pmo14 br15 luis bourget

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PMO-CBDR: A PMO to Contribute with

Dominican Republic’s Economic Stability

Luis J. Bourget

18 November 2014

Session #PMO14BR15

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Topics

• Context

• Our approach to:

– A Central Bank’s strategy value chain

– Key and supporting management processes

• Results so far: PMO - CBDR

• Lessons learned

PMO – CBDR: A PMO to contribute with Dominican Republic’s economic stability

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Context

• The Dominican Republic at the center of it all

• As an open and stable economy, our credentials are:

– $66 Billion GDP estimated for 2015

– 4% Inflation target for 2015

– 5% GDP growth (real) for 2015

– 3.63% EMBI (Chile:1.51% ------- Argentina:7.71%) as of 10/13/2014

– 15.2% Solvency rate for the financial sector

– Tourism, Mining, Financial Services, Agriculture are our main

economic activities

– Dom. Rep.’s Central Bank (CBDR) has constitutional autonomy

• Constraints & Challenges

• A fertile ground for the Project Management profession


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Context

What are Central Banks, anyway?

• Monetary Policy

• Price Stability

• Issue Currency

• Manage Payment System

• Promote & Regulate Financial Sector

• Manage Reserves & Systemic Risk

• Lender of Last Resort


5

CBDR – Organizational Chart


OPERATIONS

DEPARTMENT DIRECTOR DEPARTMENT DIRECTORDEPARTMENT DIRECTOR DEPARTMENT DIRECTOR

DEPARTMENT UNIT: PMO

MONETARY POLICY This is an example text.

GOVERNOR

DEPUTY GOVERNOR

GENERAL MANAGER

DEPUTY GENERAL MGR.

DEPARTMENTDEPARTMENT DEPARTMENT DEPARTMENT

GENERAL MANAGEMENT

GOVERNORSHIP

DEPUTY MANAGER DEPUTY MANAGER DEPUTY MANAGER

MONETARY

BOARD

CONSULTANTS

SYSTEMS & SERVICES

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Topics

• Context


– The Central Bank’s strategy value chain



• Lessons learned


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Dominican Rep.’s National Development

Strategy (to year 2030)


III

Third Strategic Axis

Advocates for an

articulated, innovative and

environmentally sustainable

economy with a productive

structure that generates

high and sustained growth

with decent work, and

inserted competitively in the

global economy.

0

5

10

15

20

25

1 2 3 4 5 6 7 8 9 10

BC

Economic

Development

More Jobs

Price Stability

Social

Equality

Security

Better

Education

More

Prosperity

Better

Justice

Better

Institutions

More

Money

Issuing

BC

BC

General Objectives

Favorable macroeconomic

stability and sustained high

economic growth.

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CBDR – Strategic Framework


MISSION

VALUES

VISION

STRATEGIC PLAN / MAP

OBJECTIVES

BALANCED SCORECARD

TACTICS

BUDGET

PORTFOLIO

MANAGEMENT

BUSINESS RESULTS Strategic Alignment

Prioritize

Balance

Monitor & Control

STRATEGY

DESIGN

EXECUTION

PMO

Monetary

Board

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CBDR’s Strategic Map

(2010 – 2013)


Capitalization and FinancialEfficiency

Develop a Results & RiskManagement Culture

Efficient ITPlattform

Human CapitalDevelopment

OrganizationalProductivity

Monetary & ExchangeOperations

Regulation & Oversightof the Financial andPayment Systems

Governance &Transparency

Price StabilityFinancial & Payment System’s

Stability and Strength

VISION

LE

AR

NIN

GF

INA

NC

EP

RO

CE

SS

CL

IEN

T

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CBDR’s Strategy Value Chain


Governance Transparency Accountability

Strategic Plans

2006-2009

and

2010-2013

1. Project

Portfolio

Performance

2006-2009,

87%

2. Project

Portfolio

Performance

2010-2013,

94%

Human Resources Culture

Hierarchical Structure Technology

Portfolio

Management

Program

Management

Project

ManagementOPM3

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Topics

• Context





• Lessons learned


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Key and Supporting Management Processess

• Management’s commitment

• Strategic alignment and P5’s integrated administration

• Classification of strategic priorities and objectives’ impact assessment

• Portfolio prioritization and balancing

• Interdependencies analysis between projects and programs in the

portfolio, whether these are being executed or have been already

implemented

• A central information repository regarding plans and projects in order to

communicate a unique and consistent scheme on management’s

progress

• Governance and integrated change control


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Key and Supporting Management Processess

• Proactive ex-ante / ex-post monitoring and continuous controlling to

introduce the necessary preventive and corrective actions for plans

and projects

• Permanent collection and consolidation of plans and projects’

performance

• Success metrics evaluation and quarterly performance reports


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Topics

• Context





• Lessons learned


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PMO-CBDR Timeline


2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

PMO Approval

Start of 1sst

Strategic Plan 2006/09

PMO Team

Implements Portfolio Assessment Methodology

OPM3

Training and 1st. Assessment trough SAM .

Score: 36%

OPM3

PMO Team performs 2nd. Assessment.

Score: 48%

ISP 2014/17

3rd. Institutional Strategic Plan Begins

PMO Starts

Within the Planning & Budget Dept.

