1 State of Michigan Project Management Methodology Orientation November 2005

2 Objectives Define methodology Present business case and benefits of a project methodology Describe purpose of the State’s Project Management Methodology Preview State of Michigan Project Management Methodology Answer questions regarding Project Management at the State

3 Methodology Defined “The science of method, or orderly arrangement” – Webster “A system of practices, techniques, procedures, and rules used by those who work in a discipline” – PMBOK

4 Today’s business environment is unforgiving Customers have higher expectations, seek increased time efficiencies, and demand ‘quantum’ performance improvements IT projects are not historically tied to business success--information oriented; least PM mature IT efforts need documented path and procedures to better manage and control projects Project methodologies offer proven techniques to manage scope, cost, and task execution Business Case for PM Methodology

5 Higher project management maturity leads to better project management A positive correlation exists between higher project management maturity and cost and schedule performances An established and systematic approach to PM has been proven to improve IT project success to greater than 34% (industry average)--improved quality is recognized Benefits of Project Management

6 “To provide a comprehensive set of procedures and techniques to the State's project managers ‘to ensure high-quality and repeatable results.’ “ Purpose of SOM PM Methodology

7 State of Michigan Project Management Elements Project Management Methodology, Project Management Training, Project Scheduling Tool Expertise, and the Project Management Center of Excellence establish the key elements of the State of Michigan project management support infrastructure.

8 State of Michigan Methodology Goals Assist in the managing and monitoring of the State of Michigan’s government agencies Information Technology (IT) projects. Provide for, and institutionalize, formal project management practices into all areas of State government.

9 Project Management Methodology The State of Michigan Methodology is the foundation for building and identifying the types of procedures needed. The PM methodology document describes project phases and processes to be accomplished. The methodology is driven by the use of templates that guide the user through processes necessary to complete activities. The methodology grows with maturity.

10 Methodology Levels Phases Processes Templates

11 Phases of the PMM The Project Management Methodology and its phases: Phases provide the framework for the methodology (PMBOK aligned). InitiationPlanning Control Execution Closeout

12 PMM and PMBOK InitiationPlanning Control Execution Closeout Project Management Phases Integration Management Scope Management Procurement Management Time Management Risk Management Cost Management Communications Management Human Resource Management Quality Management Knowledge Areas

13 PMM phases and SDLC components

14 Project Management versus System Development Life Cycle Project Management defines the general function of managing the project from initiation to closeout. System Development Life Cycle defines the function of managing the product from inception to implementation and maintenance.

15 Project Phase overlap Initiation Planning Execution Control Closing TIME Level Of Activity Project Start Project Finish Overlap of Phases in the Project Life Cycle

16 PMM Processes Processes provide the “how to” of working ‘inside’ of the framework. The Project Management Methodology document describes the processes in detail.

17 PMM Templates Templates are the deliverables of the processes and thereby establish standardization for project activities. Templates integrate the methodology into the everyday project environment being conducted at the State of Michigan. Execution Planning Closeout Initiation Control

18 PMM Templates Customizable documents that allow for the insertion of dictated information in an organized manner.

19 History of PMM 1999 Need for PMM approved 1999 – Specifications Development Early 2000 – RFP / Procurement Process May 2000 – PMM Release 1 May 2001 – PMM Release 2 May 2003 – PMM Express Release 1 December 2004 – PMM Release 3 October 2005 – PMM Express Release 2

20 State of Michigan Project Management Methodology A system of standard methods and guidance to ensure that projects are conducted in a disciplined, well- managed, and consistent manner Soft Copies available at and click on the PM Methodology page

21 PMM Templates Project Concept Document Business Case Project Charter Project Plan WBS Resource Plan Risk Management Plan Quality Plan Communications Plan Change Management Plan Budget Estimate Planning Transition Checklist Project Status Report Project Change Request Project Issue Document Post Implementation Eval Report Active Project Transition Lessons Learned PMM Feedback Consists of 19 Templates

22 PMM Express An adaptation of the State’s Project Management Methodology (PMM) to smaller, non-complex projects Soft Copies available at and click on the PM Methodology page

23 PMM Express Templates Consists of Seven Templates –Project Charter –Project Plan –Project Status Report –Project Change Request –Project Issue Document –Post Implementation Evaluation Report (PIER) –Lessons Learned Lessons Learned

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25 Initiation Phase The Project Initiation Phase is the conceptual element of project management. The purpose of the Initiation Phase is to specify what the project should accomplish and to gain management approval. Execution Planning Closeout Initiation Control

26 Initiation Progression Initiation Phase Documents Project Concept Document Project Charter Planning Phase Initiation Business Case

27 Project Charter Highlights Project Objectives Project Scope Critical Success Factors High-Level Project Planning Estimates Roles & Responsibilities Project Authority Management Checkpoints

28 Project Charter Approval Gives the go-ahead (approval) to expend resources on this project Obtaining signatures assigns responsibility!

