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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 Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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Page 1: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

Accelerating Organizational Project Management Matur ity at

Siemens Joseph A. Sopko, PMP, MSP,

Senior Consultant, Siemens Corporate Research, Princeton, NJ

Kevin McDevitt, MSP PMO Director, Siemens Industry, Inc.

Industry Automation Division, Springhouse, PA

Session #ADV03

Accelerating Organizational Project Management Matur ity at

Siemens Joseph A. Sopko, PMP, MSP, OPM3® Consultant

Senior Consultant, Siemens Corporate Research, Princeton, NJ

Kevin McDevitt, MSP PMO Director, Siemens Industry, Inc.,

Industry Automation Division, Springhouse, PA

Session #ADV03

Page 2: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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

Page 3: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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

Page 4: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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

Page 5: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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

Page 6: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

More than 60% of turnover originates from project business

of turnover originates from project business

Page 7: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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

Page 8: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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

Page 9: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

A Siemens initiative improves operational excellence in PM A Siemens initiative improves operational excellence in PM

Page 10: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

MPM assessment benefits from multiple models

SEI Assessment & Capability Maturity Model Integration (CMMI)

+ Recommendations of PM@Siemens

+ Elements of PMI: PMBoK and OPM3

+ Siemens extensions: Practical experiences & feedback

= MPM Assessment Methodology

MPM assessment benefits from multiple models

+ Recommendations of PM@Siemens

§ Independent and external view

§ Confidentiality

§ Siemens­wide

Initial

Managed

Defined

Quantitatively Managed1

Optimizing

1

2

3

4

5

OPM3®

MPM Assessment Methodology

§ Siemens­wide standardized methodology

§ Comparable results

§ References to best practices

Page 11: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

MPM Process Model

§ Planning & Controlling

§ Project Acquisition

Project Life Cycle Project Management

Process

Controlling § Supplier & Subcontractor Management § Project Quality Management § Project Configuration Management § Change and Error Management

§ System Engineering

§ Integration and Test

§ Project Installation

MPM Process Model

§ Process Definition and Maintenance

Process Management

Project Acquisition

Project Life Cycle

Process

Maintenance § Organizational Training § Process and Product Measurement § Process & Technology Improvement

System Engineering

Integration and Test

Project Installation

Page 12: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

§ Planning & Controlling (L2/3) § Supplier &

§ Project Acquisition (L2/3)

Project Life Cycle Project Management

Process

MPM assessment process area alignment with

§ Supplier & Subcontractor Management (L2/3) § Project Quality Management (L2/3) § Project Configuration Management (L2) § Change and Error Management (L2/3)

(L2/3) § System Engineering (L2/3/4) § Integration and Test (L3) § Project Installation (L2/3)

* Sub­areas that have significant alignment with * Sub­areas that have partial alignment with

§ Process Definition and Maintenance (L3)

Process Management

Project Acquisition

Project Life Cycle

Process

MPM assessment process area alignment with OPM3®

Maintenance (L3) § Organizational Training (L3) § Process and Product Measurement (L4) § Process & Technology Improvement (L5)

System Engineering

Integration and Test

Project Installation

areas that have significant alignment with OPM3® areas that have partial alignment with OPM3®

Page 13: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

§ Planning & Controlling (L2/3) § Supplier &

§ Project Acquisition (L2/3)

Project Life Cycle Project Management

Process

MPM assessment process area alignment with CMMI®

§ Supplier & Subcontractor Management (L2/3) § Project Quality Management (L2/3) § Project Configuration Management (L2) § Change and Error Management (L2/3)

(L2/3) § System Engineering (L2/3/4) § Integration and Test (L3) § Project Installation (L2/3)

* Sub­areas that have significant alignment with * Sub­areas that have partial alignment with

§ Process Definition and Maintenance (L3)

Process Management

Project Acquisition

Project Life Cycle

Process

MPM assessment process area alignment with CMMI®

Maintenance (L3) § Organizational Training (L3) § Process and Product Measurement (L4) § Process & Technology Improvement (L5)

System Engineering

Integration and Test

Project Installation

areas that have significant alignment with CMMI ® areas that have partial alignment with CMMI ®

Page 14: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

MPM Evaluation of Process Theory and Practice

Questions about

“ Theory“

defined? documented? available?

