DLB Associates, LLC 2003 Building Project Management Centers of Excellence
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1 1
2 AGENDA Project Management Overview Project Management - What Is It? The Growth of Project Management Project Management Standards Project Management Maturity Project Management Center of Excellence Charter Internal Network Project Management Methodology Project Management Methodology Guidelines 2
3 To understand project management, you must first recognize some simple definitions. 3
4 What is a Project? A project is a temporary endeavor undertaken to create a unique product or service. Temporary means that every project has a definite beginning and a definite end. Unique means that the product or service is different in some distinguishing way from all similar products or services 4
5 What is Project Management? Project Management is a professional discipline that applies knowledge, skills, tools, and techniques to manage project activities in order to meet or exceed stakeholder needs and expectations from a project. 5
6 What is a Program? A program is a group of related projects managed in a coordinated way to obtain benefits not available from managing them individually. 6
7 Purpose of a Project: The purpose of a project is to bring about Change 7
8 The Project Change Delivery Process Define The Change Execute The Change Manage The Change Graphic from PMBOK Guide 8
9 AGENDA Project Management Overview Project Management - What Is It? The The Growth of Project Management Project Management Standards Project Management Maturity Project Management Methodology Project Management Methodology Guidelines Project Management Center of Excellence Charter Internal Network 9
10 Key Points of Understanding Effective project management requires extensive planning and coordination. No two companies manage projects the same way. Project management implementation must be based on the culture of the organization. 10
11 Resistance to Change Historically, project management resided only in the project-driven sectors of the marketplace. 11
12 Changing Perspectives (Project Management Utilization) Past Project - Driven PM has P&L responsibility PM is a recognized profession Multiple career paths Future Hybrid Production driven but with many projects Emphasis on new product development Short product life cycles Present Non- Project - Driven Very few projects Profitability from production Large brick walls Long life cycle Income comes from project Market-oriented Need for rapid devel. process Project Management Project Management Project Management Graphic from In Search of Excellence in Project Management by Dr. Harold Kerzner 12
13 From Hybrid to Project-Driven Hybrid Hybrid Traditional Project Management Modern Project Management Entrance via project-driven divisions such as MIS and R&D Entrance via marketing, sales engineering and R&D Graphic from In Search of Excellence in Project Management by Dr. Harold Kerzner 13
14 Benefits of Project Management Present View Project management allows us to accomplish more work in less time and with less people. Profitability will increase. Past View Project management will require more people and add to the overhead costs. Profitability may decrease. Graphic from In Search of Excellence in Project Management by Dr. Harold Kerzner 14
15 Benefits of Project Management Present View Project management will provide better control of scope changes. Project management makes the organization more efficient and effective. Past View Project management will increase the amount of scope changes. Project management creates organizational instability and increases conflicts. Graphic from In Search of Excellence in Project Management by Dr. Harold Kerzner 15
16 Benefits of Project Management Present View Project management will allow us to work closer with our customers. Project management provides a means for problem solving. Past View Project management is really eye wash for the customer s benefit. Project management will create problems. Graphic from In Search of Excellence in Project Management by Dr. Harold Kerzner 16
17 Benefits of Project Management Present View All projects will benefit from project management. Project management increases quality. Past View Only large projects need project management. Project management will increase quality problems. Graphic from In Search of Excellence in Project Management by Dr. Harold Kerzner 17
