IBM Project Management October 2005

Studies show that lack of good project management often leads to failed projects. According to a study by Metagroup ('Why Operation Projects Fail?' November 2002) 70% of large IT projects fail or do not meet the expectations. The most common reasons refer to project management, project planning and communication.

Inability to acquire properly skilled resources. Ineffective project initiation. Lack of or inadequate project management. Lack of Project Management Reviews and effective follow-up on action plans. Lack of management oversight / support. Unfulfilled customer responsibilities. Failure to implement / exercise proper change control process. Starting a phase prior to completing a preceding phase. Customer unprepared to support the new system. Customer represented by Third Party. Change in customer management team. Continuous / constant change in scope. Ineffective relationship between IBM and customer. Technology / architecture issues. Ineffective relationship between IBM and subcontractor. Subcontractor cost overruns. IBM project team morale or organizational issues. . Failure to set and manage customer expectations / satisfaction. Failure to reach common understanding of requirements or completion criteria. Failure to reach understanding of the proposed solution. Failure to establish appropriate contractual baseline. Failure to adhere to published pricing guidelines, failure to assign adequate "risk" contingency and illegitimate "investment pricing" (i.e., low-balling, low margins, etc.). Poorly constructed or unauthorized subcontractor SOWs. Failure of key subcontractor to deliver. Inaccurate project estimates. Failure to plan for risk containment. Failure to perform QA reviews. Lack of DOU with other IBM organization(s).Failure to properly handle multinational issues.

Project Management is usually seen as managing the interrelationship of three critical success factors for each project. Scope Schedule Budget 1 12 2 3 4 5 6 7 8 9 10 11 It is essential to find the optimal balance to maximize the value of projects related to the company's success considering budget, schedule and scope.

But it is not that simple, in order to manage to those three critical success factors it also involves. . . Planning Communication Coordination Integration Execution Tracking Budgeting Control Reporting Quality Control

IBM’s Project Management Approach Project Based Business Project Management Office (PMO) Processes/Methodology (WWPMM) Project Management Maturity Guide (PMPMG) Tools – Rational Portfolio Manager Mentoring/Staffing Education

For IBM to become a project based enterprise it was necessary to integrate project management disciplines into the fabric of IBM. In 1997, IBM committed to becoming a project based enterprise for integrating project management disciplines across the IBM enterprise. Since then, IBM has developed and deployed a number of worldwide Project Management initiatives for establishing the Project Based Enterprise Charter. These project based initiatives focused on: Project Management Professional Development Project Management Methods & Tools Project Management Systems

Project Management Office (PMO)

The Project Management Office needs to look at many aspects for supporting project management within a company. Principles, Beliefs, Expectations, Vision, Mission, Goals, Objectives, Action Plans Critical Success Factors, Strategies, Continuous Improvement of Projects, Investments, Incentives, Communication, Policies, Attitudes, Practices Work Product, Quality, Time, Productivity, Cost, Impact, Defects, ROI, Value, Satisfaction Methods, Specifications, Outputs, Procedures, Techniques, Standards, Guidelines, Controls, Experience, Method Training, Technical Training, Management Education, On-the-Job Training, Learning Curves Tools, Tool Classes, Platforms, Standards, Protocols, Architectures, Physical Environment Roles, Jobs and Responsibilities, Formal and Informal Structures, Resources and Resource Allocations, Support Staff Services, Relationships

Process and Methodology WWPMM IBM Methodology to Support PM

IBM’s Project Management Method is a broad, robust and integrated approach to projects IBM’s PM method (Worldwide Project Management Method – WWPMM) drives consistency and quality by focusing on three aspects of PM best practices Work Domains Work Products Work Patterns Work Domains provide detailed guidance on how specific types of PM activities should be carried out PM must understand how to manage across 13 domains (change, quality, risk, etc.) Work Products are verifiable outcomes that are used to manage projects IBM’s method identifies 51 PM work products that could be used on an engagement Standards, templates, and ‘how to’ guidance included in browser enabled tool Work Patterns are a series of steps designed to meet project management goals or in response to particular project situations Includes 39 different process steps spread across 7 phases Equivalent to a Standard Operating Procedure (SOP)

World Wide Project Management Methodology - WWPMM WWPMM helps define the PM System, a collection of plans, procedures and records that direct all PM activities and describe the current state and history of the project. Generic templates are provided in downloadable form, from the WWPMM reference page and through various PM tools. When used with appropriate tools and integrated with business and technical management systems, this material provides a comprehensive PM environment. How the project is shaped, and how its execution is managed How the work is done

Project Management Process Maturity Assessment Levels

Project Management Process Maturity Assessment Levels Summary Definitions of Maturity Assessment Levels The chart on this page shows the Project Management Maturity Assessment Levels. It has been drawn as stair steps because an organization starts at the bottom and progresses up from one level to the next -- from START UP to IN DEPLOYMENT to FUNCTIONAL to INTEGRATED to WORLD CLASS. The processes are defined and exist beginning at Level 2, IN DEPLOYMENT, but the degree to which they are used and the progression of their use (noted by the arrows) separates one maturity level from another. WORLD CLASS Project Management techniques are world class and constitute best practices. Feedback is used for continuous process improvement and preemptive planning. Level 5 Level 4 INTEGRATED Project Management techniques are robust and fully functional. The techniques are integrated and consistently used with predictable results. Level 3 FUNCTIONAL Project Management techniques are robust and fully functional. Processes are standard and consistent. Continuously Improving Processes Predictable Processes Level 2 IN DEPLOYMENT Basic existence of Project Management techniques used infrequently and inconsistently. Techniques are in developmental stages. Standard Consistent Processes Level 1 Project Management techniques do not exist and are not used. START UP Disciplined Processes

Project Management Tools IBM Rational Portfolio Manager

Typical Tool Challenges for Project Managers - BEFORE Many projects have manual and semi-automated processes, characterized by unnecessary data manipulation, inadequate information flow and sluggish cycle time.

Rational Portfolio Manager is IBM’s Solution of Choice - AFTER Rational PM provides process automation, thereby increasing efficiency and reducing the complexity of project and portfolio processes. One stop shop” project repository, including the project control book Support more effective project startup Superior project tracking and control capabilities Project management process support Collaborative and communicative project environment

Project Management Education and Certification IBM Rational Portfolio Manager

IBM can supply skilled Project Management Mentoring and Staffing Capability IBM’s certification process is more demanding than the standards set by the Project Management Institute Certification Element IBM Certification Program PMI Certification Program PMI Examination PM Experience 6,000-7000 hrs 4,500 hrs (2+ years) Technical Experience - - - People Management Experience PM Education 200-300 hrs 35 hrs Technical Specialties Professional Contributions (“Giveback”) Detailed Qualification Criteria based on required skills

IBM supplies valuable Project Management Education PMI recognized industry standard Project Management courses currently available to IBM customers. Areas of education Project Management Principles Contracting Financial Management Leading Complex Projects Workshop PMP Examination Preparation Principles of Project Management Project Cost and Schedule Management Project Leadership and Team Building Project Management Concepts Project Risk Management Working on a Project