Jennifer Baker, PfMP, PgMP, PMP
Duke Energy
Agenda
• Learning Objectives
• Duke Energy at a Glance
• Project Management Center of Excellence (PMCoE) Overview
• PMCoE Governance
• Tools Should be Transferrable for Different Project Types
• Strategic Initiatives
• Take-Aways and Wrap-Up
2
Learning Objectives
• Examine the governance framework of the Duke Energy PMCoE
• Describe and compare the roles and relationships of the Duke
Energy PMCoE and our PMOs/Major Projects Groups
• Understand the advantages a flexible framework for project
governance
3
Duke Energy Overview
• World’s largest publicly traded utility
• Fortune 250 company
• Serving 22 million people
• Employing 28,000+
• $6B+ annual capital spend
• $2B+ annual O&M spend
• Operations in:
• Regulated business
• Renewables
• Commercial transmission & power
• International markets
4
Types of Projects:
Shared Services
Finance
• Financial System
Integration
• Sales & Use Tax
• Enterprise non-
retail Billing
IT
• SharePoint
Upgrade
• Workstation
Refresh
• Active Directory
Integration
• Enhanced Cyber
Security
• Digital
Acceleration
• Customer
Information
Systems
Human Resources
• Job
Harmonization
• PeopleSoft
Integration
• PeopleSoft Self
Service Upgrade
5
Types of Projects:
Traditional Utility
Renewable Energy
• Solar Joint
Ventures in AZ, CA,
NJ, MA and PA
• Duke Owned Solar
Projects in NC, TX,
CA, AZ, and FL
• Duke Owned Wind
Projects in TX, WY,
PA, KS, CO and WI
• Notrees Battery
Storage Project
Construction
• Coal Plant
Retirement
• Environmental
Retrofits to
Existing Plants
• New Plant
Construction
Generation &
Distribution
• Fukushima
Response
• Transformer
Replacements
• Capacity
Upgrades
• Transmission
Sub Stations
• Smart Meter &
Grid
Modernization
6
PMCoE vs. PMO/Major Projects
• A PMO is an important central
hub with a mandate to
coordinate and deliver all
project activities as determined
by the organization's needs.
• The PMO strives to
standardize and introduce
economies of repetition in the
execution of projects.
• Tasks may include monitoring
and reporting on active
projects, programs and sub-
portfolios, and reporting
progress to top management
for strategic decisions on what
projects to continue or cancel.
• The PMCoE is a central hub
with a mandate to provide a
consistent framework to deliver
the organization’s projects
consistently.
• The PMCoE supports the PMO
in the execution of projects and
continuously improves
corporate governance.
Policy
PMCoE “What”
Dep’t Procedures
“How”
7
PMCoE Mission & Vision
• Vision: Become the Industry Leader in Project Management
• Mission: The PMCoE will:
• Establish a consistent and scalable process leveraging best
practices,
• Provide training, tools and oversight to enhance project
performance and certainty,
• Engage the project management community to focus on the
pursuit of excellence, knowledge sharing and skills development.
8
PMCoE Framework
Best Practices Lessons Learned Benchmarking
PMCoE Policy & Standards
Career Path Development
Policy & Standards Training
Tools & Templates
Team Workshops
Answers to Questions
Diagnostics such as
Acumen Fuse Schedule Analysis
Assessments
Portfolio Reviews
Reviews
Independent Estimate
Stage Gate
Support Services
Project Management Center of Excellence
9
Governance Hierarchy
Company Policies
PMCoE Standards
Implementation
Standards
General Reference
• Tier 1 – Policies, Laws and
Regulations (POLICY)
• Tier 2 - Enterprise Standards
(ENTSTD)
• Tier 3 – Implementation
Standards (IMPSTD) of
PMOs/Major Projects groups
• Tier 4 – General Reference
Materials (GENREF) such as
the PMBOK
10
Structure of Standards
11
Project Investment Lifecycle
Plan Execute Develop Assess Scan Operate & Maintain Value Inputs
Identify
Opportunity
or Threat
Determine
Impact /
Benefit,
Timing and
Potential
Responses
Refine
Candidate
Responses
(Projects)
and Prepare
for Initiation
Develop
Project Plan
and Prepare
for Execution
of Major
Commitments
Execute
Commitments,
Refine the Plan
and Prepare for
Construction and
Installation of
Assets
Construct and
Install Assets,
Turn Over Assets
to the Receiving
Asset Owner and
Prepare for Close
of the Project
Operate and
Maintain Assets
Delivered by
Project
Generate
Return on
Investment
Retire at
End-of-Life
or
Disposition
Asset
a b c d e f g h
Build Commit Initiate Select Identify Close Commission
12
Enabling a Scalable Project
Management Framework
Project Rank and
Assignment
Cost plus Complexity =
Project Rank
Project Complexity
13
Project Rank Comparison
0%
20%
40%
60%
80%
100%
Project Count Project Spend
Black Brown Green 3 Green 2 Green 1 White
14
The Project Delivery System
Green III Brown Brown Black
Green II Green III Brown Brown
Green I Green II Green III Brown
White Green I Green II Green III
Black
Senior Project Director
Principal Project Controls Specialist
Brown
Project Director
Senior Project Controls Specialist
Green III
Senior Project Manager
Senior Project Controls Specialist
Green II
Project Manager II
Project Controls Specialist
Green I
Project Manager I
Associate Project Controls
White
Associate Project Manager
Associate Project Controls
Black
Brown
Green III
Green II
Green I
White
Compliance with PMCoE Standards at Department
Discretion
Required Compliance with PMCoE Standards
Required Compliance with PMCoE Standards including
additional requirements defined in Attachments
[1] Determine
Project Profile
Matrix Rank
[2] Assign Rank-
Appropriate
Organization &
Project Management
[3] Use Rank-
Appropriate
Processes, Tools &
Templates
[4] Deliver Products
& Services According
to Plan
Select Initiate Close
Develop Plan & Execute
15
Change Management Approach
•Coalition Building (Executive Level Presentations)
•Active & Visible Participation (EGC Meetings)
•Direct Communications (Up, Down and Across Organization)
Sponsor Engagement
•Identify Change Agents in Each Department
•Collaborate with Change Agents to Align Department Processes
•Workshops with Project Teams
Coaching & Org
Transformation
•Enterprise-Wide Cascading Communication
•Recurring Communications Communication
•Executive Series
•Management Series
•Performance Series
Training
Resistance Management
16
The Relationship Between
Change Management & Risk
• A holistic process for managing change within the portfolio does not
magically solve the problem of change collision and change
saturation.
• No matter how well executed, the more change introduced in an
environment increases risk.
17
Managing Change within a
Portfolio Helps Manage Risk
• There are a number of reasons organizations need an approach for
managing the portfolio of change underway.
• The most common reasons for such an approach include:
• The ever increasing amount of change organizations are facing.
• The potential for change saturation.
• The consequences of change collision.
Manage
Change
Leadership
Strategy Execution
18
Portfolio Performance
Enterprise
Division
Business
PMO
• Within Duke Energy, Portfolio Performance is observed at man
