executive sponsor and project manager from the business
•Project manager completes a project concept document
•Project concept documents are presented to IT governance committee for selection
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How to Make the Business Case
• Elevator pitch: what is the business problem, challenge or opportunity? Why should the executive care?
• Describe in layman’s terms a credible potential solution
• Define metrics that will show the executive that the solution has successfully addressed the business problem/challenge/opportunity
• Document the cost of doing business the current way v. the new way that the solution will promote
• Compare to best practice examples
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What is Project Management?
• The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. (PMBOK)
• Project management is a proven discipline used to deliver consistent, predictable, and repeatable results by:• Identifying milestones and deliverables
• Delineating steps and following their progress
• Developing cost estimates based on a timeline
• Analyzing the effects of change and incorporating them into the planning process
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Project Management Failure Impact
• In 1995, the Standish Group Reported:• 31% of all IT projects were canceled before completion
• 16% were completed successfully
• 88% were over budget, over schedule or both– An average cost overrun of 189% and an average time overrun of
222% of original estimates
• In Its 2001 Report:• Time overruns have dropped to an average of 63%
• Cost overruns have dropped to an average of 45%
• Successful IT project completion has climbed to 28%
• It is believed that the adoption of project management standards and the development of project management offices has a direct correlation to the improved rates
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Provide the end-to-end project delivery and project management processes, standards, best practices, and tools to enable the organization to achieve far higher levels of performance, rapidly delivering big wins with positive financial impact.
Provide the end-to-end project delivery and project management processes, standards, best practices, and tools to enable the organization to achieve far higher levels of performance, rapidly delivering big wins with positive financial impact.
IT PMO Discipline
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Strategic PlanningStrategic PlanningAnd AnalysisAnd Analysis Metrics & ReviewsMetrics & Reviews
Communicatestatus
Refine Project Course
Review Portfolio
Alignobjectives
Select investments
Prioritize initiatives
IT PMO Process Overview© copyright NYCHA 2004
Execution Close Out
Evaluation and Enhancement
Initiation
Concept CommitConcept Commit Execution CommitExecution Commit Design/Dev/Test/DeployDesign/Dev/Test/Deploy
PlanningSupport/
Maintenance
ProductionProduction
Metrics, Status, and Change ManagementMetrics, Status, and Change Management
Lessons LearnedLessons Learned
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Functions of a Virtual IT PMO
IT PMO
Project Management
Standards
Resource Evaluation
Project Planning
Project Review
& Analysis
Communication and
Collaboration
1. Developing a standardized PM methodology, process and tools for effective project management across the organization
2. Ensuring the optimization of organization resources in projects
3. Responsible for guiding each project’s planning efforts
4. Consistently monitoring projects to ensure they are kept on track and are completed successfully
PM Methodology
Knowledge Management
Vendor Info. Database Resource Database Collaboration Software
Tools and Templates Education Mgmt SystemExec. Info. System (EIS)
5. Providing continued program visibility to the Executive Team and facilitating maximum multi-level collaboration
Slide modified from two Gartner concept slides © copyright Gartner, Inc. 2002
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Phase Overview• The Initiation Phase sets the tone for the project
• The Initiation Phase is a collaborative approach of presenting a particular NYCHA business problem, challenge or opportunity defining a particular project to address the business issues(s) and identifying anticipated benefits which NYCHA expects to realize by undertaking the project.
• A Project Concept is required by an executive sponsor in order to get a sense if the project should be pursued.