§ Procedures § Guidelines § Methods § Sample Documents

Maturity level Total coverage of

Theory and Practice

Maturity level of documented

process (Theory)

§ Sample Documents § Tools

MPM Evaluation of Process Theory and Practice

Questions about

” Practice“

well known? accepted?

§ Procedures § Guidelines § Methods § Sample Documents

OPM3® Capabilities

Maturity level Total coverage of

Theory and Practice

Maturity level of implemented

process (Practice)

in use? § Sample Documents § Tools

Page 15: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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

Page 16: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

Siemens CT has conducted more than 150 assessments globally Siemens CT has conducted more than 150 assessments globally

Page 17: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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

Page 18: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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)

Page 19: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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

Page 20: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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

Page 21: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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

Page 22: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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

Page 23: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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 =>

Page 24: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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

Assessments must be conducted at the proper

Page 25: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

OPM Maturity Key Enablers § To achieve maturity beyond MPM Level 2 (e.g.

Standardized): ØExecutive Support ØProgram Management Best Practices ØOrganizational Project Management Office (PMO) ØProcess Management Infrastructure

§ Support the Business Units in establishing these success factors and accelerating organizational project management maturity.

OPM Maturity Key Enablers To achieve maturity beyond MPM Level 2 (e.g. OPM3®

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

Page 26: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

§ 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®)

Page 27: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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.

Page 28: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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

Page 29: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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

Page 30: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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,

Page 31: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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

Page 32: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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)

Page 33: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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

Introduce and support formal Program Management

Leverage lessons learned from maturity assessment experience => key success enablers

Page 34: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

Successfully “Defined” Program

§ 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

Page 35: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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

Page 36: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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

Divisions

Sectors

Copyright © Siemens AG 2008. All rights reserved. Corporate Communications

Energy Service Power Transmission Power Distribution

§ Diagnostics

Page 37: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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)

Page 38: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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

Page 39: Accelerating Organizational - Project Managementmundopm.com.br/eventos/ipemac/ppt/kevin05.pdf · Accelerating Organizational Project Management Maturity at Siemens Joseph A. Sopko,

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

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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

Measure Business Benefits (KPIs): § Improve Customer Satisfaction § Improve Project Margin § Improve Delivery Reliability

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

Measure Business Benefits (KPIs): § Improve Customer Satisfaction § Improve Project Margin § Improve Delivery Reliability

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Identifying the Program

§ Produce Program Brief § Vision Statement § Desc. of Benefits § Risks § Business Case § Initial list of projects

§ Establish Infrastructure § Identify Stakeholders § Develop Communication plans § Develop Blueprint

Defining the Program

PM@AMD Program Flow

§ Initial list of projects § Assessment of Current State

§ Develop of Program Preparation Plan § Resources required § Desc. of deliverables § Schedule of activities § Team members

§ Develop Blueprint § Develop Benefits Profiles (including dis­benefits) § Design project dossier § Identify Phases § Develop Governance § Develop Program plan § Confirm Business Case § Prepare for 1st Phase

Realizing the Benefits

§ Embed benefits to business as usual § Manage

Managing the Phases

§ Direct & Manage work § Manage risk and issue § Monitor and report out § Transition and stable operations

PM@AMD Program Flow

§ Manage § Pre­transitions § Transitions § Post­ transitions § Measure benefits § Monitor and report benefit realizations

Delivering the Capabilities

§ Engage stakeholders § Align project with: § Benefits realization § Program objectives § Governance: manage and control delivery

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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

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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

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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

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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

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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

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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

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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.

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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

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Summary

OPM maturity improves business performance! performance!

Summary

OPM maturity improves business performance! performance!

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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,

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Thank You! Contact Information: Joseph Sopko, PMP, MSP,

Email: [email protected], Telephone: +1 609 933 8327

Kevin McDevitt, MSP Kevin McDevitt, MSP Email: [email protected], Telephone: +1 484 686­1043

Session: ADV 03

Thank You!

Joseph Sopko, PMP, MSP, OPM3® Consultant Email: [email protected], Telephone: +1 609 933 8327

Email: [email protected], 1043

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Contact Information • Name: Joseph Sopko, PMP, MSP, Consultant

• Email: [email protected]

• Phone: +1 609 734­6595 (W) +1 609 933­8327 (C)

• Session Number #ADV03

Contact Information Name: Joseph Sopko, PMP, MSP, OPM3®

Email: [email protected]

6595 (W) 8327 (C)