CS1.1.2

1. CS1.1.2 Managing Expectations – Time to Market vs Technology Trends in Large Scale Global IT Projects Steve Smith MONDAY 8 OCTOBER, 2007 Project Management - Setting the Standard Australian Institute of Project Management National Conference 2007 Hobart Tasmania October 7 – 10, 2007

2. AIPM Conference – Hobart 2007 MANAGING EXPECTATIONS - TIME TO MARKET V’S TECHNOLOGY TRENDS IN LARGE SCALE GLOBAL IT PROJECTS Steve Smith October 2007

3. Introduction Steve Smith • Broad professional background in government, tertiary and private sector • Currently responsible for a diverse multi million dollar portfolio with several large scale global and regional IT programs and projects. Accountability for global business continuity management for network infrastructure with direct report team members in the USA and Australia. steve.s.smith@aexp.com

4. Overview Agenda • Brief Organisational Backdrop & PM Overview • Storyline – Paper Overview • Engagement, Change & Communications • Case Study • Overview • PM Role • Learning(s) • So What • A Few Communication Considerations • Conclusions / Observations

5. Organisational Backdrop American Express • 157 year multinational company (est 1850), operating in 263+ countries • US$20+ billion in net revenues (annual) • US$150+ billion in total assets • 65,000+ employees Project / Program Management (Technologies) • Broad use of direct report and matrixed environments • A mix of technologies and business funded initiatives • Local, regional and global efforts – business and or technologies driven • Suite of ‘internalised’ project management tools and processes (EPIC)* • Sarbanes Oxley, regulatory & other compliance requirements *Enterprise Project Information Control

6. Storyline - Long Term Global IT Projects Experiential Overview • Story based on practitioner learning as opposed to a theoretical discourse Environmental Impacts & Changes • Market forces - IT changes & competition impacts on long term projects • Internal & external scanning to comprehend market changes and impacts • Respond or suffer the consequences - the PM needs to have stellar relationships with business and technologies partners, vendors and internal subject matter experts Communications • Leverage internal & external relationships and truly partner (win / win) • Timely communication of project risks, opportunities or directional changes with key business and technologies stakeholders • Managing business partner & senior leadership expectations is key

7. Engagement, Change & Communicating Engagement • Enterprise wide utility organisations such as technologies partner with business units to deliver new technologies, reengineering strategies etc • The technologies PM assumes the ‘business facing’ role and becomes the conduit between the business unit(s), other technology organisations and external service providers and owns the project ‘end to end’ • The PM is also accountable to own (not necessarily devise) the technology strategy and ‘quote’, to receive and manage funding and manage the engagement external vendors as well as project delivery / implementation Change in Global IT Projects • Standard project management - until the goal posts move i.e. an alternate technology emerges or there is deviation from existent regulatory policies • In such cases, the original project premise may become redundant • PM needs to ‘rally’ resources & actively review alternatives & implications

8. Engagement, Change & Communicating Communicating • Communications with business partners become even more paramount • A solid business partnership is required (i.e. multiple lines of business) • Many of the service providers seek ongoing alignment – leverage this • The technologies ‘experts’ can be ignorant to business requirements – the PM needs to have the capacity to manage multiple personalities globally • Communicating alternative approaches and significant project change requests requires sensitivity to business needs – this is often (arguably) where a good integrator V’s a good PM can make a difference

9. Brief Case Study - Overview • Large scale IT project with multiple (lob) implications / benefits globally • Technologies devised & driven so business somewhat dubious • Planned to potentially span more than 2 calendar years (innovative IT strategy framework built by the project team) • Multiple lines of business and technologies organisations involved – required robust market awareness including regulatory cognisance • Focused on reengineering global (transport) network supporting call center and back office functions with operations terminating in India / Philippines • Initial CBA anticipated multi-million dollar saves year on year • Global RFP – all major service providers globally responded • Market and regulatory environment moved mid project • Eventual saves in excess US$20 million over 5 years

10. Brief Case Study – PM Role Accountabilities • PM operated as a global integrator with broad accountability for entire effort • Required to manage multiple business & technologies participants • Needed to maintain awareness of market place and regulatory trends i.e. DOT India – leverage in-market relationships / skills of other team members • Singly accountable to update the strategic approach and drive decisions Communications (normally required but broadened on large scale global efforts) • Senior business and technologies stakeholder updates - monthly, ad-hoc • Chair and Manage steering committee and core teams - weekly • Tailored communications to meet audience – engineers, leadership, external • Presentations in variety of formats - Visio, Word, PowerPoint, etc • Meetings run formally, with agenda, minutes, actions & accountabilities documented & distributed to associated forums (project team etc)

11. Brief Case Study - Learning's External • Marketplace will be aware of the effort, however readiness levels may be low. The integrator needs to be able to judge reality from potential and communicate options to business partners – vendor potential V’s existent capability rarely delivers on time for global efforts • Vendors will seek to influence business partners – be alert and manage expectations • Build global networks and leverage business, SME’s & vendors to stay abreast of trends, opportunities and risks and also be a trusted advisor to business partners Internal • Communicate……..sustain / maintain a robust & transparent communications plan & share what you know, when you know it & manage expectations • Take ownership to manage changes / challenges, integrate the strategic approach and drive decisions with stakeholders – no one will do this for you • Understand availability of decision makers or SME’s – no single points of failure in the case the market or regulatory environment moves.

12. So What – Why This Discourse? • Long term global IT projects are complex and risky – things change! • Increasing globalisation and technological advancements make time to market critical & debatably, long lead times are increasingly unlikely & risky • Initial costs and benefits are calculated at a point in time and in long term initiatives the original premise and accompanying CBA can become redundant – posing a financial risk that impacts the bottom line • Global service providers are increasingly using ‘partnerships’ to seek leverage and the global IT PM or integrator must have an expansive mindset in order to sort the ‘chaff from the hay’ • In the case of failure the PM or integrator will be held to account’ • The theoretical frameworks are important – experiential learning is likewise relevant – the uninitiated should seek a mentor

13. A Few Communication Considerations • The PM / Integrator needs to develop and own a clear communications strategy as part of the project plan • Solicit senior leader sponsorship and communicate regularly • Manage expectations - be prepared to be a change agent as it may be necessary to communicate & influence business decisions because of emergent trends, regulatory changes etc • Understand where to pitch – know the key players because communicating within horizontally differentiated global organisations can be challenging • Transparency counts - in the case of project change, don’t wait for the partner to come to you. Communicate what you know, when you know it • Generate & maintain the internal and external networks / partnerships

14. Conclusions / Observations • Large scale IT global projects can be ‘fun’ but present unique challenges • Recognise & respond to environmental, cultural, structural & other challenges – analyse emergent information before it impacts you • Leverage the expanded integrator role as opposed to a pure PM function - some global projects mandate more than managing the ‘lifecycle’ • You don’t have to be the expert on everything. Build rapport with internal & external networks and leverage subject matter expertise – use this to stay abreast of business challenges, industry trends etc • Build and own the communications plan and stick with it regardless of competiting priorities – your partners won’t mind pertinent updates especially where there are technological, funding / timeline impacts • And engage a good and trustworthy analyst or support PM that can be relied on to support on process requirements etc – you need a sounding board!