18 Benefits of Project Management Present View Project management will reduce the majority of the power struggles. Project management allows people to make good company decisions. Past View Project management will create power and authority problems. Project management focuses on suboptimization by looking at only the project. Graphic from In Search of Excellence in Project Management by Dr. Harold Kerzner 18
19 Benefits of Project Management Present View Project management delivers solutions to a customer. Project management will increase our business. Past View Project management delivers products to a customer. The cost of project management may make us noncompetitive. Graphic from In Search of Excellence in Project Management by Dr. Harold Kerzner 19
20 The Emerging Growth of Project Management No Allies Total Quality Mgmt. Concurrent Eng. Empowerment and Self- Directed Teams Re- Enginee ring Life Cycle Costing Increasing Support Graphic from In Search of Excellence in Project Management by Dr. Harold Kerzner 20
21 The Emerging Growth of Project Management (Continued) Scope Change Control Risk Management Project Offices And COEs Co- Located teams Multi- National Teams Increasing Support Graphic from In Search of Excellence in Project Management by Dr. Harold Kerzner 21
22 QUESTIONS 22
23 Project Management - What Is It? The Growth of Project Management Project Project Management Standards Project Management Maturity Charter Internal Network AGENDA Project Management Overview Project Management Center of Excellence Project Management Methodology Project Management Methodology Guidelines 23
24 Project Management Institute (PMI) Incorporated in October 1969 by six founders 1st Project Management Professional (PMP) Certification Exam April 1984 The PMBOK Guide granted approval as an American National Standard by ANSI September PMP Certification Program achieves ISO 9001 & Q9001 certification November 1999 (first program of its kind in the world). 24
25 Three Generally Accepted Knowledge And Practice Areas: Much of the knowledge needed to manage projects is unique to project management The PMBOK does overlap other management disciplines Project management practitioners need to know these other management disciplines 25
26 Foundation Of Project Management Skills General Management: Leading Communicating Negotiating Project Management Area Problem Solving Influencing the Organization General Management Area Applications Area Graphic from PMBOK Guide 26
27 PMI s Project Management Model Project Management Knowledge Areas Integration Management 1 Cost Cost Management 4 Communication Management 7 Scope Scope Management 2 Quality Management 5 Risk Risk Management 8 Time Time Management 3 HR HR Management 6 Procurement Management 9 Graphic from PMBOK Guide 27
28 AGENDA Project Management Overview Project Management - What Is It? The Growth of Project Management Project Management Standards Project Project Management Maturity Project Management Center of Excellence Charter Internal Network Project Management Methodology Project Management Methodology Guidelines 28
29 Integration of Process Groups Project Management Project Management Change Management Change Management Product Management Product Management Environment Management Environment Management 29
30 MANAGEMENT OF PROJECTS Contracts & Procurement Availability, Capability Capacity & Quality Work Integration Life Cycle and Environment Variables Work Scope Expectations Feasibility Requirements Communications Ideas, Directives, Data Exchange Accuracy Human Resources PROJECT RISK Requirements Standards Time Time Objectives, Restraints Cost Availability Productivity Work Quality Work Funding Budgets Constraints 30
31 MANAGEMENT OF PRODUCTS Project Leadership Management Life Cycles Organization Vision, Mission, Goals & Objectives Work Process Product/Service life from inception to retirement WORK Work flow at all levels of the organization Planning Forecasting, Estimating, and Resource Management Work supports strategic goals & objectives Prioritization Work Authorization Strategic, Tactical and Operational 31
