1. Project Portfolio Governance by the Executive Governance Committee (EGC) The EGC Jim Kneeland ©

2. Agenda 1.Define Organizational Project Management 2.Define the Executive Governance Committee 3.Review the ten step approach to organizational Project Governance

3. Project SizePeopleTime (mos) Success Rate Less than $750K 6655% $750K to $1.5M 12933% $1.5M to $3M 251225% $3M to $6M401815% $6M to $10M+250+248% Over $10M+500+360% *The Standish Group International, Inc. CHAOS report Project Success Success is defined as on-time and within budget Why do Organizational Project Management?

4. Levels of Project Management Portfolio ALL Projects, Programs and Maintenance SPO Program A group of inter-related projects with a common benefit Division Projects a temporary endeavor with a defined start and end date which results in a unique product or service Project Manager

5. The Relationship between Portfolios, Programs and Projects

6. Organizational Governance

7. The Project Portfolio Managed by the SPO A collection of  All Projects  All Programs (inter-dependent projects)  other work such as maintenance grouped together to facilitate  effective management  to meet strategic business objectives.

8. Projects  A Project is defined as a temporary endeavor with a defined start and end date which results in a unique product or service  All Projects have 5 phases: 1.Initiation – Project Charter 2.Scope- Project Plans 3.Execution 4.Monitoring & Control 5.Closing  Most large companies have hundreds of projects valued in millions (a routinely overlooked investment)

9. The Governance Committee Primary Role 1. ‘Steer’ the project into the organization 2.Remove obstacles 3.Optimize Resources 4.Manage the critical success factors 5.Remediate project or benefit- realization shortfalls 6.Prioritize

10. Governance Committee Responsibility  Reviews projects on an ongoing basis to determine that they are aligned with the strategy of the organization, effectively managed, prioritized according to strategic objectives, sufficiently funded and proceeding appropriately  It selects, prioritizes and evaluates the entire portfolio of projects & programs

11. Governance Structure Executive Governance Committee SPO 2 to 3 personnel Banking Divisional Liaison TBD Investments Divisional Liaison TBD Purchasing & Contracts Divisional Liaison TBD Insurance Divisional Liaison TBD IT Divisional Liaison TBD Misc Divisional Liaison TBD

12. EGC Members Committee Includes:  Executive Director’s Office  Divisional Directors  Legal  Purchasing & Contracts

13. Functions of the EGC but not limited to  Initiation of the project  Approval of project plans and authorizing deviations from the plans or terminate the project  Review of the progress, benefits delivery and costs  Guidance on issues that the PM has been unable to resolve  Assurance that resources are available  Establishment of frameworks and limits for making decisions about investments in the endeavor  Compliance with legal policies, procedures, standards, and requirements of MetLife

14. Steps to Governance 10 step process 1.Develop a methodology & Templates 2.Establish a reservoir for information (DB) 3.Make DB available 4.Inventory ALL projects 5.Establish Governance Process 6.Establish Governance Committee 7.Train Committee 8.Begin Inventory review 9.Prioritize ALL projects 10.Periodic reviews

15. 1. Establish Methodology  Developed during Q1 &Q2 of 2009  Finalized by SPO in Q2 09 and presented for adoption

17. 2.Establish a project Database  Either COTS or Proprietary.  There are several high quality packages available.  I have a home-grown access system we could use in the interim

18. 3.Inventory All Projects  Start Q2 2009  Complete inventory by June 2009

19. 4. Establish a Governance Process See next page & handout

21. 6. Establish Governance Committee  A list of candidates list will be created and promoted during Q2

22. 7. Train Committee

23. 8. Begin Inventory  Each Division will review all their projects  Each Division will Prioritize their list of projects  Each Division along with the divisional Liaison and whatever managers they would like to bring will present their project list to the EGC.  These project list presentations will be in priority order and are meant to be an open forum discussion

24. 9. Prioritize Projects  Once all divisional project reviews are done the EGC will meet to provide a prioritization schema  Every project will be reviewed and prioritized.  Note: SPO will attempt to group to help make the process easier – categorization grouping is available in the DB.

25. 10. Periodic Reviews The EGC will meet periodically to review updates on existing projects and approve or deny any new ones.