Jennifer Baker, PfMP, PgMP, PMP

Duke Energy

Agenda

• Learning Objectives

• Duke Energy at a Glance

• Project Management Center of Excellence (PMCoE) Overview

• PMCoE Governance

• Tools Should be Transferrable for Different Project Types

• Strategic Initiatives

• Take-Aways and Wrap-Up

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Learning Objectives

• Examine the governance framework of the Duke Energy PMCoE

• Describe and compare the roles and relationships of the Duke

Energy PMCoE and our PMOs/Major Projects Groups

• Understand the advantages a flexible framework for project

governance

3

Duke Energy Overview

• World’s largest publicly traded utility

• Fortune 250 company

• Serving 22 million people

• Employing 28,000+

• $6B+ annual capital spend

• $2B+ annual O&M spend

• Operations in:

• Regulated business

• Renewables

• Commercial transmission & power

• International markets

4

Types of Projects:

Shared Services

Finance

• Financial System

Integration

• Sales & Use Tax

• Enterprise non-

retail Billing

IT

• SharePoint Upgrade

• Workstation Refresh

• Active Directory Integration

• Enhanced Cyber Security

• Digital Acceleration

• Customer Information Systems

Human Resources

• Job

Harmonization

• PeopleSoft

Integration

• PeopleSoft Self

Service Upgrade

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Types of Projects:

Traditional Utility

Renewable Energy

• Solar Joint

Ventures in AZ, CA,

NJ, MA and PA

• Duke Owned Solar

Projects in NC, TX,

CA, AZ, and FL

• Duke Owned Wind

Projects in TX, WY,

PA, KS, CO and WI

• Notrees Battery

Storage Project

Construction

• Coal Plant

Retirement

• Environmental

Retrofits to

Existing Plants

• New Plant

Construction

Generation & Distribution

• Fukushima

Response

• Transformer

Replacements

• Capacity

Upgrades

• Transmission

Sub Stations

• Smart Meter &

Grid

Modernization

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PMCoE vs. PMO/Major Projects

• A PMO is an important central hub with a mandate to coordinate and deliver all project activities as determined by the organization's needs.

• The PMO strives to standardize and introduce economies of repetition in the execution of projects.

• Tasks may include monitoring and reporting on active projects, programs and sub-portfolios, and reporting progress to top management for strategic decisions on what projects to continue or cancel.

• The PMCoE is a central hub with a mandate to provide a consistent framework to deliver the organization’s projects consistently.

• The PMCoE supports the PMO in the execution of projects and continuously improves corporate governance.

Policy

PMCoE “What”

Dep’t Procedures “How”

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PMCoE Mission & Vision

• Vision: Become the Industry Leader in Project Management

• Mission: The PMCoE will:

• Establish a consistent and scalable process leveraging best

practices,

• Provide training, tools and oversight to enhance project

performance and certainty,

• Engage the project management community to focus on the

pursuit of excellence, knowledge sharing and skills development.

8

PMCoE Framework

Best Practices Lessons Learned Benchmarking

PMCoE Policy & Standards

Career Path Development

Policy & Standards Training

Tools & Templates

Team Workshops

Answers to Questions

Diagnostics such as

Acumen Fuse Schedule Analysis

Assessments Portfolio Reviews

Reviews

Independent Estimate Stage Gate

Support Services

Project Management Center of Excellence

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Governance Hierarchy

Company Policies

PMCoE Standards

Implementation Standards

General Reference

• Tier 1 – Policies, Laws and

Regulations (POLICY)

• Tier 2 - Enterprise Standards

(ENTSTD)

• Tier 3 – Implementation

Standards (IMPSTD) of

PMOs/Major Projects groups

• Tier 4 – General Reference

Materials (GENREF) such as

the PMBOK

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Structure of Standards

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Project Investment Lifecycle

Plan Execute Develop Assess Scan Operate & Maintain Value Inputs

Identify Opportunity

or Threat

Determine Impact / Benefit,

Timing and Potential

Responses

Refine Candidate Responses (Projects)

and Prepare for Initiation

Develop Project Plan and Prepare for Execution

of Major Commitments

Execute Commitments, Refine the Plan and Prepare for

Construction and Installation of

Assets

Construct and Install Assets,

Turn Over Assets to the Receiving Asset Owner and Prepare for Close

of the Project

Operate and Maintain Assets

Delivered by Project Generate Return on

Investment

Retire at End-of-Life

or Disposition

Asset

a b c d e f g h

Build Commit Initiate Select Identify Close Commission

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Enabling a Scalable Project

Management Framework

Project Rank and Assignment

Cost plus Complexity = Project Rank

Project Complexity

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Project Rank Comparison

0%

20%

40%

60%

80%

100%

Project Count Project Spend

Black Brown Green 3 Green 2 Green 1 White

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The Project Delivery System

Green III Brown Brown Black

Green II Green III Brown Brown

Green I Green II Green III Brown

White Green I Green II Green III

BlackSenior Project Director

Principal Project Controls Specialist

BrownProject Director

Senior Project Controls Specialist

Green IIISenior Project Manager

Senior Project Controls Specialist

Green IIProject Manager II

Project Controls Specialist

Green IProject Manager I

Associate Project Controls

WhiteAssociate Project Manager

Associate Project Controls

Black

Brown

Green III

Green II

Green I

WhiteCompliance with PMCoE Standards at Department

Discretion

Required Compliance with PMCoE Standards

Required Compliance with PMCoE Standards including

additional requirements defined in Attachments

[1] Determine Project Profile Matrix Rank

[2] Assign Rank-Appropriate

Organization & Project Management

[3] Use Rank-Appropriate

Processes, Tools & Templates

[4] Deliver Products & Services According

to Plan

Select Initiate Close Develop Plan & Execute

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Change Management Approach

•Coalition Building (Executive Level Presentations)