32 MANAGEMENT OF ENVIRONMENT Products Product Life Cycle Projects Structure Hierarchical Vs Teams People Development Core Competency Career Development Rewards Performance based Compensation & Incentives Program, Project, Process Integration Functional Operating Units People, Product, Project, Process Integration of disparate systems & methodologies Business Systems Decision Making Roles, Responsibility, accountability & requisite authority Culture Empowerment Open Book Work Processes Develop & Improve Core Competencies, Skills, & Work Flow 32
33 MANAGEMENT OF RESISTANCE TO CHANGE Executives Strategic Level Management of Products CHANGE Management of Projects Tactical Level Operational Level Managers Management of Environment Staff 33
34 Maturing Process Continuous Improvement and Innovation is Common PM is Fully Distributed it is a Core Competency Distributed Sustained Initial Repeatable Managed Integrated Project Management Guidelines Methodology are established A Baseline and a PMCoE is Established Product, Project, Environment Processes Fully 34
35 QUESTIONS 35
36 AGENDA Project Management Overview Project Management - What Is It? The Growth of Project Management Project Management Standards Project Project Management Maturity Project Management Center of Excellence Charter Internal Network Project Management Methodology Project Management Methodology Guidelines 36
37 Dr. Harold Kerzner, Ph. D In Search of Excellence In Project Management John Wiley & Sons, Inc. NY, 1998 Project Management is no longer viewed as a system internal to the organization. It is now viewed as a competitive weapon that brings quality and value added to the customer. 37
38 Paul C. Dinsmore, PMP, PMI Fellow Winning In Business With Enterprise Project Management Amacom, NY, 1999 Prosperity depends on adding value to business (your own and your customer s), and that value is added by systematically implementing new projects --- projects of all types, across the organization. The better those projects are managed, the better --- and more prosperous --- will be the business. 38
39 Establishing The PMCoE Establish a Project Management Center of Excellence Requires Careful Planning The first move often determines the outcome of the game 1) Top executive commitment and support 2) Assess the current situation 3) Get acquainted with the management team 4) Create a PMCoE Charter and get it adopted by the management team 5) Make a big splash to get everyone s attention 6) Obtain management involvement and support 7) Create a current Portfolio of Projects 8) Establish a Project Management Methodology 9) Provide some PM Basic Training 10) Implement project reviews 11) Sell the concept of enterprise-wide PM when ever you can 39
40 Establishing The PMCoE Organizational Assessment / Interviews Manager Team Survey & Personal Interviews Project Evaluation Survey Project Management Maturity Survey 40
41 Establishing The PMCoE PMCoE Critical Success Factors Executive Team Commitment Functional Management Support PM Standards Education & Training 41
42 Establishing The PMCoE Created PMCoE Charter PMCoE Charter Management Team Purpose Vision Mission Strategy Goals & Objectives Methodology Critical Success Factors Roles/Responsibilities/Accountability/Authority - Leadership - Consulting - Mentoring 42
43 Vision To create an environment that enables world-class proficiency in managing projects enterprise-wide within the organization. 43
44 Mission To provide the leadership that will guide the organization in providing its Programs, Projects, and Services by utilizing best-in in-class project management methodologies, tools, templates, and technology. 44
45 Goals & Objectives To establish and institutionalize project management practices as the natural means to accomplish work, to the degree it becomes part of the organization core competency. 45
46 Strategy Create an environment within the organization that embraces project management as an intrinsic enabler for achieving its strategic goals and objectives. 46
47 Methodology To establish an internal network called the PM FORUM to support the PMCoE efforts to distribute project management practices across the organization. 47
48 Internal PM Forum Information Technology Engineering Operations PMCoE Marketing & Sales Manufacturing Management Team 48
49 PM Forum Benefits Expands PM Practices Enterprise-wide Opportunity to Recognize Successes Facilitates Internal Benchmarking Distribute Lessons Learned Establishes Best Practices Programs by PM Professionals Brown Bag Lunch Programs 49
