project management office evolution chuck coletta, senior
TRANSCRIPT
Project Management Office EvolutionChuck Coletta, Senior Partner, Computer Sciences Corporation
Agenda
Industry trends and IT challenges
Introducing enterprise project management
The CSC E-PMO offering
Results of deployment
Issues and critical success factors
Microsoft Office EPM Solution
Next steps and resources
About CSC
Among world’s leading IT services companies
Solutions help clients manage complex projects
Experts deliver real-world experience
Microsoft Enterprise Premier Partner
Founded in 1959
More than 92,000 employees
Revenue exceeds $12 billion
Industry Trends
IT departments must:Evolve from cost center to strategic partner
Successfully manage IT investments
Deliver more with fewer resources◆ Respond to market demands
Challenges to IT EfficiencyThe IT industry has a history of failing to deliver projects within targeted budget, schedule and quality criteria.A recent study of 175,000 IT projects conducted by Standish Group International reports:
88% of projects run over schedule, over budget or both. The average cost overrun is 89% of original estimates.The average time overrun is 222% of original estimates.
31% of all projects are cancelled before completion.For every 100 projects, 94 restarts occur.
Ramifications:Business benefits of active initiatives are postponed or never realized.Proposed initiatives are cancelled to offset existing overruns.
Source: The Standish Group
Challenges to IT Effectiveness
Gartner study reports that 65% of companies lack confidence in the ability of IT to further business goals.
AMR Research indicates that:75% of IT organizations employ non-repeatable, chaotic portfolio planning processes.
84% do not consistently create business cases to drive their IT investments.
Companies following formal portfolio management methods save 2 to 5 percent annually on their IT budgets.
Ramifications IT projects are not aligned with business goals.
IT budgets are not allocated optimally.
IT Points of FailureOrganizations spend little effort managing their portfolio of IT initiatives, monitoring ongoing requests, and aligning IT initiatives with business strategy. Organizations have difficulty understanding how to create program and project organization structures within their existing functionally based enterprise. Organizations don’t address the change management issues required to support desired behavioral changes proactively.In-house project management efforts often lack the capabilities needed to manage large, complex projects effectively. Projects are launched, and work requests are approved without a clear understanding of business goals an understanding of desired outcomes.Basic project management disciplines are not followed rigorously throughout the project lifecycle Organizations address project failures by implementing piecemeal solutions that target only selective problem areas.
Enterprise Program Management – a Solution?
Forrester: Nearly 70 percent of organizations have implemented some type of PMO organization.
CIO Magazine: Organizations have difficulty showing a positive ROI for their PMO investments.
Clearly, to improve the efficiency and effectiveness of the PMO organization, a new approach is needed.
The Role of EPMOptimize IT investments
Potential projects identified through business and IT strategy sessions Portfolio management methods used to evaluate business and technical value of proposed initiatives
Manage projects more efficiently Standard processes establish a common playbook. Defined governance structures enforce responsibility and accountability. Centralized project information provides an “early warning system” for troubled projects.Centralized resource information enables optimal allocation of limited resources. Collaboration tools improve communication among team members.
Institutionalize continuous improvementEstablish baseline capabilities Capture best practices and encourage re-use
Change Control BoardDemand Management: Assess,
prioritize and approve eachRequest
Change Control BoardDemand Management: Assess,
prioritize and approve eachRequest
Release Management: Coordinate an integrated
release process to optimize resource use and
provide sustainable improvements
Release Management: Coordinate an integrated
release process to optimize resource use and
provide sustainable improvements
Objective:Deliver requests
on-time, on-budget, in a
predictive manner
Objective:Deliver requests
on-time, on-budget, in a
predictive manner
Objective: Respond to the requests that add business
value
Objective: Respond to the requests that add business
value
Objective: Capture
break/fixes, enhancements, etc. and route to responsible
areas
Objective: Capture
break/fixes, enhancements, etc. and route to responsible
areas
App
rove
d R
eque
sts
S
ervi
ce
Req
ues
ts
E- PMO
Operational PMO
Governance CouncilPortfolio Management:: Assess Benefit / Risk Profile for each
initiative
Governance CouncilPortfolio Management:: Assess Benefit / Risk Profile for each
initiative
Project Management: Direct and monitor
execution of initiatives to deliver business results
Project Management: Direct and monitor
execution of initiatives to deliver business results
Laun
ched
In
itiat
ives
Str
ateg
ic
Initi
ativ
es
WorkFunnel
Information
Technology
Business Strategy
Delivery PMO
Y o u r B u s i n e s s S t r a t e g yObjective: Integrate
Business & IT Strategies into a Fused Business
/ IT Strategy
Objective: Integrate
Business & IT Strategies into a Fused Business
/ IT Strategy
Objective: Select initiatives that collectively
maximize business benefit with acceptable
risk
Objective: Select initiatives that collectively
maximize business benefit with acceptable
risk
Objective: Deliver initiatives
on time, on-budget and meet
user requirements
Objective: Deliver initiatives
on time, on-budget and meet
user requirements
Strategic Requests
Integration
Traditional PMOs
E-PMO Can Generate Significant Results
CMM Level 1 to 2 CMM Level 2 to 3 Total GainERP 0.6 0.17 0.77Non-ERP 0.3 0.2 0.5Avg all IT 0.45 0.19 0.64* Based on actual results over 3 year period (1999 -2002)
IT Focus Area
DuPont IT Productivity Gain
Chicago Board Of Trade implemented a PMO that resulted in a ROI of more than 275% and delivered $14M in annual benefits.
By moving from CMM Level 1 to Level 3, DuPont Chemical Group realized more than $10M of savings a year.
