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Project Governance Models and Program Management Office


  1. 1. Project Governance Models and Program Management Office (PMO)<br />Group 6<br />Sharad Nirwal<br />Shubham Gupta<br />Sumeet Duggal<br />Sunayan Pal<br />
  2. 2. What is Project Governance?<br />Project Governance uses the basic principle of Governance and applies it into both the management of individual projects via Governance structures, and the management of projects at the business level. It defines accountabilities and responsibilities for strategic decision-making across the project.<br />It will:<br />Outline the relationships between all internal and external groups involved in the project <br />Describe the proper flow of information regarding the project to all stakeholders <br />Ensure the appropriate review of issues encountered within each project <br />Ensure that required approvals and direction for the project is obtained at each appropriate stage of the project.<br />
  3. 3. 5. Outsourcing<br />4. Transformation<br />Define policy and <br />outsource execution<br />Funding stream allocations<br />Agency identity<br />Retain monitoring and control<br />“Big Browser”<br />3. Transaction<br />Evolve PPP model<br />Strategy/Policy<br />Competition<br />People<br />Confidentiality/privacy<br />Outsource service delivery staff<br />Process<br />Job structures<br />Fee for transaction<br />Technology<br />Outsource process execution staff<br />Relocation/telecommuting<br />E-authentication<br />2. Interaction<br />Organization<br />Cost/<br />Searchable<br />Performance accountability <br />Self-services<br />Complexity<br />Database<br />Multiple-programs skills<br />Skill set changes<br />Public response/ <br />Privacy reduces<br />Portfolio mgmt.<br />email<br />Sourcing <br />Content mgmt.<br />Inc. business staff<br />Outsource customer <br />facing processes<br />Increased <br />Integrated services<br />Presence<br />1.<br />Trigger<br />support staff<br />BPR<br />Outsource backend processes<br />Change value chain<br />Governance<br />Relationship mgmt.<br />New processes/services<br />Publish <br />Online interfaces<br />Change relationships<br />Knowledge mgmt.<br />Channel mgmt.<br />(G2G, G2B, G2C, G2E)‏<br />E-mail best prac.<br />Existing<br />Content mgmt.<br />Legacy sys. links<br />Constituent<br />Metadata<br />Applications<br />Security<br />Streamline<br /> Value<br />New applications<br />Data synch.<br />Infrastructure<br />Information access<br />processes<br />New data structures<br />24x7 infrastructure<br />Search engine<br />Web site<br />Sourcing<br />E-mail<br />Markup<br />Time<br />PM Governance: Enables to rapidly move up the Evolution Staircase<br />
  4. 4. Roles in Project Governance<br />
  5. 5. Project Governance Model and Structure<br />
  6. 6. Project Governance Framework<br />
  7. 7. Project Governance Framework (High Risk)<br />
  8. 8. Project Governance Model<br /><ul><li>Network Management
  9. 9. Policy Management
  10. 10. Administration (Telecommunication and computers )</li></ul>Control and processing of all mission related functionality<br />Documentation, <br />processes, Audit, <br />Quality, Support system<br /><ul><li>Internal audit
  11. 11. external audit
  12. 12. Audit directive
  13. 13. Implementation</li></ul>Process and policies of <br /><ul><li>identification,
  14. 14. assessment,
  15. 15. prioritization,
  16. 16. monitor,
  17. 17. control
  18. 18. Primary & secondary stakeholder
  19. 19. Scope
  20. 20. information (includes reporting) management</li></li></ul><li>Project Governance Model<br />The Governance model is a management model in which there is interaction; from the top to the bottom (decisions) and from the bottom to the top (information), the 3 levels in a project organization chart are:<br />1) Steering Committee Level or Sponsor Level<br />2) Project Management Level<br />3) Work Teams<br />Sponsor level<br />DECISIONS<br />INFORMATION<br />Project Management<br />Level<br />The work meetings of each governance level are the vehicle that defines the dynamic of each governance level:<br />a) the participants<br />b) the objective of the work meetings<br />c) the frequency of such meetings<br />d) the agenda that they should deal with.<br />Work Teams Level<br />
  21. 21. Project Governance Dynamics<br />Steering Committee Level<br /><ul><li>Participants(steering committee composition: CIO, Top manager :functional area, consulting firm if any, Internal auditing manager)
  22. 22. Governance Level objectives (ensure the correct course of the project and to make the necessary decisions)
  23. 23. Meeting Frequency
