Effective Project Management John Reilly Director – PeopleSoft Global Services Education and Government Practice Agenda Introduction Project Management Today Project Offices Best Practices in Project Management Project Management Model Questions and Answers Introduction Performing projects on-time, within budget and meeting goals is highly praised but not easy. These goals are even more difficult for a typical IT department of a government—an organization faced with stagnant budgets, changing business requirements, and fast-moving technology. Project management approaches successfully employed by traditional industry can help IT departments. Project Management Today Project Management Office (PMO) A project management office (PMO) is designed to integrate project management practices within an organization. A PMO can be a key resource in establishing an organizational competency in project analysis, design, management and review. Given the appropriate governance, a PMO accomplishes the following: Establishes an enterprise standard for project management. Improves communication and the leveraging of resources within the organization. Helps reduce the disastrous effect of failed development projects on enterprise effectiveness and productivity. Why is a PMO so Important Poor Project Management Leads to Significant Levels of Project Failure Project Management Skills Are Transferable The PMO provides the resources and tools necessary to consistently improve the success of IT projects. Ability to negotiate for resources, high motivation, coaching or other skills necessary for good project management. When an individual exhibits such skills, they become a resource that can be moved between applications or projects coordinated by a PMO. Decentralized Development Requires Centralized Support Project Management skill sets are not distributed evenly throughout the organization. It is crucial to have a support structure in the centralized IT group to monitor and facilitate best practices transfer, along with infrastructure issues such as reuse, methodology and measurement. Public Sector PMO Trends PMOs are being formed in the public sector at an ever increasing rate. This has been mainly due to the following key factors: 1. Legislative IT Project Management Mandates 2. Increased Practicality of Government ERP/Enterprise Applications 3. The Rise of E-Government Sample Project Management Offices Sample Project Management Offices Sample Project Management Offices Sample Project Management Offices Sample PMO – Web Sites State of New York State of North Dakota http://michigan.gov/dit/0,1607,7-139-18391_22016---,00.html State of Virigina http://www.state.mn.us/cgi-bin/portal/mn/jsp/content.do?subchannel=536879888&id=-8484&agency=OT State of Michigan http://da.state.ks.us/kito/default.htm State of Minnesota http://www.state.nd.us/epm/ State of Kansas http://www.oft.state.ny.us/pmmp/pmo.htm http://www.vita.virginia.gov/projects/pmd.cfm State of Texas http://www.dir.state.tx.us/pmo/index.htm Focus Areas for Public Sector PMOs Standardized Methodology and Tools and Training and Project Repository of Certification, Monitoring Best Coaching and and Name Practices Mentoring Oversight State of New York x x x State of Michigan x x State of Minnesota x x x State of Kansas x x x State of Virginia x x x State of California x State of North Dakota x x x State of Missouri x x x State of Texas x x x Enterprise Project wide PM Review and Services Approval x x x x x x x x Key Roles of the PMO Structure – State of Virginia Structure – State of Minnesota Project Management Office In order to enable the successful completion of state Information Technology (IT) projects and realize expected benefits, the Office of Technology has created an enterprise wide (statewide) Project Management Office (PMO). Structure – State of North Dakota The State Information Technology Advisory Committee (SITAC) is responsible for prioritizing all IT efforts in relation to the business requirements and for reaching a common vision between the business and IT on the business drivers and on the role of EA and technology. The Architecture Review Board (ARB) is responsible for reviewing and approving the conceptual and domain architectures, including products, domain technologies and standards. The Architecture Team (AT) is responsible for facilitating the enterprise architecture process, creating and maintaining deliverables, communicating architecture standards to all interested parties, and reviewing technology infrastructure projects for compliance to the architecture. The Domain Architecture Teams are responsible for selecting product standards, defining standard configurations, and collaborating on component architecture design principles with the architecture team. The Enterprise Program Management Office (EPMO) is responsible for tracking all projects, resources, budgets, and project interdependencies. The EPMO is staffed from the Policy and Planning Division of ITD The EPM Advisory Group is a group of agency project managers who proactively identify project management issues, and collect/develop project management best practices such as tools and templates. The Project Management User Group is an informal discussion group that discusses project management topics. Structure – State of Kansas Structure – Missions New York PMO was charged with the following mission: to increase project management competence and foster sustained success of projects carried out by New York State. The top priority of the PMO was the development of a common Project Management methodology for use by Project Managers across the state. North Dakota Enterprise Project Management is a process that coordinates projects across the enterprise and provides project management guidance to all agencies. EPM seeks to provide the following benefits: Instill best practices to maximize project successes and leverage expensive project expertise resources. Provide expertise and support to project managers. Provide ongoing process improvement approaches that, over time, will provide an even greater chance for successful projects. Structure – Missions Minnesota To enable successful completion of projects and realize their benefits, the PMO will: Collaborate 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. Virginia Commonwealth Project Management is the application of knowledge, skills, tools, and techniques, to meet or exceed stakeholder needs and expectations from a Commonwealth Project. The objective of CPM is to define a structured, disciplined approach for project management in order to deliver anticipated benefits from business-driven IT investments. Focus