E-PMO uses a playbook based on the Capability Maturity Model (CMM) framework, a five-level roadmap for improving delivery.
Optimizing (5)Focus on Process
Improvement
Optimizing (5)Focus on Process
Improvement
Managed (4)Process Measured and
Controlled
Managed (4)Process Measured and
Controlled
Defined (3)Process CharacterizedFairly Well Understood
Defined (3)Process CharacterizedFairly Well Understood
Repeatable (2)Can Repeat Previously
Mastered Task
Repeatable (2)Can Repeat Previously
Mastered Task
Initial (1)Unpredictable and Poorly Controlled
Initial (1)Unpredictable and Poorly Controlled
Most Organizations
Operate at Level 1
Our Point of View
A Roadmap for Success
E-PMO Component Release 1 Release 2 Release 3
Strategy Establish PMO strategy
Align IT projects to business strategy
Implement portfolio management processes
Process Implement basic project management processes
Implement program management processes
Implement system development methodology
Organization Implement PMO organization structure
Provide Microsoft® Office Project training
Implement program governance structures
Roll out project management training program
Roll out assessment and coaching programs
Tools Implement Microsoft Project/Microsoft Office Project Server
Install add-on tools (risk management, earned value)
Provide links to in-house financial systems
POV Failure Areas Addressed:
PM disciplines missing
Unclear goals and objectives
Lack of organizational governance
Piecemeal solution approach
No business-IT alignment
Lack of organizational governance
Lack of in-house project management capabilities
PM disciplines missing
No portfolio management
PM disciplines missing
E-PMO ResultsEffectiveness
Integration of business and IT strategies Institutionalized portfolio management techniquesOrganizational change plan designed and implemented to deal with the human factor
Executive alignmentManagement commitmentCulture TrainingRewards and recognitionCommunication
Executive Dashboards provide “early-warning systems” for potential problemsDelivery of complete, holistic solutionsStandardized, common project management and system life cycle methodologies
E-PMO Results
EfficiencyImplemented standard project management processes and procedures Implemented estimating, planning and tracking tools that support the processes and procedures Implemented standard reporting tools that minimize administrative activitiesAvailable industry best practices that help to avoid “re-inventing the wheel” on each new project Knowledge repository created with assets tailored uniquely for the organization’s needsIncreased team collaboration
Issues You Might Face
Organizations focused on piecemeal solutions rather than the holistic issue Reluctance on the business side to actively engage IT in strategic efforts Reluctance on the IT side to actively engage the business during the project life-cycle Reluctance of PMs to change existing project management practices Reluctance of the organization to hold their employees accountable for specific tasks
Critical Success Factors
Executive alignment
Management commitment
Willingness to adopt rigorous, disciplined processes
Training
Ongoing mentoring and coaching
US Army Wholesale Logistics Modernization
Program (LOGMOD)
Chicago Board of Trade
The World’s Leading Futures Exchange sm
Working With a Proven Partner
“By 2006, more than 50% of IS organizations will have adopted a mix of project portfolio management application services for managing team collaboration, allocating resources, and tracking utilization and costs.”- Gartner, Inc., July 2003, “Magic Quadrant
for Project Portfolio Management”, Matt Light
EPM is Growing!
Visibility into key initiatives and resource utilization across the entire organization
Insight into how initiatives and resources align with business objectives and performance
Control of projects and resources to make smart decisions as business conditions change
The Microsoft Office EPM Solution
ExecutivesExecutivesProject portfolio management Project portfolio management
and reportingand reporting
IT ManagersIT ManagersOpen, secure Open, secure
systemssystemsProject ManagersProject ManagersIntuitive project managementIntuitive project management
Resource ManagersResource ManagersSkills-based resource Skills-based resource
managementmanagement
Team MembersTeam MembersUse familiar tools to collaborate, Use familiar tools to collaborate,
report statusreport status
Participation Across the Organization
How do we prioritize initiatives?How do we prioritize initiatives?What’s the status of top 3 initiatives? What’s the status of top 3 initiatives?
What am I supposed to What am I supposed to deliver this week?deliver this week?
Who am I supposed to Who am I supposed to work with? work with?
Can we integrate project data Can we integrate project data with business applications?with business applications?
Who’s available to staff new Who’s available to staff new projects?projects?
Do we have the right people working Do we have the right people working on the right projects?on the right projects?
When will we really finish, and how much will it cost?When will we really finish, and how much will it cost?Can we reuse best practices across projects?Can we reuse best practices across projects?
Microsoft Office EPM Architecture
Easily create enterpriseEasily create enterpriseproject plansproject plansTeam participationTeam participation
Centrally store project, Centrally store project, resources, and reportingresources, and reporting
Share project documents, Share project documents, issues, risks, and tasksissues, risks, and tasks
LOB systemsLOB systems
Get more from your Get more from your IT investmentsIT investments
More More productive productive usersusers
Next Steps
CSC Service OfferingsSenior Management Project Delivery Capabilities Assessment
Comprehensive Project Delivery Capabilities Assessment
E-PMO Design and Development Services
Pilot Deployment
Full Solution Deployment
Contact InformationChuck Coletta [email protected]
EPM ResourcesLearn more about EPM
http://www.microsoft.com/solutions/epmhttp://www.microsoft.com/project
Register for EPM webcast serieshttp://www.ms-answers.com/epm
Register for Microsoft eventshttp://www.microsoft.com/usa/eventshttp://www.microsoft.com/usa/webcasts
Technical Resourceshttp://www.microsoft.com/technet/projecthttp://msdn.microsoft.com/project
Microsoft Project User Grouphttp://www.mpug.org
© 2004 Computer Sciences Corporation. All rights reserved.