Project Management Office EvolutionChuck Coletta, Senior Partner, Computer Sciences Corporation

Agenda

Industry trends and IT challenges

Introducing enterprise project management

The CSC E-PMO offering

Results of deployment

Issues and critical success factors

Microsoft Office EPM Solution

Next steps and resources

About CSC

Among world’s leading IT services companies

Solutions help clients manage complex projects

Experts deliver real-world experience

Microsoft Enterprise Premier Partner

Founded in 1959

More than 92,000 employees

Revenue exceeds $12 billion

Industry Trends

IT departments must:Evolve from cost center to strategic partner

Successfully manage IT investments

Deliver more with fewer resources◆ Respond to market demands

Challenges to IT EfficiencyThe IT industry has a history of failing to deliver projects within targeted budget, schedule and quality criteria.A recent study of 175,000 IT projects conducted by Standish Group International reports:

88% of projects run over schedule, over budget or both. The average cost overrun is 89% of original estimates.The average time overrun is 222% of original estimates.

31% of all projects are cancelled before completion.For every 100 projects, 94 restarts occur.

Ramifications:Business benefits of active initiatives are postponed or never realized.Proposed initiatives are cancelled to offset existing overruns.

Source: The Standish Group

Challenges to IT Effectiveness

Gartner study reports that 65% of companies lack confidence in the ability of IT to further business goals.

AMR Research indicates that:75% of IT organizations employ non-repeatable, chaotic portfolio planning processes.

84% do not consistently create business cases to drive their IT investments.

Companies following formal portfolio management methods save 2 to 5 percent annually on their IT budgets.

Ramifications IT projects are not aligned with business goals.

IT budgets are not allocated optimally.

IT Points of FailureOrganizations spend little effort managing their portfolio of IT initiatives, monitoring ongoing requests, and aligning IT initiatives with business strategy. Organizations have difficulty understanding how to create program and project organization structures within their existing functionally based enterprise. Organizations don’t address the change management issues required to support desired behavioral changes proactively.In-house project management efforts often lack the capabilities needed to manage large, complex projects effectively. Projects are launched, and work requests are approved without a clear understanding of business goals an understanding of desired outcomes.Basic project management disciplines are not followed rigorously throughout the project lifecycle Organizations address project failures by implementing piecemeal solutions that target only selective problem areas.

Enterprise Program Management – a Solution?

Forrester: Nearly 70 percent of organizations have implemented some type of PMO organization.

CIO Magazine: Organizations have difficulty showing a positive ROI for their PMO investments.

Clearly, to improve the efficiency and effectiveness of the PMO organization, a new approach is needed.

The Role of EPMOptimize IT investments

Potential projects identified through business and IT strategy sessions Portfolio management methods used to evaluate business and technical value of proposed initiatives

Manage projects more efficiently Standard processes establish a common playbook. Defined governance structures enforce responsibility and accountability. Centralized project information provides an “early warning system” for troubled projects.Centralized resource information enables optimal allocation of limited resources. Collaboration tools improve communication among team members.

Institutionalize continuous improvementEstablish baseline capabilities Capture best practices and encourage re-use

Change Control BoardDemand Management: Assess,

prioritize and approve eachRequest

Change Control BoardDemand Management: Assess,

prioritize and approve eachRequest

Release Management: Coordinate an integrated

release process to optimize resource use and

provide sustainable improvements

Release Management: Coordinate an integrated

release process to optimize resource use and

provide sustainable improvements

Objective:Deliver requests

on-time, on-budget, in a

predictive manner

Objective:Deliver requests

on-time, on-budget, in a

predictive manner

Objective: Respond to the requests that add business

value

Objective: Respond to the requests that add business

value

Objective: Capture

break/fixes, enhancements, etc. and route to responsible

areas

Objective: Capture

break/fixes, enhancements, etc. and route to responsible

areas

App

rove

d R

eque

sts

S

ervi

ce

Req

ues

ts

E- PMO

Operational PMO

Governance CouncilPortfolio Management:: Assess Benefit / Risk Profile for each

initiative

Governance CouncilPortfolio Management:: Assess Benefit / Risk Profile for each

initiative

Project Management: Direct and monitor

execution of initiatives to deliver business results

Project Management: Direct and monitor

execution of initiatives to deliver business results

Laun

ched

In

itiat

ives

Str

ateg

ic

Initi

ativ

es

WorkFunnel

Information

Technology

Business Strategy

Delivery PMO

Y o u r B u s i n e s s S t r a t e g yObjective: Integrate

Business & IT Strategies into a Fused Business

/ IT Strategy

Objective: Integrate

Business & IT Strategies into a Fused Business

/ IT Strategy

Objective: Select initiatives that collectively

maximize business benefit with acceptable

risk

Objective: Select initiatives that collectively

maximize business benefit with acceptable

risk

Objective: Deliver initiatives

on time, on-budget and meet

user requirements

Objective: Deliver initiatives

on time, on-budget and meet

user requirements

Strategic Requests

Integration

Traditional PMOs

E-PMO Can Generate Significant Results

CMM Level 1 to 2 CMM Level 2 to 3 Total GainERP 0.6 0.17 0.77Non-ERP 0.3 0.2 0.5Avg all IT 0.45 0.19 0.64* Based on actual results over 3 year period (1999 -2002)

IT Focus Area

DuPont IT Productivity Gain

Chicago Board Of Trade implemented a PMO that resulted in a ROI of more than 275% and delivered $14M in annual benefits.

By moving from CMM Level 1 to Level 3, DuPont Chemical Group realized more than $10M of savings a year.

