centers for ibm e-business innovation :: chicago © 2007 ibm corporation ibm project management...

Centers for IBM e-Business Innovation :: Chicago

© 2007 IBM Corporation

IBM Project Management

October 17, 2007Dawn GoulbournChicago Solutions for InnovationsCenter Executive



Studies show that lack of good project management often leads to failed projects.

According to a study by Metagroup ('Why Operation Projects Fail?' November 2002) 70% of large IT projects fail or do not meet the expectations. The most common reasons refer to project management, project planning and communication.

Adherence to Project Management disciplines is the responsibility of the entire team



Why do projects fail?(Common PM Reasons)

Solution Design Solution Delivery

Lack ofDisciplineAccountabilitySkills

Failure to set and manage customer expectations / satisfaction.

Failure to reach common understanding of requirements or completion criteria.

Failure to reach understanding of the proposed solution.

Failure to establish appropriate contractual baseline.

Failure to adhere to published pricing guidelines, failure to assign adequate "risk" contingency and illegitimate "investment pricing" (i.e., low-balling, low margins, etc.).

Poorly constructed or unauthorized subcontractor SOWs.

Failure of key subcontractor to deliver.

Inaccurate project estimates.

Failure to plan for risk containment.

Failure to perform QA reviews.

Lack of DOU with other IBM organization(s).Failure to properly handle multinational issues.

Inability to acquire properly skilled resources.

Ineffective project initiation.

Lack of or inadequate project management.

Lack of Project Management Reviews and effective follow-up on action plans. Lack of management oversight / support.

Unfulfilled customer responsibilities.

Failure to implement / exercise proper change control process.

Starting a phase prior to completing a preceding phase.

Customer unprepared to support the new system.

Customer represented by Third Party.

Change in customer management team.

Continuous / constant change in scope.

Ineffective relationship between IBM and customer.

Technology / architecture issues.

Ineffective relationship between IBM and subcontractor. Subcontractor cost overruns.

IBM project team morale or organizational issues.

.



Discipline

Failure to set and manage customer expectations / satisfaction

Failure to reach common understanding of requirements or completion criteria

Failure to reach understanding of the proposed solution

Failure to perform QA reviews

Failure to establish RACI matrix (Responsible, Accountable, Consulted, Informed) and other role responsibility clarification tools

Accountability



Poorly constructed or unauthorized subcontractor SOWs

Committed Stakeholders

Skills

Inaccurate project estimates


Failure to properly handle multinational issues.

Discipline

Failure to set and manage customer expectations / satisfaction

Failure to reach common understanding of requirements or completion criteria

Failure to reach understanding of the proposed solution

Failure to perform QA reviews

Failure to establish RACI matrix (Responsible, Accountable, Consulted, Informed) and other role responsibility clarification tools

Accountability



Poorly constructed or unauthorized subcontractor SOWs


Skills

Inaccurate project estimates


Failure to properly handle multinational issues.

Discipline

Failure to implement / exercise proper change control process – SCOPE MANAGEMENT

Ineffective project initiation

Lack of or inadequate adoption of project management processes

Lack of Project Management Reviews and effective follow-up on action plans and risk management

Accuracy of forecasts and reconciliation of financials

Starting a phase prior to completing a preceding phase

Accountability


Unfulfilled customer responsibilities

Organizational Change Management -- Customer unprepared to support the new system


Ineffective relationship between IBM and customer

Skills

Availability of skilled resources

Failure of key team members to deliver

Technology / architecture issues

Discipline

Failure to implement / exercise proper change control process – SCOPE MANAGEMENT

Ineffective project initiation

Lack of or inadequate adoption of project management processes

Lack of Project Management Reviews and effective follow-up on action plans and risk management

Accuracy of forecasts and reconciliation of financials

Starting a phase prior to completing a preceding phase

Accountability


Unfulfilled customer responsibilities

Organizational Change Management -- Customer unprepared to support the new system


Ineffective relationship between IBM and customer

Skills

Availability of skilled resources

Failure of key team members to deliver

Technology / architecture issues

Project failure attributed to lack of discipline, accountability and skills in both the presales (initiation) phase or during delivery



Project Management is usually seen as managing the interrelationship of three critical success factors for each project.

Scope

Schedule Budget

112

2

3

4567

8

9

1011

It is essential to find the optimal balance to maximize return on investment and support the longer term company's success

It is essential to find the optimal balance to maximize return on investment and support the longer term company's success



But it is not that simple, in order to manage to those three critical success factors it also involves. . .

Planning

Communication

Coordination

Integration

Execution

Tracking

Budgeting

Control

Reporting

Quality Control

There is an art and science to excellent Project Management



For IBM to become a project based enterprise it was necessary to integrate project management disciplines into the fabric of IBM.

In 1997, IBM committed to becoming a project based enterprise for integrating project management disciplines across the IBM enterprise.

Since then, IBM has developed and deployed a number of worldwide Project Management initiatives for establishing the Project Based Enterprise Charter. These project based initiatives focused on:

– Project Management Professional Development - Education

– Project Management Methods & Tools

– Project Management Process

IBM’s Project Management Approach

– Processes/Methodology (WWPMM)

– PM Tools – Rational Portfolio Manager

– PM Education and Certification

Internal Reporting and Reviews

– 7 Keys Reporting

– Project Management Reviews



Process and Methodology

WWPMM IBM Methodology to Support PMBuilt around PM Domains, PM Work patterns, and PM Work products



IBM’s Project Management Method is a broad, robust and integrated approach to projects

IBM’s PM method (Worldwide Project Management Method – WWPMM) drives consistency and quality by focusing on three aspects of PM best practices

– Work Domains

– Work Products/Artifacts

– Work Patterns

Work Domains provide detailed guidance on how specific types of PM activities should be carried out

– PM must understand how to manage across 13 domains (change, quality, risk, etc.)

