Accelerating O Project Managem Siem Joseph A. Sopko, PMP, M Senior Consultant, Siemens Cor Kevin McD PMO Director, Siem Industry Automation Div Session # Organizational ment Maturity at mens MSP, OPM3® Consultant rporate Research, Princeton, NJ Devitt, MSP mens Industry, Inc., vision, Springhouse, PA #ADV03
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Accelerating Organizational Project Management Matur ity at
Kevin McDevitt, MSP PMO Director, Siemens Industry, Inc.,
Industry Automation Division, Springhouse, PA
Session #ADV03
Agenda
• Introduction • PM@Siemens • OPM Maturity Acceleration Initiative in
Siemens US Siemens US • Case Study – Siemens Energy and
Automation • Summary
Agenda
OPM Maturity Acceleration Initiative in
Siemens Energy and
Siemens Organization Executive Board
Sectors
Industry I
Industry Automation
Drive Technologies
Building Technologies
Energy E
Fossil Power Generation
Renewable Energy
Oil & Gas
Healthcare
Imaging & IT
Workflow & Solutions
Diagnostics
Regional Clusters
Regions
Building Technologies
Osram
Industry Solutions
Mobility
Oil & Gas
Energy Service
Power Transmission
Power Distribution
Diagnostics
Siemens Organization Executive Board
Corporate Units CrossSector Businesses
CrossSector
Healthcare H
Imaging & IT
Workflow & Solutions
Diagnostics
Siemens IT Solutions and
Services
Siemens Financial Services
Corporate Technology CT
CrossSector Services
Diagnostics
Siemens Corporate Technology
Profit
Idea Mega trends
Siemens Corporate Technology – Experts in Project, Program, and Portfolio Management
– PMO Development – Six Sigma Implementations
– Business Consulting – Business Consulting – CMMI® – OPM3® – People Competency – Innovation Management
Global presence
Germany 32%
Americas 132,000
12.8 48
As of September 30, 2008
23% 26%
97,600 20.1 68 31%
12.8
17%
Employees
Revenue (billions of euros)
Major facilities
Global presence
32% 23% Europe, CIS, Africa (excl. Germany)
Asia, Australia, Middle East 28.0
54 118,400
28% 36%
18% 21%
79,000 16.4 49
Revenue (billions of euros)
Major facilities
More than 60% of turnover originates from project business
of turnover originates from project business
Challenges of the project business Ø
The project business for external customers has a significant importance for Siemens
Challenges of the project business
§ Project business is relevant for nearly all divisions and regions § Numerous projects deteriorate during implementation phase § Too many crisis projects reduce EBIT significantly § More than 60% of the problems in the projects are caused in the early phases § PM capabilities are regarded crucial within Siemens
PM @ Siemens Initiative
Challenges of the project business
The project business for external customers has a significant importance
Challenges of the project business
Project business is relevant for nearly all divisions and regions projects deteriorate during implementation phase
Too many crisis projects reduce EBIT significantly More than 60% of the problems in the projects are caused in the
PM capabilities are regarded crucial within Siemens
PM @ Siemens Initiative
Agenda
• Introduction • PM@Siemens • OPM Maturity Acceleration Initiative in
Siemens US Siemens US • Case Study – Siemens Energy and
Automation • Summary
Agenda
OPM Maturity Acceleration Initiative in
Siemens Energy and
A Siemens initiative improves operational excellence in PM A Siemens initiative improves operational excellence in PM
MPM assessment benefits from multiple models
SEI Assessment & Capability Maturity Model Integration (CMMI)
MPM Maturity Scale § Continuous improvement utilizing statistical process control § Systematic defect prevention processes
Level:
§ Predictions of costs, deadlines, quality as well as project control are backed by statistically evaluated historical data § Systematic management of reference solutions
§ Organizational standard process established
4 “Quantitatively Managed”
5 “Optimizing”
Characteristics:
S M C I
According to Capability Maturity Model Integration (CMMI) of the SEI
§ Organizational standard process established § Standard process owned by the organization § Project specific tailoring rules in place
