Organizational Project Management Maturity

Transcription

1 Organizational Project Management Maturity Glenn Strausser Director, Quality Assurance Centrus Energy September 2017

2 Agenda Introduction Organizational Maturity Case Studies Program Management

3 Our Experience Technology Commercialization + Nuclear Fuel Development and Commercial Demonstration of Industry Leading Nuclear Fuel Technology High Speed Gas Centrifuges and Supporting Infrastructure for Isotope Separation 4

4 Centrus Oak Ridge Operations: Engineering, Manufacturing, and R&D. Trusted Partner from Concept to Production From concept to production, Centrus Technical Solutions has the capability to improve project results by reducing the time, costs, and risks of developing and manufacturing complex engineered products. 5

5 Centrus Technical Solutions Engineering, R&D, Advanced Manufacturing Advancing Complex Projects to Deployment Technically Superior Engineering Designs, Research & Advanced Manufacturing Rapid Prototyping and Manufacturing Robust Program Management to support government and other projects Engineering and Multiphysics Modeling Radionuclide Experience DOE Q Cleared Workforce Engineering Specialties Gas Dynamics/Compressible Flow/Rarefied Gas Flow/High Mach Number Gas Flow Thermal Analysis Materials Science, Including Composite Matrices Stress Analysis Vacuum Technology Very High Speed Data Acquisition and Data Analysis Vibration Analysis Magnetic Fields Rotor Dynamics and Balancing Direct Simulation Monte Carlo Analog/Digital Design Board Design & Software Engineering Component Failure Analysis EMI, Grounding & Shielding 6

6 Centrus Technical Solutions Technology and Manufacturing Center 440,000 Square Foot Secure Facility Configured for High Precision, High Yield Manufacturing Modern Equipment Climate Controlled Specialized Features Automation Strong labor market for skilled workforce Historical collaboration with: Expanding collaborations 7

7 Agenda Introduction Organizational Maturity Case Studies Program Management

8 Organizational Project Management (OPM) The alignment and systematic management of projects, programs and portfolios to achieve strategic organizational goals The organization s capability to support project, program, and portfolio management The Business of OPM connecting value decision making with value delivery and fulfillment

9 Organizational Growth When is Maturity Needed? Organizational Growth Revenue, Headcount, Locations, Volume, Customers Great Organizations need both Maturity and the Right People!

10 Organizational Maturity Financial Accounting Financial Accounting Standards Board (FASB) Company Rules, Regulations, and Conventions GAAP People Organizational Structure & Culture Certified Public Accountants Company Specific Financial Training Process Technology SAP SAP Securities and J.D. Edwards System Exchange Commission External Auditing e.g. KPMG

11 Organizational Maturity Project Management PMI PMPs, RPs, etc PMI Standards/Guides People PMI PMBOK, CMMI GAAP Organizational Structure & Culture MS Project, P3 Process Technology SAP SAP External Auditing

12 Characteristics of OPM Model Levels (I) Level 5 Optimizing 4 Quantitatively Managed 3 Defined 2 Managed 1 Initial Systematic process optimization based on statistical process control Reduction of process result variance and systematic enhancement of process performance Predictions of costs, deadlines, quality as well as project control are backed by statistically evaluated historical data Systematic management of reference solutions / reuse Organizational standard process established Standard process owned by the organization Project specific tailoring rules in place Disciplined project management Process owned by project manager Process varies from project to project Procedures not defined; ad hoc methods are used Success depends on few specialists Costs, quality, and deadlines are hardly predictable According to Capability Maturity Model Integration (CMMI) of the SEI Benefits Quality Risk

13 Characteristics of OPM Model Levels (II) Level: 5 Optimizing Good practices become Best practices Benefits: Quality 4 Quantitatively Managed 3 Defined Project performance align with plans 2 Managed 1 Initial Target Due Dates, Costs, Quality* Risk NCC Effects *Source: CMU/SEI 93 TR 24

14 Project performance baseline improvement Project Initiation Project Planning Project Delivery Project Close out As Sold = As Planned = As Built = Final Low maturity organization performance? High maturity organization performance?

15 Benefits of Increasing Organizational Project Management Maturity The Why Business Scalability Top Line Growth/Bottom Line Improvement Employee Effectiveness Improved Work Flow Reliable Performance Predictability Improved Project Performance Capability (SPI, CPI) Employee Satisfaction and Retention Lower Non Conformance Costs, Better Quality Customer Satisfaction Predictable delivery Less risk exposure Referrals

16 Potential Sources of Tangible Benefits Data Project margin improvement profitability Schedule performance time to market effects Risk reduction contingency recovery Cycle time improvements resource efficiency Defect detection/reduction quality improvement Low employee turnover best talent attraction/retention New employee or business ramp up scalability and organizational agility

17 Case Study Siemens Industry, Industry Automation

18 Where they were Four diverse business units; multiple physical locations, No PMO Initiative MPM Assessment Model OPM improvements managed as projects MPM assessment conducted Recommendations used to create improvement projects Re assessments to update measures and next steps Benefits are implied Stalled Effort

19 Key Performance Indicators Benefit Metric Definition Customer Satisfaction Customer Loyalty Metric based on survey response to How likely is it that you recommend Siemens to others? Metric Status Definition =>90% Green <90% & >80% Yellow =<80% Red Project Margin Current Project GM% - Booked Project GM% Current GM% of Project volume-project cost Booked GM% of Project volume-project cost =>0% Green <0% & >-2% Yellow =<-2% Red Delivery Reliability Quoted Ship Date Days + Customer approved changes / Actual Ship Date Days) =>99% Green <99% & >95% Yellow =<95% Red

