Rego University Improved PPM Process Maturity

Rego University Improved PPM Process Maturity ppmprocessconsulting.com 1.888.998.0539

Some Basic Questions Who has PMO? How many years? o 2 o 3-5 o 5 What type? o o o o Project Support Business Unit Enterprise PMO Center of Excellence (COE) ppmprocessconsulting.com 1.888.998.0539 2

PM and PPM Defined Project Management Application of knowledge, skills, tools & techniques to project activities to meet project requirements Stakeholders: business owners, sponsors, end users Stakeholder needs: business requirements, controlling costs & schedule ppmprocessconsulting.com 1.888.998.0539 Project Portfolio Management Application of knowledge, skills, tools & techniques to a collection (or portfolio) of projects in order to meet needs of an organization’s investment strategy Stakeholders: financial management, senior executives, stockholders Stakeholder needs: optimal investment of resources, ROI, strategic alignment 3

PM and PPM Process Integration PM Processes Initiating Planning Executing Closing Monitoring and Controlling ppmprocessconsulting.com 1.888.998.0539 PPM Processes Identifying Categorizing Evaluating Selecting Prioritizing Balancing Authorizing Performance Reporting Monitoring and Communicating Adjustments 4

Portfolio Management Maturity: Components 1. 2. 3. 4. 5. 6. Portfolio Governance Project Opportunity Assessment Project Prioritization and Selection Portfolio and Project Communications Management Portfolio Performance Management Portfolio Resource Management ppmprocessconsulting.com 1.888.998.0539 5

Portfolio Management Maturity Survey Evaluate and compare your organization's PPM maturity against its peers. Foundation for an improvement roadmap. Track improvement over time. Survey developed by the Center for Business Practices and CA. Results are based on survey responses from senior-level PPM practitioners. The high level survey will only take a few minutes to complete. ppmprocessconsulting.com 1.888.998.0539 6

What is Your Portfolio Management Maturity Level? 12 Level 1: Initial Process 12 – 17 Level 2: Structured Process 18 – 23 Level 3: Institutionalized Process 24 - 29 Level 4: Managed 29 Level 5: Optimized Maturity levels based on Center for Business Practices use of CMMI Maturity Model ppmprocessconsulting.com 1.888.998.0539 7

State of PPM Research - Maturity Level Across Industries Percentage of organizations at each level of PPM capability: » Level 1 —9% » Level 2 —50% » Level 3 —25% » Level 4 —14% » Level 5 —2% ppmprocessconsulting.com 1.888.998.0539 8

Tips on Moving to Next Level PROCESSES FIRST PPM TOOL SECOND Target short term and long term improvement goals o One area, one level at a time Reassess Project Office role in project portfolio management ppmprocessconsulting.com 1.888.998.0539 9

State of PPM Research -Top Challenges 2003 Getting accurate information on projects Lack of information on resources Lack of broad organizational support ppmprocessconsulting.com 1.888.998.0539 2013 Organization has a silo mentality - 49% Assuring the consistent application of defined processes - 44% Getting reliable and accurate information on projects - 42% 10

State of PPM Research – Top Challenges Where trends are we seeing to address top challenges? Training Help from the Outside Technology ppmprocessconsulting.com 1.888.998.0539 11

Addressing These Challenges: Improving Engagement and Efficiency What is Engagement? What is Efficiency? IT’s ability to partner with the business to maintain alignment and maximize return from IT investments IT’s ability to make the best use of its people, budgets and assets Doing the Right Things ppmprocessconsulting.com 1.888.998.0539 Doing Things Right 12

Governance through Portfolios Enables Executives to establish the required governance to engage with the business effectively and to deliver investment results efficiently Align with organizational goals, strategies and priorities Select the right investments and make the right tradeoffs Demonstrate measurable business value Involve top management in project portfolio execution Communicate effectively with business partners and stakeholders Operate in compliance with corporate governance requirements Requires a holistic view of the entire IT portfolio across the enterprise Projects, People, Applications, Assets, Demand, Services ppmprocessconsulting.com 1.888.998.0539 13

Become the Center of Excellence Process and methodology – without bureaucracy or policing PM and PPM tools repository Project Manager Mentoring - Staffed by experienced experts Help Desk providing fast, knowledgeable response to requests Project Manager development approach and career track Training strategy and plan ppmprocessconsulting.com 1.888.998.0539 14

PPM Benefits Facilitates IT and business alignment Enables reasoned investment decisions resulting in the right project mix Reduces resource conflicts & constraints Collective management of all projects enabling the identification of tradeoffs Helping, modifying, slowing, and stopping projects when necessary Drives project cycle-time down and project performance up Enables people to succeed ppmprocessconsulting.com 1.888.998.0539 15

Tales from the Trenches People - Process - Technology Crawl - Walk - Run: but keep moving Stakeholder Management Executive Customers Project Managers Resource Managers Measure and Demonstrate Value ppmprocessconsulting.com 1.888.998.0539 16

PPM Process Governance North Shore LIJ Health System February 2014 Evelyn Franklin AVP, PMO ppmprocessconsulting.com 1.888.998.0539

PMO Redesign In 2012, we initiated an evaluation of our current PMO processes partnering with Rego to assist: Internal Audits of projects revealed significant gaps and risks based on then current practices. Reviewed current processes and tools and identified opportunities to implement best practice Clarity was in place but not implemented in a way that we could successfully manage our large project portfolio We revamped our methodology, developed new process documentation, training materials and job aids, and re-configured the Project Management functionality within Clarity Rolled out to our organization phase by phase over 18 months Internal Audit reviewed our new Project Life Cycle and we have seen vast improvements in subsequent project audit reports ppmprocessconsulting.com 1.888.998.0539

