Strategic Delivery Solution - Your Crescendo

Strategic Delivery Solution - Your Crescendo

Strategic Delivery Solution

Program Offering

Program Management

Project Delivery

Strategic Planning

Slide 1

Approach: Strategic Delivery Solution

The Way Successful Delivery Works… To be able to implement strategies, successful organizations have a strategic delivery capability that develop the plan to implement delivery informed by the strategy. Consequently they also have an implementation plan empowered to make those goals actual results. One side outlines “what we do” and the other side “makes it happen”. The Program Management Office sits in the middle linking that strategy to operations. The PMO ensures that the necessary elements exist between the two to facilitate and guarantee the success of the delivery channel.

- Strategic Delivery Solution -

Program Management

Project Delivery

Strategic Planning

Slide 2

Approach: Success Factors that Drive the Need for SDS

The organizations that will outperform their peers are those that place a premium on execution.

Key Success Factors for all Companies

❑ Align initiatives with the organization’s strategy . Prioritize efforts to focus on initiatives that move the organization forward, rather than maintain the status quo. ❑ Position the organization to deliver change. Develop a culture that supports and rewards solid processes and the achievement of outcomes. ❑ Manage a collection of projects. Holistically manage resources and interactions across projects to minimize durations and maximize benefits attained (ROI). ❑ Effectively manage information. Quantify and market the value attained to key stakeholder groups; consolidate key project metrics to foster timely, accurate communication. ❑ Implement a consistent delivery framework. Utilize a consistent project management methodology (processes, techniques, tools) to ensure consistency.

We developed the Strategic Delivery Solution approach to address these Key Success Factors.

Project Delivery

Program Management

Strategic Planning

Slide 3

Approach: Strategic Delivery Framework Overview

Strategic Delivery Framework Overview

The Strategic Delivery Framework addresses the key success factors through three business activities: Strategic Planning, Project Delivery, and Program Management.

• Identification of Business and Financial Strategies • Alignment of Projects with those Strategies • Development of Success Criteria • Defined Maturity Cycle supporting the Organization’s Tolerance to Change

Strategic Planning

• Support of Cultural and Business Goals • Prioritization Criteria and Processes • Communication (360 degrees, trans-organizational) • Reporting (Bottom – Up Visibility)

Program Management

• Methodology: Flexible disciplines • Process: customizable and scaleable • Tools: re-useable and consistent • Reporting: Progress to Results

Project Delivery

Slide 4

Approach: Program Management Office - Defined

Portfolio Program Management (PPM) PPM organizes a series of projects (usually two or more Programs) into a single portfolio allowing Executives to manage these projects as they do other investment portfolios. This offers a full end-to-end view of critical project information and holds the organization responsible for promised ROI.

Program Management Office (PMO) Holistic management of a group of projects that is interrelated and/or interdependent to maximize efficient use of resources through consistent process and tools.

Project * 1. A temporary endeavor undertaken to create a unique product or service. 2. Projects are performed by people, constrained by limited resources, and planned, executed, and controlled. A project is a temporary endeavor undertaken to create a unique product or service. Temporary means that every project has a definite beginning and a definite ending. Unique means that the product or service is different in some distinguishing way from all similar products and services. Projects are often critical components of the performing organizations' business strategy.

* Definitions from Wideman Comparative Glossary of Project Management Terms v.3.1

Slide 5

Approach: Positioning the PMO in the Overall Enterprise

Program Management

Program Management Offices (PMO) ideally support larger Project Portfolios (PPO, Project Portfolio Office ) in which projects are prioritized and managed as corporate investments. Programs are groups of projects, generations or phases of projects that are related. The PMO provides the Framework that ensures successful Project Delivery through consistent Routines, Tools and Processes. That Framework starts with consistent Prioritization, comprehensive Governance resulting in achieved results. Ideally the PMO facilitates meaningful communication across the Program through Process and targeted “360” degree Reporting. This offers Management the critical information needed to drive the Business.

