Establishing a Program Management Office

Transcription

1 Establishing a Program Management Office

2 Agenda Why companies need Program Management 3 Objectives of Program Management 4 Program and Project Management definitions 5 Program Management infrastructure 6 Portfolio Management 7 Implementation of a Program Management Office 8 Project Methodology 9 Key Deliverables 10 Execution Monitoring 15 The Litcom Approach 16 Page 2

3 Why companies need a PMO to support it s projects. They need a clear set of criteria to prioritize projects within a decision making process They need to communicate how their projects map to their vision and goals They need to communicate the status of their projects in areas other than dollars They need to understand the effect of their projects on their resources and schedules They need more accountability to obtain the value / benefits from their initiatives Ad Hoc PM Processes, Lack of Communication Page 3

4 Objectives of Program Management The objective of program management is to manage risk and facilitate project coordination by providing a framework for project execution. Program Management objectives Project 4 Project 1 Project 3 Project 5 Project 2 By instituting program management with a formal infrastructure, coordination and communication (among other benefits) can be established between projects Lack of program management promotes redundant efforts, inconsistency, waste of resources and poor communication among projects, leading to time and budgetary overruns because of unrecognized or missed project interdependencies and quality issues. Project 1 Program Management Project 2 Project 3 Project N Page 4 Create a framework for project execution Validate and coordinate methodology, tools, techniques, and knowledge management to project teams Facilitate integration and coordination between projects Effectively deploy organization and external resources Allow project managers to lead, and focus on issue resolution Focus project teams on deliverable production Reduce project cycle time Mitigate project risk Time-box implementation

5 Definitions Program and project management differ in their objectives and relationship. A program defines the rules, approaches and relationships among projects. Project management functions under the guidelines of a program to control the outcomes of a defined set of activities. Program Management Project Management Program Management The coordination of diverse projects that either address common business issues or processes, or are funded as a unit The process through which a series of projects are coordinated, controlled, managed The methods in which communication occurs and knowledge is distributed across multiple projects Project Management: The management of a set of related activities which, when completed, will achieve a specific objective. The process by which a project is initiated, controlled and brought to successful conclusion. Page 5

6 Program Management Infrastructure To execute a successful program, a formal infrastructure needs to be established. This infrastructure represented by a program office will provide projects with arbitration, repository and dissemination mechanisms for priorities, management processes, rules, learning and information. It will also assist with establishing overall Detailed Statements of Work, relationship and contribution value management of external service, product and resource providers. Program management infrastructure has the following management dimensions. Program Management Dimensions Portfolio Management Project Management Methodologies, tools and techniques Knowledge Management Communication Project alignment Strategy Process Prioritization criteria Resource allocation Process for management: Structure Plan Assess change Report Control Deliverable focused Pre-determined and common roles Flexible and scalable Route driven Deliverable driven Process mapping consistency Readily available Change management built-in Knowledge management process: Accesses; Acquires; Develops; Categorizes, stores, packages; and Disseminates information Plan communication Plan and structure to specific audiences Use communication Provides awareness Promotes success Select medium Electronic media Meetings Page 6

7 Portfolio Management To effectively coordinate projects, they must be aligned to processes and prioritized according to the organizations desired objectives. Once prioritized and aligned to processes, diverse projects can be managed as a portfolio of investments with appropriate resource allocation. ERP CRM SCM GPS RFID? Projects should be prioritized based on pre-determined criteria that enhance value to the organization and measure dependencies among initiatives Projects should be aligned and integrated along processes to assure the achievement of desired objectives and pragmatic functionality Once prioritized and integrated, projects should be managed as a portfolio of investments Program Office Page 7

8 Implementation of a PMO Reports to the CEO Initially, the PMO scope includes all cross functional, strategic initiatives Evolution: Initiate Plan Monitor Project definition and monitoring templates defined Initial projects identified Executive sponsors identified Chartering & Planning initiated Planning for initial projects completed First executive dashboard presented Weekly project monitoring Initiated. Weekly project status reporting Weekly review of executive dashboard with CEO Issues escalation / risk mitigation processes implemented Page 8

