PMI Event

PM Thought Leadership and Industry Best Practices

Agenda• Introductions• IT Project Management Basics

– The right methodologies– Industry Best Practices

• IT Risk Management– Thought Leadership

• Managing Application Support Risks– Management 3.0– Projects delivered on time with less rework

• Application Management Case Study• Managing Project Risks• How we can help

Agenda

Computer Aid, Inc

•30 Years in IT Consulting Services Business

•Privately Held Entrepreneurial Organization

•3,000 Associates Worldwide

•$300 Plus Million in Revenue in 2011

•Offices in 34 U.S. Metropolitan Areas

•Global offices in Toronto, London, Sydney, and Kuwait, Singapore

•Off-shore delivery: Philippines, China, Argentina, Ethiopia, and India

•Headquarters: Allentown, Pa.

Introductions

IT Project Management

Basics

What is the mission of IT?

Deliver the Information Processing

Capability required by the business at

a cost that represents value

IT Services• Implement, operate, and support

– Infrastructure (servers, mainframes, networks)– System software and Tools

• Operating Systems • Data Query and Reporting• E-mail and Internet Access• Application design, development, and support tools

• Design, build/purchase, install, operate and support application software to support the business

• Store, protect and provide secure access to business information

• Provide consulting services to the business

Dimensions of IT Management• Strategy and Business Alignment

– Strategic Planning: Management Vision, Philosophy, and Objectives

– Business Planning: Identify Business Needs

– Portfolio Management: Initiate and prioritize projects

– Budgeting: Authorize with budgets and funding• IT Services

– Technology Architecture: Languages, DBMS, Network

– Infrastructure Operation: Operations Processes

– Application Development: SDLC, Project Management, Standards

– User Support and Services: Help Desk, SLA’s• Administration and Control

– Human Resource Management: HR Policies, Training

– Supplier Management: Purchasing

Dimensions of Project Management

• Cost• Schedule• Scope• Quality• Risk

• Integration• Communication• Human Resources• Procurement• Methodology

Dimensions of Operations & Support Management

• Reliability• Availability• Capability• Timely• Responsive/Performance• Flexibility/Adaptability

IT Risk Management

What is an IT Risk?

The possibility that IT will not be able

to deliver the required capability

Risk Management Impact on Project Success

Risk Management• Identify - scenarios for failure• Analyze - likelihood and consequence of failure• Plan - actions required to track and control risks• Track - program performance against plan• Control - risk issues and verify effectiveness• Communicate and Document

Identify & Analyze Risks• Strategic

– Does the business strategic plan address information processing capabilities?

– Is there a reasonable budget? – Does the Information Processing strategy directly link

to business goals and objectives?

Identify & Analyze Risks• Service Management Processes– Do the services management processes adequately address the

following areas? • Change and Quality Management

• Incident and Problem Management

• Availability and Capacity Management

• Service Level Commitments– What type of commitments does IT make (by area)?– Are they reasonable?– What scenarios would prevent IT from meeting the commitments?– Can IT respond to changing requirements?

• Application Architecture– Is the technology obsolete?– Does the application provide flexibility to respond to changing

business requirements? – Is the application reliable and available when needed?– Does it handle spikes in processing volumes?

• Hardware and System Software– What scenarios would impact this area?– What is the required capacity, availability, and security?– Do we have visibility of availability, reliability, and performance?– Can faulty components be replaced? – Can we identify trends?

Identify & Analyze Risks

• Application Operations and Support– Do the applications provide the required capabilities?– How often to they need to be enhanced?– How often do they need to be fixed?– What knowledge is required to operate and support?– Are they reliable, flexible, easy to use?– Is the technology obsolete?– Can they be easily updated to support changing

requirements?– What do they cost and what value is provided?

Identify & Analyze Risks

• Define success or the “commitment to deliver” (SLA’s, dates, estimates, scope)

• Analyze the “ability to deliver” including processes, tools, infrastructure, applications, staff, and knowledge

• Identify gaps or scenarios where the ability to deliver will not be able to meet the commitment

• Identify prevention or response actions

Risk Planning

• Is the available capacity for processing and services aligned with the demand to meet business needs without wasting resources?

• Are SLA’s being met? • Are processes being followed?• What is the level of quality and the reason for

defects? • Is the staff size and their knowledge level

adequate to meet the service demand?

Track Progress

• Is there a formal risk management process?• Are all risks logged?• Who owns the responsibility for ownership for

mitigation or prevention been assigned? • Are problems analyzed to determine the risks

that have not been addressed? • Is there a problem management process for

permanently fixing problems and eliminating risk?

