IBM Journey To Becoming Project Based Enterprise

IBM Global Business Services
IBM's Journey to Becoming a Project Based Enterprise

Tony DeBellis Project Management Center of Excellence Catherine Hoople Application Services Ottawa Delivery Excellence Lead
1 | KnowledgeNow Executive Breakfast Seminar | June 6, 2007 | Copyright IBM Corporation 2007
Changes to the business environment influenced development requirements
Worldwide Movement to a Project Orientation

FUNCTIONAL ORGANIZATION MATRIX ORGANIZATION
INDIVIDUAL PRODUCTS
INTEGRATED SOLUTIONS
1980's
2 | KnowledgeNow Executive Breakfast Seminar | June 6, 2007 |
1990's - Today
Copyright IBM Corporation 2007
Project Based Constructs laid the groundwork for Organizing Work and PM development
Manages Strategic Objective(s) PROGRAM PORTFOLIO(S) Provides Business Views
PROJECTS Delivers Tactical Solutions

IBM recognized its Internal Challenge...

Project management was identified as key to reliably delivering commitments Lack of project management discipline was identified as a major factor in failure ... ... contributed to by the entire organization
| KnowledgeNow Executive Breakfast Seminar | June 6, 2007 |
and developed its Approach

The Charter: Raise Project Management to a Core Competence with IBM
The Agent: PM Center of Excellence One Consistent PM Approach Qualified PMs on Significant Projects Project Performance Measurements PM and Executive Accountability A PM Community
The End Result: A Project Based Enterprise

We Defined the Organizational Structure to Manage the Change

Executive Steering Committee
Project Management Center of Excellence
Develop and maintain programs, tools, method and policies needed to develop and support the systemic use of project based disciplines across the corporation Deploy and integrate the use of PM discipline by the business units based on the programs, tools, method and policies that have been developed at the corporate level
Business Unit Deployment Leaders
Ensure 'Decision to change' Happens in Their Business Unit Provide Guidance Work Through Deployment Leaders and Business Unit Management Remove Obstacles Communicate the Message
Business Deployment Networks Line Organizations PM Community
IBM Documented its Desired Outcomes

A community of qualified PM Professionals that lead teams and manage on-time, delivery within scope and cost, reducing risk by the use of project based disciplines.
Community
Enablers
PM Methods and PM tool set, scalable and adaptable to customer program and project needs, that provide the right level of control to match risk and ensure delivery.
Infrastructure
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Management Systems, infrastructure and process, that provide visibility to project and program information needed to manage the business effectively.
The Value of Building PM Skills

Projects and teams can start more quickly through:
reuse of intellectual capital common language and reporting an understanding of project roles and responsibilities Risks are reduced by: PM Professionals who do not rely on heroics to deliver better planning and prediction capabilities using proven intellectual capital PMs help our customers by managing: delivery cost product quality schedule integrity
Consistent methods enable effective project managers

Incorporate
Recognized Industry Standards
PMI SEI CMM ISO 10006 Desired Capabilities Scalability: small projects --> programs Adaptability: internal development ---> external delivery Usability: aids as well as procedural guidance Integrated with tools and other processes Foundation for Internal Assessments PM Professional Self-Assessment Organizational Baselines
IBM Worldwide Project Management Method
Defines the way all projects will be managed in IBM Describes a broad range of project management activities adaptable to each project Facilitates the sharing of project management information, knowledge and experience. Improves the identification and use of best practices Improves results through avoidance of common pitfalls
10
Using Project Data to manage the Business

Enterprise Integration
Project
Management & Business Focus

Program/ Project Portfolio
Project Execution Focus

PM Professional Centered Support Base PM Processes Improve Project Manager Efficiency and Effectiveness
Project Portfolio Repository
Resource Management Program Management Portfolio Management Link to business strategy
Supports PM and business processes 360-degree visibility Interface with Financials, HR systems
11
Value to IBM
Corporate Value Single investment stream in project management methods and tools Business Unit Value Portfolio Management Executive reports and decision support Project/ Engagement Value Maximum utilization of resources Reduce duplicate training, technology and documentation Portability of Project Managers Tied to project management profession, education, certification, community
Early detection of Improved efficiency troubled projects Project start up, status, Reduced loss, reconciliation improved gross profit Improve effectiveness Execution of best practices Collaboration Earned Value techniques
Provide a modular scaleable solution

