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Duke Energy PMCoE

Duke Energy PMCoE. PMI Metrolina Chapter PDD. Agenda. Duke Energy at a Glance Project Management Center of Excellence ( PMCoE ) Overview PMCoE Governance Duke Energy PM and PC Career Paths Strategic Initiatives Take- Aways and Wrap-Up. Duke Energy Overview.

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Duke Energy PMCoE

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  1. Duke Energy PMCoE PMI Metrolina Chapter PDD

  2. Agenda • Duke Energy at a Glance • Project Management Center of Excellence (PMCoE) Overview • PMCoEGovernance • Duke Energy PM and PC Career Paths • Strategic Initiatives • Take-Aways and Wrap-Up

  3. Duke Energy Overview • World’s largest publicly traded utility • Fortune 250 company • Serving 22 million people • Employing 28,000 • $6B annual capital spend • Operations in: • Regulated business • Renewables • Commercial transmission & power • International markets

  4. Business Connection to Projects 2,200+ involved in projects 40+ Departments doing projects $6 Billion in Capital Dollars

  5. Types of Projects – Shared Services • Financial System Integration • Sales & Use Tax • Enterprise non-retail Billing HUMAN RESOURCES IT FINANCE SharePoint Upgrade Workstation Refresh Active Directory Integration Enhanced Cyber Security Job Harmonization PeopleSoft Integration PeopleSoft Self Service Upgrade

  6. Types of Projects – Traditional DISTRIBUTION TRANSMISSION CONSTRUCTION Transformer Replacements Capacity Upgrades Sub Stations Coal Plant Retirement Environmental Retrofits to Existing Plants New Plant Construction Smart Meter Grid Modernization

  7. Types of Projects – Traditional NUCLEAR WIND SOLAR Duke Owned Projects in TX, WY, PA, KS, CO and WI Notrees Battery Storage Project Joint Ventures in AZ, CA, NJ, MA and PA Duke Owned Projects in NC, TX, CA, AZ, and FL Fukushima Response Plant Retrofits New Plant Licensing

  8. PMCoE Background Duke Energy PM Deep Dive 2010 Duke Energy PMCoE 2012 - Future Integration Team 2011 Progress Energy PM Gaps 2007

  9. PMCoE vs. PMO/Major Projects • A PMO is an important central hub with a mandate to coordinate and deliver all project activities as determined by the organization's needs. • The PMO strives to standardize and introduce economies of repetition in the execution of projects. • Tasks may include monitoring and reporting on active projects, programs and sub-portfolios, and reporting progress to top management for strategic decisions on what projects to continue or cancel. • The PMCoE is a central hub with a mandate to provide a consistent framework to deliver the organization’s projects consistently. • The PMCoE supports the PMO in the execution of projects and continuously improves corporate governance.

  10. PMCoE Vision and Mission Vision • Become the Industry Leader in Project Management Mission • The PMCoE will: • Establish a consistent and scalable process leveraging best practices, • Provide training, tools and oversight to enhance project performance and certainty, • Engage the project management community to focus on the pursuit of excellence, knowledge sharing and skills development.

  11. PMCoE Organization • Director of Enterprise PMCoE • PMCoE Executive Governance Committee • Enterprise PMCoE • Project Director • Manager of Project Controls • Manager Support Services • PMCoE Support and Services • Enterprise PM Governance • Enterprise PC Governance • Project Director • Sr Project Controls Specialist • Training Project Manager II • Senior PM • Training and Support Services • Senior PM

  12. PMCoE Framework Excellence in Project Management Project Management Center of Excellence Career Path Development Policy & Standards Training Tools & Templates Team Workshops Answers to Questions • Diagnostics • Acumen Fuse Schedule Analysis • Assessments • Portfolio Reviews • Reviews • Independent Estimate • Stage Gate Support Services PMCoE Policy and Standards Best Practices Lessons Learned Benchmarking

  13. Governance Hierarchy • Tier 1 – Policies, Laws and Regulations (POLICY) • - Approval of Business Transactions Policy • - Achieving Excellence in Project Management Company Policies • Tier 2 - Enterprise Standards (ENTSTD) • - Stage-Gate Authorization Standard through Project Career Path Qualification and Training Standard PMCoE Standards • Tier 3 – Implementation Standards (IMPSTD) • - Group, department, section and/or unit procedures, as applicable Implementation Standards • Tier 4 – General Reference Materials (GENREF) • - Project Management Institute (PMI), Project Management Body of Knowledge (PMBOK), etc. General Reference

  14. Structure of Standards

  15. Project Investment Lifecycle Identify Select Initiate Commit Build Commission Close Scan Assess Develop Plan Execute Operate & Maintain Value Inputs a b c d e f g h Determine Impact / Benefit, Timing and Potential Responses Construct and Install Assets, Turn Over Assets to the Receiving Asset Owner and Prepare for Close of the Project Operate and Maintain Assets Delivered by Project  Generate Return on Investment Retire at End-of-Life or Disposition Asset Refine Candidate Responses (Projects) and Prepare for Initiation Identify Opportunity or Threat Develop Project Plan and Prepare for Execution of Major Commitments Execute Commitments, Refine the Plan and Prepare for Construction and Installation of Assets

  16. Enabling a Scalable Project Management Framework Project Rank and Assignment Project Complexity Cost plus Complexity = Project Rank

  17. Project Rank Comparison Black ~1% Brown ~1% Green III ~1% Green II ~1% Green I ~6% White ~20% Green I ~10% Green II ~6% Green III ~4% • Brown ~30% Total Project Count Total Project Spend • Black ~30% • White 90%

  18. The Project Delivery System [1] Determine Project Profile Matrix Rank [2] Assign Rank-Appropriate Organization & Project Management [3] Use Rank-Appropriate Processes, Tools & Templates [4] Deliver Products & Services According to Plan Select Initiate Close Plan & Execute Develop

  19. PM and PC Career Paths Project Rank Project Controls Project Management

  20. Change Management Approach

  21. Future Initiatives Continuously Improved Project Management Framework • Mature Management of Tail and Reputational Risks • Mature our benefits realization process Highly Skilled and Effectively Utilized Workforce of Project Professionals • Comprehensive Workforce Strategy • Match portfolio to human capital • Attract > Develop > Retain > Re-Deploy Transparent Project and Portfolio Performance • PPM Deployment “A consistent enterprise framework enables maturation of the project management competency”

  22. Key Take-Aways • PMOs and PMCoEs must adapt to business needs and culture of their organization • Effective governance should be scalable and aim to provide transparency in decision making • Excellence is a journey – actively benchmark and don’t work in a vacuum!

  23. Contact Information • P. Brandon Lane, MBA, PMP • brandon.lane@duke-energy.com | (980) 373-2782 • LinkedIn: http://www.linkedin.com/in/phillipbrandonlane

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