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www.neoIT.com
Building the Perfect PMO
2007 Global Services ConferenceJanuary 31, 2007
Chance CurtissSr. Director, neoIT
Tom WallerSr. Director of Global Procurement, Electronic Arts
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited2
AgendaAbout neoIT
About Electronic Arts
Key Takeaways from Today’s Presentation
Definition & Mission of PMO
The Need for a PMO
Models and Types of Offshore PMO
Challenges of Program Management
Lessons Learned
Q&A
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited3
About neoIT
A consulting firm singularly focused on helping Global 2000 improve operations and
grow their business by capitalizing on services globalizationSM
Deep globalization experience and expertiseRecognized industry thought-leadersTrack record of advising on successful client transformationTrusted advisors to C-level executives and management
Silic
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• M
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•M
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ork
Knowledge& ResearchKnowledge& Research
Operations ImprovementOperations
ImprovementExpansion& Growth
Expansion& Growth
RiskManagement
RiskManagement
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited4
AgendaAbout neoIT
About Electronic Arts
Definition & Mission of PMO
The Need for a PMO
Models and Types of Offshore PMO
Challenges of Program Management
Lessons Learned
Q&A
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited5
About Electronic ArtsElectronic Arts (EA) has a knack for the craft of creating videogames. EA is a leading video game publisher, with popular titlessuch as NFL Head Coach, Madden NFL 2006, The Sims, Need for Speed: Most Wanted, and Medal of Honor. It develops games under such brand names as EA GAMES, EA SPORTS, and EA SPORTS BIG. It also distributes titles for third-party labels and publishes games based on Hollywood franchises, including The Lord of the Rings, The Godfather, Harry Potter, and Batman. EA develops its games for PCs and console systems such as Sony's PlayStation 2, Nintendo's GameCube, and Microsoft's Xbox.
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited6
AgendaAbout neoIT
About Electronic Arts
Key Takeaways from Today’s Presentation
Definition & Mission of PMO
The Need for a PMO
Models and Types of Offshore PMO
Challenges of Program Management
Lessons Learned
Q&A
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited7
Key Takeaways
What is success?
What can the PMO do to ensure success (with minimal “noise”)?
How do you make things bigger?
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited8
AgendaAbout neoIT
About Electronic Arts
Key Takeaways from Today’s Presentation
Definition & Mission of PMO
The Need for a PMO
Models and Types of Offshore PMO
Challenges of Program Management
Lessons Learned
Q&A
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited9
Definition & Mission of PMOPMO : Application of knowledge, skills, tools, and techniques to all the five stages of project management throughout the project lifecycle.
Mission of PMO:To identify, stimulate and support the utilization of best project management practice so that the organization can effectively implement its strategies and achieve its objectives.
Plan ControlAnalyze Execute Test & Monitor
Project Life Cycle
Takeaway: The PMO is always changing!
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited10
Definition and Mission of PMO
Service levels monitoring and reporting, schedule management,
issues in quality, offshore workload management, Process flow for
onsite/Offsite delivery
Invoice reviewBudget to actual
Expense allocationInvoicing procedure
Change management to base model
Key personnelStaffing, attrition, background
checks Insurance, DR/ BCP plans, readiness, reformulate service
levels for relevancy
Client of choice initiatives, one team, track issues to closure,
bridge cultural gaps
Retention, buffer, training, vacations, holidays, orientation, resource transitions, knowledge
transfer, skills update
PMO Framework & Relationships
Takeaway: The PMO is both proactive and reactive
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited11
AgendaAbout neoIT
About Electronic Arts
Key Takeaways from Today’s Presentation
Definition & Mission of PMO
The Need for a PMO
Models and Types of Offshore PMO
Challenges of Program Management
Lessons Learned
Q&A
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited12
The Need for a PMOProject support• Provide project management guidance to project managers in business
units – prime the pumpProject management process/methodology • Develop and implement a consistent and standardized processTraining: • Conduct training programs or collect requirements – validate vendors
training programsHome for project managers? More like “Virtual Office”• Speed requires decentralized approachCommunication• Communicate with all stake holders regarding project updates, issues and
escalation – leverage the informal networkAnd many other needs: project costing, quality, risk mitigation, timelines, portfolio management….
