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Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME
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MakeITWork.Consulting ME
Project Management
Enterprise Project
Management
Amman, Jordan
1st June, 2015
A MakeITWork Consulting ME event in cooperation with Association of Banks in Jordan
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Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME
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MakeITWork Presentation
MakeITWork Consulting is a Consulting and Training company,
now also based in the Middle-East, specialized in Project and Risk
Management, Business Strategy and Resource and Outsourcing services.
Founded by a group of professionals with extensive experience and
knowledge of the international market, MakeITWork Consulting
features an integrated range of services, tailored to the needs of each
Company.
From the professional experience of its founders, it stands out the
success stories in companies and organizations from different sectors of
activities, including Banking and Insurance, Information Technology and
Telecommunications, Software Industry, Government and overall Public
Sector.
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Speaker Presentation
Dr. Jorge Vaz Girão, PMP, CISA, PMDPro
Jorge Vaz Girão has more than 30 years of experience in the fields of Program,
Project and Risk Management, Business Analysis and Change Management for
the IT, Banking, Insurance, Telecom, Transportation and Aviation industries.
His career path was developed in various business domains both in the private and
in the public sectors, having assumed many challenging different projects,
especially relating to the areas of international management and consulting,
across Europe, Africa and Middle East. He has managed and consulted on more
than 35 local and international major projects, being its project and risk
manager, for companies like Temenos, Misys, Capgemini, IBM, Altran, Axa
Insurance, Sony, Shell and Bertelsmann.
Project and Risk management, as well the coaching are his passion. For the past 5
years he has developed and taught over 20 different Project and Risk
Management & related training courses.
His vast experience and training methodology has received excellent feedback
from his students and many domestic and international clients.
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• Introduction to Project Management Culture
• The Importance of Project Management
• Project Management Today - An Integrative Approach
• An Overview of the Business Strategic Management
• Project Management and the Business Strategy
• The Need for a Project Selection and Priority System
• The Rapid Spread of Modern Project Management
• Project-Driven and Project-Dependent Organizations
• Advantages and Importance of Modern Project Management
• The Goals and Benefits of Project Management
• Measurement of Project Management ROI
• The Value of Project Management: Beyond ROI
• Requirements to Achieve these Benefits
• Enterprise Project Management Process Maturity Model
Agenda
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Introduction to Project Management Culture
What is a Project ?...
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Introduction to Project Management Culture
What is a Project ?...
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Specific Resources
Introduction to Project Management Culture
What is a Project ?...
Specific Goals and Objectives
Specific Deliverables
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Introduction to Project Management Culture
What is a Project ?...The (maybe) First Project !...
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Introduction to Project Management Culture
What is a Project ?... Another Project…
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Introduction to Project Management Culture
What is a Project ?... And a lot more…throughout all times…
2700 BCPyramids
2700 BC
Babel Tower 6000 BC
476Roman Empire
1500Age of Discovery
1750Industrial Revolution
1912Titanic
1945Manhattan Project
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Introduction to Project Management Culture
Why Project Management?...
We believe that we can influence, to act and change the course…
Ostrich Approach
ignoring the risks or pretend
they do not exist
Christian Approach
waiting for someone or a
higher authority to resolve
any problems or make them
disappear
Denial Approach
recognize that there are risks
but refuse to accept that they
will happen to your project
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Introduction to Project Management Culture
Why Project Management?...
is not the strongest nor the most intelligent of the species that
survives…
…but that one who is better able to accept and adapt to change…
Charles Darwin
(Geologist and Naturalist; 1809-1882)
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Introduction to Project Management Culture
Project…. What does it means?...
 Project: What does it mean?
 Organizations perform work which involves either operations or projects, although the two
may overlap
 They share many characteristics:
 they are performed by people,
 constrained by limited resources,
 planned, executed, and controlled.
 They differ primarily in:
 that operations are ongoing and repetitive
 projects are temporary and unique
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Introduction to Project Management Culture
A Project is…
Operations Projects
Existing systems One-time resource configuration
Repetitive work Unique and separate work
Efficiency and effectiveness Cohesion and direction
Reliance on standard procedure End-product driven
Line management Project orientation
Focus on “maintaining” Focus on “change”
“ A project is a temporary endeavour undertaken to create a unique
product, service or result.“
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The Importance of Project Management
Project Management … Till Modern Project Management!
2010190019701960 200019801950
1958: Polaris, Cold War, PERT
1960: CPM 1963: USAF, EVM
1960’s: NASA Project’s; diffusion into other companies
1969: PMI
1970-80: Matrix Organizations
1983-87: PMBoK
1989: PRINCE
Method
1991:PMBoK ANSI
Standard
1999: Mng Sucessful
Programs (OGC)
2006: PMI Standards
on Program Mngmt
1995: MS Project
1996: PRINCE2
1997: ISO 10006
Quality in Pj Mngmt
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The Importance of Project Management
Modern Project Management why…?
 Increased complexity of the work,
 Constraints impacting organizations (Time, Cost, Scope)
 Management focus on Program and Benefits Management
 Increased enforcement uncertainty, competition (time-to-Market)
 Quality Requirement increasing,
 Customer Satisfaction, Continuous improvement,
 Conformity with maturity models (EFQM)
 High technological pace and innovation
 Project duration longer, Budgets getting smaller,
 Emphasis on justified project costs
>2years
1to2years
6to12months
3to6months
>3
mth
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The Importance of Project Management
Project Management – Why?
 Disciplined project management provides:
 Focal point for effective communications, co-ordination and control
 A plan to assess progress
 Emphasis on time and cost performance
 Project management provides the framework for
 methods,
 processes,
 monitoring and change control.
 What are the benefits ?
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The Importance of Project Management
Project Management – What are the Benefits ?
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The Importance of Project Management
Project Management – What are the Benefits ?
Companies view project management initiatives as valuable to their bottom-line
profitability, to product quality, and especially to meeting delivery dates and budget goals
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Project ManagementKnowledge Areas
Scope
Cost
Resource
Risk
Integration
Cost
Scope
Time
CommunicationProcurement
Quality
Time
Ensures the project will include all the work required
(and only this!) to be complete successfully.
Ensures the project will be completed according
planned schedule and on time
Ensures the project will be completed
within allocated budget o it.
Ensures the project will meet the needs
that justified its initiation.
Optimizes the participation of all the
resources involved in the project.
Ensures all project information will be
developed, disseminated and stored
properly.
Identifies, analyses and defines the
risk responses that somehow have
impact on the project.
Ensures the correct acquisition of goods
and / or services outside the
organization.
Ensures the various elements of the
project are coordinated and integrated
correctly.
Project Management Today - An Integrative Approach
Knowledge Areas
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Project Management Today - An Integrative Approach
Project Management Processes
Gestão
De
Projectos
Processes
Initiation
Planning
Execution
Monitoring & Controling
Closing
Cost
Scope
Time
The Initiating Process Group consists of those
processes performed to define a new project or a new
phase of an existing project by obtaining authorization
to start the project or phase.
The Planning Process Group consists of
those processes performed to establish
the total scope of the effort, define and
refine the objectives, and develop the
course of action required to attain those
objectives..
The Monitoring and Controlling Process Group consists of those processes
required to track, review, and orchestrate the progress and performance of
the project; identify any areas in which changes to the plan are required;
and initiate the corresponding changes.
