Project Management Office (PMO) Observations 2004 Vision – Mission - Realization International Association of Project a

1. Project Management Office (PMO) Observations 2004Vision – Mission - RealizationInternational Association of Project and Program Management

2. IT Credibility • Recent research* has indicated that 70% of Global 2000 IT operations struggle with the business-side perception of value from IT services. • Even when 99.9% SLA compliance and IT balanced scorecards are reported, the IT operations organization’s credibility is low. • Reasons • Uncoordinated IT requirements/initiatives • Project success not measured in terms of business success • Business KPIs have weak alignment with IT metrics • Our challenge is to improve the IT value perception of our customers *META Group

3. Intent • To drive Projects/Programs to move • from operations efficiency to business effectiveness, • from cost to revenue, and • from project providers to business partners *Table courtesy of the META Group

4. Achieved through Value Mgmt Transformation Management Life cycle Conception Definition Deployment Improvement Retirement Value Creation Value Proposition Value Realization Value Sustenance Value Management

5. PMO – Value Realization Transformation Management Life cycle Conception Definition Deployment Improvement Retirement Value Creation Value Proposition Value Realization Value Sustenance Value Management Providing the “Motion” to turn “Vision” into “Reality”

6. Project Management – IAPPM view • As Core Competency • Project & Program Management is a Competitive edge for Organization • Issue: We promote technical people to project managers because they are good in their technical work! • Project & Program Management is a Profession! Core skills that warrant specialization, formal training and recognition • As Value Realization • Not just about completing the projects & programs on time, budget, quality, but also what value they bring to the business • Alignment of project & program metrics against business results • As Flawless Execution • Project Management is THE model of execution due to cross-functional virtual teaming, matrix reporting, ability to react to constant changes • From Vision to Motion to Realization

7. PMO Roles & Responsibilities • Project Portfolio management • Facilitate the process of selecting and de-commissioning of projects in the Project Portfolio • All projects are recognized by their customers as a positive impact (value) to their businesses – financially and functionally (capabilities). • Project & Program management • Enforce PMLC methodology, project management disciplines and other relevant project processes such as Change Management, etc • Direct project managers and technical consultants • Work with Business owners, global PMO and key customers to align project deliverables and business metrics • Conduct post implementation reviews to verify the sustainability of the service/system in the first 6 months of production

8. PMO R&R (2) • Customer satisfaction • Ensure delivery of project that meets or exceeds customer expectations • Process excellence • Improve project management processes to drive process excellence • Using the IAPPM project Dashboard (or…your own) • Value realization • Capture and communicate benefits and any positive/negative change to the business resulting from the project • Compliance • Security and regulatory requirements must be able to be built in as part of the deliverables of the project results. Not an after-thought, but planned activities. • Transition management • Manage transition of People,Processes to close the loop of project completion

9. Observations • Strength • Customer Oriented • Strong Commitment • Performance • Rubber band management • “Favor” management • Base business vs Projects • Energy • “Hands are tied” / “Beyond my control” • “People get away with non-delivery” • “Weak unity in the leadership”

10. Phase 1 • Objective is to clearly define the project boundaries and resources, and put in simple processes to ensure consistent reporting and change management. • Deliverables • “What is a Project” defined • PMO Handbook developed (IAPPM objective for 2004) • Projects documented in an Enterprise Project System • Project Resources clearly identified • Project Change process incorporated

11. Phase 2 • Objective is to clearly capture business values and impact to your customers • Deliverables • Regular update of project status to customers • Project value documented • Financial benefits • Cycle Time improvements • Customer Satisfaction • Change in the way “we” do business • Market results • Project Management funding model defined

12. Phase 3 • Objective is to select projects/programs that have the greatest returns of investment and/or strategic values to your organization and/or clients • Deliverables • Project prioritization process must be implemented • Time tracking must be implemented • Project metrics and business metrics must be aligned • Resource allocation methodology proposed

