IT Services Delivery - Program Management Office (PMO)

- VSR

IT Service

Program Management & PMO

Program

Management in

IT Services

Business -- VSR

April, 2009

1 The views mentioned in this document are solely by the author and

does not reflect the views of any organization or entity

- VSR

Presentation Outline

IT Services Business Environment

IT Service Program Definition

Value delivery from IT Service Program

Knowledge Areas of IT Service Programs

PMO for IT Services Business

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IT Services Business

Environment

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Indian IT Services Business - Journey

towards providing business value to

customers

Deliver Quality

Projects at

Velocity

Reduce Total

Cost of

Ownership

Align IT for

Business

Growth

Align IT for

Business

Transformation

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Program in IT Services Set of interrelated projects relating to single

customer

Set of non related projects for single

customer

Set of non related projects for multiple

customers (region, industry, technology etc)

Program definition in IT Services

Business

VARIANT 1

VARIANT 2

VARIANT 3

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Program definition in IT Services

Business (contd..)

Program Variant 1: A Program is a group of

related projects for a customer, managed in a

coordinated way to obtain business benefits,

control and transformation that is not available

from managing them individually

Program Variant 2: A Program is a group of

non-related projects for a customer, managed

in a coordinated way to optimize the Total Cost

of Ownership and to align IT with the Business

of that customer

Program Variant 3: A Program is a group of

non-related projects for multiple customers,

managed in a coordinated way to improve the

individual project performance.

In IT Services

Business, we

have to manage

three variants of

the program

Business

Value

Project

Value

IT Value

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Value Delivery from IT Service

Programs S. No Type of IT Program Value Parameters

1 Program Variant 1

Set of interrelated projects

relating to single customer

Business Value

• Reduce Time to Market

• Improve Gross Margins

• Increase Revenue

• Improve Cash flow

2 Program Variant 2

Set of non related projects for

single customer

IT Value

• TCO (Total Cost of Ownership)

• Optimal Outsourcing Mix

• Business and IT alignment

3 Program Variant 3

Set of non related projects for

multiple customers (region,

industry, technology etc)

Project Value

• Schedule

• Productivity

• Total Defect Containment

• Cost of Software Quality

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Possible Project Mix in a IT Service

Program S. No Project Type

1 Application Maintenance & Support

2 Composite Applications Implementation

3 Consulting

4 Custom Composite Applications Development

5 Custom Applications Development (Traditional)

6 Enterprise Applications Integration

7 Information Management

8 Infrastructure Management

9 Legacy Modernization

10 Package Implementation (Traditional)

11 Package Upgrade

12 Platform Migration (e.g Oracle to SAP)

Each

Program

consists of

the mix of

different

projects

PROGRAM

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VARIANT 1 – IT PROGRAM MANAGEMENT

Program Scope

Management Program

Management

Variant 1 Knowledge Areas: IT Service

Program Management

Program Time

Management

Program Cost

Management

Program Quality

Management

Project

Dependency

Management

Communication &

Information Management

Risk & Issue

Management

Transition Management

Value

Realization

Management Change Management

Benefits Realization

Management

Stakeholders

Management

Program Operations Management (infrastructure, space, invoicing, Visa, recruitment, BGC etc )

Program Knowledge Management

Business Risk

Management Disaster Recovery Management Business Continuity Management

Associate Relationship Relationship

Management Customers Relationship

Delivery Excellence /

Throughput Management

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VARIANT 2 & 3: IT PROGRAM MANAGEMENT

Scope

Management Project

Management

Variant 2 & 3 Knowledge Areas : IT

Service Program Management

Cost

Management

Time

Management

Knowledge

Management

Profitability

Management

Quality

Management Project Operations Management

(infrastructure, space, invoicing, Visa, recruitment, BGC etc )

Business Risk

Management Disaster Recovery Management Business Continuity Management

Account Mining/Presales Management Account Growth

Management Account Attrition Management

Associate Relationship Relationship

Management Customers Relationship

Communication

Management

Risk & Issue

Management

Multi Project Management Delivery Excellence / Throughput Management

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IT Service Business – Program

Management Office (PMO)

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Assumed Environment in a typical

Indian IT Services Company

There is separate Delivery organization which owns the Service Delivery

(Head Delivery, Program/Delivery Managers and Project Managers)

There is separate Quality organization, which takes the responsibility of

building assets of Program Management and conduct program

management process audits

There is separate Learning Academy , which takes the responsibility of

building Program Management competency

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IT Services Business - PMO Focus

Provide Central Visibility Of Program

Institutionalize Program Management Processes

Enable enhancement of Program Throughput

Provide Program Management Consultancy

Build Program Management Competency and Provide

Mentoring Support

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2

3

4

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Maintain Relationships with Delivery Team and

Customers

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Communication and Change Management 7

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IT Services Business - PMO Focus Provide Central Visibility of Program

• Maintain Executive cockpit , conduct

Stage Gate Reviews and provide

Alerts

• Conduct Predictability analysis and

provide Alerts

• Maintain and analyze Programs

Repository

• Conduct Program Risk Analysis

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IT Services Business - PMO Focus Institutionalize PgM Processes

• Standardize Program Management

Practices / methodologies and

Provide Tool Kits

• Select and implement Program

Management Tools

• Establish Process Capability

Baselines and improve Process

Capability of Program Management

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IT Services Business - PMO Focus Enable Enhancement of Program

Throughput • Promote Innovation and thought leadership

to improve throughput of a Program

• Enable Defect Prevention Management to

reduce rework in Programs

• Enable various techniques to optimize

Offshore-mix of a Program

• Enable usage of Delivery Accelerators to

improve quality and productivity of Program

deliverables

• Promote Best Practices, Lessons Learnt and

Knowledge Management culture within

Programs (Blogs, wikis, Disc Forums , SIG

etc)

