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IT Project Management Office Paul R. Astiz, MBA, PMP, CDP (703-610-2435)

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Presentation on theme: "IT Project Management Office Paul R. Astiz, MBA, PMP, CDP (703-610-2435)"— Presentation transcript:

1 IT Project Management Office Paul R. Astiz, MBA, PMP, CDP (703-610-2435)

2 Presentation Objectives Provide an overview and general understanding of PMO models, functions, success factors, and implementation Introduce the CobiT PM CMM as a framework for establish and evolving the PMO Project Management functions

3 Outline IT PMO Trends PMO Models PMO Key Considerations –Charter –Culture Change –Implementation Strategies –Staffing/Skills –Performance Metrics Critical Success Factor Introduction - CobiT® CMM

4 IT PMO Trends 67% of IT organizations in 2003 have PMOs (Forrester Survey) More than half established since 2000 (Forrester Survey) Government is moving to standardize IT Project Management –Nov, 2003, Federal CIO Council recommends setting up Federal PMO to standardize PM practices –Jun, 2004, SC requires management of major and inter- agency IT projects to use standard practices and be managed by PMP –Jan, 2001, NY sets up PMO to standardize management of technology projects –Jun 2002, CA CIO established objectives for statewide project management standards IT PMOs are becoming strategic IT PMOs are gaining more influence

5 Whats Driving IT PMO Proliferation? Late and over budget IT projects –Lack of coordination of activities –Poor project management practices –Lack of standardization of PM methodology Need for consolidated project reporting to drive prioritization/decisions –More focus on IT project ROI –More focus on alignment of IT projects with business strategy –Strategic value and dependency on IT applications/technologies Increase in IT Project workload –Proliferation of IT project proposals –Delays in getting projects approved More complex IT environment and solutions –Enterprise solutions/cross-functional projects –Distributed development organizations –Outsourcing and contracting out of IT projects

6 PMO Benefits Companies that implemented successful PMOs achieved: –80% ROI –20% reduction in project time –30-35% successful project delivery Companies without a PMO experience 74% project failure rate Source: Forrester Research

7 PMO Models One size does not fit all –PMO drivers/business needs –PM maturity –Vision and goals of sponsor –Business/organization mission –Organization size –Number of projects –Political and cultural environment Tactical vs. strategic Internal vs. external focus Departmental vs. enterprise (IT vs. LOB) Single vs. multiple Staff vs. line organization

8 SUPPORTCONTROL Project administrative support PM standards, methodology, processes Project Consulting and mentoring PM coaching/training/certification Integrated Project Reporting Issue Tracking/Reporting Master Project Schedule Project Document Repository PM tools and tools support Project Audits Cost and Schedule Control Business Case Project Approval Project Prioritization Project Management Resource Management IT Asset Management Project Portfolio Management PMO Support/Control Model

9 Key Considerations PMO charter Culture change Implementation strategy StaffingMetrics/Performance Success factors Maturity of Project Management Practices

10 PMO Charter Charter Scope –Business Needs –Sponsor –Public vs. Commercial –PM Maturity Charter Document –Mission/Vision –Goals/Objectives –Sponsor –Service Offering –PMO Governance –Key Performance Metrics –Funding model

11 PMO - Culture Change Natural resistance to change Political landscape –Winners/Losers –Management Support Degree of cultural change –PM maturity –PMO charter –Existing skill level –Key driver implementation strategy Change Management –Assess impact of change –Inform –Educate –Involve

12 PMO Implementation Strategies Strategy drivers –PMO charter –PM maturity –Sponsor and management support –PMO drivers –Perception of value –Political environment –Culture/Value System Evolutionary/Incremental –Lower implementation risks –Lower start up costs –Will take longer to demonstrate ROI –More suitable if high resistance to change and low management support Revolutionary/Wholesale –Higher implementation risks –Higher startup costs –May be able to demonstrate ROI quicker –More suitable if crisis or recognition at high level that change is imperative

13 PMO Staffing/Skills Staffing Approaches –In-house resources –Hybrid (In-house/contractors) –Ad hoc contractors augmentation Skills –PMO Director/Manager –Project Manager –Project Portfolio Manager –PM Process/Methodology Trainer –Relationship/Account Manager –Tools Support/Administration –Administrative Support –Librarian/Document Control

14 PMO Performance Metrics PMO vs. Project metrics Less that 15% of PMOs employ formal metrics program (Source: Forrester Research) Metrics are essential for growth and support – demonstrate progress, value, and productivity Performance metrics are driven by charter – no such thing as typical metrics Business value metrics –Executive focus - Measure and demonstrate value to business –Help justify existence during downsizing –Expressed primarily in dollars savings/revenue or ROI –Tend to be few and harder to derive Functional performance metrics –Internal focus - Measure and demonstrate performance or quality of PMO functions –Help justify PMO budget –Help improve PMO performance –May require baseline or benchmark to demonstrate performance –Expressed primarily in percent or counts –Tend to be many depending on functions performed –Must be selectively chosen so as not to overwhelm Service level metrics –Customer focus - Measure and demonstrate service level or quality of service to customer –Help improve and maintain customer satisfaction –SLA/SLO –Expressed in a variety of ways –Select on key and most important value to customer community

15 Success Factors Clear Charter –Creates clear expectations –Defines boundaries for implementation Top-Down Support Bottoms up Buy-in Sponsor - Reporting to senior executive Strong LOB representation Communication/PR –Promotion of services –Education of value –Performance metrics that demonstrate business and customer value

16 PM Capability Maturity Models Valuable tool for establishing PMO and help define objectives, charter, and processes Assess current status Compare against best practices Develop strategy and road map for PMO Help communicate vision and get buy in Different models (CobiT, OPM3, ISO 15504, CMM/CMMI)