  24. 24. Agenda</li></ul>General Plan of the Project. Current state (Understand current state & review milestone achieve)<br />Status of the Project Risk Matrix (Identifies situations that may affect the course of the project, anticipate and manage risk)<br />Issues that require attention ( Subjects which require special attention, critical issues, Early escalation)<br />Project Budget Status ( Total budget, incurred budget, the remainder budget required and revision if required)<br />An accurate presentation (of design or criterion adopted by the project)<br />
  25. 25. Project Governance Dynamics<br />Project Management Level<br /><ul><li>Participants( Project manager functional, IT )
  26. 26. Governance Level objectives (Day to day management, roles and responsibility )
  27. 27. Meeting Frequency
  28. 28. Agenda
  29. 29. Opening (The Project Management is in charge of it) (inform participant about the decision adopted by steering committee and event occurring in organization)
  30. 30. Detailed monitoring of the project work plan (PMO and respective team, potential deviation identified and different action re carried)
  31. 31. Issues log status ( PMO involvement)
  32. 32. Issues that require attention ( Subjects which require special attention, critical issues, Early escalation)</li></ul>Work Teams Level<br /><ul><li>Participants
  33. 33. Governance Level objectives ( understand the work, deepen the knowledge ,recognize situation that require adoption of decision, motivate the team )
  34. 34. Meeting Frequency
  35. 35. Agenda
  36. 36. Project Management news (Share the project news )
  37. 37. Issues that require attention (Analysis of subject that required the action of project management )</li></li></ul><li>A Governance Model for Incremental, Concurrent, or Agile Projects<br />System Structure<br />Applications<br />Service components<br />Specific different functionality, data<br />
  38. 38. Intended Strategies <br />Agile project teams measure progress not according to how many requirements have been gathered, but by how much running functionality has been designed, programmed, and integrated (running tested features, or RTF )<br />Agile burn-up charts are very similar to traditional earned-value charts <br />The vertical tick-marks show 10 percent units of completed RTF from left to right (100 percent complete at the right). The triangle milestone markers show the amount of RTF the team targets to have completed and integrated at each IR (Internal releases) milestone.<br />Fig: Burn-Up Chart ( Running tested feature)<br />Fig: Target Progress Markers<br />
  39. 39. Collecting the Information<br />Gathering the Estimates<br />To capture the of whatfor tracking, we need three pieces of information:<br />What is the unit of accomplishment? often consists of use cases<br />About how many units do you expect to create?<br />Confidence level on the estimate<br />Gathering the Status<br />To tag the timeline, we need to give each iteration or planning window a milestone number such as an IR completed then followed by iteration completed.<br />After iterations, the teams send in their RTF numbers, which get rolled up into a summary spreadsheet at any level of granularity desired.<br />
  40. 40. The Status Report Packet<br />A good summary pageof the package put in front of the steering committee. That package also needs detail pages for the separate subprojects. <br />This detail page has three sections: <br /><ul><li>A status/targeted/deferred and risk snapshot for each section of work within the component.
  41. 41. A commentary, including surprises and lessons learned during the previous period.
  42. 42. Cost roll-up information. </li></ul>1<br />2<br />3<br />
  43. 43. Program Management Office<br />
  44. 44. What is a Program Management Office (PMO) …<br /><ul><li>What is a Mutual Fund?
  45. 45. A mutual fund is an open ended investment company that offers its investors the benefits of portfolio diversification, provides greater safety and reduces volatility by professional management.
  46. 46. Program Management Office:
  47. 47. Managing a portfolio of projects within the enterprise of a company.
  48. 48. Manage how to spend the money on different projects
  49. 49. Manage the volatility of successful and failed projects
  50. 50. Professional Managers run a PMO (understand how projects impact the strategic directions of the company)</li></ul>“A PMO is an organizational unit to centralize and coordinate the management of projects under its domain” – PMBOK Guide 3rd Edition <br />
  51. 51. Background on the PMO<br /><ul><li>What is a PMO? – there are many acceptable definitions
  52. 52. Project/Program Management Office
  53. 53. Portfolio Management Office
  54. 54. PMOs are positioned on a continuum between
  55. 55. Facilitating
  56. 56. Controlling
  57. 57. Purpose and scope of the PMO
  58. 58. Improve the practice and results of project management
  59. 59. Department or group that defines and maintains the standards of process, generally related to project management, within the organization.
  60. 60. Strives to standardize and introduce economies of repetition in the execution of projects.
