EngagementAlias

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GBA 573 - IT Project Management Final Project -
Establishment of a Project Management Management
Office 10 July, 2003
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Table of Contents
Introduction 2 Project Plan and Schedule 6 Return
on Investment 14 Risk Management and
Communication Plan 19
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Introduction
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Introduction
Project Overview

• Company background
• ABC Corp is a software and system development
  company that conducts multiple IT related
  projects on an ongoing basis.
• Recent research has shown that a best practice is
  to establish an office to lead and manage IT
  projects.
• PMO background and Justification
• It was determined that a Project Management
  Office (PMO) would improve ABCs ability to
  appropriately and effectively manage and staff IT
  projects and reduce costs.
• Over the last five years projects have
  experienced trouble either in the form of
• Scope creep, resource shortages, increase in
  costs and delays in project completion, and
  project failures. Overall ABC incurs an average
  cost of 348,000 annually.
• High Level PMO Responsibilities
• Consistent project management methodology
• A standardized project management tools.
• Instituting a project governance process
• Project oversight of IT projects company-wide.

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Introduction
Project Overview

• Project Team
• Project Manger
• Project Team Member 1 Direct support to Project
  Manager and workshops
• Project Team Member 2 Development of materials
  and deliverables
• Project Team Member 3 Administrative support
• Executive Review Member Member from Executive
  Management to conduct ongoing (weekly status)
  reviews.
• Management Final PMO Action Plan Review and
  Signoff.

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Introduction
Current PMO Research

• Current Research for PMO
• Project offices will be established in more than
  60 percent of IS organizations by 2003 and will
  often plan and control project resources beyond
  IS (0.7 probability).
• IT projects undertaken using a proven project
  management methodology carry less risk and have a
  greater chance of success than unstructured
  projects.
• A consistently used methodology improves
  productivity by at least 30 percent (0.8
  probability).
• An organization (of any size) needs a project
  management methodology when it desires
  consistent, predictable results and a process
  that is open to improvement. In the absence of a
  stable process for IT project delivery, there is
  no possibility that project management will be
  consistently improved, because improvements are
  random and non-repeatable.

Source Gartner
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Project Plan and Schedule
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Project Plan and Schedule
Project Objectives

• The Project Team and Management have identified
  the following objectives for the PMO and future
  company projects
• Objective 1 Enhance ABC abilities to and
  capabilities in managing IT projects and services
  in order to ensure project success (resources,
  time, cost).
• Objective 2 Increase the business value derived
  from IT projects and services through utilizing
  project synergies and resources.
• Objective 3 Provide a standard methodology and
  approach to implementing, managing and executing
  projects.
• Objective 4 Establish a collaborative project
  management environment.
• Objective 5 Ability to effectively manage ABCs
  IT projects portfolio.

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Project Plan and Schedule
Staffing

• The Project Team will be staffed with the
  following positions
• Project Manger
• Project Team Member 1 Direct support to Project
  Manager and workshops
• Project Team Member 2 Development of materials
  and deliverables
• Project Team Member 3 Administrative support
• Executive Review Member Member from Executive
  Management to conduct ongoing (weekly status)
  reviews.
• Management Final PMO Action Plan Review and
  Signoff.

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Project Plan and Schedule
Project Schedule

• Project Schedule
• The project will be split into two overall
  phases
• Phase I. will be the establishment of the PMO
  foundation
• Phase II. will be the actual implementation of
  the PMO.
• Project Timeframes are as follows
• Phase I. Two Months
• Phase II. Four Years
• The two phases will be treated, overall, as two
  separate projects. This report represents those
  components of Phase I.
• The PMO Project Team will develop the following
  through consensus building workshops
• PMO mission, vision, goals and objectives
• PMO initiatives and objectives
• PMO roles and responsibilities.
• PMO Organizational Structure and Functions
• PMO Framework and Processes
• PMO Action Plan
• Define short term strategies and quick wins to
  optimize project management capabilities given
  existing resource limitations

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Project Plan and Schedule
Project Workshops

• Workshop 1 - Review Background Information
• During the first workshop, workshop participants
  will review background information and relevant
  trends, methodologies and practices.
• Workshop 2 Assess Current Environment
• Ensure that internal and external factors are
  considered
• Current resources (e.g., staff skills, funding,
  project tools), organizational readiness (e.g.,
  culture, organizational support), governance, and
  project management maturity.
• Identify strengths and weaknesses relative to
  project management, as well as perceived
  opportunities and threats in the establishment of
  a PMO (SWOT Analysis).
• Workshop 3 Vision and Mission Statements, Goals
  and Objectives
• Based on input solicited from the interviews,
  research, trends and best practices
• Develop draft Vision and Mission Statements along
  with associated Goals and Objectives.

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Project Plan and Schedule
Project Workshops

• Workshop 4 Organizational and Staffing
  Structure
• Development of proposed organizational structure
  for the PMO
• Develop recommendations for staffing roles and
  responsibilities and organization structure
• Workshop 5 Identify PMO Framework and Processes
• Review best practice PMO framework material and
  implied PMO processes
• Review project lifecycles and processes
• Focus on consensus-based adoption of project
  management lifecycle

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Project Plan and Schedule
Project Schedule - Phase I.
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Project Plan and Schedule
Project Deliverables

• Project deliverables include the following
• Develop of workshop materials
• Conducting workshops
• Documentation and dissemination of workshop
  results
• PMO Action Plan
• Document high-level action items necessary to
  establish the PMO and implement its initiatives.
• PMO Requirements (resources, timelines,
  functions, organization, responsibilities, etc.)
• Implementation Strategies
• Implementation Schedule

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Return on Investment
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Return on Investment
Expected Benefits

• The primary benefit to establishing the PMO is
  the improved control and management of projects
  including the reduction of
• Delayed projects
• Scope creep
• Resource increase
• Cost overruns
• Project failure
• Average total annual loss due to the above
  factors
• Delayed Projects 55,000
• Scope Creep 64,000
• Resource Increase 26,000
• Cost Overruns 78,000
• Project Failures 125,000
• Totals 348,000

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Return on Investment
Expected Costs

• Phase I Costs

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Return on Investment
Expected Costs

• Phase II Costs

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Return on Investment
Break Even Analysis

• Total first year costs are 235,950, this
  represents a return on investment in 8.6 months
  after implementation.

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Risk Management and Communication Plan
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Risk Management and Communication Plan
Risk Management

• Risk Management will be assessed on an ongoing
  basis throughout the project from the project
  planning phase through project closeout.
• Project risk will be divided into the following
  areas and assessed
• Strategic Risk Alignment with overall business
  strategy, objectives being met, and management
  commitment
• Financial Risk Staying within project budget,
  cost and benefits being realized, payback period
  defined and on target.
• Project Management Risk Ongoing team experience
  and balance, on schedule, milestones being met,
  scope changes, and issues.
• Change Management and Operational Risk Ongoing
  acceptance of deliverables, stakeholder
  acceptance, impact of project failure and are
  staff issues being addressed.

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Risk Management and Communication Plan
Communication Plan

• Communication Plan will address the following
• Organizational Structure
• Organizational Chart
• Contact Information
• Roles and Responsibilities
• Regularly Scheduled Meetings
• Meetings
• Description
• Participants
• Frequency
• Project Documentation
• Project Documents
• Responsibility
• Frequency
• Distribution Group
• Escalation Procedures

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GBA 573 - IT Project Management Final Project -
Establishment of a Project Management Management
Office 10 July, 2003