§ Disciplined project management § Process owned by project manager § Process varies from project to project
§ Procedures not defined; ad § Success depends on few specialists § Costs, quality, and deadlines are hardly predictable
1 “Initial”
2 “Managed”
3* “Defined”
OPM
3® S M C I
MPM Maturity Scale Continuous improvement utilizing statistical process
Systematic defect prevention processes
Predictions of costs, deadlines, quality as well as project control are backed by statistically evaluated historical data Systematic management of reference solutions
Organizational standard process established
Quality
Benefits:
According to Capability Maturity Model Integration (CMMI) of the SEI
Organizational standard process established Standard process owned by the organization Project specific tailoring rules in place
Disciplined project management Process owned by project manager Process varies from project to project
Procedures not defined; adhoc methods are used Success depends on few specialists Costs, quality, and deadlines are hardly predictable Risk
* MPM Level 3.0 is PM@Siemens Goal
Siemens CT has conducted more than 150 assessments globally Siemens CT has conducted more than 150 assessments globally
Agenda
• Introduction • PM@Siemens • OPM Maturity Acceleration Initiative in
Siemens US Siemens US • Case Study – Siemens Energy and
Automation • Summary
Agenda
OPM Maturity Acceleration Initiative in
Siemens Energy and
Organizational Project Management (OPM)
“The application of knowledge, skills, tools, and techniques to organizational activities and project, program, and portfolio and project, program, and portfolio activities to achieve the aims of an organization through projects”
PMI Organizational Project Management Maturity Model (OPM3) – Second Edition (2008)
Organizational Project Management (OPM)
“The application of knowledge, skills, tools, and techniques to organizational activities and project, program, and portfolio and project, program, and portfolio activities to achieve the aims of an organization through projects”
PMI Organizational Project Management Maturity Model (OPM3)
Project Delivery vs. Maturity Level:
4 “Quantitatively Managed”
5 “Optimizing”
Target
Due Dates, Costs, Quality
1 “Initial”
2 “Managed”
3 “Defined”
Managed”
Target
Project Delivery vs. Maturity
Due Dates, Costs, Quality
Quality Benefits:
Target Due Dates, Costs, Quality
Risk
Value of Increasing OPM Maturity § Lower NonConformance Costs, Better Quality, Better Bottom Lines § Business Scalability § Top Line Growth/Bottom Line Improvement § Employee/Project Management Effectiveness § Reliable Project Performance Predictability
§ Improved and Measurable Project Performance Capability (SPI, CPI) § Improved Employee Satisfaction, Ramp § Improved Employee Satisfaction, Ramp § Superior Customer Satisfaction => Competitive Edge § Predictable delivery, costs and quality § Less risk exposure § Better Referrals
§ Embed change and achieve benefits through Program Management
Value of Increasing OPM Maturity Conformance Costs, Better Quality, Better Bottom Lines
Top Line Growth/Bottom Line Improvement – Improved/sustained margins Employee/Project Management Effectiveness – Rampup Reliable Project Performance Predictability – Less RED projects
Improved and Measurable Project Performance Capability (SPI, CPI) Improved Employee Satisfaction, Rampup, and Retention Improved Employee Satisfaction, Rampup, and Retention Superior Customer Satisfaction => Competitive Edge Predictable delivery, costs and quality
Embed change and achieve benefits through Program Management
Where we were…
• PM@Siemens Initiative (2000) • MPM Assessment Model (2002) • OPM improvements managed as projects
– MPM assessment conducted – MPM assessment conducted – Recommendations used to create improvement projects – Reassessments to update measures and next steps
• Benefits are implied
Where we were…
PM@Siemens Initiative (2000) MPM Assessment Model (2002) OPM improvements managed as projects
MPM assessment conducted MPM assessment conducted Recommendations used to create improvement projects