on: Scope, Costs, Schedule, Performance and Risk Public Sector PMO Lessons Learned PMO must have a motivated and highly involved executive sponsor (preferably agency director or above) A phased approach to implementation (repository --> coach --> manager models) over time is best in order for the PMO to gradually develop its capabilities and the organization to recognize the PMO’s value. Develop strong marketing and communication plans to aggressively promote the capabilities of the PMO to departments and agencies. Define and communicate the PMO’s balance between project support and control functions to ensure departments or agencies understand what is expected of them and what they should expect from the PMO. The invocation of legislative mandates should be used if necessary. Measurements of Project Management PMO Effective Practices for Success When asked which project management practices were most effective in helping the organization meet its goals, respondents most frequently answered: providing standard methodology for managing projects (56%), having responsibility for process and project reporting and tracking (38%), ensuring that similar projects are executed in a similar way (37%), having the funding and information needed to speed up or slow down project delivery (29%), providing a process for resource allocation and capacity management (27%). Measurements of Project Management Benefits of PMO Have project success rates (defined as projects completed on time and within budget) increased, decreased or stayed the same as a result of PMOs? 12% Not answered 50% Increase 1% Decrease 16% Stayed the same 22% Don’t know/do not track When asked about the top benefits of having a PMO, the surveyed listed: implement PM standards (62%), increased internal satisfaction (38%), increased employee productivity (39%), lower costs (27%) increased external satisfaction (25%). Measurements of Project Management State of New York – PM Development Who benefits? The program design is intended to benefit both the participants and all State agencies. The participating agency benefits by the fact that its participating employees, whether mentors or interns, will gain tremendous expertise through the formal training being offered. This increased expertise will benefit the agency in the execution of any and all business transformation and technology projects it conducts in the future. Mentors and interns also gain through the formal training offered, and through the continuing training that will be offered on an ongoing basis through the Office for Technology to the program participants. Most importantly, New York State will benefit from the increased success of large-scale projects designed to make New York work better for its citizens. Case Study The Project Management Officer for Arlington County, Virginia Department of Technology Services oversees the management of $15 million in information technology projects. Recently the Officer led an implementation of project portfolio management for the county. How many projects are in your portfolio and what kinds of projects do you have? Our portfolio includes 15 IT projects ranging from business system implementations to enterprise and department level intranet portal implementations, from network improvements to desktop computer replacements. To qualify for inclusion in the portfolio, the project must be funded from capital funds. Case Study What sorts of gains are you hoping to see from PPM? Both the CIO and I were looking for numerous qualitative and quantitative gains in the overall portfolio, especially from our management of the projects and across projects. Some of our expectations include: Better success rates among projects Cost-effective selection, balance and coordination of projects Selection of projects that are more tightly tied to the business strategy Better allocation of our resources to projects Opportunities to accelerate the completion of projects Opportunities to re-allocate resources away from failing projects Development of synergies across departments that have similar business needs Better accountability to our taxpayers Case Study What have been your results so far? One project in particular told a dramatic success story. It had been given a "red light" three quarters in a row. It was way under-spent and long overdue, making it far off track for delivering business results. Then, in one quarter's time, the project delivered all the expected business results from the prior fiscal year plus the expected business results of the current fiscal year. We now have a very satisfied set of end-users, which might not have been the case otherwise. Where do you hope your efforts will lead? We're already seeing "mini-PMOs" arising in individual departments as they go through their process to determine which IT projects to submit for capital funding. This is a clear indication that the selection process is adding value to investment decision-making. My greater hope, though, is that the model created in the IT department will be embraced in the County Executive's office for selection and oversight of all capital initiatives. Best Practices of Project Management Project Areas Develop a business case Develop a mission statement Define “success” criteria Creating Statement of Work and Contracts Time Resources Scope Managing Scope Scope creep is the change or growth of project scope. In a Computerworld survey of 160 I.T. professionals 80% reported requirements creep either “always” or “frequently” The leading reason reported: 44% of respondents for why scope creeps so frequently was “poor initial requirements definition” The second leading reason that “new applications were unfamiliar to users” was reported by 36% of respondents. 28% reported “projects take so long that requirements generally do change”. 22% of respondents reported “poor management/failure to manage user expectations” 19% reported “failure to involve users in early stages”. Project Management Model PMO Model Project Planning Project planning is the first essential step to achieving a successful implementation. Project Structure Project structure is an on-going process focused on the management of all resources and materials associated with the project Project Communication The Project Communication process is effectively the communications hub for the entire project. All reporting, disseminating of information, and multi-project cross communication is managed through this process. Project Control Project Control, similar to all the Project Management processes, is a continuous process associated with the overall control of the project. Questions and Answers