gba 573 - it project management final project - establishment of a project management management...

GBA 573 - IT Project ManagementFinal Project - Establishment of a Project Management Management Office

10 July, 2003

GBA 573 - IT Project ManagementFinal Project - Establishment of a Project Management Office10 July, 2003r

Introduction 2

Project Plan and Schedule 6

Return on Investment 14

Risk Management and Communication Plan 19

Table of Contents

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Introduction


Project Overview

Introduction

Company background ABC Corp is a software and system development company that conducts multiple IT related projects on an ongoing basis.

Recent research has shown that a best practice is to establish an office to lead and manage IT projects.

PMO background and Justification It was determined that a Project Management Office (PMO) would improve ABC’s ability to appropriately and effectively manage and staff IT projects and reduce costs.

Over the last five years projects have experienced trouble either in the form of: Scope creep, resource shortages, increase in costs and delays in project completion, and project failures. Overall ABC incurs an average cost of $348,000 annually.

High Level PMO Responsibilities Consistent project management methodology

A standardized project management tools.

Instituting a project governance process

Project oversight of IT projects company-wide.


Project Overview

Introduction

Project Team Project Manger

Project Team Member 1 – Direct support to Project Manager and workshops

Project Team Member 2 – Development of materials and deliverables

Project Team Member 3 – Administrative support

Executive Review Member – Member from Executive Management to conduct ongoing (weekly status) reviews.

Management – Final PMO Action Plan Review and Signoff.


Current PMO Research

Introduction

Current Research for PMO Project offices will be established in more than 60 percent of IS organizations by 2003 and will often plan and control

project resources beyond IS (0.7 probability).

IT projects undertaken using a proven project management methodology carry less risk and have a greater chance of success than unstructured projects.

A consistently used methodology improves productivity by at least 30 percent (0.8 probability)”.

An organization (of any size) needs a project management methodology when it desires consistent, predictable results and a process that is open to improvement. In the absence of a stable process for IT project delivery, there is no possibility that project management will be consistently improved, because improvements are random and non-repeatable.

Source: Gartner

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Project Plan and Schedule


Project Objectives


The Project Team and Management have identified the following objectives for the PMO and future company projects: Objective #1: Enhance ABC abilities to and capabilities in managing IT projects and services in order to ensure

project success (resources, time, cost).

Objective #2: Increase the business value derived from IT projects and services through utilizing project synergies and resources.

Objective #3: Provide a standard methodology and approach to implementing, managing and executing projects.

Objective #4: Establish a collaborative project management environment.

Objective #5: Ability to effectively manage ABC’s IT projects portfolio.



The Project Team will be staffed with the following positions: Project Manger

Project Team Member 1 – Direct support to Project Manager and workshops

Project Team Member 2 – Development of materials and deliverables

Project Team Member 3 – Administrative support

Executive Review Member – Member from Executive Management to conduct ongoing (weekly status) reviews.

Management – Final PMO Action Plan Review and Signoff.

Staffing


Project Schedule


Project Schedule The project will be split into two overall phases:

Phase I. will be the establishment of the PMO foundation

Phase II. will be the actual implementation of the PMO.

Project Timeframes are as follows: Phase I. – Two Months

Phase II. – Four Years

The two phases will be treated, overall, as two separate projects. This report represents those components of Phase I.

The PMO Project Team will develop the following through consensus building workshops: PMO mission, vision, goals and objectives

PMO initiatives and objectives

PMO roles and responsibilities.

PMO Organizational Structure and Functions

PMO Framework and Processes

PMO Action Plan

Define short term strategies and quick wins to optimize project management capabilities given existing resource limitations


Project Workshops


Workshop 1 - Review Background Information During the first workshop, workshop participants will review background information and relevant trends, methodologies and practices.

Workshop 2 – Assess Current Environment Ensure that internal and external factors are considered

Current resources (e.g., staff skills, funding, project tools), organizational readiness (e.g., culture, organizational support), governance, and project management maturity.

Identify strengths and weaknesses relative to project management, as well as perceived opportunities and threats in the establishment of a PMO (SWOT Analysis).

Workshop 3 – Vision and Mission Statements, Goals and Objectives Based on input solicited from the interviews, research, trends and best practices

Develop draft Vision and Mission Statements along with associated Goals and Objectives.


Project Workshops


Workshop 4 – Organizational and Staffing Structure Development of proposed organizational structure for the PMO

Develop recommendations for staffing roles and responsibilities and organization structure

Workshop 5 – Identify PMO Framework and Processes Review best practice PMO framework material and implied PMO processes