assessments to update measures and next steps
Barriers to progress
§ Resource limitations (financial and human) § Lack of PMO structure and business relevance § Lack of understanding of OPM maturity concept § OPM not formally aligned with or measured against business objectives (e.g. maturity level focused) business objectives (e.g. maturity level focused) § Improvement programs were multiple projects without formal program management governance § Business excellence programs often overlapped with OPM improvement efforts
Barriers to progress
Resource limitations (financial and human) Lack of PMO structure and business relevance Lack of understanding of OPM maturity concept OPM not formally aligned with or measured against business objectives (e.g. maturity level focused) business objectives (e.g. maturity level focused) Improvement programs were multiple projects without formal program management governance Business excellence programs often overlapped with OPM improvement efforts
What we learned § Critical success enablers were not universally present § Cultural differences clouded assessment and implementation execution § Gap analyses and desk assessments may be better § Gap analyses and desk assessments may be better alternatives in early stages § Project processes => Process management maturity => Business benefits
What we learned Critical success enablers were not universally present Cultural differences clouded assessment and
Gap analyses and desk assessments may be better Gap analyses and desk assessments may be better
Project processes => Process management maturity =>
What we learned § Improvement by comprehensive assessment alone may not be the best alternative: §OPM Training needed – What does “good” look like? §Understanding the role of maturity models § Focus on business objectives (benefits) to be achieved § Focus on business objectives (benefits) to be achieved § Increase focus on business change management § Assessments must be conducted at the proper organizational level
What we learned Improvement by comprehensive assessment alone may
What does “good” look like? Understanding the role of maturity models Focus on business objectives (benefits) to be achieved Focus on business objectives (benefits) to be achieved Increase focus on business change management
Program Management Best Practices Organizational Project Management Office (PMO) Process Management Infrastructure
Support the Business Units in establishing these success factors and accelerating organizational project
§ Organizational Project Management Policy and Vision
§ Strategic Alignment
§ Resource Allocation
§ Management Systems
§ Sponsorship
OPM3® Organizational Enablers
§ Sponsorship
§ Organizational Structures
§ Competency Management
§ Individual Performance Appraisals
§ Project Management Training
PMI Organizational Project Management Maturity Model (
§ Organizational Project Management Communities
§ Organizational Project Management Practices
§ Organizational Project Management Methodology
Organizational Enablers
§ Organizational Project Management Techniques
§ Project Management Metrics
§ Project Success Criteria
§ Benchmarking
§ PMIS and Knowledge Management PMI Organizational Project Management Maturity Model (OPM3®)
Why use a program approach? § Executive support encouraged by link to business benefits § Formal program management organization and best practice methodology § Commitment to and management of business change § Commitment to and management of business change §MPM maturity assessment tool identifies gaps §Maturity improvement initiatives are business change programs and should employ formal program management to deliver expected benefits.
Why use a program approach? encouraged by link to business
Formal program management organization and best
Commitment to and management of business change Commitment to and management of business change MPM maturity assessment tool identifies gaps Maturity improvement initiatives are business change
and should employ formal program management to deliver expected benefits.