Fully Enabled
Project Portfolio Management Maturity Continuum

Continuous linkage of strategy & execution
PPM Maturity
TRANSFORM
Portfolio Analytics Effort-based Planning Service Requests Time Phased Actual Earned Value Assessments
IMPROVE
Optimize & Sustain

GET STARTED
High-level planning Scheduling Document Management Risk Management Scorecard Health Assessments
Project Prioritization Detailed Planning Resource Leveling Issue & Change Management Workflow Schedule/Cost Variance
Inexperienced Small Simple

13
Project Size & Complexity
Large Complex
An Enterprise-wide Tool Encourages Work Management and Knowledge Sharing

Project Team Members
Report progress
Project Managers
Plan projects Monitor progress
Project Support Office

Support Project Managers Address Organization Issues Provides Admin Support
Customer Team Members

Receive Reports
Program Office
Rational Portfolio Manager
Support Business Mgrs. Ensure Consistency Perform Analysis Distribute Reports
Vendors/Suppliers
Share Documents
Resource Managers
Project Staffing Search and Assign Resource Reports
Principals, Business Managers

Monitor progress across portfolio Focus on Business
Collaboration
Support
Three Process and Method elements integrate in a project environment

Business Process, defined in your Management System and driven by your business model provides the CONTEXT for your project Project Management provides the CAPABILITY to manage the project Technical Methodology, driven by the specifics of the project provide the CONTENT for your project Context Business Process Content Technical
Methodology
Project Management Processes Capability
15
Project Based Enterprise Characteristics
Managing the Organization through projects

Produces products and provides services using projects. Ties project selection and performance to business strategy Sets organizational goals and measurements in terms of projects, and tracks progress by measuring and tracking projects Allocates responsibility and authority for managing the projects to their project managers
requirements, cost, schedule, sponsor interface
16
Seven Keys to Success: a holistic approach

Indirect Control (Context)
Stakeholders are committed
Business benefits are being realized
Risks are being mitigated
Delivery organization benefits are being realized
Direct Control (Content)
Work and schedule are predictable

Red: urgent, remedial action required Yellow: warning, corrective attention required Green: progressing in accordance with plan
Scope is realistic and managed
Team is high performing
17
Key information this period Major Points..
Assess
Plan
Integrated Project Plan Stakeholders
Generally a monthly cycle
Business Benefits Work and Schedule Scope Team Risks Delivery Organization Benefits
Impact
Actions Actions
Actions
Implement
Stakeholders are committed

Healthy Signs Executive incentives linked to project results Investments in change management and training Stakeholder resources dedicated as planned Stakeholders engaged as planned Unhealthy Signs Executive sponsor not visible Lackluster Stakeholder interest People sabotaging efforts Resistance to new ideas Experts not available
1. Stakeholder management plan is fully implemented and maintained. 2. The right sponsor is appropriately engaged and funded. 3. Regular Steering Committee meetings are being held, decisions and actions are being taken in a timely fashion and are effective. 4. All appropriate stakeholder groups are effectively represented and engaged.
The 7 Keys Report (Heads-Up Display, HuD):

The 7 Keys Issues HuD Corrective Actions
Stakeholders are committed Business Benefits are being realized Work and Schedule are predictable Scope is realistic and managed Team is high performing Risks are being mitigated Delivery Org. benefits are being realized
21
The Seven Keys to Success

Work and schedule are predictable Business benefits are realized Stakeholders are committed
A yardstick for measuring projects health

-
A way to review all aspects of a project at any stage
Delivery health
Delivery excellence
7 Keys to Success
-
Familiar and easy to assess and interpret Basic terminology Improved communications Early warnings Basis for decisions, actions, commitment and sponsorship
Risks are mitigated
Delivery organization benefits are realized
Highly Effective because it is simple! Resist the temptation to redesign or over complicate it!
Covers the key factors which impact your project's health

Tips from the pros who are using the 7 Keys:

With practice, anything and everything about a project or program failure or success will fit under the Seven Keys dimensions Even good projects are not green on all keys all the time, but good projects are always assertive and quick to identify and address issues and always take timely corrective action On the other hand, poor projects generally have one or more keys go "red" early, and they stay red for the duration Dont over engineer the 7 Keys, they are a simple communication and collaboration tool that provides a highly effective view of critical project dimensions
23
Findings across the practice