13. Phase 4 • Objective is to install a governance model to review and approve project progress at each stage of the project life cycle. (applies to all methodologies) • Deliverables • Project portfolio management review process implemented • Project start-up phase review process implemented • Development/Solutioning review process implemented • Project closure process implemented • Post implementation review process implemented

14. PMO Roadmap Phase 1 Projects Under Control Objective is to clearly define the project boundaries and resources, and put in simple processes to ensure consistent reporting and change management. Phase 2 Project Value Proposition Objective is to clearly capture business values and impact to our customers Phase 3 Portfolio Management Objective is to select projects that have the greatest returns of investment and/or strategic values to the operating companies Phase 4 Project Management Governance Objective is to install a governance model to review and approve project progress at each stage of the project life cycle.

15. Organization (Short) Short-term (6 - 12 months) PMO Director Project Admin General Admin Finance Admin Project Managers Consultants Managing projects

16. Organization (Medium) Medium-term (1 – 2 years) PMO Project Admin General Admin Finance Admin EP PM Champ Tools PM Champ Metrics PM Champ Benchmark PM Champ “Work along side” • PM Champion • EP = Enterprise Projects/Programs • Works alongside with project managers and consultants to train, coach, support them. Project Managers Consultants Managing projects

17. PMO Funding • PMO cost should be fully funded by projects • Customer projects – by customers • Internal Projects – by Department sponsoring the project • Global projects – by the Global Capital Budget – fund allocation. • Short term to leverage technical consultants who have strong project management skills, and engage contract project managers • Long term to recruit permanent resources justified by demand, and supplemented by contractors • Run like a “business” • Generate demand through effectiveness • Driving cost down through Internal Projects and skills development • Strive for cost transparency to manage the right cost drivers

18. Partnering with PMO

19. Above 85% 75% to 85% Below 75% Meet Project Schedule 100% 81% 80% 69% 68% 60% 47% 40% 26% 21% 20% 0% Jun Jul Aug Sep Oct Nov Dec 2003 Vision – Motion – Realization PMO Metric Project Management Office Project Management Office Measure: Meet Project Schedule Measure: Meet Project Schedule Monthly Number of projects with Green schedule status Definition: Total number of projects Opportunities Baseline project commitment and Institute Project change control. Action Plan 1. Present all projects to PMO Management Team for approval of all projects in the portfolio 2. Bring in other projects into PMO

20. Value Realization Initiative What did we do Original Cost New Cost Value Start date 2003 Impact 2004 Impact Network Center upgrade Negotiation $3,000 $2,500 Cost Reduction 1-Nov-04 ($1,000) ($6,000) Network Backbone Negotiation $152,000 $112,000 Cost Reduction, 1-Oct-04 ($10,000) ($40,000) End-to-end management Circuit Provisioning RFP $1,331,028 $1,065,012 Cost Reduction, 1-Nov-04 ($61,550) ($266,016) Increased bandwidth Project ABC) RFP $290,000 $150,000 Cost Reduction, 1-Nov-04 ($25,000) ($140,000) Improved vendor management Project BCD Build End node $98,544 $74,808 Cost Reduction, 1-Sep-04 ($386) ($23,736) Increased bandwidth Project CDE Introduced new ISP $91,750 $53,600 Cost Reduction, 01-Oct-04 ($6,300) ($38,150) Increased performance Lost City Project Build network Better performance to enable 01-Oct-04 ERP applications, desktop management Total ($104,236) ($513,902)

21. 2005 2004 You are here PMO Maturity level* *Based on META Group Project Management Office Capability Maturity Model

22. PMO Project Support Tools Administrative work Consulting & Mentoring Effectiveness Methods & Standards Efficiency Training Core Competency Project Managers Flawless Execution PMO Value PMO strives to be a full-service provider PMO Mindset • Integrator - Assimilating technology, people, process, equipment to a common goal • Facilitator - Creating collaborative opportunities to turn intentions to actions • Accountability Experts - Embracing the ownership of results to meet expectations in time, budget, quality and customer satisfaction

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