The Closing Process Group consists of those processes
performed to conclude all activities across all Project
Management Process Groups to formally complete the
project, phase, or contractual obligations.
The Executing Process Group consists of
those processes performed to complete the
work defined in the project management
plan to satisfy the project specifications.
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Activitylevel
Time
Initiation
Planning
Execution
Monitoring & Control
Closing
Project Management Today - An Integrative Approach
Project Management Processes
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3 – 5 years
An Overview of the Business Strategic Management
Business Strategy and Program/Project alignment…
Vision
Vivid
Description
Mission
Core Values
Strategic
Principles
Learning and
Grow
Perspective
Employee
Competence
Technology
Corporate
Culture
Ground Crew
Alignment
Ground Crew
Alignment
% Ground Crew
Trained
% Ground Crew
Stakeholders
Year 1 : 70 %
Year 3 : 90 %
Year 5 : 100 %
Ground Crew
Training Program
(GCTP)
Internal
Process
Perspective
Selected Initiatives
Customer
Perspective
Operational
Excellence
Customer
Intimacy
Product
Leadership
Attract Customers &
Retain
Attractive Pricing
# of Customers
Competitive Prices
Load Factor
Customer Ranking
Number 1
Number 1
Customer Loyalty
Program (CLP)
Financial
Perspective
Revenue
Growth
Strategy
Productivity
Strategy
BSC Strategy
Map
Improve Shareholder Value
Profits & ROI
Plane Utilization
Profitability
Plane Utilization
Market Value
Block Hours/Day
30%
4%
Strategic
Initiative
Objective Measure Target Initiative
3 – 5 years
Value
Proposition
Differentiation
Statements
Outcome
Description
3 – 5 years
Goals
Strategic
Objective
Strategic
Measures
Fast Ground
Turnaround
Fast Ground
Turnaround
On Ground Time On-
Time Departure
30 minutes
90%
Turnaround Cycle
Program (TCP)
Time Optimization
Program (TOP)
3 – 5 years
Strategic
Risk
Opportunities
Mega Issues
Environmental
Scan
“Rolling” 1 – 2 years
Operating Plan and Budget
Program/Project Portfolio Management
Strategic Programs Operational Programs
Projects Projects
Example Strategy Map : “Airline Operating Efficiency” Theme
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An Overview of the Business Strategic Management
Maturity Organizations – an Organizational Change
People Tools, Technique
Processes
Organizational
Change
Methodology
ExpertiseTraining
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Project Management and the Business Strategy
Maturity Organizations – the Evolution
Organizational Resources
Vision
Mission
Organizational
Strategies &
Objectives
High-Level
Operations Planning
& Management
Management of On-Going
Operations
(recurring operations)
(Producing value)
Project Portfolio
Planning &
Management
Management of Authorized
Programs & Projects
(projectized activities)
(increasing value, production capacity)
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An Overview of the Business Strategic Management
Maturity Organizations – the Evolution
Portfolio
Program
Project
Standardize Measure Control Continuously
Improvement
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Project Management and the Business Strategy
Maturity Organizations - achieving a level of Excellence
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Project Management and the Business Strategy
Maturity Organizations - achieving a level of Excellence
Use the standard to obtain basic
understanding of OPM3, its
components and operation
High-Level: Use Self-Assessment
tool to identify existing and needed
Best Practices and position on
maturity continuum.
Comprehensive: Identify
existing Capabilities to determine
maturity at detailed level and
consider planning for
improvements.
Option: Exit process if satisfied
with results; reassess periodically
to monitor effects of change.
Use Assessment results and
organization’s priorities to
determine scope and sequence
of improvement efforts.
Execute planned organizational
development activities to
advance on the maturity
continuum.
Recomended: Return to Step
2 reassess maturity to detect
changes caused by recent
events.
Option: Return to Step 3 to
work on otherBest Practices
identified in original
assessment.
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The Need for a Project Selection and Priority System
An Integrated Portfolio Management System
Manage operational
and business risk
Manage Risk
• Compliance
• Protect assets
• Service continuity
Better manage operating
and capital costs
Manage Cost
• Optimize resources
• Automate processes
Align IT investments to
organizational needs
Align IT
Investments
• IT portfolio mgmt.
• Value mgmt.
• Business process mgmt.
Deliver maximum value
by providing reliable
and effective services
Improve
Service
• Service availability
• Service mgmt.
Unify and Simplify
Portfolio Management System
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Enterprise Project
Management (EPM)
is a new vision for
how to unify and
simplify
the management of
enterprise-wide
Project initiatives
BusinessRequirementOptimization
StrategyManagement
RiskManagement
EnterpriseProjectManagement
Manage and Secure
Unify Simplify
Application Environments
ApplicationsUsers
Business Processes
Business Requirements / Needs
The Need for a Project Selection and Priority System
Enterprise Project Management
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Business
IT
Portfolio
IT Governance
Business Alignment
IT
Users
People &
Projects
Service
Lifecycle
Applications
Best
Practices
Process
Add value with existent
resources
Allows better alignment and
commitments with the business
Increase efficiency by
integrating IT & Business
processes
Demand
Services
The Need for a Project Selection and Priority System
Enterprise Project Management
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The Need for a Project Selection and Priority System
Enterprise Project Management
Time and Cost
Projects and
Programs
Processes
Time and Cost Accounting
• Counts actual project costs
• Allocates and affects actual
project costs (charge-back)
Process Management
• Creates templates,
graphics workflows and
methodologies of best
practices
• Process compliance
reports
Project Management
• Creates estimates, budgets
and provides forecasts
• Monitors deliverables and
progress according to
defined milestones
• Manage issues and risks
Resource Management
• Cataloguing, access and
research skills
• Plans future needs by
functionResource
Management
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The Need for a Project Selection and Priority System
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Project-Driven and Project-Dependent Organizations
Types of Organizational Structure
Functional
Organization is grouped by
areas of specialization
Project generally occur within
a single department
Projectized
Entire company is organized
by projects
Personnel are assigned and
report to a project manager
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Project-Driven and Project-Dependent Organizations
Types of Organizational Structure
Weak Matrix
Power rest with the functional
manager
Power of project manager =
coordinator or expediter
Balanced Matrix
Power is shared between the
project manager and the
functional manager
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Project-Driven and Project-Dependent Organizations
Types of Organizational Structure
Strong Matrix
Power rest with the project
manager
Composite
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Project-Driven and Project-Dependent Organizations
Influences of organizational structure on projects
Part-Time Part-Time
Part-Time Part-Time Part-Time
Full Time Full Time Full Time
Part-Time Full Time
Project
Manager
Project
Manager
Functional
Manager
Functional
Manager
Little or None
Little or None
Moderated to
High
High to
Almost Total
Moderated to
High
High to
Almost Total
Limited
Limited
Low to
Moderate
Low to
Moderate
Mixed
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Project-Driven and Project-Dependent Organizations
Influences of organizational structure on projects
Advantages Disadvantages
Functional • Easier management of specialists
• Team members report to only one
supervisor
• Similar resources are centralized, as the
company is grouped by specialties
• Clearly defined career paths in areas of
work specialization
• People place more emphasis on their
functional specialty to the detriment of the
project
• No career path in project management
• The project manager has little or no authority
Projectized • Efficient project organization
• Loyalty to the project
• More effective communication than
functional
• No “home” when project is completed
• Lack of professionalism in disciplines
• Duplication of facilities and job functions
• Less efficient use of resources
Matrix • Highly visible project objectives
• Improved project manager control over
resources
• More support from functional area
• Maximum utilization of scarce resources
• Better coordination
• Extra administration is required
• More than one boss for project teams
• More complex to monitor and control
• Tougher problems with resource allocation
• Need extensive policies and procedures
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Advantages and Importance of Modern Project Management
Major Reasons of Failure in IT Projects
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Lack of best practices in project
management
• The largest contributor to project failures in IT is
due to the lack of best practices applied by the
project manager and the project team
• The main areas of non-adherence to best practices
can be found in estimating, scheduling , proper time
phased budgeting, project performance measuring,
risk and quality management and close out
activities.