Executive Management

Corporate Finance

Steering Committees

Senior Management

Control Boards

Strategic and Financial Reporting

Portfolio Management

Stakeholders

Leadership

Management

Partners

OtherProjects

Stakeholders

Leadership

PerformanceReporting

Management

Partners

Other Projects

ProgramManagement Office

ChangeManagement

Project 1

Project 2

Project 3

Project 4

Time/Schedule Management ResourceManagement

IssueManagement RiskManagement

Performance Reporting

Financial Management

Quality Management

Change Control

Program Management Office

Stakeholders

Leadership

Stakeholders

Leadership

Management

Partners

OtherProjects

Management

Partners

OtherProjects

Change Management

PerformanceReporting

PerformanceReporting

ProgramManagement Office

ProgramManagement Office

Project 1

Project 2

Project 3

Project 4

ChangeManagement

ChangeManagement

Project 1

Project 2

Project 1

Project 2

Time/Schedule Management

IssueManagement

Time/Schedule Management

IssueManagement

ResourceManagement

RiskManagement

ResourceManagement

RiskManagement

Financial Management

Quality Management

Change Control

Financial Management

Quality Management

Change Control

Time/Schedule Management Resource Management

Issue Management Risk Management

Financial Management

Quality Management

Change Control

Strategic Planning

Program Management

Project Delivery

Communication & Reporting

Foundation of Success Strategic Delivery Solution

Strategic Planning

Program Management

Project Delivery

Slide 6

Approach: The PMO Ensures Valued Results

A “mature” PMO ensures promised results by carefully measuring progress against the goals and continually monitoring prioritization. You get Prioritized Results.

Many companies struggle to ensure that the projects they fund fully support the company’s business strategies. Its difficult for LOB’s to prioritize projects to enterprise goals.

The PMO provides the total Framework from Prioritization to Implementation of projects, ensuring alignment to the business’s goals.

Stakeholders

Leadership

Management

Partners

Other Projects

Finance

#1

Performance Reporting

Compliance

Program Management Office

#1

#4

ChangeManagement

#3

Project 1

Project 2

Project 3

Project 4

#1

Approval

#1

#2

Technology

Time/Schedule Management

IssueManagement

ResourceManagement

RiskManagement

#1 Marketing

Financial Management

Quality Management

Change Control

Business

#1

Methodology

Process

Tools

Project Prioritization ResourceAllocation

Cost Management

Reporting

Risks/Issues

QualityControl

Communication

Governance

Strategic Planning

Program Management

Project Delivery

Slide 7

Approach: To Have or Not to Have a PMO

Results of Company’s not having a PMO…

❑ Missed deadlines. ❑ Delays to other Projects (due to resource, schedule and funding constraints). ❑ Potential Compliance Issues due to inability to track project related impacts across the Business. ❑ Decreased Credibility with Executives. ❑ Wrong Projects being done. ❑ Minimized benefits from larger Corporate Strategic Goals due to poor prioritization and alignment. ❑ Overrun budgets or under-qualified projects.

❑ Missed Financial opportunities. ❑ Frustrated Project Delivery staff.

Benefits to Company’s investing in a PMO…

❑ Reduced project Costs ❑ Increased organizational Performance ❑ Effectively assign Accountability ❑ Increased Profitability ❑ Improved Quality ❑ Better prioritization of projects and funding

❑ More efficient use of Resources ❑ Increased ability to manage scope ❑ Improved communication of organizational goals ❑ Projects are fully supporting Business and Technical Strategies ❑ Mentor and develop current staff to deepen project management and delivery skills ❑ Real-time Visibility throughout the program providing Management with meaningful and timely information ❑ A foundation that supports enterprise Portfolio Management

Slide 8

Approach: PMO Functions - Overview

A Mature and Successful PMO has Specific Functions

The Program Management Office (PMO) is a multi-dimensional organization within the Business and Project Delivery organizations. It provides the basic framework that connects Business, Projects and Delivery together. It helps to ensure that the Business is Prioritizing projects to meet long-term and short-term Business Strategies. It ensures that the Projects have what they need to deliver Promised Results in a timely and efficient manner. It is the infrastructure that supports the Project Teams. It understands the Business’ Strategic “Vision” and holds it up constantly. It plays as important a role as the Business permits. The mature PMO should have specific functions and responsibilities that are supported by the Business and communicated throughout the organization. Clarity around those functions and freedom to perform them are essential to the PMO’s success. We at Exervio believe the Functions of the PMO should be as follows:

❑ Project Prioritization

❑ Risk Management

❑ Resource Allocation

❑ Issue Management

❑ Project Cost Management

❑ Change Control

❑ Time/Expense Capture

❑ Knowledge Management

❑ Communication

❑ Quality Control

❑ Reporting

Slide 9

Approach: PMO Functions Defined (Summaries)