Characteristics of Programs vs. Projects
§ Achieves benefits § Broad scope § Broadly defined objectives § Specifics not clear at the start § Complex threads of work
Program Management
§ Complex threads of work § Often 3 – 5 years long § Usually major investments § Uses senior staff § Project Board members
Programs are not just large projects. They deliver enabling capabilities, embed business change, and achieve benefits
Characteristics of Programs vs. Projects
§ Creates a capability § Tightly focused § Clear objectives § Clear deliverables § Often single threaded
Project Management
28
§ Often single threaded § Often 3 months – 2 years § Can be small, cheap, fast § Uses less senior staff § Project Manager & teams
Programs are not just large projects. They deliver enabling capabilities, embed business change, and achieve benefits
Source: Core I.S., 2007
Program Management Model Sponsoring Group
Senior Responsible Owner
Program Manager
Program Office
Delivering Capability
Dossier of Projects
Manager
Program Management Model Senior Responsible
Owner
Business Change
Source: Managing Successful Programmes Standard, UK OGC, 2007
Embedding Change
Realizing Benefits
Change Manager
Why we need PMOs § Organizational Project Management maturity is difficult to achieve without organizationallevel support, ownership, and governance § Lead and manage the OPM improvement program § PM Center of Excellence lessons learned and best practice § PM Center of Excellence lessons learned and best practice models (e.g. OPM3®, CMMI) § Business performance measurement and benefits realization § Process management and optimization (e.g. Lean Six Sigma) => ROI
Why we need PMOs Organizational Project Management maturity is difficult to
level support, ownership, and
Lead and manage the OPM improvement program lessons learned and best practice lessons learned and best practice
Business performance measurement and benefits realization Process management and optimization (e.g. OPM3®, CMMI,
Agenda
• Introduction • PM@Siemens • OPM Maturity Acceleration Initiative in
Siemens US Siemens US • Case Study – Siemens Energy and
Automation • Summary
Agenda
OPM Maturity Acceleration Initiative in
Siemens Energy and
Successfully “Defined” Program
§ Conducted SEP 07 – NOV 08 § Sponsored and led by Siemens Corporation US § Business change program accelerate OPM maturity goal achievement (above MPM Maturity Level 3) § Work with all three Siemens sectors in Industry, Energy, and Healthcare (over 20 Business Units from $10 Million to $4 Billion)
Successfully “Defined” Program
NOV 08 Sponsored and led by Siemens Corporation US Business change program embed best practices to accelerate OPM maturity goal achievement (above
Work with all three Siemens sectors in Industry, Energy, and Healthcare (over 20 Business Units from $10 Million to $4 Billion)
Successfully “Defined” Program
§ An iterative approach Provide gap analyses, coaching, and training regarding organizational maturity § Introduce and support formal Program Management best practices best practices § Leverage lessons learned from maturity assessment experience => key success enablers
Successfully “Defined” Program
Provide gap analyses, coaching, and training regarding organizational
§ Benefits – § Centralized funding model removes financial barriers § Utilization of OPMM subject matter experts increased by 34 times – revitalized PM community in Siemens US § Focus on business benefits realization was a positive factor § Focus on business benefits realization was a positive factor for executive engagement § Business change approach involved the “business as usual” parts of the organizations => embed improvements and process ownership by business stakeholders
§ Siemens Industry Automation was the early adopter
Successfully “Defined” Program
Centralized funding model removes financial barriers Utilization of OPMM subject matter experts increased by
revitalized PM community in Siemens US Focus on business benefits realization was a positive factor Focus on business benefits realization was a positive factor
Business change approach involved the “business as usual” parts of the organizations => embed improvements and process ownership by business stakeholders
Siemens Industry Automation was the early adopter
Siemens Energy & Automation Automation and Motion Division (SEA AMD) Preliminary Case Study Data AMD) Preliminary Case Study Data
Siemens Energy & Automation Automation and Motion Division (SEA
Preliminary Case Study Data Preliminary Case Study Data
Sectors and Divisions: Industry
Energy
§ Fossil Power Generation § Renewable Energy § Oil & Gas
Industry
§ Drive Technologies § Industry Automation § Building Technologies
Divisions Divisions
Sectors
Page 36 July 2009
§ Oil & Gas § Energy Service § Power Transmission § Power Distribution
§ Building Technologies § Mobility § Lighting (OSRAM) § Industry Solutions
Energy Healthcare
Fossil Power Generation Renewable Energy
§ Imaging & IT § Workflow & Solutions § Diagnostics
Energy Service Power Transmission Power Distribution
§ Diagnostics
PM@AMD Program Management Model
Sponsoring Group
Senior Responsible Owner (SRO)
Program
Manages the project portfolio and
achievement of benefits
Program Office
Delivering Capability
Program Manager (PM)
Senior Responsible Owner (SRO)
Business
Sales, Customer Support,
Operations, etc.