Advantages and Importance of Modern Project Management
Major Reasons of Failure in IT Projects
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Inadequate stakeholders interface
management
• If one considers that the success or failure of a project is
determined by all of its stakeholders, then it is of paramount
importance that the project manager and project team identify
all the possible stakeholders to the project.
• A stakeholder that gets “forgotten” during the start of the
project might become non-supportive for all or part of the
project.
• A Stakeholder Segmentation Model becomes an important
element in the crucial stakeholders interface management
practices.
Advantages and Importance of Modern Project Management
Major Reasons of Failure in IT Projects
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Inadequate Scope Management
• Apart from the absence of proper techniques
applied to gather the scope input, the
incomplete stakeholders identification in the
beginning of the project mostly leads to
incomplete scope definition.
• Remember if one stakeholder is forgotten, we
miss a 100% of this stakeholders’ requirements
to be defined in the project scope
Advantages and Importance of Modern Project Management
Major Reasons of Failure in IT Projects
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Advantages and Importance of Modern Project Management
Failing to observe the 10 basic Commandments
1. Mistaking every half-baked idea for a viable project
2. Don’t overlook the stakeholders, don’t forget the champions, don’t ignore the
nemesis
3. Failing to assess project complexity
4. Not developing a comprehensive project charter and scope
5. Not developing a comprehensive project action plan
6. Failing to design a functional team structure
7. Accepting or developing unrealistic and unachievable estimates
8. Accepting status report that contain mostly noise and not enough signal
9. Looking back and not ahead ( reactive instead of pro-active)
10.Not following a robust project architecture
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The Goals and Benefits of Project Management
Project Best Practices (*)…
 Proven, Sound, Project Management Fundamentals
 Includes knowledge of proven, traditional practices
 Widely applied and recognized for their value
 Shown to enhance success over a wide range of projects
 Includes knowledge of innovative and advanced practices which had limited general
exposure so far
 With Skills, tools, techniques
 Based on sharing experiences
 Applying “Lessons Learned” practices
 By professional practitioners who network through Specific Interest Groups (SIG) and
professional organizations
 Updated and advanced, with emerging innovative practices in the profession of Project
Management
(*) A Continuous improvement process on the sum of knowledge and practices
within the profession of Project Management.
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The Goals and Benefits of Project Management
Project Management Fundamentals
The Project Management
Framework
Defines Key Terms and the Broad
Environment in which projects operate
The Standard for Project
Management of a Project
Specifies all the project management
processes used by the project team to
manage a project.
The Project Management
Knowledge Areas
Organizes the 47 processes into 10
Knowledge Area’s
Introduction, Purpose
Project Lifecycle and
Organization
Integration Management
Scope Management
Time Management
Cost Management
Quality Management
Human Resource Management
Communication Management
Risk Management
Procurement Management
Stakeholder Management
Project Management
Processes, Groups
Project Management Process
Mapping
What is a Project, What is Project
Management, Areas of Expertise,
Project Management Context
The Project Lifecycle,
Project Stakeholders,
Organizational Influences
Project Management Processes,
Project Management Process Groups,
Process Interactions
Customizing Process Interactions,
Project Management Process Mapping
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The Goals and Benefits of Project Management
Project Management – What are the Benefits ?
 Improved communication among
participants
 Realistic expectation management
and clarified project goals
 providing a better balance between
competing demands
 adequate understanding of initial project
scope
 managing change of that scope
 Facilitates priority setting on project
portfolio
 Better planning of the work to be
done and accurate projection of the
resource requirements
 Constant monitoring and control of the
project
 providing consistent method for tracking
tasks and milestones
 improved mechanism for performance
measurement
 Identification of problem areas
 Ongoing identification, impact
analysis and mitigation of project
risk
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The Goals and Benefits of Project Management
Program & Portfolio Management – The Benefits…
 Delivery of Change (Coordinated Change-enabler)
 Alignment between strategy and project levels
 Management involvement, support, monitoring and control
 Balanced Resource management
 Improved Risk management
 Benefit realization
 Better coordination and control at execution level
 Transition management
 Consistency of performance
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The Goals and Benefits of Project Management
Program & Portfolio Management – The Benefits…
[2]
Planned
(multi project)
[2]
Planned
(multi project)
Multi
project
[3]
Integrated
(project portfolio)
[3]
Integrated
(project portfolio)
Multi
project
Project
portfolio
[4]
Strategic
(multi programme)
[4]
Strategic
(multi programme)
Multi
project
Project
portfolio
Multi
programme
[5]
Collaborative
(programme portfolio)
[5]
Collaborative
(programme portfolio)
Visie, missie,
strategie, doelen
Project
thinking
Project
thinking
Project
thinking
Project
thinking
[1]
Initial
(project thinking)
[1]
Initial
(project thinking)
LevelsofMaturity
Time
Vision, mission,
strategy, goals
Basic PM
Project-portfolio
Planning & Control
Continuous
Programme-portfolio
Improvement
Multi-project
Planning
Programme
Governance
[2]
Planned
(multi project)
[2]
Planned
(multi project)
Multi
project
[3]
Integrated
(project portfolio)
[3]
Integrated
(project portfolio)
Multi
project
Project
portfolio
[4]
Strategic
(multi programme)
[4]
Strategic
(multi programme)
Multi
project
Project
portfolio
Multi
programme
[5]
Collaborative
(programme portfolio)
[5]
Collaborative
(programme portfolio)
Visie, missie,
strategie, doelen
Project
thinking
Project
thinking
Project
thinking
Project
thinking
[1]
Initial
(project thinking)
[1]
Initial
(project thinking)
LevelsofMaturity
Time
Vision, mission,
strategy, goals
Basic PM
Project-portfolio
Planning & Control
Continuous
Programme-portfolio
Improvement
Multi-project
Planning
Programme
Governance
MakeITWork.Consulting ME
Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME
51
Measurement of Project Management ROI
Findings From 5-Year Study on Quantifying the Value of Project Management
 Companies with more mature project management practices have better project
performance (on time and budget vs. 40% over time and 20% over cost targets)
 Project management maturity is strongly correlated with more predictable project
schedule and cost performance (i.e. 0.08 schedule performance index variation vs.