The umbrella structure established to manage a series of related projects (or unrelated projects that are directly associated to a single business cycle). The PMO does not produce any project deliverables (that is the responsibility of the individual project teams). It does have it’s own deliverables associated with the PMO Functions and the requirements of senior and executive management. The primary purpose of the program is to ensure the success of the projects under the program. The PMO is a permanent part of the Business organization and strategically connects management to Delivery and Operations through an effective project delivery framework. The PMO accomplishes this through the following functions:

PMO Function

Definition

The process by which an approved project is scheduled for initiation and implementation. This process weights the needs of this project with those of other projects against the organization’s overall business strategies/goals, funding availability, resource availability and time requirements. The PMO should play a significant role in this process since it monitors, or in some organizations, will control these critical elements. The process by which resources are requested by a project team for an approved (funded) project. This request goes to the PMO and the PMO secures the needed resources from the appropriate/required sources. Resource utilization is monitored and reported by the PMO. The process of placing responsibility on the designers and implementers to perform within their previously established budgets. Project costs are then collected and reported in a way that Actuals to Budget can be compared and sound management and technical decisions can be made on the Project. Two simple but essential principles of the process must be clearly understood:

Project Prioritization

Project Resource Allocation

Project Cost Management

– There must be a basis for comparison… – Only future costs can be controlled…

The process by which active projects report their the time their project resources have worked and the expenses incurred by the project. This should be completed according to a set schedule in order for timely processing of costs to the appropriate cost centers. This is reported by each project team, validated and posted by the Project or Change Manager, and included in the PMO’s Project Cost Management Process.

Time and Expense Capture

Slide 10

Approach: PMO Functions Defined – (Continued)

PMO Function

Definition

Communication is the sharing of information between multiple parties within and outside the project team. The PMO ensures that each project team has a well documented Communication Plan identifying all parties needing varying levels of information about the project (this would include all affected areas not directly involved in the project itself). The PMO does not monitor these day-to-day communications but will function as an escalation point when communication is not taking place. Project level Risks are managed by the individual project teams and reported up to the PMO according to pre-determined criteria (i.e. Red Status Risks). The PMO does not own the Risks that are reported to it; but reports it to the appropriate audiences and is a key point of escalation. The PMO participates on the Core Project Team which reviews, prioritizes, rates and assigns Risks. It also ensures that Mitigation Plans are in place as required. The project teams communicate up to the PMO and the PMO communicates upstream. Risks are based on probabilities and their potential impact. Generally they cannot be resolved but can be mitigated or managed. They are rated as to their likelihood of happening, their impact to the project/program and their impact to the company itself. Project level Issues are managed by the individual project teams and reported up to the PMO according to pre-determined criteria (i.e. Yellow and Red Issues). The PMO does not own the resolution of the Issues; but reports them to the appropriate audiences. The PMO does monitor progress in key Issues that pose significant impact to the success of the project or other projects within the program. Issues are Events that have happened or will happen (not probabilities). They can generally be resolved. They are rated as to their level of impact to the project, program and their inter-dependencies with other projects. Presents a “status” (health) of the project (or program) during a specified period of time. It is systematic and comprehensive in that each project sub-team reports their status to the Project or Change Manager, the PM or CM aggregates those reports and presents a project view to the PMO. The PMO in turns aggregates those reports to present the health of the program. It should offer critical information that allows the PMO and management teams to make business related decisions, review prioritization, resolve high-level conflicts, etc. in a timely manner (when those actions can deliver the greatest impact to the project or program. Status Reports should be reviewed by the Project Core Team, analyzed and aggregated by the PMO prior to publishing reports upstream. The PMO takes direct ownership of Program level Risks. The PMO assumes direct ownership of Program level Issues.

Communication

Risk Management

Issue Management

Status Reporting

Slide 11

Approach: PMO Functions Defined – (Continued)

PMO Function

Definition

The process by which changes are made requested and approved after the project’s scope has been determined and requirements have been finalized. A Change Control is a formal request that is submitted to the PMO when there are changes/events that are recommended by a project participant that impacts the scope, requirements, schedule, budget or resources of the project. The PMO evaluates the impact of the requested change and directs it to the Project Sponsor for approval or rejection. If appropriate the PMO may negotiate variances to the request that are acceptable to the Project Sponsor. The PMO will own and manage a Center of Excellence and will ensure that all significant project documents are collected in a single project repository and is shareable across the program. The PMO also ensures that the program learns its lessons (i.e. Lessons Learned) and development of Best Practices. This repository should be an active KM module of the company’s ERP system. The PMO is responsible for the Quality of key project deliverables that are monitored by the PMO. It monitors and ensures that the projects are on target, within budget, and appropriately managing Risks and Issues. It measures success against Milestones, Phase completion and Gate Evaluations.