Of the 7 Keys, the one most commonly in trouble is Work And Schedule Are Predictable
The root cause behind most of these symptoms is a problem with Stakeholders Are Committed
The average length of time it took for effective actions to improve the health of any key was one and a half months
24
Back Up Slides
25
IBM's Project Based Transformation Journey continues

Build Skills Deliver Key Enablers
Methods Tools Assessments Financial Systems
Make PM Systemic
Executive Involvement Measurements Communications Integration: Business, Cultural, Organization
Skills Education Qualification Knowledge Sharing
Individual
Enterprise
IBM's PM Developmental Path
Accreditation ------> Certification
Qualification
First Project --------------> Program Mgt
Experience
Basic Enabling Program Mgt
Education
New 1st Level 2nd Level 3rd Level 4th Level Exec
Project Managers grow their skills as their careers progress.

Individual PM Development: The Building Block to a PM Community

Qualification Processes Validates Knowledge and Experience
Experience Education
Advanced
Mentoring Knowledge Sharing
Education and Experience Recognition Develop Skills

Skills xxxxx xxxxx xxxxx Levels 2 3 4 4 3 5 4 4 5
Basic
Skills Definition Establishes the Baseline

28
1 3 2
PM Community
PM Curriculum Architecture
29
IBM's Project Based Transformation Journey

Deliver Key Enablers
Build Skills
Make PM Systemic
Individual
Enterprise
IBM's Project Based Transformation Journey

Deliver Key Enablers
Build Skills
Make PM Systemic
Individual
Enterprise
Business benefits are being realized

Healthy Signs A compelling reason to implement The solution doesnt have to be fancy Unhealthy Signs Why are we doing this? Time is not important Cost is too important
Before and after difference can be measured
1. The business case is clearly and convincingly articulated. 2. The solution will appropriately support the desired outcomes and costs. 3. The quality of work products is appropriate. 4. Benefits tracking is ongoing and meaningful.
32
Work and schedule are predictable

Healthy Signs Everyone gives the same definition of finished Good evidence of control Slippage, when it happens, is predicted Unhealthy Signs Cant describe what finished means Uncontrolled poor plans, controls, tracking mechanisms Slippage comes as a surprise 1. Project plan is accepted and maintained. 2. Interim and final milestone and deliverable acceptance criteria and roles are accepted. 3. Approach is appropriate, adequate, followed; resources have been scheduled. 4. There is confidence in progress report accuracy and estimates to complete.

Healthy Signs Evidence of healthy negotiation Lengthy issues log Written agreements Scope documents are compiled and readily available Unhealthy Signs Issue is a bad word Not clear what documents define scope Confusion over scope document versions and updates
1. Scope management plan is implemented. 2. Organizational, system, and geographic boundaries are appropriately defined. 3. Scope exclusions/assumptions are clear. 4. Proposed/agreed changes to terms are appropriately reflected in costs, schedules, and responsibilities.

Healthy Signs Morale is good The team is diverse High energy and enthusiasm for the project Unhealthy Signs The tension can be felt Turnover is high Working conditions are poor
1. Breadth, depth and caliber of PM and team skills are appropriate for all phases. 2. Morale, motivation, energy, and collaboration across teams are high. 3. Environment and facilities support productive and effective teamwork. 4. Roles and responsibilities are clear.
35
Risks are being mitigated

Healthy Signs Documented plan Test-it-first tactics Regular and systematic probing for risks Risk and issue follow-up is taken seriously 1. Risk management plan is fully implemented, maintained, and supported. 2. Risks are proactively sought in meetings and discussions and are dutifully identified, documented, and assigned for follow-up. 3. Risk tracking and reporting are timely. 4. Mitigations are effective.
Unhealthy Signs What risks? All-or-nothing tactics
Delivery organization benefits are being realized

Healthy Signs People feel they are learning Willingness to invest in the project Good press is being created Unhealthy Signs Good staff are not available Negative remarks about project
1. The project will help the delivery organizations reputation. 2. The project will help financially; billing and collections are current. 3. Project will help team members careers. 4. Project will contribute to the organizations knowledge and lessons learned.
37
The Seven Keys to Success Heads Up Display:

Most status colors involve opinions on how much trouble you may be in However, with the 7 Keys: You are Green if the planned resources working under the current plan can be expected to successfully complete the project (you expect to handle whatever problems come up) You are NOT Green if either the plan or the resources needs to be adjusted if the project is to be expected to succeed, and furthermore You are Red if you have a serious problem and need to take corrective action immediately to avoid an unacceptable outcome (adjust either plans, resources, or both) You are Yellow/Amber if you have an emerging serious problem and need to take corrective action in the near term to avoid an unacceptable outcome (adjust either plans, resources, or both) Because the 7 Keys indicator asks whether corrective action is or is not required, it is much more objective than typical status schemes
What executives need to know, what they need to do

A Board Room Agenda
Stakeholders are Committed Business Benefits are being Realized Work and Schedule are Predictable Scope is Realistic and Managed Team is High Performing Risks are being Mitigated Del. Org. Benefits are being Realized
39
R G Y G Y Y R
Concern
Recommended Action
Concern
Recommended Action
Concern Concern Concern
Recommended Action Recommended Action Recommended Action

No time for any new complicated processes?

Using Seven Keys to Success does not require any complicated worksheets, equations or templates It only requires understanding the terminology and application of a couple of simple forms, usually one-pagers, and you can begin applying the 7 Keys to your proposal or project at any time The hard parts about implementing the 7 Keys are
Getting comfortable with being much more assertive, open, and honest with ourselves and our clients about what needs fixing, and Having the character and intestinal fortitude to face the yellows and reds and not look the other way
Users report that a few hours to get the 7 Keys up and running will pay off many times over in diminished troubles and enhanced successes on projects as well as much stronger client relations

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IBM Global Business Services

IBM's Journey to Becoming a Project Based Enterprise

IBM Global Business Services

Changes to the business environment influenced development requirements

Worldwide Movement to a Project Orientation

IBM Global Business Services

PROJECTS Delivers Tactical Solutions

Copyright IBM Corporation 2007

IBM Global Business Services

IBM recognized its Internal Challenge...

| KnowledgeNow Executive Breakfast Seminar | June 6, 2007 |

Copyright IBM Corporation 2007

IBM Global Business Services

and developed its Approach

The End Result: A Project Based Enterprise

IBM Global Business Services

We Defined the Organizational Structure to Manage the Change

Business Deployment Networks Line Organizations PM Community

| KnowledgeNow Executive Breakfast Seminar | June 6, 2007 |

Copyright IBM Corporation 2007

IBM Global Business Services

IBM Documented its Desired Outcomes

| KnowledgeNow Executive Breakfast Seminar | June 6, 2007 |

IBM Global Business Services

The Value of Building PM Skills

| KnowledgeNow Executive Breakfast Seminar | June 6, 2007 |

Copyright IBM Corporation 2007

IBM Global Business Services

Consistent methods enable effective project managers

Recognized Industry Standards

| KnowledgeNow Executive Breakfast Seminar | June 6, 2007 |

Copyright IBM Corporation 2007

IBM Global Business Services

IBM Worldwide Project Management Method

| KnowledgeNow Executive Breakfast Seminar | June 6, 2007 |

Copyright IBM Corporation 2007

IBM Global Business Services

Using Project Data to manage the Business

Management & Business Focus

Project Execution Focus

Project Portfolio Repository

Resource Management Program Management Portfolio Management Link to business strategy

| KnowledgeNow Executive Breakfast Seminar | June 6, 2007 |

Copyright IBM Corporation 2007

IBM Global Business Services

Copyright IBM Corporation 2007

IBM Global Business Services

Provide a modular scaleable solution

Project Portfolio Management Maturity Continuum

Optimize & Sustain

Inexperienced Small Simple

Project Size & Complexity

| KnowledgeNow Executive Breakfast Seminar | June 6, 2007 |

IBM Global Business Services

An Enterprise-wide Tool Encourages Work Management and Knowledge Sharing

Project Support Office

Customer Team Members

Principals, Business Managers

IBM Global Business Services

Three Process and Method elements integrate in a project environment

Project Management Processes Capability

| KnowledgeNow Executive Breakfast Seminar | June 6, 2007 |