Control

• Is there a formal risk management plan?• Are known risks communicated to the staff so

they can be aware of the risks? • Does the business participate in the prioritization

and mitigation of risks? • Are the causes and impacts of problems

communicated?

Communicate

Scenario:

Managing Application

Maintenance Risks

Application Risk Areas• Do the applications provide the required capabilities?• How often to they need to be enhanced?• How often do they need to be fixed?• What knowledge is required to operate and support?• Are they reliable, flexible, easy to use?• Is the technology obsolete?• Can they be easily updated to support changing

requirements?• What do they cost and what value is provided?

Background• Mgt. 1.0 Hierarchical, highly

filtered information flow

• Mgt. 2.0 Empowered teams makedecisions

• Mgt. 3.0Decision makers use virtual control rooms that integrate hard and soft data with best practices, feedback loops and QA

Definition: Management System

• Flow of information in the business to support decision-making and control. Leverages knowledge and data (e.g., opinions, judgments, risk assessments, risk management, intuition, best practices, quality assurance, human knowledge, decisions, hard data etc.)

• From first line management to top management

• Not a computer IT system (e.g., ERP systems)

Current Management System: Decision-Making Process Model

Hard Data (IT, ERP, DSS, BI,

DW)

Hard Data (IT, ERP, DSS, BI,

DW)

Soft Data(Human

Knowledge, Intuition, Judgment)

Soft Data(Human

Knowledge, Intuition, Judgment)

Best Practices,

Quality Assurance,

Rules

Best Practices,

Quality Assurance,

Rules

Decision-Making & Control

Decision-Making & Control

Filtered DataUnfiltered Data

Management System Information Flow Among Decision-Making Units

Innovation & Growth

Continuous Improvement

Operate & Survive

Management 3.0 System

Hard Data (IT, ERP, DSS, BI,

DW)

Hard Data (IT, ERP, DSS, BI,

DW)

Soft Data(Human

Knowledge, Intuition, Judgment)

Soft Data(Human

Knowledge, Intuition, Judgment)

Best Practices,

Quality Assurance,

Rules

Best Practices,

Quality Assurance,

Rules

Control Room

Morale

Collaboration

Communication

Alarm

Functions:•Collect data•Filter data•Create dashboards•Create repository

Plan and Manage• Inventory applications and their capabilities, availability

requirements, and redundancies. • Implement application management processes to track

costs, changes, quality, and value to business.• Identify missing or deficient capabilities and how often

they need to be enhanced. Initiate enhancements to provide user-controlled configuration.

• Eliminate recurring problems by implementing fixes. • Document required knowledge and facilitate orientation or

cross-training of staff.• Identify solutions for replacing obsolete technologies.• Develop a retirement strategy.

Management CapabilityVisibility•What services are needed?•What services are provided?•When are they provided?•How often? •Why are they provided?•How much do they cost?

Management CapabilityControl•Were the services authorized? •Did they deliver the correct result?•Were standard processes followed?•Were the services delivered on-time and on-budget?•Did the customer receive value?

Management CapabilityOptimization•Reduce Risks and Costs•Decrease Project Rework•Improve Quality•Improve Processes •Improve Customer Satisfaction•Increase Value to the Business

Scenario:

Managing Project Risks

Risk Analysis: Why Projects Fail?Standish Chaos Report

• Incomplete Requirements 13.1%

• Lack of User Involvement 12.4%

• Lack of Resources 10.6%

• Unrealistic Expectations 9.9%

• Lack of Executive Support 9.3%

• Changing Requirements 8.7%

• Lack of Planning 8.1%

• Didn't Need It Any Longer 7.5%

• Lack of IT Management 6.2%

• Technology Illiteracy 4.3%

• Other 9.9%

The solution begins with accountability

• Who is responsible for managing project risk?

• Who is responsible for project success?

• Who is to blame for project failures?

• Does the IT project team have unrealistic expectations of the business?

• Does the business have unrealistic expectations of the IT project team?

Mitigating Project Risks• Cleary defining Requirements minimizes changes and

re-work

• Establish an achievable Scope based on available resources, budgets, and expected completion date

• Plan the project to avoid Resource downtime and minimize schedule disruptions

• Identify Issues early to prevent problems and avoid the resulting re-work

Will you be successful?Effective Risk Management answers this question

• Required Information– Timely and accurate project performance data

– Opinions/feedback from all participants

– Status of all open issues

• Risk Analysis

– Is the project on-time and on-budget for completed tasks?

– Is the project on-time and on-budget for active tasks?

– Has anything changed (scope, resource availability, customer satisfaction, levels of overtime)?

– What is the reason and impact of the change?