Embedding Change
Business Change Manager (BCM)
PM@AMD Program Organizational Char t
PM@IA/DT PMO IA & DT Policy, Requirements, Best Practices
PM@AMD Program
Sponsoring Group Sponsor:
Senior Responsible Owner:
Program Manager
Simatic ITS Process Automation
Motion Control
Business Change Manager (BCM)
BU Manager
Business Change Manager (BCM)
Business Change Manager (BCM)
BU Manager BU Manager
Technical Working Groups
Technical Working Groups
Technical Working Groups
PM@AMD Program Organizational Char t PM@AMD Program
Sponsoring Group Sponsor:
Senior Responsible Owner:
Program Manager
“Successfully Defined” Program (SDP)
Siemens Corporate Research
Automotive Projects
Sales Sensors &
Communication
Business Change Manager (BCM)
Business Change Manager (BCM)
BU Manager
Business Change Manager (BCM)
BU Manager
Technical Working Groups
Technical Working Groups
Technical Working Groups
Vision Vision
PM@AMD – Program Mandates
Increased customer and employee satisfaction, managed profitable growth, and standard processes.
Realized benefits from achieving goals:
Implement appropriate PM@Siemens methodologies which achieves Maturity Project Management Level 3 Project Management Level 3 in order to exceed customer expectation and manage AMD projects profitably with transparent results.
Goals Goals Increased customer and employee satisfaction, managed profitable growth, and standard processes.
Realized benefits from achieving goals:
§ Standard processes and tools for § Standard processes and tools for creating project phase artifacts (outputs)
§ Financial accountability through measurable results which keep a project on a positive course
§ Greater value to our customers
PM@AMD – Identifying and Defining Program Goals
Standard Processes and Tools: § Project Acquisition/Execution § Change Management § Information Management
Defined Deliverables
AMD Project Management Office: § Project process support § Analytical tools and services
§ Engage stakeholders § Align project with: § Benefits realization § Program objectives § Governance: manage and control delivery
PM@AMD: Identifying and Defining Phases
– Successfully Defined Program (SDP) Kickoff Meeting
– Maturity in Project Management (MPM) Gap Analysis Analysis
– Program Acceleration through Coaching and Teamwork (PACT) Workshop
– Program Management Training for Team – Strategic Alignment with organization
PM@AMD: Identifying and Defining Phases
Successfully Defined Program (SDP) Kickoff
Maturity in Project Management (MPM) Gap
Program Acceleration through Coaching and Teamwork (PACT) Workshop Program Management Training for Team Strategic Alignment with organization
PM@AMD: Phase 1: Project Sales
§ Compliance Controls § PM@Siemens Global LoA Tool Training, § Integration of PM@IA/DT global Work Breakdown § Integration of PM@IA/DT global Work Breakdown Structure § Project Calculations standardized on EBIT § Develop & Deliver training for LoA, Project Acquisition, & Compliance
PM@AMD: Phase 1: Project Sales
PM@Siemens Global LoA Tool Training, Integration of PM@IA/DT global Work Breakdown
Manage the Phases Deliver the Capability
Transition & Measure the Benefits
Integration of PM@IA/DT global Work Breakdown
Project Calculations standardized on EBIT Develop & Deliver training for LoA, Project Acquisition, & Compliance
PM@AMD: Phase 2: Organizational Enablers
§ Design project KPIs across BUs § Adopt Customer Satisfaction Surveys Process § Create Change Management Tool § Create PM@AMD Sharepoint Project Portal with TDPs § Charter AMD Project Management office § Adopt PM Profiles, Training, & Competency Mgmt § MPM Theory (Desk) Assessment
PM@AMD: Phase 2: Organizational Enablers
Design project KPIs across BUs Adopt Customer Satisfaction Surveys Process Create Change Management Tool
Manage the Phases Deliver the Capability
Transition & Measure the Benefits
Create PM@AMD Sharepoint Project Portal with
Charter AMD Project Management office Adopt PM Profiles, Training, & Competency Mgmt MPM Theory (Desk) Assessment
PM@AMD: Phase 3: Project Execution
§ Standardize Process Asset Libraries § PM and Engineering processes
