PROJECT MANAGEMENT in NC STATE GOVERNMENT

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PROJECT MANAGEMENT in NCSTATE GOVERNMENT
Presentation to Project Management Training
Session Tom Runkle June 7, 2004
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National Problems and Trends
Source Standish Group for 300,000 Projects Year
2000
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10 Major Project Success Factors

• Standard Software Infrastructure (8)
• Firm Basic Requirements (6)
• Formal Methodology (6)
• Reliable Estimates (5)
• Other small milestones, proper planning ,
  competent staff, etc. (5)

• Executive Support (18)
• User Involvement (16)
• Experienced Project Manager (14)
• Clear Business Objectives (12)
• Minimized Scope (10)

( ) Points for weighing each factor according
to its influence on project success
Source Standish Group
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What Project Managers Do
Develop project plans
Prepare business cases and generate project
proposals
Define personnel, fiscal, and other resource
requirements
Select and implement project tools
Set up project management procedures
Track project status
Resolve project issues
Identify and mitigate project risks
Enforce change control
Monitor and control project scope
Manage project budgets
Communicate with stakeholders
Plan and implement rollouts
Create and implement test plans
Determine and report metrics
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Eight Essential Project Management Skills

• Business Most important trait. Knowledge of
  the business/program objectives.
• Technical Must communicate between
  designer/developers and users/sponsors and
  envision system components and their
  incorporation into the whole.
• Project Management Must have basic management
  proficiencies, such as good judgment, diplomacy,
  and time management.
• Decision Must be able to make good choices and
  reach firm decisions.

Source Standish Group
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Eight Essential Project Management Skills (Contd)

• Process Must be able to plan, enact, and track
  a series of activities, tasks, and changes.
• Detail Features and functions must be
  considered individually and in relation to the
  whole. Must be able to take both detailed and
  big picture views.
• Organization Must be able to organize project
  components into a working structure for meeting
  common goals and objectives.
• Communication Must be able to express and
  exchange thoughts and information clearly and
  succinctly.

Source Standish Group
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SEIs Project Management Capability Maturity Model

• Level 1 No, little, or ad hoc processes. Each
  project is new adventure with little or no
  sharing of information, tools, or techniques.
• Level 2 No or little documentation, but some
  attempt to share lessons learned.
• Level 3 Repeatable best practices used.
  Standard software, methodology, and guidelines
  used. PMO started.
• Level 4 Realization that project management is
  a professional skill, with training offered.
  Projects are measured. PMO fully operational.
• Level 5 All processes, procedures, processes,
  and standards in place and applied consistently.
  Standard metrics used. Focus changes from
  implementing project management practices to
  continuous improvement.

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Current Active NC Project Portfolio May 2004

• 38 Major projects with individual budgets over
  500,000
• 211 Million Total Budgets
• 7 Planning/Study
• 31 Implementation
• Several involve large-scale multi-organizational
  implementations in areas of education (K-12 and
  Community Colleges), Social Services, Criminal
  Justice, Environment, Transportation, and Treasury

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NC Major Project Experience for Last Five Years
Budget/Cost (Million) 268 211 6 1 486
Percent Budget/Cost 55 44 1 0 100
Category Completed In Process Cancelled On
Hold Totals
No. 44 38 14 6 113
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NC Major Project Experience for Last Five Years
(contd)

• Highlights of project post-implementation
  assessments
• Rarely satisfy all four measures (budget, scope,
  schedule, and quality) - Projects have one or
  two fixed boundaries (constraints), and these are
  met while sacrificing the others
• Original budgets and schedules often revised
  majority of projects have variances of less than
  10-20, but a few have large negative deviations
  from plans
• Average three needs attention projects every
  month, with several repeats
• Half-dozen troubled projects (requiring
  intervention by State CIO/IRMC) - most recoveries
  have been successful
• Recent adverse publicity to two statewide
  projects have increased visibility to governance
  processes

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Typical Strategic Project Reflected in NC
Statistics
Projects are highly visible, mission critical,
and politically sensitive, with the following
characteristics

• Business/Program Reach Multiple organizations
  and diverse constituencies, with different
  cultures, interests, perspectives, and desires.
• Implementation Scope Extensive work plans in
  number of tasks, large project team, complex
  deliverables, large budgets, and many person-days
  of effort.
• Organizational coverage and governance Involves
  diversity of local and state jurisdictions,
  leading to complicated project governing
  relations.

