Project Solutions, Inc. 2002

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3. Project Solutions, Inc. 2002 3 Agenda Measuring Key Competencies of Successful Project Managers Measuring Your Culture�s Project Management Success Using the Project Management Office (PMO) to Enhance Successful Project Delivery

4. Project Solutions, Inc. 2002 4 Measuring Key Competencies for Successful Project Managers Benefits??? To ensure that the most skilled project managers are assigned to the most critical projects. To determine training needs by identifying gaps between job requirements and incumbent skill levels. To evaluate current project managers and screen prospective project managers.

5. Project Solutions, Inc. 2002 5 Key Competencies for Measuring Successful Project Managers Leadership Motivating and inspiring people to keep the project moving toward successful completion. Customer Relations Managing the interactions between the customer and the rest of the project team resulting in both parties being enthusiastic about the relationship. Project Planning Developing and maintaining a workable scheme to accomplish the need that the project was approved to address. Performance Measurement Collecting and analyzing project information to determine where the project stands and predict future status and progress.

6. Project Solutions, Inc. 2002 6 Key Competencies for Measuring Successful Project Managers (continued) Communicating Exchanging information in various dimensions where the sender must make the information clear and unambiguous and the receiver must make sure the information is complete and understood. Organization Effectiveness The ability to "get things done." Having an understanding of the formal and informal structures of all the organizations involved. Team Building Encouraging and enabling people to work together as a team to accomplish the project goals. Staff Development Encouraging personal and professional growth among the members of the project team.

7. Project Solutions, Inc. 2002 7 Key Competencies for Measuring Successful Project Managers (continued) Perspective The ability to take a broader organizational view and understand how the project relates to a hierarchy of larger undertakings. Negotiating Work with others in order to reach an agreement where all parties are satisfied with the agreement. Risk Management Identifying, analyzing, and responding to risks over the life of the project. Minimizing the consequences of adverse events and maximizing the results of positive events.

8. Project Solutions, Inc. 2002 8 Key Competencies for Measuring Successful Project Managers (continued) Problem Solving Is a combination of identifying the problem and determining/implementing a solution (technical, managerial, or interpersonal). Decision Making Making the best choice from many alternatives (whether received/made from the customer, team, or another managers) Making the best choice based on the timing of the event (the "best" alternative may not be the "right" decision if it is made too early or too late).

9. Project Solutions, Inc. 2002 9 Measuring Your Culture�s Project Management Success  Management of the overall project(s) portfolio Management of Individual Projects Management of the Organizational Environment

10. Project Solutions, Inc. 2002 10 Measuring Your Culture�s Project Management Success (continued) Management of the Project Portfolio Defining Project Portfolio Management� A process to collect and measure the delivery progress of all programs/projects within the organization or business unit. Usually managed through the PMO Includes all significant project initiatives - Large, Medium or Small that have been identified as mission critical. Governance board or executive leadership prioritizes and ranks work within portfolio to fit company strategic direction.

11. Project Solutions, Inc. 2002 11 Management of the Project Portfolio (continued) Operational Integration Development of a portfolio annual budget Development of a strategic plan supporting the portfolio objectives. Content of the portfolio is documented and appropriately distributed. Portfolio Development Project selection criteria supports the strategic plan. Project selection criteria is objective, and consistently applied. Portfolio Maintenance Ensuring priorities are consistent across the organization. Facilitating a portfolio change management process as needed. All changes to the portfolio are communicated broadly. Properly cancelled projects are viewed as successful projects.

12. Project Solutions, Inc. 2002 12 Management of Individual Projects Consistent, repeatable processes PM approach for identifying and managing the work Management approach is flexible to support different types of projects. Available, timely access to project information Project-related Corporate - salaries, rates, overtime policies, etc. Knowledgeable and skilled team members Project management skills General management skills Application area skills Project stakeholder commitment Project sponsor provides financial support and removes barriers as called Project manager and project team are committed to project success The project's customer displays a visible commitment to the project

13. Project Solutions, Inc. 2002 13 Management of the Organizational Environment Consistency of Project Management Terms Project management terms are defined, documented, communicated, and used consistently throughout the organization. Visible Management Commitment Believes in strong sponsorship for project success. Insists on development of a detailed, viable project plan. Makes it safe for the team to admit that a project is in trouble. Rewards prudent business decisions Supports continuous improvement, and lessons learned. Project and functional managers are partners. Corporate priorities are reflected in day-to-day decisions.