Review project lifecycles and processes

Focus on consensus-based adoption of project management lifecycle



ID Task Name Duration Start

1 Phase I 48 days Mon 8/4/03

2 Project Initiation 2 days Mon 8/4/03

3 Project Planning Rev iew Meeting 1 day Mon 8/4/03

4 Project Kickof f Meeting 1 day Tue 8/5/03

5 Conduct Preliminary Research 7 day s Mon 8/4/03

6 Workshop I - Review Background Information 4 days Wed 8/13/03

7 Dev elop Workshop Materials 3 day s Wed 8/13/03

8 Conduct Workshop 1 day Mon 8/18/03

9 Document Workshop Results 1 day Mon 8/18/03

10 Workshop II - Assess Current Environment 4 days Tue 8/19/03

11 Dev elop Workshop Materials 3 day s Tue 8/19/03

12 Conduct Workshop 1 day Fri 8/22/03

13 Document Workshop Results 1 day Fri 8/22/03

14 Workshop III - Vision, Mission, Goals and Objectives 4 days Mon 8/25/03

15 Dev elop Workshop Materials 3 day s Mon 8/25/03

16 Conduct Workshop 1 day Thu 8/28/03

17 Document Workshop Results 1 day Thu 8/28/03

18 Workshop IV - Organizaton and Staffing Structure 6 days Fri 8/29/03

19 Dev elop Workshop Materials 4 day s Fri 8/29/03

20 Conduct Workshop 2 day s Thu 9/4/03

21 Document Workshop Results 1 day Fri 9/5/03

22 Workshop V - Identify PMO Framework and Processes 7 days Mon 9/8/03

23 Dev elop Workshop Materials 5 day s Mon 9/8/03

24 Conduct Workshop 2 day s Mon 9/15/03

25 Document Workshop Results 1 day Tue 9/16/03

26 Dev elop Draf t PMO Action Plan 10 day s Wed 9/17/03

27 Rev iew PMO Action Plan with Management 3 day s Wed 10/1/03

28 Finalize PMO Action Plan 2 day s Mon 10/6/03

29 Conduct Project Closeout Meeting 1 day Wed 10/8/03

7/27 8/3 8/10 8/17 8/24 8/31 9/7 9/14 9/21 9/28 10/5 10/12July 2003 August 2003 September 2003 October 2003

Project Schedule - Phase I.


Project Deliverables


Project deliverables include the following: Develop of workshop materials

Conducting workshops

Documentation and dissemination of workshop results

PMO Action Plan Document high-level action items necessary to establish the PMO and implement its initiatives.

PMO Requirements (resources, timelines, functions, organization, responsibilities, etc.)

Implementation Strategies

Implementation Schedule

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Return on Investment


Expected BenefitsReturn on Investment

The primary benefit to establishing the PMO is the improved control and management of projects including the reduction of: Delayed projects

Scope creep

Resource increase

Cost overruns

Project failure

Average total annual loss due to the above factors: Delayed Projects $55,000

Scope Creep $64,000

Resource Increase $26,000

Cost Overruns $78,000

Project Failures $125,000

Totals $348,000


Expected CostsReturn on Investment

Phase I CostsCosts associated with Phase I of the project are displayed in the table below:

Steps Associated Deliverables HoursResource

Cost*

Project Planning and KickoffMeeting

MS PowerPoint Presentation MS Project Schedule MS Word Project Status Reports

25 $2,500

Task 2. Conduct PreliminaryResearch

Research documents as required Documentation Checklist

30 $3,000

Task 3. Conduct PMOWorkshops

Findings Review Constraints and Opportunities PMO Mission and Vision, Goals

and Objectives PMO Organizational and Staffing

Structure Best Practice PMO Review

and Organizational WorkflowRequirements

116 $11,600

Task 4. Develop PMORequirements and Action Plan

Action Plan Management Presentation

48 $4,800

Total 219 $21,900


Expected Costs

Return on Investment

Phase II Costs

Cost associated with Phase II are displayed in the table below:

Steps Associated Deliverables Hours ResourceCost*

Implementation of PMO PhaseI Results

350 $35,000

Methodology Development 80 $8,000

Project Manager Training On-time costsAnnual Costs

NA $10,000$8,000

Re-organization tasks andbusiness processreorganization

125 $12,500

Ongoing Department SupportBudget

Annual Costs NA $125,000

Contingency of 10% $15,550

Total NA $214,050


Break Even AnalysisReturn on Investment

Total first year costs are $235,950, this represents a return on investment in 8.6 months after implementation.

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Risk Management and Communication Plan



Risk Management will be assessed on an ongoing basis throughout the project from the project planning phase through project closeout.

Project risk will be divided into the following areas and assessed: Strategic Risk – Alignment with overall business strategy, objectives being met, and management commitment

Financial Risk – Staying within project budget, cost and benefits being realized, payback period defined and on target.

Project Management Risk – Ongoing team experience and balance, on schedule, milestones being met, scope changes, and issues.

Change Management and Operational Risk – Ongoing acceptance of deliverables, stakeholder acceptance, impact of project failure and are staff issues being addressed.

Risk Management



Communication Plan will address the following: Organizational Structure

Organizational Chart

Contact Information

Roles and Responsibilities

Regularly Scheduled Meetings Meetings

Description

Participants

Frequency

Project Documentation Project Documents

Responsibility

Frequency

Distribution Group

Escalation Procedures

Communication Plan

GBA 573 - IT Project ManagementFinal Project - Establishment of a Project Management Management Office

10 July, 2003