9 Documents / Processes Gates / Deliverables Project Methodology Discovery Initiation Planning Execution Closing Gate 1 Gate 2 Gate 3 Gate 4 Project Approved Project Manager Assigned Team Members Identified Hold Kick-off Meeting Initiate Planning Project Charter Created One Page Project Plan Created Detailed Project Plan Created Project Milestones Achieved Weekly Project Reporting Completed Sponsor Sign-off Lessons Learned Documented Benefits Realization Follow-up Planned Executive Summary Business Case (if required) Kick-off Meeting Minutes Project Charter One-Page Project Plan Detailed Project Plan Weekly Updates to PMO Weekly Updates Sign-off Document Lessons Learned Benefits Realization Updated Dashboard Bi-weekly Updates to Executive PMO Project Manager Page 9

10 Key Deliverables Project Charter Documents and communicates the project goals, objectives, scope, resources, cost / benefits, risks and milestones. Defines the project so that the requisite project reviews and approvals can occur. Created by the Project Manager, reviewed by the PMO and approved by the Executive Stakeholders. A project charter is attached. TABLE OF CONTENTS (Example) 1. EXECUTIVE SUMMARY 2. PROJECT DEFINITION 2.1 PROJECT PURPOSE AND GOALS 2.2 STRATEGY 2.3 SUCCESS CRITERIA 3. ROLES, RESPONSIBILITIES & ORGANIZATION 3.1 PROJECT ROLES 4. PROJECT COSTS & BENEFITS 4.1 PROJECT COSTS 4.2 PROJECT BENEFITS 5. CONSTRAINTS, RISKS & ASSUMPTIONS 5.1 CONSTRAINTS 5.2 RISKS 5.3 ASSUMPTIONS 5.4 CRITICAL SUCCESS FACTORS 6. PROJECT GOVERNANCE 6.1 PROJECT MILESTONES 6.2 PROJECT PLAN 6.3 PROJECT MONITORING & CONTROL 7. ACCEPTANCE & SIGN-OFF Page 10

11 Key Deliverables One Page Project Plan Projects are developed by the Project Manager and reported to the PMO using a One Page Project Plan Owners Every project has 5 essential elements Timeline Plan vs. Performance Tasks Cost Budget vs. Actual Each project may have a more detailed project plan (Excel, Microsoft Project, etc.) that meets its unique requirements Objectives An example One Page Project Plan follows (complete set of current project plans are attached). Page 11

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13 Key Deliverables Executive Dashboard Produced by the PMO on a weekly basis. Tracks, at a high level, the progress of projects. General status is color coded to identify projects that: Are on track (green) Have issues, but there is time to recover (yellow) Are in trouble and require intervention by senior management (red). Also communicates the following for each project: Alignment to company objectives Capital budget tracking Expense budget tracking People involved On-time vs. lateness Assigned project manager Executive team responsibilities A consolidation and summation Page 13

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15 Execution Monitoring Status update by Project Manager to PMO Is project on time and on budget? Are the required resources available to the project? Are the project benefits on track to be achieved? Do any issues require escalation? If so, to whom? Are all project risks mitigated? Review of project status with Executive Sponsors and CEO Page 15

16 The Litcom Approach For organizations looking to take their planning and management of IT-related projects to the next level, a PMO is a critical piece of the puzzle. Litcom s project management team has the depth of experience and has been involved in numerous strategic projects where the establishment and operation of a well-running Program Management Office is the linchpin for the success of the IT function. At Litcom we understand that each organization has its own unique culture. We will adapt our services to best suit your needs. As your project management partner, we will bring solutions to help you organize for change through the effective use of project processes, technology and people. Whether you are seeking guidance on a new or current project; an assessment of your project management capabilities; training of your project teams or staffing of qualified project management personnel, Litcom can help. To learn how we can help your organization with its IT needs, please contact us at: info@litcom.ca. Page 16