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Centers for IBM e-Business Innovation :: Chicago
© 2007 IBM Corporation
IBM Project Management
October 17, 2007Dawn GoulbournChicago Solutions for InnovationsCenter Executive
Centers for IBM e-Business Innovation :: Chicago
© 2007 IBM Corporation
Studies show that lack of good project management often leads to failed projects.
According to a study by Metagroup ('Why Operation Projects Fail?' November 2002) 70% of large IT projects fail or do not meet the expectations. The most common reasons refer to project management, project planning and communication.
Adherence to Project Management disciplines is the responsibility of the entire team
Centers for IBM e-Business Innovation :: Chicago
© 2007 IBM Corporation
Why do projects fail?(Common PM Reasons)
Solution Design Solution Delivery
Lack ofDisciplineAccountabilitySkills
Failure to set and manage customer expectations / satisfaction.
Failure to reach common understanding of requirements or completion criteria.
Failure to reach understanding of the proposed solution.
Failure to establish appropriate contractual baseline.
Failure to adhere to published pricing guidelines, failure to assign adequate "risk" contingency and illegitimate "investment pricing" (i.e., low-balling, low margins, etc.).
Poorly constructed or unauthorized subcontractor SOWs.
Failure of key subcontractor to deliver.
Inaccurate project estimates.
Failure to plan for risk containment.
Failure to perform QA reviews.
Lack of DOU with other IBM organization(s).Failure to properly handle multinational issues.
Inability to acquire properly skilled resources.
Ineffective project initiation.
Lack of or inadequate project management.
Lack of Project Management Reviews and effective follow-up on action plans. Lack of management oversight / support.
Unfulfilled customer responsibilities.
Failure to implement / exercise proper change control process.
Starting a phase prior to completing a preceding phase.
Customer unprepared to support the new system.
Customer represented by Third Party.
Change in customer management team.
Continuous / constant change in scope.
Ineffective relationship between IBM and customer.
Technology / architecture issues.
Ineffective relationship between IBM and subcontractor. Subcontractor cost overruns.
IBM project team morale or organizational issues.
.
Centers for IBM e-Business Innovation :: Chicago
© 2007 IBM Corporation
Discipline
Failure to set and manage customer expectations / satisfaction
Failure to reach common understanding of requirements or completion criteria
Failure to reach understanding of the proposed solution
Failure to perform QA reviews
Failure to establish RACI matrix (Responsible, Accountable, Consulted, Informed) and other role responsibility clarification tools
Accountability
Failure to establish appropriate contractual baseline.
Failure to adhere to published pricing guidelines, failure to assign adequate "risk" contingency and illegitimate "investment pricing" (i.e., low-balling, low margins, etc.).
Poorly constructed or unauthorized subcontractor SOWs
Committed Stakeholders
Skills
Inaccurate project estimates
Failure to plan for risk containment.
Failure to properly handle multinational issues.
Discipline
Failure to set and manage customer expectations / satisfaction
Failure to reach common understanding of requirements or completion criteria
Failure to reach understanding of the proposed solution
Failure to perform QA reviews
Failure to establish RACI matrix (Responsible, Accountable, Consulted, Informed) and other role responsibility clarification tools
Accountability
Failure to establish appropriate contractual baseline.
Failure to adhere to published pricing guidelines, failure to assign adequate "risk" contingency and illegitimate "investment pricing" (i.e., low-balling, low margins, etc.).
Poorly constructed or unauthorized subcontractor SOWs
Committed Stakeholders
Skills
Inaccurate project estimates
Failure to plan for risk containment.
Failure to properly handle multinational issues.
Discipline
Failure to implement / exercise proper change control process – SCOPE MANAGEMENT
Ineffective project initiation
Lack of or inadequate adoption of project management processes
Lack of Project Management Reviews and effective follow-up on action plans and risk management
Accuracy of forecasts and reconciliation of financials
Starting a phase prior to completing a preceding phase
Accountability
Committed Stakeholders
Unfulfilled customer responsibilities
Organizational Change Management -- Customer unprepared to support the new system
Change in customer management team.