50 AGENDA Project Management Overview Project Management - What Is It? The Growth of Project Management Project Management Methodologies Project Management Maturity Project Management Center of Excellence Charter Internal Network Project Management Standard Project Project Management Methodology Guideline 50
51 PMMG Methodology Overview PMMG Structure Project Authorization Project Initiation Project Planning Project Execution Project Closing Standards and Methods Education & Training Based On Project Management Institute PMBOK Guide 51
52 Establishing A Methodology Publish the Project Management Methodology Guidelines (PMMG) Introduction Project Authorization Project Initiation Project Planning Project Execution Project Closing Education & Training Glossary of Terms PM Templates 52
53 Enterprise-wide Project Management PMCOE Authorization Standards Education Readiness Project Management 53
54 Project Authorization Establish a Project Authorization process to manage the portfolio of projects to ensure the use of resources are in alignment with corporate & business unit strategic goals and objectives. 54
55 Reduce IT employee turnover 100% complete individual dev STRATEGIC PLANNING Define Corporate & Business Unit Goals & Objectives Goals and Action Matrix - FY2000 Form Revision Date: 2/29/00 9 FY Average 1 hour/employee in community involvement 5 hrs 8 FY Improve System 5 Climate Index thru team dev. Goals 2 X 7 BF Fully implement Individual Development Plans 100% X X X X X X 6 BF Ensure database & servers are up X X X X X X X 5 FY Shorten average life of help desk calls X X X X X X X 4 FY Decrease interactive transaction response X X time X X X 3 BF Implement new programs within corporate standards X 100% X X X X X X X X 2 BF Meet team budget of $ X X 1 FY Ensure new project CARS meet/exceed 40% IRR X Global Technical Services 1 REC Increase % of applications pe 100% completion of BCP for G Decrease EDI violations to <5 9 Increase productivity by 10% 8 Improve internal customer sur 7 Increase % application availa 6 Shorten average life of help d 5 Decrease interactive transac 4 Increase % of global standard 3 Achieve 1.6% budget to sales 2 Management By Planning Achieve 40% cumulative IRR 1 Global IT FY2000 O Employees Community Additional Core Values include Technical Excellence & Continuous Learning Owners Cus tomers Suppliers Team Leader - Steve Langer Revised 3/20/2000 Target Champion % Com Target Actions Track mothly/annually & Steve Implement BaaN for EAO ALL Implement System M anagem Dave Implement Adaytum Ed Migrate Support Magic Dave Migrate IP database to Oracle Ed Implement EDM back-up solut Jon/Mar Implement High Availability/D Steve/Jo Implement 1st Sense Ed Complete quarterly capa Mark Document/execute traini Steve Establishes PORTFOLIO OF PROJECTS LEVEL TWO THROUGH LEVEL FIVE PROJECTS Last Updated: June 22, 4:00 PM FIRST QUARTER (Color Code: Blue = Planned, Green = In Progress, Red = Startup is Project ID. Item MBP CAR # Project Names Owner Proj. Mgr. Duration JA FE MR AP MY JU JL AU SE OC NO DE No. Number Number 1 99 Project Intranet Launch - Phase One Miller M. Swanson 12 months 2 FY00-01 Helpdesk Call Intergration Miller 1 month DC-5-00 Pending 3 FY00-02 Backup & Recovery Upgrade Langer Jon Long 1 month Completed IT-6-00 CD FY00-03 Video Conferencing Upgrade Jaiven 2 months Completed DC-3-00 CD609 5 FY00-04 Digital Archive (Global) Budde Budde 12 months DC FY00-05 High Availability Langer/Jaiven Langer 8 months IT FY00-06 RTS-EO Engineering (DCA) Budde Tim Davis 6 months Completed DC FY00-07 Network System Management Langer/Jaiven Veenstra 6 motnhs DC-6-00 CD FY00-08 Adaytum project Joppich O'Bryan 12 months IT FY00-09 Business Continuity Fish 12 months DC FY00-10 Response Time Managment Langer Kosten 1 month DC-4-00 N/A 12 FY00-11 Activity Based Management (Finance) Joppich Ellen Boice 24 months Finance MBP Project 13 FY00-12 Move EDI Message Odette to Edifact Sanchez 9 months 14 FY00-13 GPI Renault Sanchez Sanchez 6 months 15 FY00-14 Supplier Performance Reporting Docter Lambert 3 months N/A 16 FY00-15 EAO ERP Implementation in Spain & Ireland Franckaert Schueler 9 months 18 FY00-16 Program Quoting Standardization and Automation Budde Budde TBD 19 FY00-17 EAO EURO Fish Fish 24 months 20 HOLD Mexico Network Jaiven Upgrades 21 Automated Labor Hours Entry Buchanan 6 months 22 Global Donnelly