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Typical Strategic Project Reflected in NC
Statistics (Contd)

• Participant Exposure Multiple and diverse sets
  of users and stakeholders.
• Geographical Coverage Statewide.
• Applications Interfaces Multiple and under
  different organizational owners.
• Technologies Employed Multiple and diverse,
  presenting additional complexities and ample
  opportunities for errors (weakest link problem).
• Political or Economic Significance Far reaching
  and with notable impact (bet the State
  consequences).

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Planning, Budgeting and Funding (IT Planning
and Portfolio Management)
Operation, Maintenance and Retirement (IT
Service Management and IT Asset Management)
Life Cycle of IT Investments
Project Certification and Implementation (System
Development Life Cycle and Project Management)
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Four Principles of IT Investment Management

• Identify, evaluate, and select investments that
  are cost-justified and offer the best
  risk-adjusted benefits
• Purchase them economically and implement them
  efficiently and effectively
• Operate and maintain them so that they perform
  reliably and securely, and costs and benefits are
  optimized over their useful lives
• Retire or replace them when they no longer meet
  business or program needs, or are not
  cost-effective or risk acceptable

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Components of IRMCs Project Review and Approval
Process
Project Certification, Progress Reporting and QA
Processes and Procedures (Adopted by IRMC Late
1998 and updated early 2001)
Project Certification
IEEE Software Life Cycle Model Process (Adopted
by IRMC Late 1998), PMBOK (Reference Guide for
Project Management), and SEI/CMM Software
Development Framework
Reporting Procedures
Implementation Framework for Statewide IT
Projects (Adopted by IRMC September 2002)
Guiding Principles and Shared Core Values
Independent Outside Quality Assurance Reviews
Detailed Guidelines, Specifications, and Models
10 Best Practices and 35 Standards
Periodic or Monthly Progress Reporting
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Levels of Reference, Reporting, and Authoritative
Material
Project Certification
Status Reporting
QA Reviews
Closeout Reviews
Validation and Verification

• Advisory Services (3)
• GAO/OMB
• Journals
• Books
• Web and Other

• 10 Years of Documented
• Status Reports
• QA Reviews
• Closeout Reviews
• Troubled Project Workouts

Implementation Framework for Statewide Projects
Reference Materials
NC Lessons Learned
SEI/ CMM
IEEE
PMBOK

• Phased quality improvement in time, budget, and
  deliverables (levels 1-5)
• Organization and assessment based

• How to build a system (mechanics)
• System based

• How to manage a project (techniques)
• Project based

10 Best Practices and 35 Standards
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Major Phases for Managing IT Investments in State
Government
Candidate IT Investments
Phase 1 - Planning, Budgeting, and Funding
Approved by Agency
Phase 3 - Operation, Maintenance, and Retirement
Certified by State CIO
Operational Assets
IT Life Cycle
Included in Governors Budget
Completed Projects
Funded by General Assembly
Being Implemented
Certified by IRMC
Phase 2 - Project Certification and
Implementation
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Project Management Lifecycle
Planning, Budgeting, and Funding
Certification
Implementation
Closeout
Certification Package
Status and QA Reports
Closeout Assessment
Planning Documents
Policies, Procedures, Guidelines, and Standards

• IRMC Policies, Processes, and Standards
• Statewide Technical and Security Architectures
• Statewide Implementation Framework (10 Best
  Practices and 35 Standards)

• IRMC Strategy
• State CIO Strategy and Initiatives
• Statewide Technical and Security Architectures

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Planning, Budgeting, and Funding Phase of the
Life Cycle of IT Investments
Department Business Strategy

• Mission
• Statuary Mandates
• Governmental Initiatives

Department Business Architecture (Business
Service Models)

• Goals and Objectives
• Processing and Information Flows
• Organization Charts
• Business Reengineering Opportunities

Applications Portfolio Management
Infrastructure Management
New Initiatives

• New Applications
• Infrastructure Additions/Upgrades

• Refreshment Cycles
• Security/Reliability Upgrades

• Replacements
• Modernizations
• Maintenance

IT Portfolio Management

• Statewide IT Initiatives
• Agency and Statewide Technical Architectures
• Agency IT Plan

Other Plans and Strategies

• Analyze Candidate Investments
• Prioritize and Select Projects
• Balance Resources

Current IT Project Portfolio
Funding Requests
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Project Certification
Thresholds Any One of the Following

• Total Project Expenditures gt 500,000
• Strategic Initiative

• New Technology Initiatives
• Designated by IRMC

Documentation for Review and Approval

• Business Case
• Concept (Purpose, Description, Organization,
  Performance Metrics, Agency Approvals, etc.)