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IT Services Business - PMO Focus Provide Program Management Consultancy

• Provide general consulting to

Programs/Projects

• Provide consultancy in

Benchmarking & Industry Practices

in Program Management

• Provide Trouble shooting

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IT Services Business - PMO Focus Build Competency in PgM and Provide

Mentoring

• Forecast and enable building

Program Management Competency

• Enable Program Management

Careers

• Mentor Program Managers/Project

Managers

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IT Services Business - PMO Focus Maintain Relationships with Delivery Team

and Customers

• Maintain relationship with Delivery

Team

• Maintain relationship with

Customers (as applicable)

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IT Services Business - PMO Focus Communication & Change Management

• Communicate and Brand PMO

• Enable Change Management to

accept PMO

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Indicative PMO Organization Structure

in IT Services Business Executive Sponsors

Steering Committee

Program Management Office

Consultancy/Mentoring

Head Delivery

Program Manager/

Delivery Manager

Program Manager/

Delivery Manager

Program Manager/

Delivery Manager

Program Manager/

Delivery Manager

Internal

Learning Academy

Internal Quality

Unit

Competency Management

Standardization and Institutionalization of

Practices

Program Visibility Management

Thought Leadership & Program Throughput

Enhancement

PgM Intellect Capital Management

Relationship/

Partnership Management

PMO

Structure

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Indicative Metrics for IT Services PMO

Success DIRECT MEASURES

– # of Consulting Engagements for PgM

– # of Mentoring Sessions on PgM

– # of Competency Building Sessions for PgM

– # of Interventions in Improving Program Quality & Throughput

– # of Knowledge Sharing Sessions conducted in PgM

– % utilization of Program Management Assets

– Internal customer Delight index

ENABLING MEASURES

Program Execution Performance

– Benefit Realization

– Health Index of a Program

– Productivity of a Program

– Risk Index of a Program

– Change Requests Index

Program Finance Performance

– Profitability

– Cost of Quality of a Program

– Estimation Accuracy

Customer Delight

– External Customer Delight Index

First, baseline the

existing Metrics and

then set the

benchmarks

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Steps to establish PMO in IT Services

Business SCAN ORG. ENVIRONMENT AND CONDUCT

GAP ANALYSIS

DEFINE PMO FORESIGHT AND ESTABLISH

GOVERNANCE STRUCTURE

IDENDITY PMO SERVICES

FINALIZE PMO INFRASTRUCTURE

ESTABLISH PARTENERSHIPS

TRIGGER CUTURE CHANGE

ESTABLISH MEASUREMENT & REVIEW

SYSTEM

PLAN FOR QUICK WINS

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IT Services Business PMO Architecture/

Components PMO PROCESSES

PMO SCORE CARDS

PMO SKILLS

PMO ORG. STRUCTURE

PMO TOOLS / APPS

COLLABORATION PLATFORM

PMO ASSETS

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IT Services Business - PMO Maturity

Levels

LEVEL 1

LEVEL 2

LEVEL 3

LEVEL 4

BUILD CULTURE: Communities of Practice: sharing

experiences and improving individual capabilities

FACILITATE AND SUPPORT: Project Enabling office: Provide

support on various aspects of project management. Provide

hands on project assistance

ENHANCE PROJECT VALUE: Project Management Office:

Project tracking and reporting, best practice repository and

access to PMs, consistency across the projects. Enhancing

project value

– Enable on-job learning through Apprentice of PMs

– Project consulting and mentoring

ENHANCE IT VALUE AND BUSINESS VALUE: Program

Management Office: Program Focus, Program Value

enhancement, Program level tracking and monitoring,

benefits measurement and corrective actions, alignment

with Customer IT & Business

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IT Services Business - PMO Should Focus

on both Project Life Cycles and Project

Management Life Cycle

Integrated Project

Management is the Key

for success

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PMO 2.0

Business Closer to PMO

and

PMO Closer to Business

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Critical Success Factors for PMO in IT

Services Business

Executive Sponsorship

Value Delivery Engine

Sophisticated Governance

Robust Review Mechanism

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2

3

4

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Critical Success Factors for PMO Executive Sponsorship

• Budget and Time Commitment from

Executive Sponsor

• Commitment to bring cultural

change

• Commitment to reward the best

• Commitment to take corrective

actions as needed

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Critical Success Factors for PMO Value Delivery Engine

• Commitment to induct right skilled

people into PMO

• Value adding services to

Delivery/Program team

• PMO to act like a catalyst for

Problem Solving

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Critical Success Factors for PMO Sophisticated Governance

• System driven mandatory

governance controls

• System to have regular

communication on initiation of

Programs

• System to bring PMO interventions

at appropriate time

• Supporting structure in different

units

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Critical Success Factors for PMO Robust Review Mechanism

• System to early detect RED, GREEN, AMBER

Projects/Programs

• System to have skip level interaction with

customers to get the health of Program

• System to conduct value adding reviews (asking

right and relevant questions )

• System to help resolving issues with regular follow-

ups

• System to have virtual team to participate in quality

reviews

• System to have participation of Executive sponsor in

critical accounts review

• System to get the acceptance that PMO plays a role

of Devils Advocate

• System to include PMO reviews are seamless and

not overhead

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IT Services Business - PMO Skills

• Program Management experience

• Project Life Cycles

• Relationship Management

• Thought Leadership

• Industry/Business exposure

• Mentoring

• Consulting

• Problem Solving

• Risk Management

• Effective Review Management

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Thank You!

VSR

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