1. Enlightened Project Management
at the State of Minnesota
Presentation to PMI-MN Chapter
By Rex Andre
Director, Project Management Office (PMO)
Office of Technology
19 September 2002

2. What you’ll learn tonight
An understanding of the challenges of state government from a Project Management point of view
Profile of state government (at Minnesota)
How you might set up your own Project Management Office (PMO)
Minnesota’s conceptual approach to a statewide PMO
The 5 key focus areas of a good PMO
Measures of success
Where can I get tons of great information to use RIGHT NOW!
Who can I call?

3. Agenda Special State Government Profile
Research on Project Management Offices (PMO)
Main PMO Goals
Conceptual Model
Project Management (PM) Framework
Project Management Academy Goals
Oversight
Portfolio Management
Measures of Success

4. Profile of MN State Government
What does the State of Minnesota look like - as an entity, as a company?
Minnesota State Capital

5. How Big Is Our Company?
Over 53,000 Employees!
State Capital Monument

6. Who governs the State of Minnesota’s activities?
Minnesota State Seal
Yes, the Governor is at the top..but

7. The Breadth of the “company”
5 Constitutional Offices!
134 Legislators & 67 Senators!
25 Departments and Respective Commissioner’s!
6 Offices within the Judicial Branch!
73 State Boards, Commissions, Councils, Ombudsman, Office and Task Forces!
The Educational, and Library Systems & Catalogs!
AND the Governor!
ALL Representing 4,919,479 Minnesota Residents!
Common Loon – Minnesota State Bird

8. Minnesota works with 8 Unions!
AFSCME – American Federation State County Municipal Employees
MAPE – Minnesota Association of Professionals
MGEC – Minnesota Government Engineers Council
MMA – Middle Management Association
MNA – Minnesota Nurses Association
SRSEA – State Residential Schools Educational Association
Commissioner’s Plan – Commissioner’s Plan
Manager’s Plan – Managerial Plan

9. Project Management at the state?
What Else?
What else impacts
Project Management at the state?
Monarch – Minnesota State Butterfly

10. Financial/Strategic Check and Balance
Strategic Planning and the Biennial Budget Reviewed by:
The Minnesota Office of Technology
The Department of Finance
The Governor’s Office
The Legislature
Lady Slipper – Minnesota State Flower

11. Lake Superior Agate – Minnesota State Stone
Other Challenges
Other Impacts:
Every agency is governed by statutes 
Numerous H.R. Departments (almost one to every agency)
All information is public
SIZE - Hundreds of state owned facilities, millions of constituents and a very unique budget/ financial situation!
No project manager job class
Meetings – some attendees are packing loaded guns
Lake Superior Agate – Minnesota State Stone

12. Project Management at State of Minnesota
 All the impacts and differences aside, how is Project Management handled in the State of Minnesota?

13. What the (PMO) Research says……..
“By 2004, 70% of successful projects will have certified project managers, while 90% of failed projects will not have certified project managers (0.7 probability). Source: Gartner, Inc.
“Through 2004, IS organizations that establish enterprise standards for project management, including a project office with suitable governance, will experience half the major project cost overruns, delays and cancellations of those that fail to do so (0.7 probability). Source Gartner, Inc.
“…more than 40 % of client organizations have implemented some form of project office “professionalize” project management for AD, infrastructure change and large-scale systems migrations. Source Gartner, Inc.

14. What the (PMO) Research says……..
“Through 2004, without significant changes to its project management processes, an AD organization of 100 developers can expect to spend more than $10M on canceled software projects. Source Gartner, Inc.
“Project offices are the cornerstone for a project management improvement initiative. They provide a center for best practices, expertise, and the knowledge needed to projectize an organization”. Source: PM Solutions

15. What the (PMO) Research says……..
“The word is out—organizations that do not implement a Project Office will experience as much as a 50% failure rate in their projects by the year The reason is simple. Projects are no longer managed in isolation. Portfolio and program management is now the norm. This requires a different approach; one that can only be coordinated and controlled by a centralized project organization.” Source: A Standish Group report for the International Institute for Learning, Inc.

16. PMO Vision and Mission Statements
Enabling excellence in the management of projects
Mission:
To enable successful completion of projects and realize their benefits, the Project Management Office will:
Collaborate and partner with State agencies to help ensure achievement of their project goals and objectives
Conduct project tracking, review and oversight on behalf of the Legislature
Encourage adherence to repeatable project management processes with established standards and measurement criteria
Provide sustainable project management methodology and best practices tools
Coordinate statewide project management training, coaching and mentoring programs
Actively participate in project governance

17. PMO Fundamental Project Goals
Develop a Project Management Academy:
Deliver a standard curriculum of project management training and coaching designed to encourage professionalism and discipline in project management
Develop a common language, measures, evaluation tools and approaches to risk assessment
Establish the Project Manager as a critical skills professional with a formal position description and salary range steps
Provide Project Oversight:
Implement a consistent approach to project data collection and reporting that correlates project benefits against project objectives
Support Agency Program/Project Reviews
Measure anticipated project benefits through project outcomes evaluation
Provide Project Consulting:
Provide coaching and mentoring to project managers and sponsors
Advise the legislature, agencies, commissioner, and the governor on the appropriateness and impact of technology decisions
Research answers to legislative questions and concerns regarding technology activities
Continue to analyze IT plans

