Agenda
• Learning Objectives
• Duke Energy at a Glance
• Project Management Center of Excellence (PMCoE) Overview
• PMCoE Governance
• Tools Should be Transferrable for Different Project Types
• Strategic Initiatives
• Take-Aways and Wrap-Up
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Learning Objectives
• Examine the governance framework of the Duke Energy PMCoE
• Describe and compare the roles and relationships of the Duke
Energy PMCoE and our PMOs/Major Projects Groups
• Understand the advantages a flexible framework for project
governance
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Duke Energy Overview
• World’s largest publicly traded utility
• Fortune 250 company
• Serving 22 million people
• Employing 28,000+
• $6B+ annual capital spend
• $2B+ annual O&M spend
• Operations in:
• Regulated business
• Renewables
• Commercial transmission & power
• International markets
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Types of Projects:
Shared Services
Finance
• Financial System
Integration
• Sales & Use Tax
• Enterprise non-
retail Billing
IT
• SharePoint Upgrade
• Workstation Refresh
• Active Directory Integration
• Enhanced Cyber Security
• Digital Acceleration
• Customer Information Systems
Human Resources
• Job
Harmonization
• PeopleSoft
Integration
• PeopleSoft Self
Service Upgrade
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Types of Projects:
Traditional Utility
Renewable Energy
• Solar Joint
Ventures in AZ, CA,
NJ, MA and PA
• Duke Owned Solar
Projects in NC, TX,
CA, AZ, and FL
• Duke Owned Wind
Projects in TX, WY,
PA, KS, CO and WI
• Notrees Battery
Storage Project
Construction
• Coal Plant
Retirement
• Environmental
Retrofits to
Existing Plants
• New Plant
Construction
Generation & Distribution
• Fukushima
Response
• Transformer
Replacements
• Capacity
Upgrades
• Transmission
Sub Stations
• Smart Meter &
Grid
Modernization
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PMCoE vs. PMO/Major Projects
• A PMO is an important central hub with a mandate to coordinate and deliver all project activities as determined by the organization's needs.
• The PMO strives to standardize and introduce economies of repetition in the execution of projects.
• Tasks may include monitoring and reporting on active projects, programs and sub-portfolios, and reporting progress to top management for strategic decisions on what projects to continue or cancel.
• The PMCoE is a central hub with a mandate to provide a consistent framework to deliver the organization’s projects consistently.
• The PMCoE supports the PMO in the execution of projects and continuously improves corporate governance.
Policy
PMCoE “What”
Dep’t Procedures “How”
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PMCoE Mission & Vision
• Vision: Become the Industry Leader in Project Management
• Mission: The PMCoE will:
• Establish a consistent and scalable process leveraging best
practices,
• Provide training, tools and oversight to enhance project
performance and certainty,
• Engage the project management community to focus on the
pursuit of excellence, knowledge sharing and skills development.
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PMCoE Framework
Best Practices Lessons Learned Benchmarking
PMCoE Policy & Standards
Career Path Development
Policy & Standards Training
Tools & Templates
Team Workshops
Answers to Questions
Diagnostics such as
Acumen Fuse Schedule Analysis
Assessments Portfolio Reviews
Reviews
Independent Estimate Stage Gate
Support Services
Project Management Center of Excellence
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Governance Hierarchy
Company Policies
PMCoE Standards
Implementation Standards
General Reference
• Tier 1 – Policies, Laws and
Regulations (POLICY)
• Tier 2 - Enterprise Standards
(ENTSTD)
• Tier 3 – Implementation
Standards (IMPSTD) of
PMOs/Major Projects groups
• Tier 4 – General Reference
Materials (GENREF) such as
the PMBOK
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Project Investment Lifecycle
Plan Execute Develop Assess Scan Operate & Maintain Value Inputs
Identify Opportunity
or Threat
Determine Impact / Benefit,
Timing and Potential
Responses
Refine Candidate Responses (Projects)
and Prepare for Initiation
Develop Project Plan and Prepare for Execution
of Major Commitments
Execute Commitments, Refine the Plan and Prepare for
Construction and Installation of
Assets
Construct and Install Assets,
Turn Over Assets to the Receiving Asset Owner and Prepare for Close
of the Project
Operate and Maintain Assets
Delivered by Project Generate Return on
Investment
Retire at End-of-Life
or Disposition
Asset
a b c d e f g h
Build Commit Initiate Select Identify Close Commission
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Enabling a Scalable Project
Management Framework
Project Rank and Assignment
Cost plus Complexity = Project Rank
Project Complexity
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Project Rank Comparison
0%
20%
40%
60%
80%
100%
Project Count Project Spend
Black Brown Green 3 Green 2 Green 1 White
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The Project Delivery System
Green III Brown Brown Black
Green II Green III Brown Brown
Green I Green II Green III Brown
White Green I Green II Green III
BlackSenior Project Director
Principal Project Controls Specialist
BrownProject Director
Senior Project Controls Specialist
Green IIISenior Project Manager
Senior Project Controls Specialist
Green IIProject Manager II
Project Controls Specialist
Green IProject Manager I
Associate Project Controls
WhiteAssociate Project Manager
Associate Project Controls
Black
Brown
Green III
Green II
Green I
WhiteCompliance with PMCoE Standards at Department
Discretion
Required Compliance with PMCoE Standards
Required Compliance with PMCoE Standards including
additional requirements defined in Attachments
[1] Determine Project Profile Matrix Rank
[2] Assign Rank-Appropriate
Organization & Project Management
[3] Use Rank-Appropriate
Processes, Tools & Templates
[4] Deliver Products & Services According
to Plan
Select Initiate Close Develop Plan & Execute
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Change Management Approach
•Coalition Building (Executive Level Presentations)
•Active & Visible Participation (EGC Meetings)
•Direct Communications (Up, Down and Across Organization) Sponsor Engagement
•Identify Change Agents in Each Department
•Collaborate with Change Agents to Align Department Processes
•Workshops with Project Teams
Coaching & Org Transformation
•Enterprise-Wide Cascading Communication
•Recurring Communications Communication
•Executive Series
•Management Series
•Performance Series Training
Resistance Management
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The Relationship Between
Change Management & Risk • A holistic process for managing change within the portfolio does not
magically solve the problem of change collision and change
saturation.
