IS-IT Project Office set-up in complex environment. A post-merger case (PRAGMATICA MC)

#0PRAGMATICA Management Consulting

BigCORPPost-Merger

IS/IT Project Office

Mission and Operating principles


This document proposes an approach focused on answering some of the main merger IS/IT challenges from a pragmatic point of view

Organizational implications

The merger and challenges for IS/IT management

Project Office operating principles

Value proposition of a Project Office

Project Office Mission and principal functions

Setting up the Project Office

… Some of the main BigCORP Integration

IS/IT requirements

What can help in this situation?

Why will it be useful?

How is it going to work?

… and, What is next?

Next steps

Document contents


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1 The merger and challenges for IS/IT management

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Table of Contents

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Setting up the Project Office6

Next steps7


BigCORP has to face and integrate an increased number of complex IS/IT projects to be delivered on time and budget, as part of the great merger challenge

A highly complex merger project…

Merger to be completed in a 24 month horizon

focusing on the challenges of…

Business continuity

Synergies to capture

Organizational change

High complexity of the merger project

several parties

International setting

Considerable differences in company culture

To date, no central integration management

… and a difficult context for IS/IT service delivery

IS/IT related projects are critical to the success of the

merger

IS/IT projects contributing to the merger are

fragmented in terms of owners, deadlines, size,

complexity and impact

Business sense of ongoing projects may be affected

by the merger and need to be re-evaluated

Many important IS/IT merger projects are transversal

(corporate, cross sector, cross BU)

IS/IT resources do not match the transversal scope of

projects, mainly decentralized and reporting to

business

IS/IT to deliver an increased number of complex projects on time and on budget

Complex mix of projects driven by the business transformation

Risk of delay due to dependencies and IS/IT resource availability

Budget risk due to redundancies, overlapping and external contracting

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IS/ITSteering Committee

The challenge is relevant at all IS/IT levels, but a corporate perspective is necessary to making a reality possible cross-sector synergies in knowledge, organization, information and costs

1

Information Systems Services and Resources

Information Systems Planning

DG Platform

Management

Board

BU Head BU Head

Sector Head

CIO

Sector Head

Corporate vision

Secto

rvis

ion

Sector vision will be a success factor, pivotal as per market realities, but a transversal vision of the activity across different sectors / businesses is also necessary in order to

manage the achievement of synergies.

Synergies never materialize on their

own. Their achievement must be

managed

Plant Head

IS/IT project IS/IT project IS/IT projectIS/IT project


Specifically, project development presents information, monitoring and management needs on a “corporate perspective” level

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Align projects with IS/IT strategy and identify critical projects

Rely on an “information hub” with standard information

Have elements for assessment in order to establish mapping of priorities

Facilitate & Monitor progress of transversal and critical projects

Identify redundancies

Corporate requirements

Coordination with projects in other sectors and standards for monitoring

Be aware of and follow critical projects with transversal impact

Access to achievements in other sectors, that can be used in my own sector

Identify redundancies

Possibility for arbitration

Rely on an “information hub” with standard information

Sector/Business requirements

Which projects and who’s responsible?

With what priority?

Which resources?

What’s the cross-sector impact?

Are there redundancies?

Can different BUs profit?

Which projects, what’s their priority and who’s responsible?

What resources do I provide / receive for corporate projects?

How can I take advantage of other sectors’ achievements?

Are arbitration facilities between projects / sectors available?

Can I access up-to-date information on “state of the art” for projects in other sectors and projects which may affect me?

facilitate project development and “service delivery”, prioritizing critical projects and maximizing synergy exploitation

New requirements

New projects

BigCORP Merger: IS/IT scenario

NewOrganization

On-goingprojects


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Table of Contents

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Next steps7


IS/IT Steering

Committee

Critical

Project

Critical

Project

Critical

Project

Project

OfficeCIO CIO

Organization Flat Carbon Long Carbon Stainless …

Domain HR Purchasing Accounting …

Transversal Network …

Monitor Progress

Report on Corporate level

Report on Sector level

Merger issues, quick wins, synergies…

Transversal and cross-business/function projects… …monitored by the Project Office support

Creating a Project Office will substantially facilitate the identification and management of inter-sector questions of interest for BigCORP

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Issue Quick Win Synergy

Qualification

Task Force

Ad Hoc Mission

Resolution/Capture


2

DG Platform

Sector CIO’s

IS/ITSteering

Committee

… informational and project monitoring support to facilitate the task of coordinating sector and corporate visions