– What is the impact of open issues?

Information Requirements• Stakeholder and Team Communications

– Requirements

– Status

– Issues/Concerns

• Project Performance data

– Actual effort/cost vs. estimates

– Total Changes and the impact of changes

– Total Re-Work by reason (requirements changes vs. errors)

– Lost time due to schedule disruptions

Solutions• Improve communications with all project

participants without disrupting progress

• Ensure compliance with processes

• Collect and analyze project performance metrics to identify trends and new risks

• Efficient staff orientation to the project and the management processes to enable agile staffing

• Establish accountability

How does CAI succeed?• Repeatable Processes are used to manage requirements,

scope, schedules, risk, issues, changes, quality, and resources

• Tracer Service Management Tool provides visibility (metrics) and status into all assigned activities across projects and support

• Automated Project Office Answers the question “Will we succeed?”

– Early identification of risks by conducting project health assessments to analyze project performance metrics and surveys of participants and stakeholders

– Validates compliance with processes

How does CAI succeed?• CAI is a thought leader in PMO Goverance

• CAI has domain experts

• CAI does this as part of what we do

• CAI is an innovative organization focused on delivering business values

Automated Project Office Visibility of Issues

Automated Project Office Visibility of Issues

CAI Managed Services

• Application Support Outsourcing– Assume full responsibility for support– Fixed Price– Service Level Commitments– Continuous Improvement Commitments

• Application Development– Fixed Price Proposals– On-Time, On-Budget, High Quality, Warranty

• Help Desk Outsourcing– Service Level Commitments– Fixed Price

CAI ClientsManufacturing

Retail

Services

Financials Transportation / Logistics

Insurance Utilities

Government

Education

Case Study:

Highmark Service Excellence Project

Service Excellence ProjectObjective:

Improve IT’s ability to meet or exceed commitments to the businessYear 1 Goal:

Increase value to the business by increasing time spent on enhancements from 4% to 18%

Achievements

• Time spent on enhancements increased to 22.5% in 9 months and 36% after 18 months

• Enhancement backlog was eliminated

• Application Problems and Support costs were reduced

• Business management received increased visibility and control of their requested services, required hours, and cost

• Increased Customer Satisfaction

• Service requests were not logged

• Service Level Goals are not formally defined

• Most of the available resource hours are spent resolving incidents resulting in a large backlog of projects

• Customer satisfaction was not measured but it was assessed as poor based on informal feedback

• Most of the support management processes were informal and team specific

• Knowledge was undocumented resulting in a dependence on “hero experts for each application

• “Reactive” management because of limited visibility and control

Risk Assessment Results

Solution Framework

Visibility•Services•Resources•Performance•Metrics

Control•Implement Processes•Commitments/SLA’s•Enforce Processes•Authorize Services

Optimise•Improve Processes•Reduce/Prevent Problems•Increase Value

Resulting Business Value• Increased quality, reduced rework and application problems, and

reduced support costs

• Improved process maturity

• Implemented metrics to support ongoing improvement initiatives

• Increased staff effectiveness and productivity

• Reduced risk

• Improved performance against commitments which improved customer satisfaction

Case Study

Pa. Department of Transportation

Application Management and Outsourcing

PennDOT Introduction Provides Transportation Management for

the Commonwealth of Pennsylvania

Created in 1970 to streamline transportation management Annual budget of over $6 bn of state and federal funds Total 121,000 miles of state and local highways Total 55,000 state and local bridges Manage 40,000 miles of highway and 25,000 bridges 12,000 employees 11.3 Million vehicle registrations 8.7 Million driving licenses Safety and Emissions control inspection programmes

Commonwealth Directive “Do more with less”

Commonwealth Budget 2011-12

Balance budget with no tax increases Refocus investment in core functions of government Reduce general fund budget by 4% ($1.17 billion) State spending overall reset to near 2008-09 levels State agencies are directed to focus on delivery and reduce

administrative overhead

Success

76,500 Function Points added0.2% defect rate

Case Study

State of Georgia:Georgia Technology Authority (GTA)

ITBuzz: PPM/APO/Issue Management

Vision

• A transparent, integrated enterprise where technology decisions are made with the citizen in mind

Mission

• To connect Georgians to their government

Goals for FY 2012 - 2014

• Integrate Georgia Enterprise Technology Services (GETS) into a seamless delivery model

• Establish IT governance that provides transparency

• Enable online services to meet the needs of Georgia citizens

GTA Mission

GTA provides risk management for Georgia's data and information systems to ensure security, privacy, reliability and protection of the state's investments. The gap in agency preparedness is a primary concern. Agency management must put a higher priority on planning and assuring and protecting the systems and data used to provide Georgia's citizens with critically needed services. GTA continues to assess, measure and report on state agencies' performance in providing programs to effectively reduce information technology risk.