•Active & Visible Participation (EGC Meetings)

•Direct Communications (Up, Down and Across Organization) Sponsor Engagement

•Identify Change Agents in Each Department

•Collaborate with Change Agents to Align Department Processes

•Workshops with Project Teams

Coaching & Org Transformation

•Enterprise-Wide Cascading Communication

•Recurring Communications Communication

•Executive Series

•Management Series

•Performance Series Training

Resistance Management

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The Relationship Between

Change Management & Risk • A holistic process for managing change within the portfolio does not

magically solve the problem of change collision and change

saturation.

• No matter how well executed, the more change introduced in an

environment increases risk.

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Managing Change within a

Portfolio Helps Manage Risk • There are a number of reasons organizations need an approach for

managing the portfolio of change underway.

• The most common reasons for such an approach include:

• The ever increasing amount of change organizations are facing.

• The potential for change saturation.

• The consequences of change collision.

Manage Change

Leadership

Strategy Execution

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Portfolio Performance

Enterprise

Division

Business

PMO

• Within Duke Energy, Portfolio Performance is observed at many

levels:

• At the PMO Level

• At the Line of business level

• Across the Division

• Across the Enterprise

• Portfolio Performance should be transparent

and facilitate decision making.

• Portfolio Performance should not only include

cost and schedule but also include potential

risks and escalated issues.

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Governance Tools

Decision Matrix

Decision Matrix Project Team

Program

Management

Team

PMO and/or

Steering

Committee

Executive Sponsor

Funding Body

and/or Division

Executive

Board of Directors

and/or Senior

Executives

What can project teams decide?

Decisions that align with current,

approved scope Decide Endorse N/A N/A N/A N/A

Decisions that align with corporate

processes that do not impact items

listed below Decide Endorse N/A N/A N/A N/A

What must project teams escalate?

Decisions that impact other

projects or initiatives within the

Program

Recommend Recommend Endorse or Decide N/A N/A N/A

Decisions that impact schedule

such as major milestones or critical

path (Positive or Negative) Recommend Recommend

Recommend or

Decide

Recommend or

Decide

Recommend or

Decide Decide

Decisions that impact scope other

than what is approved Recommend Recommend

Recommend or

Decide

Recommend or

Decide

Recommend or

Decide Decide

Decisions that impact regulatory,

safety, or compliance Recommend Recommend

Recommend or

Decide

Recommend or

Decide

Recommend or

Decide Decide

Decisions that impact the business

beyond the original Program

Management Plan boundaries Recommend Recommend

Recommend or

Decide

Recommend or

Decide

Recommend or

Decide Decide

Decisions that impact budget Recommend Recommend

Recommend or

Decide

Recommend or

Decide

Recommend or

Decide Decide

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Governance Tools

Independent Estimate Review

• The Independent Estimate Review includes elements that should be reviewed to determine the success of the project at certain stage gates.

• Some elements are not applicable for every project given their stage in the project life cycle and others are more important than others at certain phases. • Schedule – Performance, Quality, Estimations

• Financials – Budget, Forecasting, Variance Analysis

• Risks – Contingency, Estimate Uncertainty, Monetization, Risk Register, Level of Certainty, Escalation Process

• Issues - Issue Log, Resolution Process, Escalation Process

• Scope - Change Control Process, Number of pending and approved

• Estimate – Basis, Assumptions / Inclusions / Exclusions, Class discussion / validation, Contracting Strategy

• Lessons Learned

• Benefits / Value Management

21

Future Initiatives

• Continuously Improved Project Management Framework

• Mature Management of Tail and Reputational Risks

• Mature our benefits realization process

• Highly Skilled and Effectively Utilized Workforce of Project Professionals

• Comprehensive Workforce Strategy

• Match portfolio to human capital

• Attract > Develop > Retain > Re-Deploy

• Business Analyst Addition to Project Management Job Family

• Transparent Project and Portfolio Performance

• PPM Deployment

“A consistent enterprise framework enables maturation of the project management competency”

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Key Take-Aways

• PMOs and PMCoEs must adapt to business needs and culture of

their organization

• Effective governance should be scalable and aim to provide

transparency in decision making

• Tools should be transferrable for different project types

• Excellence is a journey – actively benchmark and don’t work in a

vacuum!

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• Jennifer Baker

• www.duke-energy.com

• jennifer.baker@duke-energy.com

• www.linkedin.com/in/jenniferayoung

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