Our Demand Management Challenge Projects can be requested by anyone No prioritization process in place “Never Say No” philosophy Regulatory requirements with dictated dates Project demand exceeding our capacity to deliver Project interdependencies and “collisions” exist Very little budget controls in place i.e. No governance process!! ppmprocessconsulting.com 1.888.998.0539

Project Metrics THEN Project Status 2013 Jan Execution 188 Forecasted 93 Initiation 130 Planning 83 On Hold 60 Queued Scheduled Grand Total ppmprocessconsulting.com 1.888.998.0539 361 aka “The Black Hole” 5 920

Project Request to Approval Process Project Request Dept Head Approves the IDEA Site Governanc e Service Line Governanc e Hospital PRB & SLLReview Governance Project Cost Boards SWAG Approved Fits Strategy Request Initial ? Funding Approved N ppmprocessconsulting.com Convert to Project Schedule Project Resources Detailed Budget IDEA Cancelled 1.888.998.0539 Final Fundin g Approv al Schedule Project

Project Metrics NOW Status 2013 2014 Jan Currently Execution 188 Forecasted 93 245 Planned, budgeted but 257 not yet started 115 Initiation 130 Planning 83 52 On Hold 60 64 Queued 361 Scheduled Grand Total ppmprocessconsulting.com 0 Queue eliminated! 5 5 920 738 1.888.998.0539 20 % fewer

Example: Collision Management ppmprocessconsulting.com 1.888.998.0539

PPM Process Maturity Valecia Dyett, PhD, PMP February, 2014

Project Management Maturity Model TBC 25

PMO To-Do List 26

Where Were PMOWe FOCUS Fragmented Financials continuous To provide improvement in these key “I”reas: Undefined Organization Strategic Direction Client Service Model Tools Templates Repeatable Processes No Processes Undefined Roles & Responsibilities No Systems Accountability Centralization of Information Lesson Learned Review 27

PMO Identity Mission To help TBC make the right business decisions on project opportunities Vision Enhance the company’s ability to prioritize opportunities based in strategic fit Enhance executive’s ability to make fact-based investment decisions Provide project management process rigor (and flexibility) Evaluate the portfolio throughout the execution cycle by conduction periodic reviews of ongoing projects and assessing new opportunities Capturing lessons learned through a feedback process at the close of projects Value Drive alignment of project portfolio by business units (BU) to achieve overall business strategy – focusing our resources on the most critical opportunities Success execution of projects – on time, within budget, to scope Establish more visibility and accountability across the business groups 28

Integration: Client Service Model Through implementation of single point of contact Business Units Retail Wholesale Portfolio Mgr PM PM BA Mgr BA BA Franchise PM BA IT OPs PM BA 29

Improvement: PMO Processes REQUIREMENTS GATHERING BUSINESS ANALYSIS PROCESSES VENDOR SELECTION PROJECT MANAGEMENT OFFICE WORK INTAKE PROJECT MANAGEMENT PROCESSES PROJECT MANAGEMENT & CHANGE CONTROL PROJECT CLOSURE 30

Improvement: Tools & Templates Through development of PM guides/templates and training PMO Playbook Project Initiation Portfolio Management Work Intake Process Solution Review Business Case Project Selection Prioritization Resource Management Project Execution Training & Certification Project Set-up/Planning Change Control Status Reporting Clarity PMI IIAB Project Close-out Software Development Project Closing Audit Lessons Learned Knowledge Repository SDLC Agile/SCRUM 31

Information: Project Indicators 32

Information: Lessons Learned Through Knowledge Repository 33

Information: Accountability Through Ongoing Reviews 34 34

Information: Total Workload 35

PMO Roadmap 1st Step PMO Mission/Purpose Integration w/ Corporate Strategy Processes - Work Intake, Change Control, Project Closure Project Management Cadence Templates & Tools Requirements Gathering/ Project Management Knowledge Repository 2nd Step PM Playbook Training Executive Portfolio (C) One-stop Project Management (C) Financial Integration (C) Capitalization and Total Workload Portlets (C) 3rd Step Beyond ? Upgrade to Clarity v13.2 Demand Management (C) Portfolio Optimization (C) Workload/Resource Management (C) Exception Reporting (C) 36

Project Management Maturity Model TBC 37

Next Steps 1. Assess your PPM Maturity 2. Identify your Key Pain Points 3. Identify an Executive Champion 4. Enlist and Engage Advocates ppmprocessconsulting.com 1.888.998.0539 38

PPCG Can Assist Rego’s Project and Portfolio Management Consulting Group (PPCG) provides several PPM Process Reengineering and PMO Start-up Offerings Visit our website for more information: www.ppcg.net ppmprocessconsulting.com 1.888.998.0539 39

Any Questions? ppmprocessconsulting.com 1.888.998.0539 40

Appendix References “Assess Your PMO Readiness to Achieve IT Efficiency”, CA and Center for Business Practices “The State of Project Portfolio Management (PPM) 2013”, PM Solutions Research Report “CA The View from the Top”, CA “PM Solutions’ Project Portfolio Management Maturity Model,” Center for Business Practices “The Standard for Portfolio Management- Third Edition,” Project Management Institute “A Guide to the Project Management Body of Knowledge- Fifth Edition,” Project Management Institute ppmprocessconsulting.com 1.888.998.0539 41