E-PMO uses a playbook based on the Capability Maturity Model (CMM) framework, a five-level roadmap for improving delivery.

Optimizing (5)Focus on Process

Improvement

Optimizing (5)Focus on Process

Improvement

Managed (4)Process Measured and

Controlled

Managed (4)Process Measured and

Controlled

Defined (3)Process CharacterizedFairly Well Understood

Defined (3)Process CharacterizedFairly Well Understood

Repeatable (2)Can Repeat Previously

Mastered Task

Repeatable (2)Can Repeat Previously

Mastered Task

Initial (1)Unpredictable and Poorly Controlled

Initial (1)Unpredictable and Poorly Controlled

Most Organizations

Operate at Level 1

Our Point of View

A Roadmap for Success

E-PMO Component Release 1 Release 2 Release 3

Strategy Establish PMO strategy

Align IT projects to business strategy

Implement portfolio management processes

Process Implement basic project management processes

Implement program management processes

Implement system development methodology

Organization Implement PMO organization structure

Provide Microsoft® Office Project training

Implement program governance structures

Roll out project management training program

Roll out assessment and coaching programs

Tools Implement Microsoft Project/Microsoft Office Project Server

Install add-on tools (risk management, earned value)

Provide links to in-house financial systems

POV Failure Areas Addressed:

PM disciplines missing

Unclear goals and objectives

Lack of organizational governance

Piecemeal solution approach

No business-IT alignment

Lack of organizational governance

Lack of in-house project management capabilities

PM disciplines missing

No portfolio management

PM disciplines missing

E-PMO ResultsEffectiveness

Integration of business and IT strategies Institutionalized portfolio management techniquesOrganizational change plan designed and implemented to deal with the human factor

Executive alignmentManagement commitmentCulture TrainingRewards and recognitionCommunication

Executive Dashboards provide “early-warning systems” for potential problemsDelivery of complete, holistic solutionsStandardized, common project management and system life cycle methodologies

E-PMO Results

EfficiencyImplemented standard project management processes and procedures Implemented estimating, planning and tracking tools that support the processes and procedures Implemented standard reporting tools that minimize administrative activitiesAvailable industry best practices that help to avoid “re-inventing the wheel” on each new project Knowledge repository created with assets tailored uniquely for the organization’s needsIncreased team collaboration

Issues You Might Face

Organizations focused on piecemeal solutions rather than the holistic issue Reluctance on the business side to actively engage IT in strategic efforts Reluctance on the IT side to actively engage the business during the project life-cycle Reluctance of PMs to change existing project management practices Reluctance of the organization to hold their employees accountable for specific tasks

Critical Success Factors

Executive alignment

Management commitment

Willingness to adopt rigorous, disciplined processes

Training

Ongoing mentoring and coaching

US Army Wholesale Logistics Modernization

Program (LOGMOD)

Chicago Board of Trade

The World’s Leading Futures Exchange sm

Working With a Proven Partner

“By 2006, more than 50% of IS organizations will have adopted a mix of project portfolio management application services for managing team collaboration, allocating resources, and tracking utilization and costs.”- Gartner, Inc., July 2003, “Magic Quadrant

for Project Portfolio Management”, Matt Light

EPM is Growing!

Visibility into key initiatives and resource utilization across the entire organization

Insight into how initiatives and resources align with business objectives and performance

Control of projects and resources to make smart decisions as business conditions change

The Microsoft Office EPM Solution

ExecutivesExecutivesProject portfolio management Project portfolio management

and reportingand reporting

IT ManagersIT ManagersOpen, secure Open, secure

systemssystemsProject ManagersProject ManagersIntuitive project managementIntuitive project management

Resource ManagersResource ManagersSkills-based resource Skills-based resource

managementmanagement

Team MembersTeam MembersUse familiar tools to collaborate, Use familiar tools to collaborate,

report statusreport status

Participation Across the Organization

How do we prioritize initiatives?How do we prioritize initiatives?What’s the status of top 3 initiatives? What’s the status of top 3 initiatives?

What am I supposed to What am I supposed to deliver this week?deliver this week?

Who am I supposed to Who am I supposed to work with? work with?

Can we integrate project data Can we integrate project data with business applications?with business applications?

Who’s available to staff new Who’s available to staff new projects?projects?

Do we have the right people working Do we have the right people working on the right projects?on the right projects?

When will we really finish, and how much will it cost?When will we really finish, and how much will it cost?Can we reuse best practices across projects?Can we reuse best practices across projects?

Microsoft Office EPM Architecture

Easily create enterpriseEasily create enterpriseproject plansproject plansTeam participationTeam participation

Centrally store project, Centrally store project, resources, and reportingresources, and reporting

Share project documents, Share project documents, issues, risks, and tasksissues, risks, and tasks

LOB systemsLOB systems

Get more from your Get more from your IT investmentsIT investments

More More productive productive usersusers

Next Steps

CSC Service OfferingsSenior Management Project Delivery Capabilities Assessment

Comprehensive Project Delivery Capabilities Assessment

E-PMO Design and Development Services

Pilot Deployment

Full Solution Deployment

Contact InformationChuck Coletta ccoletta@csc.com

EPM ResourcesLearn more about EPM

http://www.microsoft.com/solutions/epmhttp://www.microsoft.com/project

Register for EPM webcast serieshttp://www.ms-answers.com/epm

Register for Microsoft eventshttp://www.microsoft.com/usa/eventshttp://www.microsoft.com/usa/webcasts

Technical Resourceshttp://www.microsoft.com/technet/projecthttp://msdn.microsoft.com/project

Microsoft Project User Grouphttp://www.mpug.org

© 2004 Computer Sciences Corporation. All rights reserved.