0.16)
 Good project management companies have lower direct costs than poor project
management companies (6-7% vs. 11 - 20%)
 Over 94% of senior project management professionals say that implementing
PM added value to their organizations
 Formula to predict increased company ROI based on increased PMM level
 Determine cost to improve PMM level, improvement in cost performance index (CPI), then
calculate PM ROI using profit margins and projected annual revenue
The Cost Performance Index (CPI) is a measure
of the value of work completed compared to the
actual cost or progress made on the project
MakeITWork.Consulting ME
Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME
52
Measurement of Project Management ROI
Project Management ROI Example
 Case Study
 Company has 10.000.000,00 USD in Year Project Revenue
 Current Profit Margin, P%current = 5%
 Company wants to go from a PMMcurrent = 2,3 to PMMtarget = 3,1
 With an upgrade cost of 400.000,00 USD
PMM CPI Profit Margin
2,3 0,71 5,0 %
3,1 0,94 6,6 %
 Then the PM/ROI realized by upgrading from PMMcurrent to PMMtarget is:
PM ROI = (6,6 %-5,0 %) * $10.000.000) = 40,0 %
$400.000
MakeITWork.Consulting ME
Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME
53
The Value of Project Management: Beyond ROI
Program & Portfolio Management – The Benefits…
MakeITWork.Consulting ME
Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME
54
Implementation
Management
Communication
Project Organisation
Short comm.
lines
Project
Management
Audit on implementation
Ambition
Roadmap
Scope
+Related
Projects
Budget
Roll-out Strategy
Risk Analysis
Time Planning
Procedures
Sponsor
Steering Committee
+Changed
organization
Requirements to Achieve these Benefits
What should be in place before you start
Tool Implementation
OBS
Training
‘time registration’
Authorizations
Technology
Processes
Knowledge
Software
Installation
+Potential
screen adjustments
+Training
‘project- en resource planning’
Overall
Process flow
Role descriptions
WBS
+Accurate process flow
+Interfaces
Fit/non-fit
Training
‘administration’
Prepare data files
Quick reference
+Competence
Management
+Team-
development
+Project Portfolio
Management
+Knowledge
Management
Organisation
Development
+Insight in
project costs
+Processes definition
Time registration
Elementary reports
+CV’s
+Resource planning
+Management
Reports
+Project
Management
+Project Office
+Project
evaluations
HRM
Operations
Finance
Quality
+Controlling
Concept
+Organization
al Change
Support
Organization
+PM methodology
+Professionalize
Working in Projects
+Transfer pricing
system
+TRC’s
Rates
+Project budgets
+ABC
+Project profitability
+External
benchmark
+Planning and Control
Resource Management
Project, Time and Capacity
Management
Portfolio Management
MakeITWork.Consulting ME
Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME
55
Enterprise Project Management Process Maturity Model
Process Reference Model
Customer
Relationship
Management
Financial
Accounting
Management
Control &
Alerts
Management
Value Web
Collaboration
Management
Portfolio
Intelligence
Management
Business
Development
Management
Knowledge &
Document
Management
Programme
Delivery
Management
Resource
Allocation
Management
Project
Execution
Management
Project
Cost
Management
Human
Resources
Management
Maintain the
relation
Record (internal)
customer
Check
customer
satisfaction
Generate
leads
Administrate
ledger
Administrate
earnings and
spendings
Monitor
debtors/
creditors
Administrate
salaries
Administrate
fixed assets
Control
planning and
scheduling
Manage alerts
Control
workflows
Exchange
resource
information
Maintain
relation with
partners
Intensify
value web
Exchange
project
information
Exchange
time/expense
information
Exchange
purchase
information
Exchange
financial
information
Management
information
(resources)
Management
information
(projects)
Control
quality
Identify the
project and issue
project brief
Develop
new
business
Collect
knowledge
Make
knowledge
accessible
Utilize
and reuse
knowledge
Manage
documents
Manage
ad hoc reporting
Control
progr./project
organization
Control
risk and
issues
Control
change requests
Manage
configuration
Define the
business case
Identify the
programme and
issue progr. brief
Define the
programme and
issue progr. plan
Manage delivery
of programme
benefits
Govern the
programme
Close the
programme
Execute
reversed
billing
Search for
suitable
resources
Search for
available
resources
Reserve
capacity
Allocate
resources
Plan
unavailability
Define the
project and
issue PID
Control a
project stage
Manage delivery
of project
capabilities
Manage
project stage
boundaries
Direct the
project
Record
time
Check
timesheet
submission
Approve
timesheets
Record
commitments
Record
WIP
Close the
project
Charge back/
‘invoice’
the project
Record
purchases
Record
personnel
Recruit
and select
personnel
Assess
personnel
Administrate
competences
Management
development
Certify
personnel
Train
personnel
Manage the
resource
portfolio
Audit and
assess
Manage
stakeholders
Manage the
programme
portfolio
Manage the
project
portfolio
Manage
organisational
change
Management
information
(programmes)
Request for
resources
Analyse
the portfolio
scenarios
Adapt the
portfolio
Issue
programme or
project mandate
PORTFOLIO
management
RESOURCE
management
PROGRAMME
management
PROJECT
management
MakeITWork.Consulting ME
Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME
56
Project Management Professional Passport
Project Management Institute
 Founded in 1969,
 1st Project Management International Association,
 world's leading not-for-profit professional membership
association for the project, program and portfolio
management profession,
 improves organizational success and further matures
the profession of project management,
 globally recognized standards and certifications,
 delivers value for more than 2.9 million professionals
working in nearly every country in the world through
global advocacy, collaboration, education and research
MakeITWork.Consulting ME
Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME
57
Project Management Professional Passport
PMBOK, The evolution of the Standards on Project Management
2013
MakeITWork.Consulting ME
Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME
58
Project Management Professional Passport
PMBOK Guide – the purpose…
 The primary purpose of the PMBOK® Guide is to identify that subset of the Project
Management Body of Knowledge that is generally recognized as good practice.
 “Identify” means to provide a general overview as opposed to an exhaustive
description.
 “Generally recognized” means that the knowledge and practices described are
applicable to most projects most of the time, and that there is widespread consensus
about their value and usefulness.
 “Good practice” means that there is general agreement that the correct application
of these skills, tools, and techniques can enhance the chances of success over a
wide range of different projects.
 Good practice does not mean that the knowledge described should always be applied
uniformly on all projects;
 the project management team is responsible for determining what is appropriate for any
given project.
MakeITWork.Consulting ME
Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME
59
Project Management Professional Passport
PMI – the standards on Project Management
 Project Management best practices are being developed based on the main
international standards published by the PMI®.
 PMBOK® 5th Edition –A Guide to the Project Management Body of Knowledge
 The Standardfor Program Management 3th Edition
 The Standard for Portfolio Management 3th Edition
 OPM3 3th Edition – Organizational Project Management Maturity Model
 PMCDF 2nd Edition – Project Manager Competency Development Framework
MakeITWork.Consulting ME
Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME
60
Project Management Professional Passport
PMI – the standards on Project Management
 Complemented with specific Practice Standard guides for ain related knowledge
areas...