14. Project Solutions, Inc. 2002 14 Management of the Organizational Environment (continued) Human Resource Practices A criteria for project manager selection and promotion A recognition and reward systems Career opportunities For project management experts and functional experts. A project management governance model in place Roles are well-defined, understood, and accepted Corporate Systems Accounting, budgeting, performance evaluation, time reporting, etc. are available to accommodate project needs

15. Project Solutions, Inc. 2002 15 The Project Management Office (PMO) to Enhance Successful Project Delivery A full-service solution provider for all of the organization�s project management needs Center of Competency for Project Management excellence. A consistent systematic approach for managing projects effectively. First to learn of delivery opportunities and threats from project status reporting as it affects the overall organization project portfolio. The �Best Friend� for the Project Manager.

16. Project Solutions, Inc. 2002 16 Key Functions of the PMO Project Portfolio Management Support Prioritization and operations planning/forecasting Project Information Integrity Project Management Training and Mentoring Resource Management � Gaps, Recruiting, & Skills Competency Leadership - Key Projects Project Management Processes & Methodology PM Metrics/Reporting

17. Project Solutions, Inc. 2002 17 A Typical PMO Model

18. Project Solutions, Inc. 2002 18 PMO Staffing Model/Example Key Roles PMO VP/Director/Manager PM Mentor/Consultants PM Assistant PA Assistant Other Roles HR/Project Resource Analyst Vendor/Contract Analyst Quality Assurance

19. Project Solutions, Inc. 2002 19 Continuous Cycle of Direction, Validation and Adjustments To Accelerate Delivery

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21. Project Solutions, Inc. 2002 21 The Benefits of the PMO for the Organization Providing the Management Team with current project information to measure to strategic initiatives. Identifying �Bottlenecks� for immediate corrective action. Identifying excess project capital budget that can be re-applied to other critical projects. Enhancing confidence and skill level of among fellow project managers throughout the organization!!! The Project Manager�s Best Friend!!!!!! Increasing customer confidence that we are serious on managing projects effectively.

22. Project Solutions, Inc. 2002 22 PMO Adding Value! - Example Assume your Project Portfolio is currently at 100 projects in development and 20 awaiting startup. Assume your average Project Budget is $500K and the average duration is projected at 200 work days. Thus the Portfolio has a $50M tactical value. If the PMO could save you 10% (average) on budget and time per project, per fiscal year, how important would this be for you? 10% improvement would mean your Project Portfolio would save $5M over time and allow for 10 additional projects to be started earlier than was expected provided resources are available�in the same fiscal year.

23. Project Solutions, Inc. 2002 23 What to Consider When Establishing a PMO You should answer the following questions if you are serious about establishing a PMO� What value would a PMO be to our organization? What will it cost to establish and run the PMO? What extent will the PMO�s focus on establishing standards have on creativity & flexibility of project staff in the working field? Will it create risks to existing customer relationships? How will we ensure the PMO serves the appropriate functions for the organization? How will the PMO be staffed? Where will the organization be situated both organizationally and physically (centralized vs. decentralized)?

24. Project Solutions, Inc. 2002 24 As Project Managers, What Have We Learned? Project Management value is about meeting or exceeding delivery expectations � for every project. The appropriate project management skills The appropriate environment for projects to succeed Always keep a constant drive with your project team to identify project delivery acceleration opportunities and/or delivery threats. When in doubt, contact your PMO!! The Human Factor is so vital to project success! People are the only �tool solution� for delivering projects! If we treat every person as our customer to exceed project expectations, our value will always continue to grow in the eyes of our customers!!

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26. Project Solutions, Inc. 2002 26 Thank You For Your Time!