Centers for IBM eBusiness Innovation Chicago IBM Project
Centers for IBM e-Business Innovation : : Chicago IBM Project Management October 17, 2007 Dawn Goulbourn Chicago Solutions for Innovations Center Executive © 2007 IBM Corporation
Centers for IBM e-Business Innovation : : Chicago Studies show that lack of good project management often leads to failed projects. According to a study by Metagroup ('Why Operation Projects Fail? ' November 2002) 70% of large IT projects fail or do not meet the expectations. The most common reasons refer to project management, project planning and communication. Adherence to Project Management disciplines is the responsibility of the entire team © 2007 IBM Corporation
Centers for IBM e-Business Innovation : : Chicago Failure to set and manage customer expectations / satisfaction. Inability to acquire properly skilled resources. Failure to reach common understanding of requirements or completion criteria. Lack of or inadequate project management. Ineffective project initiation. Failure to reach understanding of the proposed solution. Lack of Project Management Reviews and effective follow-up on action plans. Lack of management oversight / support. Failure to establish appropriate contractual baseline. Unfulfilled customer responsibilities. Failure to adhere to published pricing guidelines, failure to assign adequate "risk" contingency and illegitimate "investment pricing" (i. e. , low-balling, low margins, etc. ). Failure to implement / exercise proper change control process. Poorly constructed or unauthorized subcontractor SOWs. Starting a phase prior to completing a preceding phase. Customer unprepared to support the new system. Failure of key subcontractor to deliver. Customer represented by Third Party. Inaccurate project estimates. Change in customer management team. Failure to plan for risk containment. Continuous / constant change in scope. Failure to perform QA reviews. Ineffective relationship between IBM and customer. Lack of DOU with other IBM organization(s). Failure to properly handle multinational issues. Technology / architecture issues. Ineffective relationship between IBM and subcontractor. Subcontractor cost overruns. IBM project team morale or organizational issues. . © 2007 IBM Corporation
Centers for IBM e-Business Innovation : : Chicago Project failure attributed to lack of discipline, accountability and skills in both the presales (initiation) phase or during delivery Discipline Failure to set and manage customer expectations / satisfaction Failure to reach common understanding of requirements or completion criteria Failure to reach understanding of the proposed solution Failure to perform QA reviews Discipline Failure to implement / exercise proper change control process – SCOPE MANAGEMENT Ineffective project initiation Lack of or inadequate adoption of project management processes Failure to establish RACI matrix (Responsible, Accountable, Consulted, Informed) and other role responsibility clarification tools Lack of Project Management Reviews and effective follow-up on action plans and risk management Accountability Starting a phase prior to completing a preceding phase Failure to establish appropriate contractual baseline. Accountability Failure to adhere to published pricing guidelines, failure to assign adequate "risk" contingency and illegitimate "investment pricing" (i. e. , low-balling, low margins, etc. ). Committed Stakeholders Poorly constructed or unauthorized subcontractor SOWs Organizational Change Management -- Customer unprepared to support the new system Committed Stakeholders Skills Inaccurate project estimates Failure to plan for risk containment. Failure to properly handle multinational issues. Accuracy of forecasts and reconciliation of financials Unfulfilled customer responsibilities Change in customer management team. Ineffective relationship between IBM and customer Skills Availability of skilled resources Failure of key team members to deliver Technology / architecture issues © 2007 IBM Corporation
Centers for IBM e-Business Innovation : : Chicago Project Management is usually seen as managing the interrelationship of three critical success factors for each project. Scope It is essential to find the optimal balance to maximize return on investment and support the longer term company's success 11 12 10 1 2 3 9 8 7 6 5 4 Schedule Budget © 2007 IBM Corporation
Centers for IBM e-Business Innovation : : Chicago But it is not that simple, in order to manage to those three critical success factors it also involves. . . § § § § § Planning Communication Coordination Integration Execution Tracking Budgeting Control Reporting Quality Control There is an art and science to excellent Project Management © 2007 IBM Corporation
Centers for IBM e-Business Innovation : : Chicago For IBM to become a project based enterprise it was necessary to integrate project management disciplines into the fabric of IBM. § In 1997, IBM committed to becoming a project based enterprise for integrating project management disciplines across the IBM enterprise. § Since then, IBM has developed and deployed a number of worldwide Project Management initiatives for establishing the Project Based Enterprise Charter. These project based initiatives focused on: – Project Management Professional Development - Education – Project Management Methods & Tools – Project Management Process § IBM’s Project Management Approach – Processes/Methodology (WWPMM) – PM Tools – Rational Portfolio Manager – PM Education and Certification § Internal Reporting and Reviews – 7 Keys Reporting – Project Management Reviews © 2007 IBM Corporation
Centers for IBM e-Business Innovation : : Chicago Process and Methodology WWPMM IBM Methodology to Support PM © 2007 IBM Corporation