Ineffective relationship between IBM and customer
Skills
Availability of skilled resources
Failure of key team members to deliver
Technology / architecture issues
Discipline
Failure to implement / exercise proper change control process – SCOPE MANAGEMENT
Ineffective project initiation
Lack of or inadequate adoption of project management processes
Lack of Project Management Reviews and effective follow-up on action plans and risk management
Accuracy of forecasts and reconciliation of financials
Starting a phase prior to completing a preceding phase
Accountability
Committed Stakeholders
Unfulfilled customer responsibilities
Organizational Change Management -- Customer unprepared to support the new system
Change in customer management team.
Ineffective relationship between IBM and customer
Skills
Availability of skilled resources
Failure of key team members to deliver
Technology / architecture issues
Project failure attributed to lack of discipline, accountability and skills in both the presales (initiation) phase or during delivery
Centers for IBM e-Business Innovation :: Chicago
© 2007 IBM Corporation
Project Management is usually seen as managing the interrelationship of three critical success factors for each project.
Scope
Schedule Budget
112
2
3
4567
8
9
1011
It is essential to find the optimal balance to maximize return on investment and support the longer term company's success
It is essential to find the optimal balance to maximize return on investment and support the longer term company's success
Centers for IBM e-Business Innovation :: Chicago
© 2007 IBM Corporation
But it is not that simple, in order to manage to those three critical success factors it also involves. . .
Planning
Communication
Coordination
Integration
Execution
Tracking
Budgeting
Control
Reporting
Quality Control
There is an art and science to excellent Project Management
Centers for IBM e-Business Innovation :: Chicago
© 2007 IBM Corporation
For IBM to become a project based enterprise it was necessary to integrate project management disciplines into the fabric of IBM.
In 1997, IBM committed to becoming a project based enterprise for integrating project management disciplines across the IBM enterprise.
Since then, IBM has developed and deployed a number of worldwide Project Management initiatives for establishing the Project Based Enterprise Charter. These project based initiatives focused on:
– Project Management Professional Development - Education
– Project Management Methods & Tools
– Project Management Process
IBM’s Project Management Approach
– Processes/Methodology (WWPMM)
– PM Tools – Rational Portfolio Manager
– PM Education and Certification
Internal Reporting and Reviews
– 7 Keys Reporting
– Project Management Reviews
Centers for IBM e-Business Innovation :: Chicago
© 2007 IBM Corporation
Process and Methodology
WWPMM IBM Methodology to Support PMBuilt around PM Domains, PM Work patterns, and PM Work products
Centers for IBM e-Business Innovation :: Chicago
© 2007 IBM Corporation
IBM’s Project Management Method is a broad, robust and integrated approach to projects
IBM’s PM method (Worldwide Project Management Method – WWPMM) drives consistency and quality by focusing on three aspects of PM best practices
– Work Domains
– Work Products/Artifacts
– Work Patterns
Work Domains provide detailed guidance on how specific types of PM activities should be carried out
– PM must understand how to manage across 13 domains (change, quality, risk, etc.)
Work Products are verifiable outcomes that are used to manage projects
– IBM’s method identifies 51 PM work products that could be used on an engagement
– Standards, templates, and ‘how to’ guidance included in browser enabled tool
Work Patterns are a series of steps designed to meet project management goals or in response to particular project situations
– Includes 39 different process steps spread across 7 phases
– Equivalent to a Standard Operating Procedure (SOP)
Centers for IBM e-Business Innovation :: Chicago
© 2007 IBM Corporation
World Wide Project Management Methodology - WWPMM• WWPMM helps define the PM
System, a collection of plans, procedures and records that direct all PM activities and describe the current state and history of the project.
• Generic templates are provided in downloadable form, from the WWPMM reference page and through various PM tools. Reusable assets are available for PMs to apply to projects.
• When used with appropriate tools and integrated with business and technical management systems, this material provides a comprehensive PM environment.
How the project is shaped, and how its execution is
managed
Subject Matter WorkSubject Matter WorkSubject Matter WorkTechnical Work
IBM Global Services Method
Operations
Architecture
Application
Organization
Business
Engagement
How the work is done
Centers for IBM e-Business Innovation :: Chicago
© 2007 IBM Corporation
The WW PM Method focuses on The WW PM Method focuses on shaping the shaping the project and managing the workproject and managing the work
Project Definition
Work Breakdown Structure
Risk Management Plan
Issue log
Examples of Project Management work products:
ProfessionalDevelopment
Methods & Tools
ManagementSystems
Independant of the type of work, common to all IBM organizations and geographies
Built around PM Domains, PM Work patterns, and PM Work products
Owned by the IBM Project Management Center of Excellence
Centers for IBM e-Business Innovation :: Chicago
© 2007 IBM Corporation
Global Services Method focuses on Global Services Method focuses on the work the work to be performed to deliver the projectto be performed to deliver the project
Technical work products examples...
