Enlightened Project Management

1. Enlightened Project Management • at the State of Minnesota • Presentation to PMI-MN Chapter • By Rex Andre • Director, Project Management Office (PMO) • Office of Technology • 19 September 2002

2. What you’ll learn tonight • An understanding of the challenges of state government from a Project Management point of view • Profile of state government (at Minnesota) • How you might set up your own Project Management Office (PMO) • Minnesota’s conceptual approach to a statewide PMO • The 5 key focus areas of a good PMO • Measures of success • Where can I get tons of great information to use RIGHT NOW! • Who can I call?

3. Agenda • Special State Government Profile • Research on Project Management Offices (PMO) • Main PMO Goals • Conceptual Model • Project Management (PM) Framework • Project Management Academy Goals • Oversight • Portfolio Management • Measures of Success

4. Profile of MN State Government • What does the State of Minnesota look like - as an entity, as a company? • Minnesota State Capital

5. How Big Is Our Company? • Over 53,000 Employees! • State Capital Monument

6. Minnesota State Seal Who governs the State of Minnesota’s activities? • Yes, the Governor is at the top..but

7. Common Loon – Minnesota State Bird The Breadth of the “company” • 5 Constitutional Offices! • 134 Legislators & 67 Senators! • 25 Departments and Respective Commissioner’s! • 6 Offices within the Judicial Branch! • 73 State Boards, Commissions, Councils, Ombudsman, Office and Task Forces! • The Educational, and Library Systems & Catalogs! • AND the Governor! • ALL Representing 4,919,479 Minnesota Residents!

8. Unions • AFSCME – American Federation State County Municipal Employees • MAPE – Minnesota Association of Professionals • MGEC – Minnesota Government Engineers Council • MMA – Middle Management Association • MNA – Minnesota Nurses Association • SRSEA – State Residential Schools Educational Association • Commissioner’s Plan – Commissioner’s Plan • Manager’s Plan – Managerial Plan Minnesota works with 8 Unions!

9. Monarch – Minnesota State Butterfly What Else? • What else impacts • Project Management at the state?

10. Lady Slipper – Minnesota State Flower Financial/Strategic Check and Balance • The Minnesota Office of Technology • The Department of Finance • The Governor’s Office • The Legislature Strategic Planning and the Biennial Budget Reviewed by:

11. Lake Superior Agate – Minnesota State Stone Other Challenges • Every agency is governed by statutes  • Numerous H.R. Departments (almost one to every agency) • All information is public • SIZE - Hundreds of state owned facilities, millions of constituents and a very unique budget/ financial situation! • No project manager job class • Meetings – some attendees are packing loaded guns Other Impacts:

12. Project Management at State of Minnesota All the impacts and differences aside, how is Project Management handled in the State of Minnesota?

13. What the (PMO) Research says…….. • “By 2004, 70% of successful projects will have certified project managers, while 90% of failed projects will not have certified project managers (0.7 probability). Source: Gartner, Inc. • “Through 2004, IS organizations that establish enterprise standards for project management, including a project office with suitable governance, will experience half the major project cost overruns, delays and cancellations of those that fail to do so (0.7 probability). Source Gartner, Inc. • “…more than 40 % of client organizations have implemented some form of project office “professionalize” project management for AD, infrastructure change and large-scale systems migrations. Source Gartner, Inc.

14. What the (PMO) Research says…….. • “Through 2004, without significant changes to its project management processes, an AD organization of 100 developers can expect to spend more than $10M on canceled software projects. Source Gartner, Inc. • “Project offices are the cornerstone for a project management improvement initiative. They provide a center for best practices, expertise, and the knowledge needed to projectize an organization”. Source: PM Solutions

15. What the (PMO) Research says…….. • “The word is out—organizations that do not implement a Project Office will experience as much as a 50% failure rate in their projects by the year 2004. The reason is simple. Projects are no longer managed in isolation. Portfolio and program management is now the norm. This requires a different approach; one that can only be coordinated and controlled by a centralized project organization.” Source: A Standish Group report for the International Institute for Learning, Inc.

16. PMO Vision and Mission Statements • Vision: • Enabling excellence in the management of projects Mission: • To enable successful completion of projects and realize their benefits, the Project Management Office will: • Collaborate and partner with State agencies to help ensure achievement of their project goals and objectives • Conduct project tracking, review and oversight on behalf of the Legislature • Encourage adherence to repeatable project management processes with established standards and measurement criteria • Provide sustainable project management methodology and best practices tools • Coordinate statewide project management training, coaching and mentoring programs • Actively participate in project governance