  61. 61. Source of documentation, guidance and metrics on the practice of project management and execution.</li></li></ul><li>Most large-scale transformation programs do not succeed, mainly driven by inadequate governance and poor planning <br />Why Projects / Programs Fail<br />Large Programs Success Rates<br />Others<br />Poor Organization and Project Management Practices<br />Successful<br />Technical Problems<br />16%<br />Problems with Suppliers<br />Insufficient Project Personnel Resources<br />53%<br />31%<br />Cancelled<br />Ineffective Project Planning<br />Under Perform<br />Poorly Defined or Missing Project Objectives<br />Source: Standish Group International, Survey from 2500 personnel attending project management training<br />
  62. 62. Some More Facts…<br /><ul><li>Enterprise Resource Planning Initiatives
  63. 63. 51 percent of survey respondents to the 2001 Robbins-Gioia Survey viewed their ERP implementation as unsuccessful
  64. 64. However, 56 percent of respondents indicated that their organization had a PMO in place and of those individuals only 36 percent felt the ERP implementation was unsuccessful</li></li></ul><li>A Program Management Office (PMO) can effectively help address these challenges…<br />PMO Challenges & Responsibilities<br />Examples of Challenges<br />Responsibilities of PMO<br /><ul><li>Project mission and tasks are poorly defined
  65. 65. Lack of a clear process for escalating risks to senior management
  66. 66. Insufficient reporting to support top-management decisions
  67. 67. Ineffective enforcement of project controls and policies
  68. 68. Conflict between line, project managers
  69. 69. Projects do not meet deadlines / milestones
  70. 70. Lack of standardized reports and reporting frameworks for all projects - Fragmented project plans
  71. 71. Identifies gaps in realization of strategic objectives
  72. 72. Escalates current risks and identifies potential risks earlier
  73. 73. Ensures proper communications to relevant stakeholders
  74. 74. Improves monitoring and control of projects
  75. 75. Mediates issue resolution
  76. 76. Increases efficiency in tracking progress of projects
  77. 77. Integrates project plans for all projects – Standardizes progress reporting</li></li></ul><li>Value of an Effective & Efficient PMO<br />Value ($)<br />Efficient Program Management Office<br />Value 2: Delivers Incremental Value<br />Implementation<br />Validation& Detailing, Planning<br />Failure<br />Planning <br />& Set-up<br />Failure<br />Failure<br />Assessment & Concept Development<br />Time<br />Value 3: Reduces <br />Risk of Failure<br />Value 1: <br />Accelerates Progress<br />…and can accelerate progress, increase value, and reduce risk of failure<br />Traditional Program Management<br />
  78. 78. 1<br />Nominate and Confirm PMO Team<br />2<br />Set-up PMO<br />3<br />Prepare Tools, Processes & Templates<br />4<br />Develop PMO Master Plan<br />5<br />Conduct First <br />PMO Session<br />A PMO would be initiated through five key steps leading to the first PMO session and the kick-off of Implementation<br />
  79. 79. The PMO must be comprised of senior people to facilitate and govern the implementation process<br />Sponsor<br />External Advisors<br />Internal Advisors<br />PMO Chairman<br />Program Management Office<br />Business Officers<br />IT Officers<br />Change Officers<br />PMO Administrations<br />HR Mobilization<br />Changes and Transformation<br />Core Functions<br />Support Functions<br />I/T, Vendors, etc.<br />Preliminary Suggested PMO Structure<br />TENTATIVE<br />Program Sponsorship<br /><ul><li>Oversight and direction
  80. 80. Institutional commitmentto program</li></ul>Program Management <br /><ul><li>Overall responsibility program implementation and related efforts
  81. 81. Conflict resolution
  82. 82. Communication with key external interested parties</li></ul>Project Management<br /><ul><li>Day-to-day project management
  83. 83. IT, Business and Vendor representatives (full-time involvement)</li></ul>Workgroups<br /><ul><li>Technical and operational business initiative solutions</li></ul>Workgroups<br />
  84. 84. PMO Deliverables<br /><ul><li>Business Case
  85. 85. Stakeholder Analysis
  86. 86. Project Plan Definition
  87. 87. Evaluating Project’s Potential for Outsourcing
  88. 88. Resource Justification
  89. 89. Vendor Qualifications Evaluation
  90. 90. Schedule Risk Assessment</li></ul>Program Management Office will provide the team with several deliverables… <br />
  91. 91. Appendix<br /> Initiative Template<br />
  93. 93. Initiative Implementation Planning Template <br />Responsible Party<br />Activities/ Worksteps<br />Weeks<br />No.<br />8<br />9<br />10<br />11<br />12<br />13<br />14<br />7<br />6<br />5<br />4<br />3<br />2<br />1<br />Program Management<br />Outputs<br />No.<br />(1)<br />1<br />(2)<br />2<br />3<br />4<br />5<br />6<br />7<br />8<br />9<br />10<br />11<br />Number FTEs<br />Interim Deliverable<br />Overall Timeline<br />Full Deliverable<br />(#) Denotes key deliverables number as aligned with proposal<br /><br />Status Meeting<br />Internal/External Consultation<br />
  94. 94. Initiative Status Tracking Template<br />Expected Completion Date<br />Actual Start Date<br />Actual Value-Add<br />Expected Value-Add<br />Initiative Name<br />
  95. 95. Thank You<br />