 Practice Standard for Work Breakdown Structures - Second Edition
 Practice Standard for Scheduling
 Practice Standard for Project Risk Management
 Practice Standard for Earned Value Management
 Practice Standard for Project Configuration Management
MakeITWork.Consulting ME
Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME
61
Project Management Professional Passport
PMI – Professional Certifications
=
PgMP ® Program Management
Professional
Designed for those who manage multiple, complex
projects to achieve strategic and organizational
results
=
PfMP® Portfolio Management
Professional
Recognizes the advanced experience and skill of
portfolio managers and demonstrates proven ability
in the coordinated management of one or more
portfolios to achieve organizational objectives
=
PMP® Project Management Professional
The most important globally-recognized and independently validated
credential for project managers, perfect if you have demonstrated
experience and competence in leading project teams
MakeITWork.Consulting ME
Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME
62
Project Management Professional Passport
PMI – Professional Certifications
1 CAPM
on a project
Project = 1 PMP
holder and multiple
CAPM holders
Program = 1 PgMP
overseeing multiple
projects
1 CAPM
on a project
MakeITWork.Consulting ME
Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME
63
1. Project Management Professional Passport
A Certified Training Course provided by
MakeITWork.Consulting ME
Project Management
MakeITWork.Consulting ME
Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME
64
A MakeITWork Consulting ME Training Course
Project Management Professional Passport
MakeITWork.Consulting ME
Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME
65
A MakeITWork Consulting ME Training Course
Project Management Professional Passport
MakeITWork.Consulting ME
Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME
66
A MakeITWork Consulting ME Training Course
Project Management Professional Passport
MakeITWork.Consulting ME
Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME
67
Our Contacts
For ERM consultation and workshops:
Jorge Vaz Girão, CISA, PMP, PMDPro I, ERMCP, CAMS
Regional Director, MakeITWork Consulting ME
+44 37 0801 1345 (UK)
+962 798 110 562 (Jordan)
jorgevazgirao@makeitworkconsulting.co.uk
For overall consultation, general inquiries:
MakeITWork Consulting ME
+44 37 0800 1306 (UK)
+962 795 338 447
+962 (0) 6581 3505
makeitwork@makeitworkconsulting.co.uk

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EPM-Enterprise Project Management

  • 1. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 1 MakeITWork.Consulting ME Project Management Enterprise Project Management Amman, Jordan 1st June, 2015 A MakeITWork Consulting ME event in cooperation with Association of Banks in Jordan
  • 2. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 2 MakeITWork Presentation MakeITWork Consulting is a Consulting and Training company, now also based in the Middle-East, specialized in Project and Risk Management, Business Strategy and Resource and Outsourcing services. Founded by a group of professionals with extensive experience and knowledge of the international market, MakeITWork Consulting features an integrated range of services, tailored to the needs of each Company. From the professional experience of its founders, it stands out the success stories in companies and organizations from different sectors of activities, including Banking and Insurance, Information Technology and Telecommunications, Software Industry, Government and overall Public Sector.
  • 3. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 3 Speaker Presentation Dr. Jorge Vaz Girão, PMP, CISA, PMDPro Jorge Vaz Girão has more than 30 years of experience in the fields of Program, Project and Risk Management, Business Analysis and Change Management for the IT, Banking, Insurance, Telecom, Transportation and Aviation industries. His career path was developed in various business domains both in the private and in the public sectors, having assumed many challenging different projects, especially relating to the areas of international management and consulting, across Europe, Africa and Middle East. He has managed and consulted on more than 35 local and international major projects, being its project and risk manager, for companies like Temenos, Misys, Capgemini, IBM, Altran, Axa Insurance, Sony, Shell and Bertelsmann. Project and Risk management, as well the coaching are his passion. For the past 5 years he has developed and taught over 20 different Project and Risk Management & related training courses. His vast experience and training methodology has received excellent feedback from his students and many domestic and international clients.
  • 4. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 4 • Introduction to Project Management Culture • The Importance of Project Management • Project Management Today - An Integrative Approach • An Overview of the Business Strategic Management • Project Management and the Business Strategy • The Need for a Project Selection and Priority System • The Rapid Spread of Modern Project Management • Project-Driven and Project-Dependent Organizations • Advantages and Importance of Modern Project Management • The Goals and Benefits of Project Management • Measurement of Project Management ROI • The Value of Project Management: Beyond ROI • Requirements to Achieve these Benefits • Enterprise Project Management Process Maturity Model Agenda
  • 5. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 5 Introduction to Project Management Culture What is a Project ?...
  • 6. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 6 Introduction to Project Management Culture What is a Project ?...
  • 7. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 7 Specific Resources Introduction to Project Management Culture What is a Project ?... Specific Goals and Objectives Specific Deliverables
  • 8. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 8 Introduction to Project Management Culture What is a Project ?...The (maybe) First Project !...
  • 9. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 9 Introduction to Project Management Culture What is a Project ?... Another Project…
  • 10. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 10 Introduction to Project Management Culture What is a Project ?... And a lot more…throughout all times… 2700 BCPyramids 2700 BC Babel Tower 6000 BC 476Roman Empire 1500Age of Discovery 1750Industrial Revolution 1912Titanic 1945Manhattan Project
  • 11. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 11 Introduction to Project Management Culture Why Project Management?... We believe that we can influence, to act and change the course… Ostrich Approach ignoring the risks or pretend they do not exist Christian Approach waiting for someone or a higher authority to resolve any problems or make them disappear Denial Approach recognize that there are risks but refuse to accept that they will happen to your project
  • 12. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 12 Introduction to Project Management Culture Why Project Management?... is not the strongest nor the most intelligent of the species that survives… …but that one who is better able to accept and adapt to change… Charles Darwin (Geologist and Naturalist; 1809-1882)
  • 13. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 13 Introduction to Project Management Culture Project…. What does it means?...  Project: What does it mean?  Organizations perform work which involves either operations or projects, although the two may overlap  They share many characteristics:  they are performed by people,  constrained by limited resources,  planned, executed, and controlled.  They differ primarily in:  that operations are ongoing and repetitive  projects are temporary and unique
  • 14. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 14 Introduction to Project Management Culture A Project is… Operations Projects Existing systems One-time resource configuration Repetitive work Unique and separate work Efficiency and effectiveness Cohesion and direction Reliance on standard procedure End-product driven Line management Project orientation Focus on “maintaining” Focus on “change” “ A project is a temporary endeavour undertaken to create a unique product, service or result.“
  • 15. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 15 The Importance of Project Management Project Management … Till Modern Project Management! 2010190019701960 200019801950 1958: Polaris, Cold War, PERT 1960: CPM 1963: USAF, EVM 1960’s: NASA Project’s; diffusion into other companies 1969: PMI 1970-80: Matrix Organizations 1983-87: PMBoK 1989: PRINCE Method 1991:PMBoK ANSI Standard 1999: Mng Sucessful Programs (OGC) 2006: PMI Standards on Program Mngmt 1995: MS Project 1996: PRINCE2 1997: ISO 10006 Quality in Pj Mngmt
  • 16. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 16 The Importance of Project Management Modern Project Management why…?  Increased complexity of the work,  Constraints impacting organizations (Time, Cost, Scope)  Management focus on Program and Benefits Management  Increased enforcement uncertainty, competition (time-to-Market)  Quality Requirement increasing,  Customer Satisfaction, Continuous improvement,  Conformity with maturity models (EFQM)  High technological pace and innovation  Project duration longer, Budgets getting smaller,  Emphasis on justified project costs >2years 1to2years 6to12months 3to6months >3 mth
  • 17. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 17 The Importance of Project Management Project Management – Why?  Disciplined project management provides:  Focal point for effective communications, co-ordination and control  A plan to assess progress  Emphasis on time and cost performance  Project management provides the framework for  methods,  processes,  monitoring and change control.  What are the benefits ?
  • 18. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 18 The Importance of Project Management Project Management – What are the Benefits ?