17. PMO Fundamental Project Goals • Develop a Project Management Academy: • Deliver a standard curriculum of project management training and coaching designed to encourage professionalism and discipline in project management • Develop a common language, measures, evaluation tools and approaches to risk assessment • Establish the Project Manager as a critical skills professional with a formal position description and salary range steps • Provide Project Oversight: • Implement a consistent approach to project data collection and reporting that correlates project benefits against project objectives • Support Agency Program/Project Reviews • Measure anticipated project benefits through project outcomes evaluation • Provide Project Consulting: • Provide coaching and mentoring to project managers and sponsors • Advise the legislature, agencies, commissioner, and the governor on the appropriateness and impact of technology decisions • Research answers to legislative questions and concerns regarding technology activities • Continue to analyze IT plans

18. Project Management Office-State of Minnesota • Support Project Management and Project Oversight • Project Manager Mentoring and Coaching • Review Statement of Work and Request for Proposal • Assist in setting up Agency Project Management Offices • Phase and Project Reviews • Provide Project Management “Best Practices” Training and Coaching • Establish Project Manager as a Critical Skill Professional • Provide Methodology • Provide Templates • Provide Tools • Implement a consistent approach to project data collection and reporting that agencies may follow • Support Agency Program/ Project reviews • Help agencies measure anticipated project benefits by providing project outcomes evaluation methodology, templates and tools • Provide a PMO web-site that allows convenient access to Project Management information as well as the Enterprise PMO methodology, templates and tools • Project Management Collaboration through the Web Site • Assist agencies in integrating project management practices into agency processes and projects • Build efficiency across state projects and avoid redundancy across the enterprise.

19. Project Managing Project Closeout Project Initiation Project Planning • Project Acceptance • Post Implementation Review • Outcomes Evaluation • Project Completion Report • Status Tracking & Reporting • Steering Committee Meetings • Issues Management • Change Control • Phase Reviews • Risk Management Activities/Deliverable Activities/Deliverable Activities/Deliverable Activities/Deliverable • Project Manager • Steering Committee • Scope Statement • Work Plan (WBS) • Project Controls • Resource Management • Project Sponsor • Business Case • Initial Funding Approval Business Assessment Analysis Design Implementation Testing Rollout       Example funding checkpoints in the software project life cycle Project Discipline Methodology (software example) Project Management Framework Project Management Stages

20. Project Management Methodology to define best practices with supporting templates: Supported By tools Project Managing Project Closeout Project Initiation Project Planning • Best Practices • Business Case • Budget • Sponsor • Steering Committee • Scope Statement • Work Breakdown Structure • Resource Management • Status Report • Issues Management • Change Control • Risk Management Plan • Outcomes Evaluation • Project Acceptance • Post Implementation Review • Outcomes Evaluation • Project Completion Report • Status Tracking & Reporting • Steering Committee Meetings • Issues Management • Change Control • Phase Reviews • Risk Management Activities/Deliverable Activities/Deliverable Activities/Deliverable Activities/Deliverable • Project Manager • Steering Committee • Scope Statement • Work Plan (WBS) • Project Controls • Resource Management • Project Sponsor • Business Case • Initial Funding Approval • More Best Practices • Project Charter • Cost Benefit Analysis • Resource Plan • Project Budget Estimate • Organizational Change Management Plan • Quality Plan • Communications Plan • Configuration Management Plan • Project Planning Evaluation Checklist Business Assessment Analysis Design Implementation Testing Rollout       Example funding checkpoints in the software project life cycle Project Discipline Methodology (software example) Project Management Framework Project Management Stages • Sponsor • Steering Committee • Scope Statement • Status Report

21. How will we manage it? • 6. Project Controls • A. Steering Committee Meetings • B. Monthly Status Reports • C. Risk/Contingency Management • D. Issue Management • E. Change Management • F. Communication Management • Who has the responsibility? • 7. Authorizations • A. Scope Statement Approval • B. Project Changes Approval • C. Project deliverables approval & acceptance • 8. Scope Statement Approval • How are we going to do it? • 4. Project Approach • A. Planned Approach • 5. Project Estimates • A. Estimated Schedule • B. Resource Requirements • C. Estimated Cost • D. Checkpoint/ Funding Schedule • Why are we doing it? • 1. Executive Summary • 2. Business Objectives • A. Business Need or Opportunity • B. Business Objectives • C. Product Description (Solution) • D. Deliverables • What does the effort look like? • 3. Project Description • A. Scope • B. Completion Criteria • C.Risk Assessment • D. Constraints • E. Dependency Linkages • F.Impacts • G. Measures of Project Success • H. Assumptions • I. Critical Success Factors • J. Roles and Project Stakeholders Scope Statement Template

22. Academy Purpose The Academy will contribute to the success of state information technology projects by helping develop skilled project managers through an effective training and certification process.