Engineering Standards (Global) Budde 6 months 23 TDM Server Memory Upgrade (DCA) Budde 1 month 19 NT Client / Server Upgrades (DML) Budde / Reinthaler 3 months 20 Workstation Upgrades (Hohe) Budde / Reinthaler 2 months 21 CAD Geometry Examine Tools (Hohe) Budde / Reinthaler 4 months 22 Wireless Telephone Jaiven 3 months 23 Lucent Message Manager Jaiven 3 months 24 EAO Network Upgrades (BaaN) Jaiven 8 months 25 NAO Security Remediation Jaiven 9 months 26 Lucent G3 Upgrade to release 8 Jaiven HOLD 27 NT Migration Miller 28 Global Call Center Support & Tracking Miller 29 Project Management System for Engineering Projec Redecker 30 Replace Time Collection System Redecker 1 month 31 Implement JIT Messages for Portugal Sanchez 12 months 32 Network & Power Cabling Sanchez 12 months DML 33 Fire Suppression System Wallis 34 EDI - ASN's Wallis 35 SAP HR/Payroll Wallis 36 Helpdesk Connection Wallis 37 Start PC Refresh Wallis 38 Upgrade Voice Cabling Wallis DVSE 39 Upgrade Frame Connection Wallis 55
56 Project Portfolio Management Limited Resources Capacity And Capability To Do Work New Opportunity Requires Reprioritization Of the Portfolio 56
57 Project Authorization Project Portfolio Management Project Identification Project Categorization Project Prioritization Project Request/Authorization 57
58 Standards Establish Project Management Standards and Methods including: policies, processes, and procedures that will be commonly applied to projects. 58
59 Project Management Standards and Methods The PMCoE will oversee the development, maintenance and subsequent changes to the following: Policies Procedures Processes Tools & Templates 59
60 Education & Training Establish a Project Management Education & Training program to establish education and training requirements, testing criteria, and validation processes. 60
61 Project Management Is A Business Function It Needs To Become A Core Competency The PMCoE is responsible for the determination of needs, defining requirements, course design criteria, content, delivery methods, evaluation of learning and improvement process. 61
62 Education & Training Program General Population Project Teams Project Managers Executives & Managers Knowledge Objectives Learning Objectives Assessment Methods 62
63 Establishing A Methodology Distributing PMMG To The Organization PMMG Reviews by Dept. 63
64 Support Opportunities Identify, utilize and manage external resources available in Academic, Project Management Professional, and Industry opportunities on an as needed basis to support education & training program requirements. 64
65 Current and New Perrigo Classes Project Management Institute Seminars, and Courses PM Classes Developed In Collaboration With Area Colleges and Universities Courses Offered by 3rd Party Providers 65
66 Enabling The Organization Provide PM Basic Training Scope & Planning In-house Workshops 66
67 Enabling The Organization Develop Education & Training Program Project Management Career Path Qualification Certification Advanced Intermediate Entry 67
68 Project Readiness Check Establish a Project Readiness Check process to evaluate a project s preparedness to proceed prior to start-up and subsequent phases. The first move often determines the outcome of the game 68
69 Project Readiness Check Review Gate Review Gate Review Gate Initiate Phase Planning Phase Execute Phase Closing Phase Capture Lessons learned Capture Lessons learned Capture Lessons learned Lessons learned Review 69
70 Enabling The Organization Established Monthly Project Reviews PM s Report By Department New Projects WIP Projects Completed Projects (lessons learned) 70
71 Enabling The Organization Provide Hands-on Mentoring & Coaching Assist With Project Starts Cost Benefit Analysis Scope Statement Risk Analysis Baseline Plan Communications Plan 71
72 Maturing Process Continuous Improvement and Innovation is Common PM is Fully Distributed - it is a Core Competency 4. Distributed 5. Sustained 3. Managed Product & Project Processes Fully Integrated 1. Initial 2. Repeatable Project Management Methodology is consistently applied to all projects A Baseline and a PMCoE is Established 72
73 Implementation Time Line Level of Commitment and Support Determines Timing Develop PMMG Distribute PMMG Basic Training Stage Two Maturity Establish PMCoE 73
74 QUESTIONS 74
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