Project Management Methodologies: Three Perspectives NEOPMI Chapter Meeting November 19, 2008

Enterprise Projects and IT Governance Kevin Cukrowicz PMP, MBA Master Data Analyst (Progressive Insurance)

Review of IT Governance Align IT to business objectives Better transparency into IT spend Provides better insight of IT ROI to the Board Provides accountability for compliance (SOX, balancing, PCI…) Enables business leaders to be part of the IT prioritization and decision making process - No more IT as “black box” Optimizes IT value as strategic partner and measures results Enterprise Projects and IT Governance

Measuring IT Performance Delivering Value to the Business

How does this impact project management? Increased emphasis on portfolio management Increased accountability on project execution - Business and IT leaders expect a certain amount of predictability in the portfolio Resources to be more adaptable to meet business demand How does this impact Enterprise projects? Functional areas must prioritize their workloads against enterprise demand Enterprise Projects and IT Governance

How does this impact Enterprise projects? Functional areas must prioritize their workloads against enterprise demand – competing interests Shifting business objectives require a flexible and shifting work force Increased emphasis on roles and capacity management Enterprise Projects and IT Governance

Increased predictability in the portfolio requires better estimating up front Interaction with enterprise architecture resources in project planning process Improved financial decision making in portfolio project management Ensure the right projects are started and executed well Enterprise Projects and IT Governance

Start simple and mature to more sophisticated Governance committee defines process to determine which projects Initial process may be based primarily on business priorities and resource constraints Process maturity evolves to more CBA and financial driven process to optimize business value per IT dollar spent Process for Prioritizing Work

Enterprise view of resource utilization includes all work PMBOK definition of operational work and project work (PMBOK 1.2.2) Two tool boxes to measuring and managing work through the enterprise – operational and project management - Operational work outcome SLA, SPC… based - Project work Earned value triple constraints based Manage the resource trade-offs between operational work and project work Projects and Operations for improved Governance

Projects, Operational and ITIL Service Strategy ● Service Design ● Service Transition ● Service Transition ● Service Operation ● Continual Service Improvement ITIL v3 Interactions SLA Performance ITIL Spawns Projects Model Enterprise Project Management Too to both?

Integration of Solutions Architecture Governance with PM Methodology Marilyn Hartman, PMP, MS Project Manager (Westfield Group)

$4.3 billion in consolidated assets and $1.5 billion in written premium Westfield Insurance provides commercial and personal insurance and surety services via a network of 1,200 independent insurance agents Westfield Bank provides personal and business banking services Westfield Group

Group formed in 1999 Project Management Methodology (PMM) created in 2000 Program and Project Managers lead corporate initiatives by partnering with business sponsors and managing teams Project Management in IT Organization

Adoption of a governed architecture process is underway at Westfield Solutions architecture governance includes new processes, reviews, and resources to be planned for Project planning and execution are impacted The Project Manager needs to understand how and when in the methodology to include Architecture and the new process steps and reviews Integrating an IT Process with the PM Methodology

Solution Architecture Practice (SAP) crafts and defines the solution architecture. It is based on the Rational Unified Process (RUP). Solution Architecture Governance (SAG) governs the conformity of the solution architecture through stage gate reviews. It is based on the Control Objectives for the Business of IT (COBIT) standard. The Processes to be Integrated

Approach The solutions architecture processes were developed and documented in Architecture work space The processes were piloted on a project Lessons learned were documented and communicated Integration Points were identified – i.e., points in a project where the Project Manager and Architect exchange information, make decisions, and take action An integration document (detailed by phase) was made available to the project managers

For Illustrative Purposes Only Integration Points

Communicate changes to scope and/or requirements to the architecture group Study the target architecture and its related documents, and apply these as the basis for planning the remainder of the project Incorporate the architectural findings into the decision- making process Incorporate the architecture governance stage gate reviews into the project plan Example Integration Points Contribute effort estimates for the architectural work products Define the target architecture based on the requirements Evaluate and respond to architectural impact from changes to scope and/or requirements Collaborate with the project manager and team on vendor selection Provide architectural inputs to the stage gate review process For the Project ManagerFor the Architect

Active Involvement Clear Expectations Consistent Communication Acceptance Criteria Rational Decision Process Appropriate Skills Build Trust and Collaboration Provide Balance Involve Stakeholders Has to add Value Critical Success Factors

Keys to Establishing and Growing an Effective Methodology Daun Hugi, PMP, MS PMO Software Services Manager (Fidelity National Information Services)

Fidelity National Information Services (FIS) Leading payment and core processing services provider to financial institutions Processing and technology relationships with 40 of the top 50 global banks, including nine of the top 10 Strong global presence, serving more than 13,000 financial institutions in more than 80 countries Over 23,000 employees $2.9 billion annual revenues Implementation and Project Services PMO Strategic product / customer delivery focus Typically large, complex projects

A Timeline of PM Growth People, Process, Technology Enterprise Portfolio Management tools PM course and guidebook PM methodology, training curriculum and web-based tools Project plan administration and reporting function Project Management Organization 1999 PM Framework 2003 Fidelity National acquires AIS New PM tools, new process format

Methodology Approach Three phases Initiating and Planning Executing and Controlling Closing Includes process steps, roles & responsibilities, procedures and templates Customizable Applicable to any size or type of project Software/IT influence Tailoring guidelines Integrates with project specific lifecycle

Total PM © and Project Lifecycles Requirements Design Test Project Specific Lifecycles Pre-Initiating Project Plan Baselined Implementation Date Build Training Implement Contract Negotiations Project I & P: Risk Assessment Budgeting Schedule Planning Control Procedures Project Closing: Survey/Data Capture Review & Follow-up Document Lessons Closure Activities Project Executing & Controlling: Scope and Requirements Control, Status Reporting, Progress Tracking, Risk & Issue Management, Escalation Total PM © Tools and PM Methodologies Analysis

Think about a time when you implemented or were on the receiving end of a new process or tool. What factors led to its success or failure?

Lessons Learned Treat methodology creation and implementation as a project Gather and leverage existing effective processes Demonstrate use of key PM processes and tools Start small, build momentum Engage influential people as change champions Visible executive sponsorship Involve stakeholders in development, feedback, implementation Pilot methodology and make improvements before roll-out Communicate frequently and specifically Monitor results, publish and reward success Provide continual feedback mechanisms Make improvements based on project results

ADKAR The required ‘building blocks’ for an individual to make a change successful Awareness Desire Knowledge Ability Reinforcement to keep the change in place to participate and support the change about how to change of the need to change to implement new skills and behaviors © Prosci 2007

Panel Discussion Facilitated by Janet Kungl, PMP Program Manager (Westfield Group)