23. Academy Goals • Deliver a standard curriculum of project management training and coaching designed to encourage professionalism and discipline in project management • Develop a common language, measures, evaluation tools and approaches to risk assessment • Establish the Project Manager as a critical skills professional with a formal position description and salary range steps

24. Academy Audience • Project Managers-new • Project Managers-seasoned • Vendors • Employees aspiring to project management • Agency Heads • Management • Commissioners • Legislators

25. Procedures Workshops • Project Management Methodology Framework and Templates • Oversight Best Practices • Status Reporting • State of Minnesota IT Project Initiation – Biennial Budget Request Preparation • Procurement Management Processes • PMO Overview for Contractors and Consultants • Project Management Core Training • Project Management Fundamentals • Advanced Project Management • Project Manager Skill Set Classes • Project Risk Management • Project Scheduling • Project Communications Management • Project Roles and Responsibilities • Benefits and Limitations of PM Tools • Project Cost Management and Budget Control • Project Human Resource Management • Project Time Management • Project Quality Management • Project integration Management • Project Scope Management • Practitioners’ Forums • Setting up an Agency Project Management Office / Agency Project Coordination • Executive Seminars • Project Management Executive Overview • Oversight Best Practices for Executives • Your Role as a Project Sponsor • Your Role as a Steering Committee Member Academy Curriculum

26. Oversight… • Who needs it? • Show me a basic example • Isn’t this a part of Portfolio Management?

27. Oversight User Needs Agency Commissioner or CIO wanting a roll-up of all agency projects to view “status at a glance”. Program/Project Manager wanting to determine status of another dependent project. Resource Manager needing to assess which projects will be completing and freeing up resources. Finance committee needing specific project budget status or summary roll-up budget information. Special funding boards wanting to review funding checkpoint schedules and status. Legislators and Committees wanting ad-hoc status and outcomes evaluation on different projects. Vendor Management wanting to evaluate vendor performance relative to project status and outcomes assessment. Statutes 16E.04 “ A risk assessment and risk mitigation plan are required for an information systems development project estimated to cost more than $1,000,000.”

28. The Essence of the PM “Deliverables” • Initial Engagement with Project Manager - Initialize • Business Case - Business goals before implementation • Scope Statement - Project Manager’s “contract” with sponsor • Funding Checkpoint Plan - No money for next stage till review • Monthly Status Report - Are we on target • Project Reviews - as needed overall review and recommendations • Project Closeout Report - Did we meet the objectives So, how do these best practices support Portfolio Management?

29. ? Approved Budget Outcomes Assessment Resources • Color is red • Four wheels • Owners manual • Maintenance manual • Within budget • On time Project Status Business Case Market Analysis Product Development Take To Market Projects Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1. Testing / QA 2. Customer Support 3. Med /Surg Updates 4. Disability 5. Distributed Data Arch 6. Remote Dial In (IMS) 7. Physician Referral 8. Outcomes 9. Archive, Extract, Update 10. Business Development 11. Critical Pathway 12. CCM 13. Reporting 14. Med / Surg Additions 15. Specialty Guidelines 16. User defined LOS 17. BHS Scope Statement Oversight/Project Life Cycle • Cost • Schedule • Scope • Issues • Change control • Plans What’s a project? end date start date Specific tangible deliverables are produced: For example a “red car”

30. Strategic “Ideas” Approved Budget SIRMP Agency Strategic Planning Prepare for Budget Review Agency IT Strategic Planning Agency Strategic Plan Finance Recommendations Agency IT Strategic Plan Business Case Budget Approval “Stuff” Business Case Project Concept Project Concept Enhancements Project Initiation The Handshake Scope Statement Budget Approval Project Planning • Project Manager • Project Sponsor • Steering Committee Enterprise Portfolio Management Budget Review Strategic Planning Process Enterprise Architecture Project Management Process

31. Project Management Office Approved Budget Finance Project Execution Project Management Methodology Outcomes Assessment Business Case Business Assessment Analysis Design Implementation Testing Rollout Project Initiation       Status Report Scope Statement Example funding checkpoints in the software project life cycle Project Discipline Methodology (software example) Project Planning Project Closeout Project Tracking & Outcomes Evaluation

32. Enterprise Portfolio Management Oversight Technology Enterprise Board Risk Management Enterprise Project Portfolio Management Maintaining The Enterprise Project Portfolio Utilizing The Enterprise Project Portfolio Project Baseline Business Case Status Report Scope Statement Enterprise Summary Outcomes Assessment Project Query Project Portfolio Architecture Project Portfolio Management • Interpret the strategic plans • Initiate projects • Review and approve scope statements • Conduct project reviews • Review and approve project changes • Resolve issues • Manage budget and resources • Make go/no-go decisions • Cancel projects

33. Measures of Success • Commissioners, Agency heads, Governor’s office and Legislators get the information and oversight they planned and expected • The PMO provides added value and has noticeable impact on agency successes • A “just-right” project management curriculum is established • Rollout of the PMO goals and deliverable are on time and continuous across agencies • Appropriate functionality is added as culture grows

34. For More Information…………….. • PMO Web Site • www.pmo.state.mn.us • PMO Support email • pmo.support@state.mn.us • Rex Andre • Director, Statewide Project Management Office • Office of Technology • 651-297-1369 • rex.andre@state.mn.us