PMO Team

Implements Balanced Scorecard Methodology.

Oracle Projects

PMO Team finishes project plattform deployment

OPM3

PMO Team performs 3rd. Assessment

Score: 69%

PMO Team

Projected completion of OPM update to the new Standards

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The PMO-CBDR Team

Vision

To set the tone and best

practices to manage projects

in the banking industry

Mission

To add value, performance and

quality deliverables to the

organization


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CBDR – Project Teams


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PMO – CBDR

A short story in 4 chapters

• A dive into the shark tank

• Doing projects the right way is not the same as “doing

projects”

• PMO / projects go viral

• Bring in the results!


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PMO – CBDR: Some metrics


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Trainings on Strategic Planning and Project Management

Year 2007 2008 2009 2010 2011 2012 2013

Participants 88 264 133 85 165 45 65

Percentage distribution by training type

Continuous project management training 279 33%

Project manager core competency development 338 40%

Advancement in project management practices 228 27%

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Strategic vs. Functional Projects


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PMO – CBDR: Key Challenges


Initiatives Key Challenges Accomplishments

ISP Implementation

2006-2009

Macroeconomic and

financial stability restoration

Inflation rate, from

49% to 7.25%

Exchange rate, from

RD$65 pesos to

RD$35 pesos per

US$1 dollar

CBDR bonds interest

rate, from 35% to

13.09%

Work plan compliance for the

initiatives implementation (Portfolio

Compliance Level, PCL).

*Cumulative Performance Results

2009 87.07%

ISP Implementation

2010-2013

Compliance for strategic objectives /

indicators; consolidated BSC,

structured by goals / indicators.

*Annual Performance Results

2010 80.00%

2011 82.25%

2012 90.92%

2013 100.00%

Work plan compliance for the

initiatives implementation (Portfolio

Compliance Level, PCL). *Annual

Cumulative Performance Results

2010 29.29%

2011 53.40%

2012 78.56%

2013 94.21%

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PMO – CBDR: Impact of successful Portfolio

Management on the Dom. Rep.’s Economy


Macroeconomic

Stability

Enhanced decision-making

process with greater analysis

and information on the

economy’s conditions

Development of economic

indicators to enhance the monetary

policy decision-making process

and enable price stability

Stability of the exchange rate

Development of econometric

models for the monetary policy

Implementation of the inflation targeting scheme

Achievement of low levels of

inflation and forward-looking

monetary policy

Research and analysis of tools

for the Implementation of

monetary policy

Strategic Theme

Policies, foreign exchange

operations and improved

statistical analysis for the

international environment

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PMO – CBDR: Impact of successful Portfolio

Management on the Dom. Rep.’s Economy


Reduction of interbank

payments’ transit time

Systems of evaluation, and

operational risk management and

business continuity

- Management information

system implementation for the

decision-making process

- Award recognition for

Electronic Government

Implementation of the RTGS

Laws, regulations and overall

risk indicators for the financial system

Stability of the financial system

Development and integration of

information systems that support

the key processes

Financial

System Stability

Strategic Theme

Efficiency of the

Payments System

Institutional

DevelopmentImplementation of a system of

operational risk management

and business continuity

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PMO – CBDR: Internal Survey


Always, 71%

Sometimes, 24%

Never, 0%

No response, 6%

Has the PMO contributed to the success of your departamental objectives ?

Always

Sometimes

Never

No response

Very good, 47%

Good, 47%

Regular, 0%

Poor, 0%

Very poor, 0% No response, 6%

Quality of the services offered by the PMO (Program Management)

Very good

Good

Regular

Poor

Very poor

No response

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PMO – CBDR: Internal Survey


Very good, 48%

Good, 44%

Regular, 7% No response, 2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Continuous support and follow-up of the PMO team

Very good

Good

Regular

Poor

Very poor

No response

Operations and processes

Based on international

Standards and best practices

in Project Management with

90 percent approval for the

Implemented methodology.

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Topics

• Context





• Lessons learned


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Lessons Learned

• The implementation of any organizational change requires

leadership’s engagement and support in order to forge

relationships, inspiring others to deliver superior performance in an

environment of collaboration and trust.

• The P5 Administration’s strategic alignment: plans, portfolio,

programs, projects and budget, (P5, for its acronym in Spanish:

planes, portafolio, programas, proyectos y presupuesto) along with

an integrated project management information system enables

Organizational Project Management.


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Lessons Learned

• PMO-CBDR’s proactive monitoring and controlling practice makes

Organizational Project Management more efficient and effective as

the PMO-CBDR becomes a facilitator not an auditor by supervising

to prevent incidents and negotiating to resolve conflicts.

• Interdepartmental coordination and effective communication are

imperative to break through bureaucracy in a weak matrix

organization.


30PMO – CBDR: A PMO to contribute with Dominican Republic’s economic stability

Email: [email protected]

[email protected]

Web: www.bancentral.gov.do

Luis J. Bourget

Eunice Duran

mailto:[email protected]

mailto:[email protected]

http://www.bancentral.gov.do/

pmo14 br15 luis bourget

Economy & Finance

resort pmo cbdr

pt bold pmocbdr

pmo monetary policy

high economic growth

s central bank cbdr

main economic activitiesdom

contextthe dominican

financial services