18. Project Management Office-State of Minnesota
Support Project Management and Project Oversight
Project Manager Mentoring and Coaching
Review Statement of Work and Request for Proposal
Assist in setting up Agency Project Management Offices
Phase and Project Reviews
Provide Project Management “Best Practices” Training and Coaching
Establish Project Manager as a Critical Skill Professional
Provide Methodology
Provide Templates
Provide Tools
Implement a consistent approach to project data collection and reporting that agencies may follow
Support Agency Program/ Project reviews
Help agencies measure anticipated project benefits by providing project outcomes evaluation methodology, templates and tools
Provide a PMO web-site that allows convenient access to Project Management information as well as the Enterprise PMO methodology, templates and tools
Project Management Collaboration through the Web Site
Assist agencies in integrating project management practices into agency processes and projects
Build efficiency across state projects and avoid redundancy across the enterprise.

19. Project Management Framework
Project Management Stages
Project Initiation
Project Sponsor
Business Case
Initial Funding Approval
Activities/Deliverable
Project Manager
Steering Committee
Scope Statement
Work Plan (WBS)
Project Controls
Resource Management
Project Planning
Activities/Deliverable
Status Tracking & Reporting
Steering Committee Meetings
Issues Management
Change Control
Phase Reviews
Risk Management
Project Managing
Activities/Deliverable
Project Acceptance
Post Implementation Review
Outcomes Evaluation
Project Completion Report
Project Closeout
Activities/Deliverable
Implementation
Testing
Rollout
Analysis
Design
Business
Assessment
 Example funding checkpoints in the software project life cycle 
Project Discipline Methodology (software example)

20. Project Management Framework
Project Management Methodology to define best practices with supporting templates:
Supported By
tools
Best Practices
Business Case
Budget
Sponsor
Steering Committee
Scope Statement
Work Breakdown Structure
Resource Management
Status Report
Issues Management
Change Control
Risk Management Plan
Outcomes Evaluation
Project Management Stages
Project Initiation
Project Sponsor
Business Case
Initial Funding Approval
Activities/Deliverable
Project Manager
Steering Committee
Scope Statement
Work Plan (WBS)
Project Controls
Resource Management
Project Planning
Activities/Deliverable
Status Tracking & Reporting
Steering Committee Meetings
Issues Management
Change Control
Phase Reviews
Risk Management
Project Managing
Activities/Deliverable
Project Acceptance
Post Implementation Review
Outcomes Evaluation
Project Completion Report
Project Closeout
Activities/Deliverable
More Best Practices
Project Charter
Cost Benefit Analysis
Resource Plan
Project Budget Estimate
Organizational Change Management Plan
Quality Plan
Communications Plan
Configuration Management Plan
Project Planning Evaluation Checklist
Sponsor
Steering Committee
Scope Statement
Status Report
Implementation
Testing
Rollout
Analysis
Design
Business
Assessment
 Example funding checkpoints in the software project life cycle 
Project Discipline Methodology (software example)

21. Scope Statement Template
Why are we doing it?
1. Executive Summary
2. Business Objectives
A. Business Need or Opportunity
B. Business Objectives
C. Product Description (Solution)
D. Deliverables
What does the effort look like?
3. Project Description
A. Scope
B. Completion Criteria
C. Risk Assessment
D. Constraints
E. Dependency Linkages
F. Impacts
G. Measures of Project Success
H. Assumptions
I. Critical Success Factors
J. Roles and Project Stakeholders
How are we going to do it?
4. Project Approach
A. Planned Approach
5. Project Estimates
A. Estimated Schedule
B. Resource Requirements
C. Estimated Cost
D. Checkpoint/ Funding Schedule
How will we manage it?
6. Project Controls
A. Steering Committee Meetings
B. Monthly Status Reports
C. Risk/Contingency Management
D. Issue Management
E. Change Management
F. Communication Management
Who has the responsibility?
7. Authorizations
A. Scope Statement Approval
B. Project Changes Approval
C. Project deliverables approval & acceptance
8. Scope Statement Approval

22. Academy Purpose
The Academy will contribute to the success of state information technology projects by helping develop skilled project managers through an effective training and certification process.