  • 19. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 19 The Importance of Project Management Project Management – What are the Benefits ? Companies view project management initiatives as valuable to their bottom-line profitability, to product quality, and especially to meeting delivery dates and budget goals
  • 20. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 20 Project ManagementKnowledge Areas Scope Cost Resource Risk Integration Cost Scope Time CommunicationProcurement Quality Time Ensures the project will include all the work required (and only this!) to be complete successfully. Ensures the project will be completed according planned schedule and on time Ensures the project will be completed within allocated budget o it. Ensures the project will meet the needs that justified its initiation. Optimizes the participation of all the resources involved in the project. Ensures all project information will be developed, disseminated and stored properly. Identifies, analyses and defines the risk responses that somehow have impact on the project. Ensures the correct acquisition of goods and / or services outside the organization. Ensures the various elements of the project are coordinated and integrated correctly. Project Management Today - An Integrative Approach Knowledge Areas
  • 21. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 21 Project Management Today - An Integrative Approach Project Management Processes Gestão De Projectos Processes Initiation Planning Execution Monitoring & Controling Closing Cost Scope Time The Initiating Process Group consists of those processes performed to define a new project or a new phase of an existing project by obtaining authorization to start the project or phase. The Planning Process Group consists of those processes performed to establish the total scope of the effort, define and refine the objectives, and develop the course of action required to attain those objectives.. The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The Closing Process Group consists of those processes performed to conclude all activities across all Project Management Process Groups to formally complete the project, phase, or contractual obligations. The Executing Process Group consists of those processes performed to complete the work defined in the project management plan to satisfy the project specifications.
  • 22. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 22 Activitylevel Time Initiation Planning Execution Monitoring & Control Closing Project Management Today - An Integrative Approach Project Management Processes
  • 23. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 23 3 – 5 years An Overview of the Business Strategic Management Business Strategy and Program/Project alignment… Vision Vivid Description Mission Core Values Strategic Principles Learning and Grow Perspective Employee Competence Technology Corporate Culture Ground Crew Alignment Ground Crew Alignment % Ground Crew Trained % Ground Crew Stakeholders Year 1 : 70 % Year 3 : 90 % Year 5 : 100 % Ground Crew Training Program (GCTP) Internal Process Perspective Selected Initiatives Customer Perspective Operational Excellence Customer Intimacy Product Leadership Attract Customers & Retain Attractive Pricing # of Customers Competitive Prices Load Factor Customer Ranking Number 1 Number 1 Customer Loyalty Program (CLP) Financial Perspective Revenue Growth Strategy Productivity Strategy BSC Strategy Map Improve Shareholder Value Profits & ROI Plane Utilization Profitability Plane Utilization Market Value Block Hours/Day 30% 4% Strategic Initiative Objective Measure Target Initiative 3 – 5 years Value Proposition Differentiation Statements Outcome Description 3 – 5 years Goals Strategic Objective Strategic Measures Fast Ground Turnaround Fast Ground Turnaround On Ground Time On- Time Departure 30 minutes 90% Turnaround Cycle Program (TCP) Time Optimization Program (TOP) 3 – 5 years Strategic Risk Opportunities Mega Issues Environmental Scan “Rolling” 1 – 2 years Operating Plan and Budget Program/Project Portfolio Management Strategic Programs Operational Programs Projects Projects Example Strategy Map : “Airline Operating Efficiency” Theme
  • 24. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 24 An Overview of the Business Strategic Management Maturity Organizations – an Organizational Change People Tools, Technique Processes Organizational Change Methodology ExpertiseTraining
  • 25. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 25 Project Management and the Business Strategy Maturity Organizations – the Evolution Organizational Resources Vision Mission Organizational Strategies & Objectives High-Level Operations Planning & Management Management of On-Going Operations (recurring operations) (Producing value) Project Portfolio Planning & Management Management of Authorized Programs & Projects (projectized activities) (increasing value, production capacity)
  • 26. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 26 An Overview of the Business Strategic Management Maturity Organizations – the Evolution Portfolio Program Project Standardize Measure Control Continuously Improvement
  • 27. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 28 Project Management and the Business Strategy Maturity Organizations - achieving a level of Excellence
  • 28. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 29 Project Management and the Business Strategy Maturity Organizations - achieving a level of Excellence Use the standard to obtain basic understanding of OPM3, its components and operation High-Level: Use Self-Assessment tool to identify existing and needed Best Practices and position on maturity continuum. Comprehensive: Identify existing Capabilities to determine maturity at detailed level and consider planning for improvements. Option: Exit process if satisfied with results; reassess periodically to monitor effects of change. Use Assessment results and organization’s priorities to determine scope and sequence of improvement efforts. Execute planned organizational development activities to advance on the maturity continuum. Recomended: Return to Step 2 reassess maturity to detect changes caused by recent events. Option: Return to Step 3 to work on otherBest Practices identified in original assessment.
  • 29. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 30 The Need for a Project Selection and Priority System An Integrated Portfolio Management System Manage operational and business risk Manage Risk • Compliance • Protect assets • Service continuity Better manage operating and capital costs Manage Cost • Optimize resources • Automate processes Align IT investments to organizational needs Align IT Investments • IT portfolio mgmt. • Value mgmt. • Business process mgmt. Deliver maximum value by providing reliable and effective services Improve Service • Service availability • Service mgmt. Unify and Simplify Portfolio Management System
  • 30. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 31 Enterprise Project Management (EPM) is a new vision for how to unify and simplify the management of enterprise-wide Project initiatives BusinessRequirementOptimization StrategyManagement RiskManagement EnterpriseProjectManagement Manage and Secure Unify Simplify Application Environments ApplicationsUsers Business Processes Business Requirements / Needs The Need for a Project Selection and Priority System Enterprise Project Management
  • 31. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 32 Business IT Portfolio IT Governance Business Alignment IT Users People & Projects Service Lifecycle Applications Best Practices Process Add value with existent resources Allows better alignment and commitments with the business Increase efficiency by integrating IT & Business processes Demand Services The Need for a Project Selection and Priority System Enterprise Project Management
  • 32. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 33 The Need for a Project Selection and Priority System Enterprise Project Management Time and Cost Projects and Programs Processes Time and Cost Accounting • Counts actual project costs • Allocates and affects actual project costs (charge-back) Process Management • Creates templates, graphics workflows and methodologies of best practices • Process compliance reports Project Management • Creates estimates, budgets and provides forecasts • Monitors deliverables and progress according to defined milestones • Manage issues and risks Resource Management • Cataloguing, access and research skills • Plans future needs by functionResource Management
  • 33. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 34 The Need for a Project Selection and Priority System
  • 34. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 35 Project-Driven and Project-Dependent Organizations Types of Organizational Structure Functional Organization is grouped by areas of specialization Project generally occur within a single department Projectized Entire company is organized by projects Personnel are assigned and report to a project manager
  • 35. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 36 Project-Driven and Project-Dependent Organizations Types of Organizational Structure Weak Matrix Power rest with the functional manager Power of project manager = coordinator or expediter Balanced Matrix Power is shared between the project manager and the functional manager
  • 36. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 37 Project-Driven and Project-Dependent Organizations Types of Organizational Structure Strong Matrix Power rest with the project manager Composite
  • 37. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 38 Project-Driven and Project-Dependent Organizations Influences of organizational structure on projects Part-Time Part-Time Part-Time Part-Time Part-Time Full Time Full Time Full Time Part-Time Full Time Project Manager Project Manager Functional Manager Functional Manager Little or None Little or None Moderated to High High to Almost Total Moderated to High High to Almost Total Limited Limited Low to Moderate Low to Moderate Mixed