• No matter how well executed, the more change introduced in an
environment increases risk.
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Managing Change within a
Portfolio Helps Manage Risk • There are a number of reasons organizations need an approach for
managing the portfolio of change underway.
• The most common reasons for such an approach include:
• The ever increasing amount of change organizations are facing.
• The potential for change saturation.
• The consequences of change collision.
Manage Change
Leadership
Strategy Execution
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Portfolio Performance
Enterprise
Division
Business
PMO
• Within Duke Energy, Portfolio Performance is observed at many
levels:
• At the PMO Level
• At the Line of business level
• Across the Division
• Across the Enterprise
• Portfolio Performance should be transparent
and facilitate decision making.
• Portfolio Performance should not only include
cost and schedule but also include potential
risks and escalated issues.
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Governance Tools
Decision Matrix
Decision Matrix Project Team
Program
Management
Team
PMO and/or
Steering
Committee
Executive Sponsor
Funding Body
and/or Division
Executive
Board of Directors
and/or Senior
Executives
What can project teams decide?
Decisions that align with current,
approved scope Decide Endorse N/A N/A N/A N/A
Decisions that align with corporate
processes that do not impact items
listed below Decide Endorse N/A N/A N/A N/A
What must project teams escalate?
Decisions that impact other
projects or initiatives within the
Program
Recommend Recommend Endorse or Decide N/A N/A N/A
Decisions that impact schedule
such as major milestones or critical
path (Positive or Negative) Recommend Recommend
Recommend or
Decide
Recommend or
Decide
Recommend or
Decide Decide
Decisions that impact scope other
than what is approved Recommend Recommend
Recommend or
Decide
Recommend or
Decide
Recommend or
Decide Decide
Decisions that impact regulatory,
safety, or compliance Recommend Recommend
Recommend or
Decide
Recommend or
Decide
Recommend or
Decide Decide
Decisions that impact the business
beyond the original Program
Management Plan boundaries Recommend Recommend
Recommend or
Decide
Recommend or
Decide
Recommend or
Decide Decide
Decisions that impact budget Recommend Recommend
Recommend or
Decide
Recommend or
Decide
Recommend or
Decide Decide
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Governance Tools
Independent Estimate Review
• The Independent Estimate Review includes elements that should be reviewed to determine the success of the project at certain stage gates.
• Some elements are not applicable for every project given their stage in the project life cycle and others are more important than others at certain phases. • Schedule – Performance, Quality, Estimations
• Financials – Budget, Forecasting, Variance Analysis
• Risks – Contingency, Estimate Uncertainty, Monetization, Risk Register, Level of Certainty, Escalation Process
• Issues - Issue Log, Resolution Process, Escalation Process
• Scope - Change Control Process, Number of pending and approved
• Estimate – Basis, Assumptions / Inclusions / Exclusions, Class discussion / validation, Contracting Strategy
• Lessons Learned
• Benefits / Value Management
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Future Initiatives
• Continuously Improved Project Management Framework
• Mature Management of Tail and Reputational Risks
• Mature our benefits realization process
• Highly Skilled and Effectively Utilized Workforce of Project Professionals
• Comprehensive Workforce Strategy
• Match portfolio to human capital
• Attract > Develop > Retain > Re-Deploy
• Business Analyst Addition to Project Management Job Family
• Transparent Project and Portfolio Performance
• PPM Deployment
“A consistent enterprise framework enables maturation of the project management competency”
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Key Take-Aways
• PMOs and PMCoEs must adapt to business needs and culture of
their organization
• Effective governance should be scalable and aim to provide
transparency in decision making
• Tools should be transferrable for different project types
• Excellence is a journey – actively benchmark and don’t work in a
vacuum!
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• Jennifer Baker
• www.duke-energy.com
• www.linkedin.com/in/jenniferayoung
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