20 Case Study Siemens Industry Automation US MPM Level One MPM maturity level improvement achieved MPM Level 2006 MPM Level OPM Improvement Program Program Benefits (first year): Customer satisfaction improved 5% Project Margins (delivered vs. booked) improved by 6% of Sales Project delivery reliability improved by 3% High commitment within the organization towards a continuous process improvement

21 How did they do it? Program Management Efforts run as projects have a high failure rate Project Management Office (PMO) Efforts run without PMOs have a high failure rate Support from experts/consultants (internal to Siemens) Support gets benefits delivered quicker to business

22 What is Program Management? "Program Management may be defined as the coordinated organization, direction and implementation of a portfolio of projects and activities that together achieve outcomes and realize benefits that are of strategic importance." from Managing Successful Programs Program Management is the centralized coordination of a program to achieve the program s strategic objectives and benefits. from The Standard for Program Management Second Edition

23 What is a Program? OGC defines a program as a temporary, flexible organization created to coordinate, direct and oversee the implementation of a set of related projects and activities in order to deliver outcomes and benefits related to the organization s strategic objectives." from Managing Successful Programs A Program is a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. from The Standard for Program Management Second Edition

24 Key Differences between Programs and Projects Program Management Achieves benefits Broad scope Broadly defined objectives Specific work not known Complex threads of work Can be 3 5 years long Usually major investments Involves more senior staff Project Board members Project Management Creates a capability Tightly focused Clear objectives Clear deliverables Often single threaded Often 3 months 2 years Can be small, cheap, fast Uses less senior staff Project Manager & teams Programs are not just large projects, although large projects can benefit from program management thinking

25 The Old Method Executive has an Idea! Projects Action Item Lists Immediate Response

26 Program Management VISION + targets Define desired benefits Define changed capabilities needed Benefits are what the top level targets mean locally to users Capabilities need to change Embed realized benefits Use the new capabilities Projects change the capabilities

27 Methodology and Flow of MSP Policy Strategy Vision Mandate Identifying a Program Program Brief Defining a Program Program Definition, Control Framework, and Plans/Schedules Closing a Program Delivering the Capability Realizing The Benefits Managing the Tranches Completion of Program, final lessons learned Crown Copyright Source: Managing Successful Programs Standard, UK OGC Delivery of new or enhanced operational capability

28 The path can emerge step by step Mid State Start state End state Mid state Tranches of projects make step changes in capabilities

29 Program Board Organizational Structure of MSP Senior Responsible Owner Program Manager Business Change Manager Program Office Delivering Capability Realizing Benefits Crown Copyright Source: Managing Successful Programs Standard, UK OGC

30 Benefit Maps and Profiles Benefits Realization Plan Drive design of Validate against Program Brief (incl. Vision) Blueprint Future state Current state Gap Time, cost risk Extend and refine Filled by Methodology and Flow of MSP Projects Dossier Program Plan PMBOK Not acceptable, try a different future state design Business Case Rest of Defining a Program Not acceptable, try different solutions Crown Copyright Source: Managing Successful Programs Standard, UK OGC

31 Focus on Benefits Benefit Baseline Measurement Benefits Realisation Realise Benefits Pre Transition Transition Post Transition Business Change Management Outcome Embedded Change Sustained Business Operations Enabler Deliver Capability Project Output Crown Copyright Source: Managing Successful Programs Standard, UK OGC Project Management Time

32 Verizon Wireless PMO Results Cycle time had been reduced by 58% despite the increasing complexity of projects. Top projects were being delivered on time 100% of the time. All other projects were delivered on time 80% of the time. A manual process provided 100% alignment of organizational resources to top prioritized projects. Prioritization of the entire enterprise s work (over a US$1 billion portfolio investment) is completed every month. Ref: 2012, PM Solutions, PMO of the Year Award

33 Implementing Organizational Project Management A Practice Guide From PMI.ORG Free download to PMI members A growing number of organizations have embraced organizational project management (OPM) to increase performance and achieve a competitive advantage in the marketplace. Research shows that a successful OPM strategy depends upon a strong project management methodology that aligns organizational goals across the portfolio of projects. A effective methodology provides for a standardized approach that is organization or situation specific and encourages efficient use of resources so your company can focus on its most important tasks leading, innovating, and delivering products and services. The lack of a strong methodology could lead to project or program failure. Implementing Organizational Project Management integrates globally accepted best practices and takes a practical approach to help your organization assess, refine and improve its performance Project Management Institute, Inc.

34 The Standard for Organizational Project Management (OPM) For more information, please contact Karl Best, PMI standards specialist, at This new standard will provide guidance to organizations seeking to implement project management to manage projects, programs, and portfolios in accordance with organizational practices and to achieve organizational objectives. The standard will also provide guidance on the development of organizational methodologies, i.e. project management practices that are tailored to fit an organization s structure, culture, and practices. The standard for OPM will be a revision and enhancement of Implementing Organizational Project Management: A Practice Guide published in We are responding to the results of a survey conducted after publication of the practice guide that showed a high level of interest in an expanded version and acceptance of the approach presented by the guide. Publication of this new standard is expected in Q From PMI.ORG Website 2017 Project Management Institute, Inc. Copyright Glenn Strausser, Centrus Energy, 2017

35 Conclusion Improving OPM maturity Predictable and consistent project delivery Organizational agility Improved metrics, better numbers!

36 Acknowledgements Selected material comes from work done by and with Joseph Sopko, by Siemens Corporate Research, and others as published by PMI and ASQ. Joseph A. Sopko, PMP, MSP, P3O Joseph A. Sopko Consulting, LLC Office: Thanks! Glenn Strausser PMI.ORG for more information search Sopko, Strausser for papers