Project Investment Cycle 1. Pre-Investment (support studies: opportunity study, pre- / feasibility study, appraisal / decision) 2. Investment (Negotiation and contracting, engineering design (construction and training, start-up) 3. Operation 4. Evaluation (****Review investment phase from the last part****) PMO framework: A PMO is the backbone of a successful project management approach at an organization. It is a function that provides decision support information Why PMO? If a firm runs multiple, cross-functional projects concurrently, it needs … - Repeatable project delivery process & less “reinventing the wheel” - Continuous improvement, continual progress review towards completion & improved ROI - Accurate estimates based on firm’s history and lessons learned - Management and up-skilling resource - Priorities managed based on timelines, budgets, resource loads, what-if analysis - Accurate resource management across projects - Senior management support and direction -> consistent project management and guidance PMO vs PM manager PMO Manager PM Manager Help Plan Advise Track Review Initiate Facilitate Control Audit / QA Manage Mentor / Coach Execute Strategic planning Estimate Train PM resources Organise Manage project Communicate Knowledge PMO Life Cycle Loop** PMO Life cycle – Critical Success Factors: - Sponsorship - Benefit assurance - Capability - Stakeholder management - Project plan management - Project management standards - Measurement Organization alignment Project management offices build-out Governance: Ensuring decisions are taken by right people, based on right information; Governance role can also include audit or peer reviews, developing project and program structures and ensuring accountability Transparency: Providing information with single source of truth; Information should be relevant / accurate to support effective decision-making Reusability: Stopping project teams from “reinventing the wheel” -> templates and best practice Delivery support: Making it easy for teams by reducing bureaucracy, providing training, mentoring and quality assurance Traceability: Providing the function for managing documentation, project history and organizational knowledge In conclusion … follow process and progress will follow. What’s a project? Project is a temporary endeavor undertaken to create unique product or service A project is defined by its content, its allocated resources (budget, starting and ending dates), and final results. It’s temporary and unique. It is also managed based on its scale and complexity and its strategic importance of the organization. The team work is not repetitive, not of support of daily operations. 1. Performed by people 2. constrained by limited resources 3. Planned, executed, controlled Project vs operations: - They differ primarily in that operations are ongoing & repetitive whereas projects are temporary & unique. - Projects are meant to respond to requests that cannot be addressed within normal operational limits Characteristics of a project Temporary - Every project has definite beginning and end, Duration of projects is finite, no ongoing efforts - End is reached when project’s objectives have been achieved; or when clear, that project objects will or cannot be met, or need for project no longer exists - Temporary doesn’t mean short in duration, many projects last for several years Unique product, service or result - Projects involve doing something that hasn’t been done before -> unique - May be unique even if category is large (e.g., many buildings are being developed but each individual facility is unique: different owner, design, location, …) - Repetitive elements doesn’t change fundamental uniqueness of project: e.g., project to develop new airliner may require multiple prototypes, project to bring new drugs to market may require thousands of doses to support clinical trials, … Progressive elaboration - Integrates concepts of temporary and unique - Because product of each project is unique, characteristics that distinguish product must be elaborated - Progressively means “proceeding in steps, continuing steadily by increments” Portfolio / Program Portfolio: group of different programs and/or projects within same organization, which may be related or unrelated to one another. Program: group of projects that are similar or related to one another, and which are often managed and coordinated as a group instead of independently. What is Project Management? Application of knowledge, skills, tools and techniques to project activities to meet project requirements. Project management is accomplished through appropriate application / integration of the 47 logically grouped PM processes, which are categorized into 5 process groups: 1. Initiating 2. Planning 3. Executing 4. Monitoring and controlling 5. Closing Why companies struggle with PM? - Project managers don’t use PM tools - Projects saw a budget overrun of 200% - Organizations have no access to real time project KPIs - Lack of planning - Breakdown in communication - Project failure Managing projects typically includes, but is not limited to: - Identifying requirements - Addressing needs, concerns, expectations of stakeholders in