Xcel Energy PMO: Success from the Start. Agenda. Xcel Energy Overview. Xcel Overview. Why Projects Fail. PMO Overview. PMO Tools for Success

Transcription

1 Xcel Energy PMO: Success from the Start Eric Weimert, IT Portfolio Manager Jill Rodning, Senior Portfolio Liaison Anne Olson, Program Manager for Utility Innovations Agenda Xcel Overview Why Projects Fail Support Structure Organization Engagement PMO Results 2 Xcel Energy Overview 3.3 million electricity customers and 1.8 million natural gas customers in 8 Western and Midwestern states 9,000+ employees; I/T staff of 640+ professionals Total Annual Revenue revenues of $10B $142M Operating I/T budget for 2007 $75M Capital I/T budget for % of I/T functions and services delivered to Xcel Energy through 3 rd generation outsourcing partnership with IBM Global Services 3 1

2 Why Projects Fail Poorly Developed Business Case Lack of User involvement Lack of qualified resources Unrealistic Expectations Lack of Executive Support (I/T and Business) Changing Requirements Project Team Structure Not aligned with Business Priorities No Project Oversight & Visibility Poor Risk Management 4 End-to-end PMO Business unit prioritizes ideas, plans, budgets and develops business case PMO provides portfolio management, planning support and seeks consolidation opportunities Business unit approves projects, Project Change Requests (PCRs) and Finance Leader agrees to benefits/budget impact Project Manager manages project and tracks issues, risks, dependencies and PCRs PMO manages cross-unit dependencies and risks PMO compares benefits realized to original projections 5 /Planning involves identifying and prioritizing business unit needs and objectives Planning 1. PMO Kickoff Meeting The Liaison will work with the project team to discuss how the project will be managed, as a: Single Project Single Work Effort Larger Program made up of possibly multiple Projects and/or Work Efforts 2. Project Charter The Project Charter describes the: Outlines the need for the project. Necessary resources Timeframes & cost estimates to complete the Business Case Suite (BCS) 6 2

3 Business Case BCS Deliverables Scope Business Design Technical Design Risk Schedule Cost Benefit (CBA) Milestone Approvals 7 Funding Governance Governance Layers Charter BCS Execute & Imp PCR s Cumulative total Approvals: Of Dir Fin. and PMO NA NA <$250K <$1M <20% SLT* NA NA <$5M <$5M >20% IRC NA NA <$10M <$10M >20% Board NA NA >$10M >$10M >20% Funded by: Business Business Business Systems Business Systems Business Systems Unit Unit *SLT = Senior Leadership Team in Business Systems (Ray Gogel and his direct reports) Notes: The cost to develop an idea and preparation of a charter is authorized by management within the Business Unit. Business Systems Finance Director, PMO Director, or Asset Director approve material requests up to $500K CIO signs all contracts and approves material requests above $500K If the project is canceled because the business case does not support it, the business unit absorbs the cost of the BCS effort 8 Project Execution & Tracking After a project has been approved by the business unit, the Project Manager can begin project execution Project execution is comprised of five key elements: Status reporting Issue management Risk management Dependency management Project Change Request (PCR) management 9 3

4 Project Execution & Tracking Status Reporting - Project Health It is the responsibility of the Project Manager to accurately track (metric driven) and anticipate (issue driven) project health changes. The project health calculation is based on the following: Spend to Date (LTD) Estimated spend at completion (EAC) Labor (Hours) Number of tasks completed Milestones past due Issues 10 Project Execution & Tracking Project Change Requests (PCRs) Project Managers update project baseline information for all approved PCR's Three types of PCRs Type A New functionality Approvals Required Sponsor, Business Manager, Business Technology Executive (BTE), Governance Type B Missed requirements Approvals Required Sponsor, Business Manager, BTE, Governance Type C No Scope, end date or $ change Approval Required - Liaison 11 Project Close/ Project Close Project Managers should continue to focus on project close-out activities including: Submit Final Status Report Project Completion Report Lessons Learned Work Order close out BTEs, PMO and Business Unit will set a future date to validate the benefits have been realized () 12 4