• The Enterprise Portfolio IT selection process utilizes the materials in the project concept document to determine appropriate project next steps, including Pilot, Process Re-engineering or Business Case Development prior to commitment to move to the Planning Phase
• If a commitment is not provided, NYCHA may decide to revisit the project at a later date, re-define the project scope or terminate the project
Initiation PhaseOverview © copyright NYCHA 2004
Entry Criteria Business Unit Executive Sponsorship
Exit Criteria GM’s Operations Committee Decision to Sponsor Project to Planning Phase
Execution
Evaluation and Enhancement
Initiation
Concept CommitConcept Commit Execution CommitExecution Commit Design/Dev/Test/DeployDesign/Dev/Test/Deploy
Planning
ProductionProduction
Metrics, Status, and Change ManagementMetrics, Status, and Change Management
Lessons LearnedLessons Learned
Execution Close-Out Support / Maintenance
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Initiation PhaseActivities and Deliverables © copyright NYCHA 2004
Requesting Department Develops the PROJECTCONCEPT DOCUMENT
PMO provides feedback on PROJECT CONCEPT DOCUMENT
ALL PROJECTS BEGIN HEREEntry Criteria is
Satisfied
CIO assigns a technical lead and the Requesting Department assigns a Project Manager (PM)
GM’s Operations Committee completes analysis on PROJECT CONCEPT DOCUMENT
Move to BUSINESS CASE Development
Operations Committee Decision on Project
Move to Other Intermediate Activity such as• Pilot/POC• Process Reengineering
Execute Required Activities1.Pilot/POC2.Process Reengineering
Activity Deliverables are presented to GM’s Operations Committee for review (for Pilot or POC, see the Planning Phase)
Project Denied
Operations Committee Decision on Project
Move toNext Slide
Concurrently PROJECT CONCEPT DOCUMENT is reviewed by PM with Law Department for compliance issues
Execution
Evaluation and Enhancement
Initiation
Concept CommitConcept Commit Execution CommitExecution Commit Design/Dev/Test/DeployDesign/Dev/Test/Deploy
Planning
ProductionProduction
Metrics, Status, and Change ManagementMetrics, Status, and Change Management
Lessons LearnedLessons Learned
Execution Close-Out Support / Maintenance
PROJECT CONCEPT DOCUMENT is presented to GM’s Operations Committee for review
16 If you are unsure that you have a
project, complete the PROJECT CLASSIFICATION CHECKLIST
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Initiation PhaseActivities and Deliverables © copyright NYCHA 2004
Project Denied
Move to Planning Phase Pilot /POC Implementation
Project Managers finalizes the BUSINESS CASE DOCUMENT and EXECUTIVE PRESENTATION with PMO feedback
Move to Planning Phase Full ImplementationDGM for Policy (SME)
- Change Readiness Risks
BUSINESS CASE DOCUMENT and EXECUTIVE PRESENTATION are presented to GM’s Operations Committee
GM’s Operations Committee completes analysis on project / provides feedback/addendums to BUSINESS CASE DOCUMENT
Operations Committee Decision on Project
Procurement Office (SME)
- Procurement Process- Market Analysis- Request for Information
Enterprise Technology Architect (SME)
- IT Standards Compliance
- Market Assessment- Technology Risks
IT Infrastructure (SME)- Infrastructure
Requirements- Architecture
Considerations- Roles/Responsibilities
Project Team collaborate with SMEs and stakeholders to develop BUSINESS CASE DOCUMENT and EXECUTIVE PRESENTATION
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Execution
Evaluation and Enhancement
Initiation
Concept CommitConcept Commit Execution CommitExecution Commit Design/Dev/Test/DeployDesign/Dev/Test/Deploy
Planning
ProductionProduction
Metrics, Status, and Change ManagementMetrics, Status, and Change Management
Lessons LearnedLessons Learned
Execution Close-Out Support / Maintenance
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How to Scale a PM Standard Throughout the Enterprise: The Role of Automation
• Project Dashboard
• Repository
• Planning/Tracking
• Risk Management
• Reporting/Issue Management
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PMO: Project Dashboard
•Overview: A comprehensive view, defined by user role, for all the news and information about NYCHA projects
•Users: Project team, executive sponsors and anyone who needs to learn more about the projects, or need to know about the status
•Elements: General project info, current project status, project plan and timeline, issues and risks, link to repository which stores past status reports and other project-related information. Information clearly segregated in open (accessible to all) and protected (available only to authorized individuals) folders with links provided to any other required website (e.g.,. NYCHA intranet)
•Owner: PMO
Illustrative
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PMO: Repository
Illustrative•Overview: A common repository that is used to store all project related documents and other information
•Users: PMO, project leads, and anyone needing access to knowledge management
•Elements: Contains historical documents, past status reports, project plan, updated issues list, risk report, engineering design documents (baseline and modified), PMO templates (status, communication etc.). Provides version control and authentication.
•Owner: PMO with project managers for their specific sections
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Q&A With the Panelists/Audience Lessons Learned
• How was IT organized when you assumed your position and who selected IT business projects?
• How have you changed your governance, portfolio selection process and other organizational aspects?
• What type of project management process do you employ and why?
• What role does IT play? What role does the business unit owner play?
• How would you rate the maturity of government and education institutions in IT governance and project management? How would you rate yours?
• What role can IT governance have in organizational transformation? Can you provide some examples?
• What challenges did you face in implementing an enterprise-wide project management discipline and what techniques can you share that you used to overcome those challenges?