29 Planning Phase Execution Planning Closeout Initiation The purpose of the Project Planning Phase is to establish requirements, define tasks, build schedules, assess risks, institute quality standards, describe deliverables, develop costs, and to document the work organization. The process entails the identification of the ‘proper’ needs and structure for organizing and managing the project. Control *Note: Some Control activities occur in the Planning Phase.

30 Planning Progression Planning Control

31 Developing a Project Notebook Contents: Project Charter Work Breakdown Structure Project Schedule Resource Management Plan Risk Management Plan Quality Management Plan Communication Plan Change Management Plan Project Status Reports Project Successes and Lessons Learned Any other documents that the project manager feels are important enough to include

32 Scope Input Boundaries Provide Modify Purchase Acquire Identify TrainOversee Promote Recruit Assumptions and Constraints SCOPE...defines a project’s place in a larger scenario Planning Control

33 Communication COMMUNICATION PLAN …foundation strategy for getting the right information to the right people Define information needs Identify people who need information Communicate information needs Planning Control

34 Develop Communication Strategy Defines the information needs of the project stakeholders and the project team by documenting what, when, and how the information will be distributed.

35 Risk Management Response Development Risk Event Control RISK MANAGEMENT …systematic means of managing uncertainty Risk Identification Planning Control

36 Documenting Risks Identify Potential Risks that may affect (both positively and negatively) Budget, Scope or Schedule Estimate their Probability of Occurring and their Impact on the project if they occur Develop Mitigation Strategies for high risks

37 Quality Management Quality Planning Quality Assurance Quality Control IdentifyEvaluateMonitor QUALITY MANAGEMENT …means to ensure project will satisfy needs Planning Control

38 Develop Quality Strategy How is quality being addressed on the project? Deliverable Acceptance Criteria –Describe Acceptance Criteria for deliverables as they are turned over to the customer Applicable QA Activities –Define applicable Quality Assurance activities for the project including test and acceptance processes and documentation

39 WBS Process Flow WBS Development Process WORK BREAKDOWN STRUCTURE …identifies all the tasks in a project Develop High-Level WBS Assign High- Level Responsibility Decompose WBS Assign Responsibility to Elements Create WBS Dictionary Review & Approve WBS Baseline WBS Planning Control

40 Project Plan Signoff Signature meaning: Commitment, not a guarantee.

41 Execution and Control Phases Execution Planning Closeout Initiation Control These interactive phases deal with the actual development of the project ‘product’. Project Execution focuses on participating in, observing, and analyzing work being done. Project Control manages processes in order to compare actual to planned performance and takes corrective action when differences exist.

42 Status STATUS …means by which the team and management is informed of project progress ScopeCost Schedule Quality Risk Time Project Elements Status of Phase I Status of Phase II Current Status ExecutionControl

43 Project Status Reports

44 Issue Management

45 Change Control CHANGE CONTROL …identification and management of project changes Change Identified Team Evaluation Committee Review Plans Updated Change Approved Change Implemented ExecutionControl

46 Change Control Request Template General Information (all templates have this section!) Requestor Information Initial Review Results –to move forward with an Impact Analysis Initial Impact Analysis Impact Analysis Results Signatures (Signoff!)

47 Perform Other Project Control Functions Scope Control Quality Control Schedule Control Cost Control Risk Control Contract Administration, if applicable

48 Closeout Phase The Project Closeout Phase involves the administrative and financial efforts needed to close out a project. The product is also transferred to the customer. Execution Planning Closeout Initiation Control *Note: Some Control activities occur in the Closeout Phase.

49 Post Implementation Evaluation Report A Post Implementation Evaluation Report documents successes and failures of the project. It provides a historical record of the planned and actual budget schedule. The report contains recommendations for other projects of similar size and scope. The report documents valuable lessons learned. Closeout Control

50 Obtain Project Sign-Off Meet with stakeholders to get their final approval of the project –They are the reason for the project existing in the first place –Their approval signals the project’s completion!

51 In Summary What is methodology Justification and benefits of a project methodology Purpose of the State Project Management Methodology How does the State Project Management Methodology work?

52 Methodology The techniques, procedures, and means through which work gets accomplished (i.e., phases, processes, templates)

53 Why a Project Management Methodology? Today’s work: tighter budgets, less time, fewer resources. Higher customer and user expectations for quality demand on organized approach. Need a documented path and procedures to control and manage project risk and change.

54 “…provides standard methods and guidelines to ensure that projects are conducted in a disciplined, well-managed, and consistent manner that promotes the delivery of quality products and results in projects that are completed on time and within budget.” What does the State’s Methodology do?

55 How does the Methodology work? Establishes a clearer work definition. Develops a more accurate project schedule and cost determination. Defines expected work packages. Displays when work is in trouble. Creates a plan to ensure work is completed on time. Determines status of work budgets.

56 Additional Efforts Under Way State Unified Information Technology Environment (SUITE) Bringing MDIT to CMM Level 3 Standardizing PM, SDLC, CM, QA into one Framework/Model Multi-year initiative

57 Project Management Resource Center Michigan Department of Information Technology Web site:

58 Questions?? Dan Buonodono