GTA PPM Mission

In government, four out of five technology initiatives will fail or not fully deliver on their initial promise. In the last five years, the state has invested over $450 million in large technology projects which, based on industry trends, had a risk of costing the state $212 million more than planned and delivering only 79 percent of what was requested, with 29 percent of these projects cancelled outright.

Project Assurance

Project assurance is a structured review of technology projects to evaluate and determine how they can be successful. Project assurance looks at project organization, sponsorship, plans, risks, issues, change, dependencies, resources, and processes to determine how well they are being executed in the context of the specific project, and then makes recommendations to mitigate risks. It does not conduct quality assurance of project deliverables but is concerned with the way projects are being managed. It provides line management.

High return investment on projects

One key purpose of the IT roadmap is to ensure Georgia agencies have access to the most appropriate IT to support their objectives. New IT capabilities allow innovation of business solutions. To take advantage of emerging IT capabilities, agencies may sometimes need to make fundamental changes to the way they provide services. Without the willingness and knowledge to change, agencies will not gain the efficiencies and productivity improvements from emerging business solutions. GTA is working with a variety of state agencies to identify opportunities for innovation that will be most valuable for the state.

Innovation

Press Release on GTA Website

GTA has established a contract with Computer Aid, Inc. (CAI) to provide a cost-effective, enterprise-wide Portfolio Management Application. GTA will offer the tool, called Georgia Enterprise Management Suite (GEMS), to state agencies starting Fiscal Year 2013. "Agencies told us they needed help keeping large projects on track," said Tom Fruman, director of GTA's Enterprise Governance and Planning Division. "We believe this portfolio and project management system will give them insight they didn't have before. They will be able to monitor the health and status of projects using a combination of traditional operational data and qualitative assessment data from multiple stakeholders." GEMS includes selected modules from CAI's project portfolio management application, ITBuzz Enterprise Management Suite (www.caibuzz.com), which provides visibility and analytics for the purpose of risk alerts and avoidance. GTA has opted to use the Portfolio Management, Automated Project Office, and Issues Resolution Management modules. ITBuzz is built on a platform called Advanced Management Insight (AMI), which allows for rapid development of industry-specific applications and enables users to build highly customized solutions and robust management information systems quickly and cost effectively. CAI has been in business since 1981 and is headquartered in Allentown, PA. The company has more than 30 offices throughout the United States, Europe, Canada, Asia Pacific, and Latin America.

Weekly Email from State CIO to Agencies July 13, 2012 Part of GTA’s original legislative mandate is to track large IT projects in state agencies. A new tool is giving us and the agencies a clearer picture of the status of those projects.

The team in EGAP recently launched the web-based tool, called Georgia Enterprise Management Suite (GEMS), and response has been positive. The Department of Public Health (DPH) is already using GEMS to track a project in Vital Records. GTA contracted with Computer Aid, Inc. for the tool, and DPH worked with us on requirements and testing.

GEMS comes in response to agencies telling us they need more help keeping large projects on track. It replaces the current dashboard and incorporates the Agency Project Request (APR) that agencies submit before a project even gets off the ground. GEMS tracks projects throughout their lifecycle and applies best practices and industry standards to aid in decisions about moving forward. It uses dashboard dials to show various health indicators, including schedule, budget, risk, issues, communication and quality. Data is gathered from questionnaires completed regularly by stakeholders – from project team members and business owners to agency executives. The result is greater insight into the performance of projects, programs and portfolios.

We expect the clarity and depth of information provided by GEMS to lighten the load for agency project managers while also streamlining evaluations by our Critical Projects Review Panel. GEMS represents a big step forward for project and portfolio management in state government. I appreciate the work of Tom Fruman and the team that is making it happen:

ITBuzz Opportunities GEMS

• ITGR – Annual Audit Cartridge

• IT Application Support Cartridge

• Governors Office – Management 3.0 Cartridge

• Critical Panel Review – Reporting/Capture

• Live 8/24/12• 37 Users (2) Agencies

– DPH– SOA

• Goal to complete all agencies by EOY

Were we are today

How can CAI help you?• Fixed price Application Development services

• Application Support Outsourcing to allow your staff to work on projects

• Project Management and Transformation consulting to improve effectiveness

• Automated Project Office (SaaS) to enable a rapid project office implementation

• ITMPI – IT Metrics and Productivity Institute provides access to resources and knowledge from world-renowned experts in various fields

Thank you