§ Process Definition & Maintenance Process § Create Process Asset Library Viewer with Tailoring for Project Categories § Process Tailoring Definition § MPM Comprehensive Assessment
PM@AMD: Phase 3: Project Execution
Standardize Process Asset Libraries PM and Engineering processes
Process Definition & Maintenance Process
Manage the Phases Deliver the Capability
Transition & Measure the Benefits
Create Process Asset Library Viewer with Tailoring
Process Tailoring Definition MPM Comprehensive Assessment
PM@AMD Improvement Results
5
4
One MPM matur ity level
2007 2008 2009
3
2
1
MPM Level
MPM Level
MPM Level
2006
PM@AMD Program
improvement achieved
PM@AMD Improvement Results
þCustomer satisfaction improved 5%
þProject Margins (delivered vs. booked)
Program Benefits Achieved:
One MPM matur ity level (delivered vs. booked) improved by 6% of Sales
þProject delivery reliability improved by 3%
High commitment within the organization towards a continuous process improvement
PM@AMD Program
Agenda
• Introduction • PM@Siemens • OPM Maturity Acceleration Initiative in
Siemens US Siemens US • Case Study – Siemens Energy and
Automation • Summary
Agenda
OPM Maturity Acceleration Initiative in
Siemens Energy and
Summary § Formal program management and essential for OPM maturity improvement, relevance, and success: § Executive support § PMO business relevance § PMO business relevance §Delivering benefits and business change § Programs and related organizations (e.g. PMO) that are not business relevant do not survive.
Summary Formal program management and OPM3® OEs are essential for OPM maturity improvement, relevance, and
Delivering benefits and business change Programs and related organizations (e.g. PMO) that are not business relevant do not survive.
Summary § Establish the PMO at the correct organizational level with: § PMO Charter with periodic review for relevance § Program leadership best practices § Link PMO goals to business strategy § Conduct the OPM improvement program at the right organizational level §Multiple maturity models (MPM, OPM3® , CMMI®, ITIL) are beneficial for system solution businesses
Summary Establish the PMO at the correct organizational level
PMO Charter with periodic review for relevance Program leadership best practices Link PMO goals to business strategy
Conduct the OPM improvement program at the right
Multiple maturity models (MPM, OPM3® , CMMI®, ITIL) are beneficial for system solution businesses
Summary
OPM maturity improves business performance! performance!
Summary
OPM maturity improves business performance! performance!
References § Lebsanft, K., Strausser, G., Sopko, J. (2007).
Siemens. OPM3 Users’ Forum, PMI. PMI Global Congress 2007 North America, Atlanta, GA.
§ Sopko, J., & Strausser, G. (2008, November). management and the PMO— critical success factors in improving organizational PM maturity at Siemens. Antonio, TX.
§ Keuten, T. (2009). OPM3® and CMMI® organizational maturity, a White Paper prepared for the Project Management Institute. Newtown Square, PA: Project Management Management Institute. Newtown Square, PA: Project Management Institute.
§ Sopko, J., & Husemeier, S. (2009, May). project management maturity: A Siemens Case Study. Congress 2009—EMEA, Amsterdam, The Netherlands.
§ Strausser, G. (2009, October). Business Change Management Using Program Management. PMI Global Congress 2009 Orlando, FL.
References Lebsanft, K., Strausser, G., Sopko, J. (2007). OPM3® utilization at
OPM3 Users’ Forum, PMI. PMI Global Congress 2007–
Sopko, J., & Strausser, G. (2008, November). Case study—Program critical success factors in improving
organizational PM maturity at Siemens. PMO Symposium, San
OPM3® and CMMI®—Breaking new ground in a White Paper prepared for the Project
Management Institute. Newtown Square, PA: Project Management Management Institute. Newtown Square, PA: Project Management
Sopko, J., & Husemeier, S. (2009, May). Improving organizational project management maturity: A Siemens Case Study. PMI Global
EMEA, Amsterdam, The Netherlands. Business Change Management Using
. PMI Global Congress 2009 – North America,
Thank You! Contact Information: Joseph Sopko, PMP, MSP,