Change Control

Knowledge Management

Quality Control

It is also responsible for ensuring that the project teams adhere to program’s project methodology.

Slide 12

Approach: Responsibility Matrix by PMO Function

Need to be Reviewed by Team

Primary Organizational Responsibilities by PMO Function (High-Level)

The PMO is dependent on numerous other groups or individuals in order to successfully fulfill its Functions. Varying levels of interaction or responsibility exists between three primary groups within the Project Delivery Organization: Governance, the PMO and the Projects . The following chart identifies some of those roles and/or responsibilities and how they are shared between the groups.

PMO

(consists of the entire PMO organization, project staffing reporting to the PMO and the Project Core Team).

Governance

(consists of the company’s project governing board that ultimately approves projects based on their business case, support of corporate strategies and ROI. It may also include another level of governance offered by the Project Sponsor, Executive, Management, etc.).

Projects

(consists of all resources directly responsible for the implementation and actual work of the project).

Owns Process

Monitors Process

Escalation/Resolves Issues

Roles

Defines Process

Provides Tools

PMO Functions

Time/ Expense Capture

Quality Control (PMO)

Prioritiza- tion

Resource Allocation

Project Cost Mgmt

Communi- cation

Change Control

Knowledge Mgmt

Risk Mgmt

Issue Mgmt

Reporting

Slide 13

Approach: Implementation Plan Overview

1 Initiate

4 Control

2 Plan

5 Close

3 Execute

NOTES

[XX weeks duration]

[XX weeks duration]

[XX weeks duration]

[XX weeks duration]

[XX weeks duration]

IMPORTANCE OF THE PMO: Today our businesses are deeply dependent on “projects”. Project Management (PM) methodologies have been around for years. But according to the Standish Group 46% of IT Projects go over budget/time and 28% fail altogether. In another study Standish states that only 24% of projects undertaken by Fortune 500 companies will succeed. For many companies the issue isn’t about project management knowledge; it’s about having a Consistent & Tested Technique that ties all their projects together and links them to the company’s business objectives. • Business Objectives/Strategy • PMO Maturity opportunities 2. Develop a Custom Roadmap. • Tailored to “your” Objectives • Accommodates your Culture • Flexible & Scaleable • Deployment approach Sensitive to your tolerance for change 3. Provide the Expertise and Support your organization requires to reach your Goals. 4. Hand-off the Framework to meet your requirements. EXERVIO’S APPROACH: 1. Assess your Current State. • Current PMO Maturity • Project Management Capabilities

START THE PROJECT • Ensure Strategic Alignment with Company or Business Unit • Identify Business Need

PLAN THE PROJECT • Confirm Project Deliverables/Scope Definition • Define Maturity Goals

EXECUTE THE PLAN • Project Plan Execution

MEET PROJECT OBJECTIVES • Execute Project Controls

CLOSE THE PROJECT • Formally Accept the Project

• Executive Buy In / Sponsor Identified

MANAGE THE PLAN

INITIAL ASSESMENTS • Historical Analysis • Current PM methodologies • Current Tools & Processes • PM Maturity Assessments • Stakeholder Analysis • LOB/Business Unit Analysis AUTHORIZE THE PROJECT • Project Objectives • Product Description • High Level Deliverable Description • Planning Constraints/ Assumptions • Identify Core Team • Project Charter

PLANNING ACTIVITIES

PRODUCE THE PRODUCT • Complete Work Packages • Change Control/Approved Project Plan Updates

ENSURE OBJECTIVES ACHIEVED

• Manage Progress • Scope Verification • Risk Monitoring and Control • Performance Reporting • Implement PMO Tools and Processes

• Develop WBS • Resource Plan • Develop Schedule and Cost Estimates • Control Plans • Communications Plan • Risk Management Plan

• Product Verification • Document Lessons Learned

• Develop PMO Implementation Approach

PLANNING OUTPUTS • Approved Project Plan • Approved Funding • Change Control Processes • Kickoff Meeting • PMO Implementation Plan and Target Projects

EXECUTION OUTPUTS • Work Products

CONTROL OUTPUTS • Approved Project Plan Updates • PMO Management Team in Control

CLOSING OUTPUTS • Formal Acceptance • Project Archives

Slide 14