  • 38. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 39 Project-Driven and Project-Dependent Organizations Influences of organizational structure on projects Advantages Disadvantages Functional • Easier management of specialists • Team members report to only one supervisor • Similar resources are centralized, as the company is grouped by specialties • Clearly defined career paths in areas of work specialization • People place more emphasis on their functional specialty to the detriment of the project • No career path in project management • The project manager has little or no authority Projectized • Efficient project organization • Loyalty to the project • More effective communication than functional • No “home” when project is completed • Lack of professionalism in disciplines • Duplication of facilities and job functions • Less efficient use of resources Matrix • Highly visible project objectives • Improved project manager control over resources • More support from functional area • Maximum utilization of scarce resources • Better coordination • Extra administration is required • More than one boss for project teams • More complex to monitor and control • Tougher problems with resource allocation • Need extensive policies and procedures
  • 39. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 41 Advantages and Importance of Modern Project Management Major Reasons of Failure in IT Projects
  • 40. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 42 Lack of best practices in project management • The largest contributor to project failures in IT is due to the lack of best practices applied by the project manager and the project team • The main areas of non-adherence to best practices can be found in estimating, scheduling , proper time phased budgeting, project performance measuring, risk and quality management and close out activities. Advantages and Importance of Modern Project Management Major Reasons of Failure in IT Projects
  • 41. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 43 Inadequate stakeholders interface management • If one considers that the success or failure of a project is determined by all of its stakeholders, then it is of paramount importance that the project manager and project team identify all the possible stakeholders to the project. • A stakeholder that gets “forgotten” during the start of the project might become non-supportive for all or part of the project. • A Stakeholder Segmentation Model becomes an important element in the crucial stakeholders interface management practices. Advantages and Importance of Modern Project Management Major Reasons of Failure in IT Projects
  • 42. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 44 Inadequate Scope Management • Apart from the absence of proper techniques applied to gather the scope input, the incomplete stakeholders identification in the beginning of the project mostly leads to incomplete scope definition. • Remember if one stakeholder is forgotten, we miss a 100% of this stakeholders’ requirements to be defined in the project scope Advantages and Importance of Modern Project Management Major Reasons of Failure in IT Projects
  • 43. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 45 Advantages and Importance of Modern Project Management Failing to observe the 10 basic Commandments 1. Mistaking every half-baked idea for a viable project 2. Don’t overlook the stakeholders, don’t forget the champions, don’t ignore the nemesis 3. Failing to assess project complexity 4. Not developing a comprehensive project charter and scope 5. Not developing a comprehensive project action plan 6. Failing to design a functional team structure 7. Accepting or developing unrealistic and unachievable estimates 8. Accepting status report that contain mostly noise and not enough signal 9. Looking back and not ahead ( reactive instead of pro-active) 10.Not following a robust project architecture
  • 44. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 46 The Goals and Benefits of Project Management Project Best Practices (*)…  Proven, Sound, Project Management Fundamentals  Includes knowledge of proven, traditional practices  Widely applied and recognized for their value  Shown to enhance success over a wide range of projects  Includes knowledge of innovative and advanced practices which had limited general exposure so far  With Skills, tools, techniques  Based on sharing experiences  Applying “Lessons Learned” practices  By professional practitioners who network through Specific Interest Groups (SIG) and professional organizations  Updated and advanced, with emerging innovative practices in the profession of Project Management (*) A Continuous improvement process on the sum of knowledge and practices within the profession of Project Management.
  • 45. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 47 The Goals and Benefits of Project Management Project Management Fundamentals The Project Management Framework Defines Key Terms and the Broad Environment in which projects operate The Standard for Project Management of a Project Specifies all the project management processes used by the project team to manage a project. The Project Management Knowledge Areas Organizes the 47 processes into 10 Knowledge Area’s Introduction, Purpose Project Lifecycle and Organization Integration Management Scope Management Time Management Cost Management Quality Management Human Resource Management Communication Management Risk Management Procurement Management Stakeholder Management Project Management Processes, Groups Project Management Process Mapping What is a Project, What is Project Management, Areas of Expertise, Project Management Context The Project Lifecycle, Project Stakeholders, Organizational Influences Project Management Processes, Project Management Process Groups, Process Interactions Customizing Process Interactions, Project Management Process Mapping
  • 46. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 48 The Goals and Benefits of Project Management Project Management – What are the Benefits ?  Improved communication among participants  Realistic expectation management and clarified project goals  providing a better balance between competing demands  adequate understanding of initial project scope  managing change of that scope  Facilitates priority setting on project portfolio  Better planning of the work to be done and accurate projection of the resource requirements  Constant monitoring and control of the project  providing consistent method for tracking tasks and milestones  improved mechanism for performance measurement  Identification of problem areas  Ongoing identification, impact analysis and mitigation of project risk
  • 47. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 49 The Goals and Benefits of Project Management Program & Portfolio Management – The Benefits…  Delivery of Change (Coordinated Change-enabler)  Alignment between strategy and project levels  Management involvement, support, monitoring and control  Balanced Resource management  Improved Risk management  Benefit realization  Better coordination and control at execution level  Transition management  Consistency of performance
  • 48. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 50 The Goals and Benefits of Project Management Program & Portfolio Management – The Benefits… [2] Planned (multi project) [2] Planned (multi project) Multi project [3] Integrated (project portfolio) [3] Integrated (project portfolio) Multi project Project portfolio [4] Strategic (multi programme) [4] Strategic (multi programme) Multi project Project portfolio Multi programme [5] Collaborative (programme portfolio) [5] Collaborative (programme portfolio) Visie, missie, strategie, doelen Project thinking Project thinking Project thinking Project thinking [1] Initial (project thinking) [1] Initial (project thinking) LevelsofMaturity Time Vision, mission, strategy, goals Basic PM Project-portfolio Planning & Control Continuous Programme-portfolio Improvement Multi-project Planning Programme Governance [2] Planned (multi project) [2] Planned (multi project) Multi project [3] Integrated (project portfolio) [3] Integrated (project portfolio) Multi project Project portfolio [4] Strategic (multi programme) [4] Strategic (multi programme) Multi project Project portfolio Multi programme [5] Collaborative (programme portfolio) [5] Collaborative (programme portfolio) Visie, missie, strategie, doelen Project thinking Project thinking Project thinking Project thinking [1] Initial (project thinking) [1] Initial (project thinking) LevelsofMaturity Time Vision, mission, strategy, goals Basic PM Project-portfolio Planning & Control Continuous Programme-portfolio Improvement Multi-project Planning Programme Governance
  • 49. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 51 Measurement of Project Management ROI Findings From 5-Year Study on Quantifying the Value of Project Management  Companies with more mature project management practices have better project performance (on time and budget vs. 40% over time and 20% over cost targets)  Project management maturity is strongly correlated with more predictable project schedule and cost performance (i.e. 0.08 schedule performance index variation vs. 0.16)  Good project management companies have lower direct costs than poor project management companies (6-7% vs. 11 - 20%)  Over 94% of senior project management professionals say that implementing PM added value to their organizations  Formula to predict increased company ROI based on increased PMM level  Determine cost to improve PMM level, improvement in cost performance index (CPI), then calculate PM ROI using profit margins and projected annual revenue The Cost Performance Index (CPI) is a measure of the value of work completed compared to the actual cost or progress made on the project
