How to do Successful Project Management in a Competitive Industry

J. Mauricio NajarroTechnical DirectorIT Sponsored & Infrastructure PMOSBC Services

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AgendaDoes Project Management add value to the bottom line?Setting clear business and IT objectives (Project Requirements)Dealing with project creep (project refresh)Managing challenging projects through virtual teams Methodology or Tools, which one should first to make project management successful A case study: Reasons for a successful implementation of a Billing ProjectMeasurementsThe Importance of a Project ChampionOther processes that support a successful project management:

Portfolio Management/Governance Governance Process Goals Business Case Guidelines

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Does Project Management add value to the bottom line?

Organizations can make considerable gains by planning and instituting formal project management practicesOrganizations without formal project management practices will be at a competitive disadvantageInvestment in project management gives an overall return on investment of 27.9%, according to the Center for Business PracticesMaturity in project management is considered the single most important factor in project management performance and ROITo measure the value of project management you can utilized a balanced scorecard that includes qualitative and quantitative measures

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Setting clear business and IT objectives

Make sure that business objectives are clearly stated, understood and documentedCommunicate IT objectives and verify that alignment with business objectives existsClear set of requirements needs to be documented and signed-off at a walk thruDo not move ahead to next phase until:

Sign-off has been obtained by both parties Business (Client) and Applications (IT) or

A plan to get there has been established to be completed not far from the beginning of the next phase with deliverables (action items), due dates and responsible persons assigned to each action item

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Dealing with project creep (project refresh)

Diligently invest time in project scope planning and then manage scope change control Once business requirements are signed off, any changes to them need to be assessed for impacts to cost, resources, and timelineA formal Change Management process needs to be in place

Change Request forms need to be filled out and discussed at the next project team meeting after a change is introduced

Alternatives should be included Decision on which alternative needs to be taken and

implemented with everyone in agreement

If no agreement can be obtained, escalation to the next level of management needs to follow

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Managing challenging projects through virtual teams

Clear definition of roles and responsibilitiesEstablishment of communication guidelines, patterns, and state shared objectivesAddress conflict resolution, either privately or with the entire team, but head onEffective use of People, Process, and TechnologyMake sure common understanding of terminology exist Clear set of engagement rules need to be established

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Methodology or Tools, which one should first?

Are you following an established project management methodology? Usually the answer to this question is “NO’This is the first step. Define, Establish, Understand, and practice throughout the organizationDevelop a solid methodology and approach for managing projects first and then find the tool to support and increase the efficiency of the methodology

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A case study: Internet BillingReasons for a successful project implementation:

Maintaining a dialogue between Marketing, Network, IT, IP on content and business functions

Keep in mind job mandates and personalities are different between Marketing and IT Marketing thinks about opportunities, raking in revenue , promising new and more exciting services and IT

deals with limitations, lack of resources, and financial barriers If you are having problems with the dialogue, get everyone in person if necessary and work out a

plan with inputs from both sides Have IT speak the Marketing language. Instead of talking technology, talk cost and profitability Keep having a walkthrough at the end of every phase of the lifecycle to ensure you are still on

track Whenever there is questions on content or business function go back to the original requirements

Working with 3rd parties from day one to ensure that their requirements are integrated into the plan

Engage 3rd parties and keep them engage to make sure their requirements are integrated into the plan

Develop a complete set of data requirements, which includes documenting data fields and their ownership

Study and utilize key learning points to help make your implementation subsequent projects run more smoothlyDevelop a solid methodology and approach for managing projects and then focus on finding a tool to help support and increase efficiency of the methodology

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MeasurementsMetrics in place

To be able to better estimate projects Establish data points at every SDLC phase Utilize metrics to improve performance Make sure metrics are utilize consistently across organizations

On schedule means the same in multiple organizations

Measure against self and other organizationsStart to benchmark within the industryUnderstand metrics within the process and business

Projects improve business, business improves projects

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The Importance of a Project Champion

Every medium to large size project needs an identified champion

Provide executive sponsorship Scope Budget

Able to endorse recommendations for the various projects Final authority on “impasses”

Instrumental in defending the project if budget cuts occurThe role of the project sponsor is critical

Define Defend

If personnel change, priorities changeOften a factor in supplier relationships

May be contracts with outsourcers Implementing technology

Mature processes help make decisions more scientific and less political

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Portfolio Management/Governance

Step 1: Gather: Do a Project Inventory This is about creating ONE list of projects that are underway with

basic data like project title, length, estimated cost, ROI, business benefit, etc.

Step 2: Evaluate: Identify Projects That Match Strategic Objectives

Establish the portfolio process. Who will serve on the steering committee? When will the committee meet? How will the initial “first cut” list be defined, ensuring a match between projects and the companies objectives, etc.

Step 3: Prioritize: Score and Categorize Your Projects From the “first cut” list, how will we finalize the portfolio and

determine objectively, which projects are the “best” from a holistic, corporate perspective.

Step 4: Review: Actively Manage Your Portfolio How often will the committee meet? How often are projects

reviewed or new projects considered? What will cause us to “kill” a project? How will we know the health of a project underway? Etc.

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Governance Process Goals

Ensure that the organization’s financial and personnel resources are aligned with the corporate strategy and business needs Provide clients, the corporation and IT leadership with insight into utilization of IT financial and personnel resources Provide information necessary to prioritize limited IT resources and identify potential gaps in resourcesEnsure IT meets financial and personnel commitmentsProvide on-going review of the IT program portfolio and identify the need or opportunity for budget and portfolio adjustmentsCoordinate with other business units to deliver the total enterprise solution for corporate initiatives Enable cost, resource and program management tracking and reporting capabilities

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Business Case Guidelines

Thresholds to determine the need for a business case Project > $350,000 total cost - requires a business case Project < $350,000 total cost – part of the general business case

Business Case Approval For Project Authorization IT must receive validated business case from the Business Case Group IT Governance will validate the following from an IT perspective

Architectural compliance has been met Any hardware requests processed & approved Expense and Headcount coverage determined Governance coordinates with IT Leadership and IT Finance sign off