Early recognition of issues and risks leading to resolution

Information efficiency

Decision oriented reporting

Filtering of project-related information

Transparency on progress

Project managers

IS/ITProject

Manager

… providing an “information hub”… supporting and providing standard principles of monitoring & reporting

Information efficiency

Action oriented synthesis

Filtering of project-related information

Transparency on interdependencies, resource usage

Identification of eventual redundancies

Information Systems

Services and

Resources

Sector & BU

CIO’s

Information Systems

PlanningBusiness

Owner / Leader

… providing transparency on critical projects in decentralized service delivery… helping to ensure delivery of critical projects

Transparency on interdependent projects and option for coordination

Assistance for the identification of issues in a changing environment

A direct and efficient way to communicate issues and ask for decision

Promoting arbitrage when necessary

Having a Project Office adds value for all stakeholders of the projects


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Table of Contents

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Next steps7


Business Owners /

Leaders

Project Managers

IS/IT Steering Committee

The Project Office’s mission is to provide service to the direct “stakeholders” of the projects in order to facilitate decision making

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For whom?Direct stakeholders

Facilitate and monitor progress

Ensure coordination and follow-up of IS/IT critical projects

Ensure transversal coordination of projects

Identify and facilitate arbitrage on conflicts/trade-offs

between isolated projects

Provide transparency on risks and initiate early mitigation

Represent the “information hub” for the program

Ensure “information efficiency” by consolidating the project

reporting

Harmonize and share project-related information

On demand, support project managers in

integrating with other projects, on methodology

aspects or planning of project

How so?Principal functions

Inform

Coach

Monitor


Project Office’s mission concentrates on project delivery, but its activities provide transparency to assist throughout the project lifecycle

Project Office services

Project lifecycle

Project Office provides standard templates and tool for monitoring and reporting

Project Office directly monitors and reports on critical projects

Project Office provides support on demand in project management

Project Office serves as a channel for communication

Escalates issues

Provides information for decision-making

Deliver

Projects must be managed in coherence with the BigCORP principle of subsidiarity, with Project Office interacting at relevant levels to add value through transparency and monitoring

Project Office provides standard templates

Project Office provides information that allows stakeholders to quick-scan arcelor environment to identify project alternatives before qualification

Project interdependencies

Project overlap or redundancies

Possible synergies, integration with other projects

QualifyConceive

Project Office provides support on demand in project planning

Methodology

Resources with required skills (having participated in similar projects)

Evaluate and Learn

Project Office promotes data base

Project Office supports objectives tracking for success/failure qualification

Project Office provides information for continuous improvement measures

Project Office monitors and reports on task forces that implement improvement measures

Project Office focus

Project Office supportProject Office support

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Table of Contents

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Next steps7


The Project Office operating principles can be described by answering a number of key questions

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Which projects will be on the Project Office radar ?

How to register new projects ?

What are the roles of the Project Office organization ?

How does the Project Office communicate with the different stakeholders ?

Which information is managed by the Project Office ?

What do « monitoring » and « reporting » mean ?

Which tools can be used by the Project Office?


Which projects will be on the Project Office radar?

The Project Office will primarily monitor those projects approved by the Steering Committee

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Projects approved by the Steering Committee

Projects with cross-sector or cross-functional scope

Project size > ____ Euros

Projects whose non-completion pose an operational risk

Projects relying on resources loaned by other sectors

Those projects, new or ongoing, defined as such “on demand”

Projects “visible” at board level

By a member of IS/IT Steering Committee

IS/IT Steering Committee must approve and publish criteria determining which projects must be submitted to the Steering Committee

•Must have a clear guideline for acting•Decentralized Service Delivery staff must understand which projects must be reported

Criteria for qualifying a critical project

Monitored by IS/IT SC

Approved by IS/IT SC


IS/ITSteering

Committee

How to register new projects ?

Process for qualifying a critical project4

Proposes Qualifies (Approves)

On-going projects

Newprojects

•Management Board•Sector CIO•ISSR / ISP•Project Office

•Management Board•Sector CIO•ISSR / ISP



Critical Project

•Sector CIO /ISSR/ ISR (Owner/Leader)•Project Manager•Project Office

Interact “directly” around the project

ProjectManager

Sector CIO (*)

ProjectOffice

CriticalProject

(*) Or ISSR or ISP

Owner /Leader

Manager / Delivery Monitoring & Reportingsupport

The project begins to be monitored by the Project Office

dossier

ProjectQualification

(*)

(*) See next slide

ProjectQualification

(*)

ISP: Information Systems Planning. ISSR: Information Systems Services & Resources


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IS-IT Project Office set-up in complex environment. A post-merger case (PRAGMATICA MC)