• Detailed Plans (Project, Risk Management,
  Quality, etc.)
• Technical and Security Architectures

Required State Level Signoffs

• State CTO
• State Chief IT Purchasing Officer

• State Budget Officer
• State Controller

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Project Implementation Monthly Progress
Reporting

• Objectives
• Monitor Performance
• Verify Ability to Achieve Objectives
• Identify Problems Early
• Report Contents
• Budget, Schedule, and Staffing Status and
  Variances
• Milestone/Deliverable Status and Updated Risk
  Profile
• Grading
• Green Satisfactory
• Yellow Needs Agency Attention
• Red Beginning of Suspension Process

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Project Implementation Quality Assurance Reviews

• Objectives
• Verify Processes and Products Meet Requirements
• Determine Probability of Success Identify
  Problems and Provide Improvement Recommendations
• Risk-Based and Performance Driven Timing
• Indications of Project Management or Performance
  Problems
• Focus on At-Risk or Problem Issues/Situations
• Performed by Outside and Independent Party
• Third Party Vendor
• Reviewer Selected and Managed by ETS

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Project Implementation Post Implementation
Assessments

• Objectives
• Measure Planned Performance Versus Actual (Both
  Project and Investment/Asset)
• Evaluate Agency Capability to Operate and
  Maintain Investment/Asset
• Document Lessons Learned
• Use of Assessments
• Collect Metrics for Future Endeavors
• Prove Value of Investments to Funding Authorities
• Provide Institutional Memory for Successful
  Practices and Failed Approaches

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12 Project Management Success Factors for State
Government

• Research Rigorously and Plan Thoroughly The
  Importance of Due Diligence and Sound Planning
  cannot be Overemphasized for Complex,
  Large-Scope, and/or High Risk Projects
• Execute Well by Following Acceptable and
  Prevailing Practices - IEEE for SDLC, PMBOK for
  PMM, and NCs Framework Document (10 Best
  Practices and 35 Standards)
• Secure and Exercise Effective Leadership at all
  Levels Probably the Hardest Thing to do and the
  Single Most Important Factor

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12 Project Management Success Factors for State
Government (contd)

• Prepare Effective Bid Documents, Select Qualified
  Vendors, and Negotiate Well Designed Contracts
  (Performance Based, with Specified Deliverables
  and Payment only for Satisfactory Deliverables)
• Manage Vendors Closely Document Expectations
  Clearly Who is Responsible for What and When and
  Follow-Up Zealously
• Employ IT Investment Management Best Practices
• Select the Right Projects and Clearly Describe
  Goals and Objectives
• Balance Agency and State Personnel and Fiscal
  Resources (Finite Capacity Planning)
• Break Big Projects into a Succession of little
  Ones

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12 Project Management Success Factors for State
Government (contd)

• Use Correct Architectures and Modern Technologies
• Know Funding Requirements and Obtain Commitment
  for Full Funding Before Beginning
• Recognize Political Environments and Manage
  Multi-Jurisdictional and Diverse Constituency
  Issues
• Develop Structure that Encourages and Provides
  for Collaboration and Cooperation (Obtain and
  Retain Buy-In and Participation by all
  Stakeholders)
• Establish Clear Project Governance (Decision
  Making) Processes
• Create Complete and Understandable Project
  Doctrine (Rules of Engagement of how it will be
  Managed and Accomplished)

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12 Project Management Success Factors for State
Government (contd)

• Be Prepared to Make the Difficult Decisions
  Necessary to Achieve Savings and Improved
  Services - Rule of Thumb is 20 of Benefits from
  Technology 80 of Benefits from Technology and
  Business Process Reengineering and 100 of
  Benefits from Technology, Business Process
  Reengineering, and Link to Agencys Missions and
  Strategies
• Pay Attention to Security Issues From the
  Beginning (Planning, Procurement, and/or Design
  Stages), Security Needs and Requirements must be
  Considered and Accommodated

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12 Project Management Success Factors for State
Government (contd)

• Apply Lessons Learned Especially for
• Executive Sponsors and Continuous Participation
  by Agency Senior Management
• Experienced and Capable Project Managers

For Every Troubled Project, this is the Single
Most Prevalent Factor Senior Management
Attention and Project Manager Proficiency are
Critical Items
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Parting Thoughts - Two Truths for Project Success

• To have a greater chance for success, projects
  should be well-researched, thoroughly planned,
  and competently executed.
• Setting goals is the easy part its the
  execution thats difficult.

Source Gap Analysis Making Projects Work -
Optimize Magazine, July 2003, Issue 22