23. Academy Goals
Deliver a standard curriculum of project management training and coaching designed to encourage professionalism and discipline in project management
Develop a common language, measures, evaluation tools and approaches to risk assessment
Establish the Project Manager as a critical skills professional with a formal position description and salary range steps

24. Academy Audience Project Managers-new Project Managers-seasoned
Vendors
Employees aspiring to project management
Agency Heads
Management
Commissioners
Legislators

25. Academy Curriculum Procedures Workshops
Project Management Methodology Framework and Templates
Oversight Best Practices
Status Reporting
State of Minnesota IT Project Initiation – Biennial Budget Request Preparation
Procurement Management Processes
PMO Overview for Contractors and Consultants
Project Management Core Training
Project Management Fundamentals
Advanced Project Management
Project Manager Skill Set Classes
Project Risk Management
Project Scheduling
Project Communications Management
Project Roles and Responsibilities
Benefits and Limitations of PM Tools
Project Cost Management and Budget Control
Project Human Resource Management
Project Time Management
Project Quality Management
Project integration Management
Project Scope Management
Practitioners’ Forums
Setting up an Agency Project Management Office / Agency Project Coordination
Executive Seminars
Project Management Executive Overview
Oversight Best Practices for Executives
Your Role as a Project Sponsor
Your Role as a Steering Committee Member

26. Oversight… Who needs it? Show me a basic example
Isn’t this a part of Portfolio Management?

27. Oversight User Needs
Agency Commissioner or CIO wanting a roll-up of all agency projects to view “status at a glance”.
Program/Project Manager wanting to determine status of another dependent project.
Resource Manager needing to assess which projects will be completing and freeing up resources.
Finance committee needing specific project budget status or summary roll-up budget information.
Special funding boards wanting to review funding checkpoint schedules and status.
Legislators and Committees wanting ad-hoc status and outcomes evaluation on different projects.
Vendor Management wanting to evaluate vendor performance relative to project status and outcomes assessment.
Statutes 16E.04
“ A risk assessment and risk mitigation plan are required for an information systems development project estimated to cost more than $1,000,000.”

28. The Essence of the PM “Deliverables”
Initial Engagement with Project Manager - Initialize
Business Case - Business goals before implementation
Scope Statement - Project Manager’s “contract” with sponsor
Funding Checkpoint Plan - No money for next stage till review
Monthly Status Report - Are we on target
Project Reviews - as needed overall review and recommendations
Project Closeout Report - Did we meet the objectives
So, how do these best practices support Portfolio Management?

29. Oversight/Project Life Cycle
Approved Budget ?
Business Case
Projects
17. BHS
1. Testing / QA
2. Customer
Support
3. Med /Surg
Updates
4. Disability
5. Distributed Data
Arch
6. Remote Dial In
(IMS)
7. Physician
Referral 8.
Outcomes
9. Archive, Extract,
Update
10. Business
Development
11. Critical
Pathway
12. CCM
13.
Reporting
14. Med / Surg
Additions
15. Specialty
Guidelines
16. User defined
LOS
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Market Analysis
Product Development
Take To Market
Project Status
Outcomes
Assessment
Color is red
Four wheels
Owners manual
Maintenance manual
Within budget
On time
Cost
Schedule
Scope
Issues
Change control
Plans
What’s a
project?
end date
start date
Specific tangible deliverables are produced:
For example a “red car”
Scope Statement
Resources

30. Enterprise Portfolio Management
Budget Approval “Stuff”
Budget Approval
Prepare for Budget Review
Finance Recommendations
Approved
Budget
Budget Review
Agency IT Strategic Plan
Agency IT Strategic Planning
Agency Strategic Plan
Strategic “Ideas”
Agency Strategic Planning
Project Concept
Business Case
SIRMP
Strategic Planning Process
The Handshake
Business Case
Project Planning
Scope Statement
Project Manager
Project Sponsor
Steering Committee
Project Initiation
Enhancements
Enterprise Architecture
Project Management Process

31. Project Tracking & Outcomes Evaluation
Project Management Office
Finance
Approved
Budget
Project Management Methodology
Project Execution
Status
Report
Business
Case
Project Initiation
Project Planning
Scope
Statement
Project Closeout
Outcomes
Assessment
Implementation
Testing
Rollout
Analysis
Design
Business
Assessment
 Example funding checkpoints in the software project life cycle 
Project Discipline Methodology (software example)

32. Project Portfolio Architecture
Enterprise
Portfolio
Management
Oversight
Technology
Enterprise
Board
Risk Management
Enterprise
Project Portfolio
Management
Maintaining The
Enterprise
Project Portfolio
Project Baseline
Business
Case
Scope
Statement
Status
Report
Outcomes
Assessment
Project Portfolio Management
Utilizing The
Enterprise
Project Portfolio
Summary
Project
Query
Interpret the strategic plans
Initiate projects
Review and approve scope statements
Conduct project reviews
Review and approve project changes
Resolve issues
Manage budget and resources
Make go/no-go decisions
Cancel projects

33. Measures of Success
Commissioners, Agency heads, Governor’s office and Legislators get the information and oversight they planned and expected
The PMO provides added value and has noticeable impact on agency successes
A “just-right” project management curriculum is established
Rollout of the PMO goals and deliverable are on time and continuous across agencies
Appropriate functionality is added as culture grows

34. For More Information……………..
PMO Web Site
PMO Support
Rex Andre
Director, Statewide Project Management Office
Office of Technology