Work Products are verifiable outcomes that are used to manage projects

– IBM’s method identifies 51 PM work products that could be used on an engagement

– Standards, templates, and ‘how to’ guidance included in browser enabled tool

Work Patterns are a series of steps designed to meet project management goals or in response to particular project situations

– Includes 39 different process steps spread across 7 phases

– Equivalent to a Standard Operating Procedure (SOP)



World Wide Project Management Methodology - WWPMM• WWPMM helps define the PM

System, a collection of plans, procedures and records that direct all PM activities and describe the current state and history of the project.

• Generic templates are provided in downloadable form, from the WWPMM reference page and through various PM tools. Reusable assets are available for PMs to apply to projects.

• When used with appropriate tools and integrated with business and technical management systems, this material provides a comprehensive PM environment.

How the project is shaped, and how its execution is

managed

Subject Matter WorkSubject Matter WorkSubject Matter WorkTechnical Work

IBM Global Services Method

Operations

Architecture

Application

Organization

Business

Engagement

How the work is done



The WW PM Method focuses on The WW PM Method focuses on shaping the shaping the project and managing the workproject and managing the work

Project Definition

Work Breakdown Structure

Risk Management Plan

Issue log

Examples of Project Management work products:

ProfessionalDevelopment

Methods & Tools

ManagementSystems

Independant of the type of work, common to all IBM organizations and geographies

Built around PM Domains, PM Work patterns, and PM Work products

Owned by the IBM Project Management Center of Excellence



Global Services Method focuses on Global Services Method focuses on the work the work to be performed to deliver the projectto be performed to deliver the project

Technical work products examples...

IBM Global Services Method

Operations

Architecture

Application

Organization

Business

EngagementDefines engagement models for the type of work to be done

Owned by Global Competency Development

Business Process ModelLogical Data ModelUsability Requirements



Project Management Tools

IBM Rational Portfolio Manager



Typical Tool Challenges for Project Managers - BEFORE

Many projects have manual and semi-automated processes, characterized by unnecessary data manipulation, inadequate information flow and sluggish cycle time.



Rational Portfolio Manager is IBM’s Solution of Choice - AFTERRational PM provides process automation, thereby increasing efficiency and reducing

the complexity of project and portfolio processes.

One stop shop” project repository, including the project control book

Support more effective project startup

Superior project tracking and control capabilities

Project management process support

Collaborative and communicative project environment



Project Management Education and Certification

IBM Rational Portfolio Manager



IBM can supply skilled Project Management Mentoring and Staffing Capability

Certification Element IBM Certification Program PMI Certification Program

PMI Examination

PM Experience 6,000-7000 hrs 4,500 hrs (2+ years)

Technical Experience - - -

People Management Experience - - -

PM Education 200-300 hrs 35 hrs

Technical Specialties - - -

Professional Contributions (“Giveback”)

- - -

Detailed Qualification Criteria based on required skills

- - -

IBM’s certification process is more demanding than the standards set by the Project Management Institute



Internal Reporting and Reviews

Delivery Excellence



7 Keys Reporting - Communicating overall project health

Reporting Metrics (red/yellow/green)– Stakeholders are committed

Identifying, evaluating, informing, and influencing the individuals and groups who are affected by or who influence the project.

– Business Benefits are realizedEstimating, measuring, and monitoring the benefits the client will gain from the project. Benefit includes expected result and the associated cost, both financial and non-financial, of achieving that result.

– Work and Schedule are predictableControlling the production and acceptance of project services and deliverables, and ensuring their provision to specified performance and acceptance requirements.

– Team is high performingIdentifying, mobilizing, and developing the people required for the project team. Obtaining and maintaining appropriate space, equipment, and other resources required to successfully complete the project.

– Scope is realistic and managedAgreeing, maintaining and amending the boundaries of the project.

– Risks are mitigatedIdentifying and evaluating risks and issues. Developing avoidance, mitigation, and resolution activities to counteract those risks and issues.

– Delivery Organization benefits are realizedEstablishing, agreeing, and monitoring the benefits (such as, financial reward, knowledge transfer, and skill development) that the delivery organization, will gain from the project. Maintaining and protecting the company's interests in relation to the project.

Initial project setup requires key PM artifacts to be submitted (e.g. Communication Plan, Quality Plan, Risk Plan, Issue Log, etc)

An independent review of all artifacts is conducted and a review meeting is scheduled

The web based tool prompts the Project Manager to update the 7 Keys report and prompts the Partner to review and approve the report monthly

Mandatory for all projects based on contract value and industry



Project Management Reviews Comprehensive reviews conducted by Delivery Excellent COC

– Client and team interviews

– Review of project financials

– Review of key artifacts and deliverables

– Results in an A, B, C or D ratings….C or D ratings will trigger Executive attention

Prescriptive scripts are available and the PM usually has one week notice before the PMR

Conducted approximately quarterly for healthy projects more often for unhealthy projects

Unhealthy projects are monitored on a weekly basis by the Executives

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Documents

ibm corporation failure

failure of key subcontractor

qa reviews failure

completion criteria

proposed solution failure

ibm organizations

ibm project team morale

project management disciplines