17 CobiT ® Capability Maturity Model CobiT® CMM is valuable and comprehensive framework for assessing maturity of IT organization CobiT® CMM –International Open Standard for IT Governance –IT Governance Institute (ITGI®) –Information Systems Audit and Control Association (ISACA®) ITIG ® not associated with Software Engineering Institute (SEI), Carnegie Mellon CobiT® CMM uses same conceptual framework as SEIs CMM Defines maturity of IT organizations in four domains –Planning and Organization –Acquisition and Implementation –Delivery and Support –Monitoring PM CMM part of CobiT® Planning and Organization domain Sources: WWW.ISACA.ORG and WWW.ITGI.ORG

18 CobiT® Maturity Levels 0 Non-Existent – Not applied 1 Initial – Ad hoc and disorganized 2 Repeatable – Follow regular pattern 3 Defined – Documented/communicated 4 Managed – Monitored and measured 5 Optimized – Best practices followed/ automated Source: CobiT 3 rd Edition, Management Guidelines

19 CobiT® Model Components Defines processes within each domain Defines high-level control statement for each process Defines maturity levels Defines success factors for each process Defines key goals for each process Defines key performance indicators Source: CobiT 3 rd Edition, Management Guidelines

20 CobiT® Project Management Process Control Statement Control of project management process with the business goal of setting priorities and delivering on time and within budget Is enabled by the organization identifying and prioritizing projects in line with the operational plan and the adoption and application of sound project management techniques for each project undertaken Source: CobiT 3 rd Edition, Management Guidelines

21 Level 0 – Non Existence PM techniques not used Organization does not consider business impact of poor project performance Source: CobiT 3 rd Edition, Management Guidelines

22 Level 1 – Initial/Ad Hoc Aware of need for project structure and risks of poorly managed projects Use of PM techniques left to the individual Projects are generally poorly defined and do not incorporate business or technical objectives of the organization or stakeholders Lack of management commitment and project ownership Critical project decisions are made without user management or customer input Little or no customer and user involvement in defining IT projects No clear organization within IT projects and roles/responsibilities are not defined Project schedules and milestones are poorly defined Project staff time and expenses are not tracked and compared to budgets Source: CobiT 3 rd Edition, Management Guidelines

23 Level 2 – Repeatable but Intuitive Sr. Management has gained and communicated an awareness of the need for IT Project Management Organization is in the process of learning and repeating certain techniques and methods from project-to-project Projects have informally defined business and technical objectives Limited stakeholders involvement in PM Some PM guidelines developed, but left to discretion of project managers Source: CobiT 3 rd Edition, Management Guidelines

24 Level 3 – Defined Process PM process and methodology formally established and communicated IT projects defined with appropriate business and technical objectives Stakeholders are involved in the management of IT projects Defined project structure with roles and responsibilities Defined and updated project milestones, schedules, budget and performance measurements IT Projects have formal post systems implementation procedures Informal project management training provided No established policies for using combination of internal and external resources Quality assurance procedures are defined Source: CobiT 3 rd Edition, Management Guidelines

25 Level 4 – Managed and Measurable Formal and standardized project metrics PM measure and evaluated throughout organization not just IT PM process enhancement formalized and communicated, and project team members are trained on all enhancements Risk management performed as part of PM Stakeholders actively participate in projects or lead them Project milestones and criteria for evaluating success at each milestones are established Value and risk are measured and managed prior to, during, and after project completion Management has established a program management function within IT Projects are defined, staffed, and managed to address organizational goals, rather than only IT specific ones. Source: CobiT 3 rd Edition, Management Guidelines

26 Level 5 - Optimized Proven full life-cycle project methodology is implemented and enforced, and integrated into organizational culture On-going program to institutionalize best practices has been implemented Strong and active project support from Sr. Management sponsors and stakeholders Implemented project organization structure with documented roles, responsibilities, and staff performance criteria Long term IT resources strategy is defined to support development and operational outsource decisions Integrated Program Management Office is responsible for projects from inception to post implementation Program Management Office is under the management of the business units and requisitions and directs IT resources to complete projects Organization-wide planning of projects ensures that users and IT resources are best utilized to support strategic initiatives Source: CobiT 3 rd Edition, Management Guidelines

27 CobiT® PM Success Factors Experienced and skilled project managers are available Accepted and standard project management process in place Sr. Manager sponsorship of projects, and stakeholders and IT staff share in the definition, implementation, and management of projects There is an understanding of the abilities and limitations of the organization and the IT functions in managing large, complex projects Organization-wide project risk assessment methodology is defined and enforced All projects have a plan with clear traceable work breakdown structures, reasonably accurate estimates, skill requirements, issues to track, quality plan, and transparent change process (my note – effective PM methodology enforced) Transition from implementation team to operational team is a well-managed process System development life cycle methodology has been defined and is used by the organization Source: CobiT 3 rd Edition, Management Guidelines

28 CobiT® PM Key Goal Indicators Increased number of projects completed on time and on budget Availability of accurate project schedule and budget information Decrease in systematic and common project problems Improved timeliness of project risk identification Increased organization satisfaction with project delivery services Improved timeliness of project management decisions

29 CobiT® Project Management Key Performance Indicators Increased number of projects delivered in accordance with defined methodology Percent stakeholders participation in projects (involvement index) Number of project management training days per project team member Number of project milestones and budget reviews Percent of projects with post-project reviews Average number of years of experience of project managers

30 Conclusion IT PMOs can improve IT project delivery performance One size does not fit all PMO Support/Control model most useful Clear charter, top down support, & bottom ups buy is key to PMO success PMO performance metrics should focus on value to key stakeholders CMM valuable framework for establishing and evolving PMO

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