planning / executing project - Setting up, maintaining and carrying out communication among stakeholders - Manage stakeholders towards meeting project requirements and creating project deliverables - Balancing competing project constraints, which include: o Scope o Budget o Quality o Resources o Schedule o Risk Value creation framework Strategy Opportunity 1 Opporutnity 2 Opportunity 3 Projects PM Processes vs Project Processes Project Management processes Project processes Initiating Analysis Planning Design Execution >>> (Project processes) Development Monitoring & Controlling Tests Closing Delivery Benefits IT Governance Governance is the way rules, norms, actions are structured, sustained, regulated and held accountable Concept of governance - Represents norms, values and rules of the game through which public affairs are managed in a manner that is transparent, participatory, inclusive and responsive Principles of good governance - Participation - Empowerment - Good council within communities, - Rule of law groups - Effectiveness and efficiency - Decision making and implementation - Transparency in communication within different levels or departments Vision-mission-strategy (VMS) Vision Strategy - Vision statement should be inspiring & highlight firm's aspirations/values - Should be uplifting and evoke positive emotions ➔ defines "what firm wants to be." Mission - Mission statement clarifies where firm will focus on and highlights core values / beliefs - May emphasize how and why company plans to compete in specific areas - Clarifies "what a firm does." Vision and mission - Vision / mission statements of corporation are important anchors that communicate "what a firm wants to be" and "what the firm does.", - Provide stable identity analogous to a nation's constitution - Expression of a firm’s values and beliefs about its responsibility as corporate citizen - Clarify purpose of organization, help employees bond with firm and set context for understanding management decisions and actions Strategy - Strategy is "how to" plan for fulfilling organization's mission and accomplishing its goals / objective - Firm's strategic plan is an extremely detailed document outlining specific courses of action, each with precision and exact timeline Vision Mission Communicating purpose to stakeholders POLC – framework Planning – Organizing – Leading – Controlling Provides useful guidance into what ideal job of a manager should look like Governance in ICT sector (internet - communication- technology) IT governance is formal way to align IT strategy with business strategy Benefits of IT governance - More reliable services - More transparency - Responsiveness of IT to business - - Confidence of top management Higher ROI - Greater success in managing, mitigating, transferring risk IT challenges • • Keeping IT running o Problems may arise due to technical problems o Organizations need to guarantee continuity of IT for business-critical services Value o Investments in IT require organization to ensure that IT provides value o Issues that detract from value (Projects exceeding budget, Too complex systems, Poor project management) o Organization needs to identify right IT projects Execute projects on time and within budget to deliver expected value • Costs • Complexity • o Maintain technical competence o Adapt to rapid changes o Manage ext. relations/service providers o Handle complexities and avoid excessive costs Compliance • Security • o Information carries security risks (virus, hackers) o Risk increases through exposing internal systems to internet o Organizations need to assure adequate IT security o Risk areas: service providers, contracts, designs, operational, market Business/IT alignment Gap between what is expected from IT and what is actually delivered exists, because of … - Poorly defined business requirements - Inability to set priorities, complexity - Lack of communication IT strategic committee (Board members & specialists) Focuses on direction / strategy, advises board on IT strategy and optimization of IT costs and risk IT steering committee (Business executives (IT users), CIO, key advisors (IT, legal, audit, finance) Focuses on implementation, monitors current projects, decides IT spending IT strategy committee main concerns - Alignment of IT with business - Optimization of IT costs - Contribution of IT to business - Achievement of strategic IT objectives - Exposure & containment of IT risk IT steering committee main concerns - Make decision of IT being centralized vs. decentralized - Recommendations for strategic plans - Approves IT architecture - Reviews and approves IT plans, budgets, priorities & milestones - Monitors major project plans and delivery performance Five main/focus areas of IT governance 1. Strategic alignment 2. Value delivery 3. Resources management 4. Risk management 5. Performance measurement Strategic Tactical IT governance framework Structure -> Process -> Communication Operational Strategic planning process - - Strategic: long-term (3-5 year) considers organizational goals, regulation (IT: technical advances) - Tactical: 1-year plan moves organization to strategic goal Operational: detailed or technical plans