Takeaway: The PMO is both proactive and reactive
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited13
AgendaAbout neoIT
About Electronic Arts
Key Takeaways from Today’s Presentation
Definition & Mission of PMO
The Need for a PMO
Models and Types for Offshore PMO
Challenges of Program Management
Lessons Learned
Q&A
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited14
PMO ModelsCustomized to meet needs based on,• Business objectives• Experience managing extended enterprise initiatives• Ability to meet the goals of the project sponsors• Size of engagement• Duration of engagement• Current geographical footprint• Size of company• Company culture• Comfort with change
Single vs. Multi CountrySupport vs. Ownership FunctionInternal vs. 3rd Party or combinationTactical vs. Strategic
Takeaway: Form follows function
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited15
Types of Offshore PMO’sGlobal/Regional PMOs• Lead by senior executive – evangelist with Global responsibility for
collective onshore/offshore efforts
Country PMO/Manager• Experienced with sourced functions, inculcate culture, manage
offshore relationship
Global PMO Leadership• An Extension of your onshore team
Expat Country Leadership• Leadership and Governance Continuity
Global PMO• Focus on balancing requirements, prioritization of resources,
demand forecasting and driving long-term value
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Takeaway: You cannot outsource leadership
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited16
Types of Offshore PMO
Accuracy of cost estimates
Accuracy of schedule estimates
Program stakeholder satisfaction
Resource allocation
Program approval gateway
Centralization and coordination of methodology, institutional knowledge…
Regardless of which type, metrics are needed
Takeaway: You need to understand what levers to pull – and when
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited17
AgendaAbout neoIT
About Electronic Arts
Key Takeaways from Today’s Presentation
Definition & Mission of PMO
The Need for a PMO
Models and Types of Offshore PMO
Challenges of Program Management
Lessons Learned
Q&A
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited18
Challenges of Offshore Program ManagementSo, what goes wrong?
Executive sponsorship is passive
Major political issues are unresolved prior to project start
Financial impact is limited and qualitative benefits are ambiguous
Key stakeholders won't participate in planning
Risks are unknown, culture is risk averse, mitigation is weak oruntested
Time frame is based on financial needs and not quality requirements
Internal staff's experience, training and incentives are insufficient
Takeaway: The best-laid plans of mice and men often go awry
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited19
AgendaAbout neoIT
About Electronic Arts
Key Takeaways from Today’s Presentation
Definition & Mission of PMO
The Need for a PMO
Models and Types of Offshore PMO
Challenges of Program Management
Lessons Learned
Q&A
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited20
Lessons Learned
neoIT M5 Framework
1
5
4
3
2
• Recognize the need for not just operational governance but also organizational governance
• Ensure participation of senior leaders on the organizational level governance council
Implement an Effective Governance Model
Takeaway: Know how to exercise and manage influence
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited21
Lessons LearnedIt’s about getting what you want – when you want• Influenced by company’s culture – how they get things done
Don’t put the cart before the horseIt’s about empowerment• Are employees allowed to make decisions?
It’s about collaborative accountability and honesty• How collaborative is your company now?
Know your company, know your goals• Ensure the vendor knows your company too!
What does customer satisfaction mean to you?• On time, on budget, flexibility, better planning, risk transfer, reduced
variable costs, improved structure, shared services, happy employees and business partners, improved stock price…? Who are the customers? And who are the customer’s customers?
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited22
Lessons Learned
The more effective
the PMO is, the more effective
HAPPIER your customersare and senior
management is.
The more effective the
project is,the more effective
the PMO is.
The more Effective the
project team is, the more effective
the project is.
GOOD LUCK!