5 Support Structure: PMO Infrastructure 13 Support Structure: PMO Library 14 Support Structure: Process Automation 1. Submit 2. Route 4. PMO Kickoff Meeting 3. Annual Budget 4. Route Budgete d 15 5

6 Support Structure: MS Project Sourced Metrics 16 Support Structure: Forums/Training Quarterly Refresher Training Modularized training ½ day sessions Onboarding Training Just-in-time training Modularized training Monthly PM Forum Introductions PM Community Staffing Changes Recognition Key Highlights Special Topics Resources PM Forum Roadmap 17 Organizational Engagement: IT & the Business Milestone Approvals Charter Business Case Milestones Upon Deployment Scope, design validation, transition to operations 18 6

7 For 1Q05, 494 GCCs have been tested in 45 QA Review s. Overall 1Q05 compliance is 96.4% Organizational Engagement: Governance Purpose: Provide Business and Business Systems Senior Management Oversight in the areas of prioritization, funding, exception management and progress tracking. Not drawn to scale to reflect relative effort or duration (1) (2) (3) Business Project (4) Project (5) Project Charter Governance Case Governance Initiation Execution Close Prioritization Business Case Presentation Funding for Project Execution PCR - Funding or Schedule Change Go No-go Decision Future BU Work Program & Project Charter Authorization Process Presentation Funding for (e.g. WRAP & Business Case Development demand Capture)) Annual Budgeting Status Reporting (every other week) Tuesday Project Review Meetings (upon request) Project Steering Committee (high profile projects) Scope, Business Future Post Design, and Implementation Technical Design Measurement Acceptance Transition to Operations Transition to Support Financial Governance Oversight Governance Issue, Risk, Dependency Escalation (as needed) Project Health = Red or Yellow Corrective Action Implementation 19 Organizational Engagement: Integration Project Project Development End End to End to End Process Process Framework Framework Governance Business Planning Case Project Execution Finance and Accounting Procedures Project Close ScopeDesign Risk CBA Assess. Risk Sched. Control 5 Control 4 Control 3 Control 2 Control 1 Control 9 Control 8 Control 7 Control 6 % or Reviews 90.0% 70.0% 50.0% 30.0% 10.0% Jan-04 Feb BCS Reviews Improved checklists Rated Satisfactory revealed previously undetected problems Mar Apr May June/July August Sept Oct Nov Dec % of GCCs Passed 100% 98% 96% 94% 92% 90% 2005 General Computer Controls 99.3% 96.5% 92.0% # of Reviews Passed Reviews 88% 0 20 Jan Feb March PMO Results Project Health Mercury ITG Project and Work Effort Health - YTD Trend by % Projects in "Healthy" Green % of Projects 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2004 = 85.9% 2005 = % 2% 4% Week Ending 06/29/07 Green Red Yellow Target - Green - 90% Target - Yellow - 6.7% Target - Red - 3.3% Year to date average: Green: 89.38% (target GE 90%) Yellow : 5.91% (target LE 6.7%) Red: 4.71% (target LE 3.3%) Days Healthy % 85.0% 90.0% 90.0% Green Target 75% Green 82.5% 86.0% 90.5% 94.9% 89.3% Yellow 5.2% 6.8% 4.0% 6.0% Red 8.8% 2.6% 1.1% 4.7% 21 7

8 PMO Results PCRs 2003 through 2007 LTD PCR Summary - $s $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $ % % % % % of Actuals 2.7% of Budget Remaining Budget $30,174,092 PCR Actuals $62,459,061 $62,306,686 $11,880,684 $5,664,286 $2,245,649 Actuals To Date $26,740,939 $69,793,314 $57,690,774 $66,143,714 $42,780,259 Budget $89,200,000 $132,100,000 $69,571,458 $71,808,000 $75,200,000 Actuals To Date PCR Actuals Remaining Budget Budget 22 Thank you for attending 8