Centers for IBM e-Business Innovation : : Chicago IBM’s Project Management Method is a broad, robust and integrated approach to projects § IBM’s PM method (Worldwide Project Management Method – WWPMM) drives consistency and quality by focusing on three aspects of PM best practices – Work Domains – Work Products/Artifacts – Work Patterns § Work Domains provide detailed guidance on how specific types of PM activities should be carried out – PM must understand how to manage across 13 domains (change, quality, risk, etc. ) § Work Products are verifiable outcomes that are used to manage projects – IBM’s method identifies 51 PM work products that could be used on an engagement – Standards, templates, and ‘how to’ guidance included in browser enabled tool § Work Patterns are a series of steps designed to meet project management goals or in response to particular project situations – Includes 39 different process steps spread across 7 phases – Equivalent to a Standard Operating Procedure (SOP) © 2007 IBM Corporation
Centers for IBM e-Business Innovation : : Chicago World Wide Project Management Methodology - WWPMM • WWPMM helps define the PM System, a collection of plans, procedures and records that direct all PM activities and describe the current state and history of the project. • Generic templates are provided in downloadable form, from the WWPMM reference page and through various PM tools. Reusable assets are available for PMs to apply to projects. • When used with appropriate tools and integrated with business and technical management systems, this material provides a comprehensive PM environment. How the project is shaped, and how its execution is managed How the work is done © 2007 IBM Corporation
Centers for IBM e-Business Innovation : : Chicago © 2007 IBM Corporation
Centers for IBM e-Business Innovation : : Chicago © 2007 IBM Corporation
Centers for IBM e-Business Innovation : : Chicago Project Management Tools IBM Rational Portfolio Manager © 2007 IBM Corporation
Centers for IBM e-Business Innovation : : Chicago Typical Tool Challenges for Project Managers - BEFORE Many projects have manual and semi-automated processes, characterized by unnecessary data manipulation, inadequate information flow and sluggish cycle time. © 2007 IBM Corporation
Centers for IBM e-Business Innovation : : Chicago Rational Portfolio Manager is IBM’s Solution of Choice - AFTER Rational PM provides process automation, thereby increasing efficiency and reducing the complexity of project and portfolio processes. One stop shop” project repository, including the project control book Support more effective project startup Superior project tracking and control capabilities Project management process support Collaborative and communicative project environment © 2007 IBM Corporation
Centers for IBM e-Business Innovation : : Chicago Project Management Education and Certification IBM Rational Portfolio Manager © 2007 IBM Corporation
Centers for IBM e-Business Innovation : : Chicago IBM can supply skilled Project Management Mentoring and Staffing Capability IBM’s certification process is more demanding than the standards set by the Project Management Institute Certification Element IBM Certification Program PMI Certification Program 6, 000 -7000 hrs 4, 500 hrs (2+ years) PMI Examination PM Experience Technical Experience --- People Management Experience --- PM Education 200 -300 hrs 35 hrs Technical Specialties --- Professional Contributions (“Giveback”) --- Detailed Qualification Criteria based on required skills --© 2007 IBM Corporation
Centers for IBM e-Business Innovation : : Chicago Internal Reporting and Reviews Delivery Excellence © 2007 IBM Corporation
Centers for IBM e-Business Innovation : : Chicago 7 Keys Reporting - Communicating overall project health § Initial project setup requires key PM artifacts to be submitted (e. g. Communication Plan, Quality Plan, Risk Plan, Issue Log, etc) § An independent review of all artifacts is conducted and a review meeting is scheduled § The web based tool prompts the Project Manager to update the 7 Keys report and prompts the Partner to review and approve the report monthly § Mandatory for all projects based on contract value and industry § Reporting Metrics (red/yellow/green) – Stakeholders are committed Identifying, evaluating, informing, and influencing the individuals and groups who are affected by or who influence the project. – Business Benefits are realized Estimating, measuring, and monitoring the benefits the client will gain from the project. Benefit includes expected result and the associated cost, both financial and non-financial, of achieving that result. – Work and Schedule are predictable Controlling the production and acceptance of project services and deliverables, and ensuring their provision to specified performance and acceptance requirements. – Team is high performing Identifying, mobilizing, and developing the people required for the project team. Obtaining and maintaining appropriate space, equipment, and other resources required to successfully complete the project. – Scope is realistic and managed Agreeing, maintaining and amending the boundaries of the project. – Risks are mitigated Identifying and evaluating risks and issues. Developing avoidance, mitigation, and resolution activities to counteract those risks and issues. – Delivery Organization benefits are realized Establishing, agreeing, and monitoring the benefits (such as, financial reward, knowledge transfer, and skill development) that the delivery organization, will gain from the project. Maintaining and protecting the company's interests in relation to the project. © 2007 IBM Corporation
Centers for IBM e-Business Innovation : : Chicago Project Management Reviews § Comprehensive reviews conducted by Delivery Excellent COC – Client and team interviews – Review of project financials – Review of key artifacts and deliverables – Results in an A, B, C or D ratings…. C or D ratings will trigger Executive attention § Prescriptive scripts are available and the PM usually has one week notice before the PMR § Conducted approximately quarterly for healthy projects more often for unhealthy projects § Unhealthy projects are monitored on a weekly basis by the Executives © 2007 IBM Corporation
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