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited23
Q & A
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited24
neoIT Global Headquarters2603 Camino Ramon, 2nd FloorSan Ramon, CA 94583 USA
Bangalore, IndiaNo 16 & 16/1, 5th Floor Phoenix Towers, Museum RoadBangalore 560 025, India
Manila, Philippines
8/F Pacific Star BuildingSenator Gil Puyat Ave. cor Makati Ave.Makati City, Metro Manila, 1200Philippines
Contact Information
www. neoIT.com
Chance CurtissSr Director, neoIT
[email protected] 355 0557
Tom WallerSr Director of Global Procurement, Electronic Arts
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited25
PMO ChecklistStrategic Plan• Creation of a plan (3yr to 5 yr) for the whole organization
Annual Operational Plan• Define the next level of detail focusing on the projects to be undertaken in the
next year
Project Establishment• All projects need to be logged into some central source
Project Sizing• Create a first cut size estimate
Project Charter• The plan for the project covering all aspects objective, scope, constraints,
organization and staffing etc.
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited26
PMO ChecklistBudget• Setting the initial budget• Performance against budget• Budget changes
Scope• Setting the initial scope (including exclusions)• Scope variations (Process for managing and management of)
Staffing• Project organizational structure• Assigning staff• Staff movements• Staff personnel management• Skills matrix and identification of gaps• Resourcing contract maintenance & negotiation• Staff training• Project roles and responsibilities• Project team terms and conditions (allowances, rates etc.)• Timesheet and payment• Exit management
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited27
PMO ChecklistMethodology & Processes• Selection of a methodology• Maintenance of a methodology• Training• Maintenance and customization of procedures• Maintenance of templates• Compliance with methodology• Creation of processes and procedures• Approval of processes and procedures• Standardization and rationalization of processes and procedures• Training of processes and procedures• Review of new methodologies
Tools• Selection of tools• Purchase of tools• Exemptions from using tools• Availability to teams (IT support, upgrades etc.)• Training• Review of new tools
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited28
PMO ChecklistFunding• Approval of expenditure • Gating approvals
Standards• Use of external standards (ISO 9000, CMM, SPI)• Creation of internal standards• QA services to project teams• QA approvals
Admin Support• Assist teams with logistics (rooms, travel, photocopy etc.)• Produce regular reporting• Provide facilitators to workshops• HR issues (employee leave, payment, queries)• Materials (Stationary, PC's etc.)
Planning• Compile plans (Project, phase, specific activity)• Approve plans
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited29
PMO ChecklistRisk Management• Risk assessment and logging• Risk monitoring• Provide risk logging facilities
Issue Mgmt• Creation of issue log• Management of issue log
Dependencies• Identification of dependencies (other projects etc.)• Monitoring of dependencies• Identification of new dependencies• Liaison with other teams
Communication• External to project team (where?)• Inter project team
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PMO ChecklistChange Mgmt• Creation of a strategy and plan• Implementation of plan• Monitoring expectations
Problem Escalation• Create a mechanism to escalate project issues• Facilitate problem escalation
Library• Maintain standard documents• Maintain example documents• Set project documentation standards• Maintain project library• Maintain checklists for project activities (Implementation, testing, initiation)• Create and maintain a glossary
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited31
PMO ChecklistBenefits• Identify benefits from the project• Quantify the benefits• Track benefit delivery after the project• Prepare cost benefit analysis• Produce business case
Constraints• Identify project constraints (resource limitations, system limitations etc.)
Reporting• Project status (what?)• Budget v Expenditure• Scope changes• Project overview• Staffing• Projections• Gantt charts• Earned value
© 2007 neoITAll rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited32
PMO ChecklistIntegration• Compliance with IT architecture (applications and technical)• Integration with other systems• Compliance with IT Policy (package preferred, particular vendors, etc.)
Audit• Compliance with organizational standards• Ad hoc audits of projects to ensure company policy is being adhered to
PIR• Carry out post implementation review• Generate action items from PIR• Carry out recommendations of PIR
Acceptance & Conformance• Set conditions for acceptance of deliverables• Accept deliverables• Authorize exemptions to acceptance standards
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PMO ChecklistConfiguration Management• Setting up Configuration Management• Managing software migration• Version control
Mentoring• Formal mentoring programmes• Support roles in projects (e.g. supplying an experienced resource on
a part time basis)• Special Interest Groups
Business Interaction• Carry out Business Process Re-engineering• User documentation• User training