IBM Global Services Method
Operations
Architecture
Application
Organization
Business
EngagementDefines engagement models for the type of work to be done
Owned by Global Competency Development
Business Process ModelLogical Data ModelUsability Requirements
Centers for IBM e-Business Innovation :: Chicago
© 2007 IBM Corporation
Project Management Tools
IBM Rational Portfolio Manager
Centers for IBM e-Business Innovation :: Chicago
© 2007 IBM Corporation
Typical Tool Challenges for Project Managers - BEFORE
Many projects have manual and semi-automated processes, characterized by unnecessary data manipulation, inadequate information flow and sluggish cycle time.
Centers for IBM e-Business Innovation :: Chicago
© 2007 IBM Corporation
Rational Portfolio Manager is IBM’s Solution of Choice - AFTERRational PM provides process automation, thereby increasing efficiency and reducing
the complexity of project and portfolio processes.
One stop shop” project repository, including the project control book
Support more effective project startup
Superior project tracking and control capabilities
Project management process support
Collaborative and communicative project environment
Centers for IBM e-Business Innovation :: Chicago
© 2007 IBM Corporation
Project Management Education and Certification
IBM Rational Portfolio Manager
Centers for IBM e-Business Innovation :: Chicago
© 2007 IBM Corporation
IBM can supply skilled Project Management Mentoring and Staffing Capability
Certification Element IBM Certification Program PMI Certification Program
PMI Examination
PM Experience 6,000-7000 hrs 4,500 hrs (2+ years)
Technical Experience - - -
People Management Experience - - -
PM Education 200-300 hrs 35 hrs
Technical Specialties - - -
Professional Contributions (“Giveback”)
- - -
Detailed Qualification Criteria based on required skills
- - -
IBM’s certification process is more demanding than the standards set by the Project Management Institute
Centers for IBM e-Business Innovation :: Chicago
© 2007 IBM Corporation
Internal Reporting and Reviews
Delivery Excellence
Centers for IBM e-Business Innovation :: Chicago
© 2007 IBM Corporation
7 Keys Reporting - Communicating overall project health
Reporting Metrics (red/yellow/green)– Stakeholders are committed
Identifying, evaluating, informing, and influencing the individuals and groups who are affected by or who influence the project.
– Business Benefits are realizedEstimating, measuring, and monitoring the benefits the client will gain from the project. Benefit includes expected result and the associated cost, both financial and non-financial, of achieving that result.
– Work and Schedule are predictableControlling the production and acceptance of project services and deliverables, and ensuring their provision to specified performance and acceptance requirements.
– Team is high performingIdentifying, mobilizing, and developing the people required for the project team. Obtaining and maintaining appropriate space, equipment, and other resources required to successfully complete the project.
– Scope is realistic and managedAgreeing, maintaining and amending the boundaries of the project.
– Risks are mitigatedIdentifying and evaluating risks and issues. Developing avoidance, mitigation, and resolution activities to counteract those risks and issues.
– Delivery Organization benefits are realizedEstablishing, agreeing, and monitoring the benefits (such as, financial reward, knowledge transfer, and skill development) that the delivery organization, will gain from the project. Maintaining and protecting the company's interests in relation to the project.
Initial project setup requires key PM artifacts to be submitted (e.g. Communication Plan, Quality Plan, Risk Plan, Issue Log, etc)
An independent review of all artifacts is conducted and a review meeting is scheduled
The web based tool prompts the Project Manager to update the 7 Keys report and prompts the Partner to review and approve the report monthly
Mandatory for all projects based on contract value and industry
Centers for IBM e-Business Innovation :: Chicago
© 2007 IBM Corporation
Project Management Reviews Comprehensive reviews conducted by Delivery Excellent COC
– Client and team interviews
– Review of project financials
– Review of key artifacts and deliverables
– Results in an A, B, C or D ratings….C or D ratings will trigger Executive attention
Prescriptive scripts are available and the PM usually has one week notice before the PMR
Conducted approximately quarterly for healthy projects more often for unhealthy projects
Unhealthy projects are monitored on a weekly basis by the Executives