  • 50. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 52 Measurement of Project Management ROI Project Management ROI Example  Case Study  Company has 10.000.000,00 USD in Year Project Revenue  Current Profit Margin, P%current = 5%  Company wants to go from a PMMcurrent = 2,3 to PMMtarget = 3,1  With an upgrade cost of 400.000,00 USD PMM CPI Profit Margin 2,3 0,71 5,0 % 3,1 0,94 6,6 %  Then the PM/ROI realized by upgrading from PMMcurrent to PMMtarget is: PM ROI = (6,6 %-5,0 %) * $10.000.000) = 40,0 % $400.000
  • 51. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 53 The Value of Project Management: Beyond ROI Program & Portfolio Management – The Benefits…
  • 52. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 54 Implementation Management Communication Project Organisation Short comm. lines Project Management Audit on implementation Ambition Roadmap Scope +Related Projects Budget Roll-out Strategy Risk Analysis Time Planning Procedures Sponsor Steering Committee +Changed organization Requirements to Achieve these Benefits What should be in place before you start Tool Implementation OBS Training ‘time registration’ Authorizations Technology Processes Knowledge Software Installation +Potential screen adjustments +Training ‘project- en resource planning’ Overall Process flow Role descriptions WBS +Accurate process flow +Interfaces Fit/non-fit Training ‘administration’ Prepare data files Quick reference +Competence Management +Team- development +Project Portfolio Management +Knowledge Management Organisation Development +Insight in project costs +Processes definition Time registration Elementary reports +CV’s +Resource planning +Management Reports +Project Management +Project Office +Project evaluations HRM Operations Finance Quality +Controlling Concept +Organization al Change Support Organization +PM methodology +Professionalize Working in Projects +Transfer pricing system +TRC’s Rates +Project budgets +ABC +Project profitability +External benchmark +Planning and Control Resource Management Project, Time and Capacity Management Portfolio Management
  • 53. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 55 Enterprise Project Management Process Maturity Model Process Reference Model Customer Relationship Management Financial Accounting Management Control & Alerts Management Value Web Collaboration Management Portfolio Intelligence Management Business Development Management Knowledge & Document Management Programme Delivery Management Resource Allocation Management Project Execution Management Project Cost Management Human Resources Management Maintain the relation Record (internal) customer Check customer satisfaction Generate leads Administrate ledger Administrate earnings and spendings Monitor debtors/ creditors Administrate salaries Administrate fixed assets Control planning and scheduling Manage alerts Control workflows Exchange resource information Maintain relation with partners Intensify value web Exchange project information Exchange time/expense information Exchange purchase information Exchange financial information Management information (resources) Management information (projects) Control quality Identify the project and issue project brief Develop new business Collect knowledge Make knowledge accessible Utilize and reuse knowledge Manage documents Manage ad hoc reporting Control progr./project organization Control risk and issues Control change requests Manage configuration Define the business case Identify the programme and issue progr. brief Define the programme and issue progr. plan Manage delivery of programme benefits Govern the programme Close the programme Execute reversed billing Search for suitable resources Search for available resources Reserve capacity Allocate resources Plan unavailability Define the project and issue PID Control a project stage Manage delivery of project capabilities Manage project stage boundaries Direct the project Record time Check timesheet submission Approve timesheets Record commitments Record WIP Close the project Charge back/ ‘invoice’ the project Record purchases Record personnel Recruit and select personnel Assess personnel Administrate competences Management development Certify personnel Train personnel Manage the resource portfolio Audit and assess Manage stakeholders Manage the programme portfolio Manage the project portfolio Manage organisational change Management information (programmes) Request for resources Analyse the portfolio scenarios Adapt the portfolio Issue programme or project mandate PORTFOLIO management RESOURCE management PROGRAMME management PROJECT management
  • 54. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 56 Project Management Professional Passport Project Management Institute  Founded in 1969,  1st Project Management International Association,  world's leading not-for-profit professional membership association for the project, program and portfolio management profession,  improves organizational success and further matures the profession of project management,  globally recognized standards and certifications,  delivers value for more than 2.9 million professionals working in nearly every country in the world through global advocacy, collaboration, education and research
  • 55. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 57 Project Management Professional Passport PMBOK, The evolution of the Standards on Project Management 2013
  • 56. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 58 Project Management Professional Passport PMBOK Guide – the purpose…  The primary purpose of the PMBOK® Guide is to identify that subset of the Project Management Body of Knowledge that is generally recognized as good practice.  “Identify” means to provide a general overview as opposed to an exhaustive description.  “Generally recognized” means that the knowledge and practices described are applicable to most projects most of the time, and that there is widespread consensus about their value and usefulness.  “Good practice” means that there is general agreement that the correct application of these skills, tools, and techniques can enhance the chances of success over a wide range of different projects.  Good practice does not mean that the knowledge described should always be applied uniformly on all projects;  the project management team is responsible for determining what is appropriate for any given project.
  • 57. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 59 Project Management Professional Passport PMI – the standards on Project Management  Project Management best practices are being developed based on the main international standards published by the PMI®.  PMBOK® 5th Edition –A Guide to the Project Management Body of Knowledge  The Standardfor Program Management 3th Edition  The Standard for Portfolio Management 3th Edition  OPM3 3th Edition – Organizational Project Management Maturity Model  PMCDF 2nd Edition – Project Manager Competency Development Framework
  • 58. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 60 Project Management Professional Passport PMI – the standards on Project Management  Complemented with specific Practice Standard guides for ain related knowledge areas...  Practice Standard for Work Breakdown Structures - Second Edition  Practice Standard for Scheduling  Practice Standard for Project Risk Management  Practice Standard for Earned Value Management  Practice Standard for Project Configuration Management
  • 59. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 61 Project Management Professional Passport PMI – Professional Certifications = PgMP ® Program Management Professional Designed for those who manage multiple, complex projects to achieve strategic and organizational results = PfMP® Portfolio Management Professional Recognizes the advanced experience and skill of portfolio managers and demonstrates proven ability in the coordinated management of one or more portfolios to achieve organizational objectives = PMP® Project Management Professional The most important globally-recognized and independently validated credential for project managers, perfect if you have demonstrated experience and competence in leading project teams
  • 60. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 62 Project Management Professional Passport PMI – Professional Certifications 1 CAPM on a project Project = 1 PMP holder and multiple CAPM holders Program = 1 PgMP overseeing multiple projects 1 CAPM on a project
  • 61. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 63 1. Project Management Professional Passport A Certified Training Course provided by MakeITWork.Consulting ME Project Management
  • 62. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 64 A MakeITWork Consulting ME Training Course Project Management Professional Passport
  • 63. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 65 A MakeITWork Consulting ME Training Course Project Management Professional Passport
  • 64. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 66 A MakeITWork Consulting ME Training Course Project Management Professional Passport
  • 65. MakeITWork.Consulting ME Project Management © 2015 MakeItWork This document its confidential and could not be reproduced or distributed without prior written authorization of MakeItWork Consulting ME 67 Our Contacts For ERM consultation and workshops: Jorge Vaz Girão, CISA, PMP, PMDPro I, ERMCP, CAMS Regional Director, MakeITWork Consulting ME +44 37 0801 1345 (UK) +962 798 110 562 (Jordan) jorgevazgirao@makeitworkconsulting.co.uk For overall consultation, general inquiries: MakeITWork Consulting ME +44 37 0800 1306 (UK) +962 795 338 447 +962 (0) 6581 3505 makeitwork@makeitworkconsulting.co.uk