Achieve high performance management in your organization

1. Is “High Performance” Project Management Possible? SimmTech Management Solutions Mike Simmering OPM3-CC, PMP Government Sector Interest Group North Carolina PMI Chapter

2. What Would “High Performance” PM Look Like? Reliably meets expectations Achieves deliverables Happy Stakeholders Happy Customers Within budget Within Schedule Better performance with each project 2 © 2010 SimmTech Management Solutions, Inc

3. What is the Project Management Reality? Roughly 40 percent of all IT projects fail to meet business requirements The average cancelled IT project Scheduled to last 27 weeks and is cancelled on week 14 at least $1 million wasted each year on work that does not lead to successful business outcomes The average organization annually ties up 10 percent of its IT staff on work that contributes no value to the business Project team members are aware of a project’s doom a full six weeksbefore it is finally cancelled by management, who failed to recognize it as quickly Gartner Group, Inc. 2000 3 © 2010 SimmTech Management Solutions, Inc

4. More Project Management Reality? Project Management training and creating a PMO is associated with lower failure rates 60 percent of organizations don’t offer such training 61 percent of firms don’t have a PMO in place Gartner Group, Inc. 2000 4 © 2010 SimmTech Management Solutions, Inc

5. Another View of Reality “…771 projects included in the fiscal 2004 budget – with a total cost of $20.9 billion – are currently at risk.” (OMB) Nearly 70 percent of projects fail (Standish); A staggering 39% of projects with budgets over $10 million failed. (Standish 2007) 50 percent are rolled back out of production (Gartner); 40 percent of problems are found by end users (Gartner); 25-40 percent of all spending on projects is wasted as a result of rework (Carnegie Mellon). PM World Today 2007 5 © 2010 SimmTech Management Solutions, Inc

6. Top 10 Reasons Projects Fail Inadequately trained and/or inexperienced project managers Failure to set and manage expectations Poor leadership at any and all levels Failure to adequately identify, document and track requirements Poor plans and planning processes Poor effort estimation Cultural and ethical misalignment Misalignment between the project team and the business or other organization it serves Inadequate or misused methods Inadequate communication, including progress tracking and reporting Ganthead; Frank Winters 6 © 2010 SimmTech Management Solutions, Inc

7. Success or Failure: What does it mean? Has the project satisfied the business requirements of the primary stakeholders? Were the deliverables produced on time and within the budget? Do the business owners believe the project was successful? Has the project delivered the business value promised? 7 © 2010 SimmTech Management Solutions, Inc

8. Fundamental Truth 8 Σ Profits ≤ Σ PM Costs Σ Perceived Project Value Σ Project Costs © 2010 SimmTech Management Solutions, Inc

9. OPM3 Designed to integrate PM knowledge base with the organization goals & objectives (including profitability) Adaptable and scalable model Designed to drive performance in project and program management © 2010 SimmTech Management Solutions, Inc 9

10. OPM3 Basics Globally Accepted Standard PMI Open Standard Based on Best Practices 488 Industry Best Practices Deming quality concepts Global Input 800 Experts 35 Countries 10 © 2010 SimmTech Management Solutions, Inc

11. Linking Projects to Corporate Strategy 11 © 2010 SimmTech Management Solutions, Inc

12. OPM3 Domains 12 Project Portfolio Project Portfolio Program Program Project Project Program © 2010 SimmTech Management Solutions, Inc

13. OPM3 Improvement Stages 13 Continuously Improve Control Measure Standardize © 2010 SimmTech Management Solutions, Inc

15. Scope (8)

16. Time (6)

17. Cost (3)

18. Quality (3)

19. HR (4)

20. Communication (3)

21. Risk (5)

22. Procurement (4)

23. Financial Mgmt (5)

24. Stakeholder Mgmt (4)

26. Risk (4)(14)

27. OPM3 Continuum OPM3 Improvement Stage OPM3Domain 15 © 2010 SimmTech Management Solutions, Inc

28. The OPM3 Cycle 16 SimmTech Management Solutions, Inc

29. How does it work? Define your processes! Operate by your processes! Measure your processes! Fix them when they are broke! Improve your processes! © 2010 SimmTech Management Solutions, Inc 17

30. Let’s Get Real ! My company is small. We just do projects and have no need for Program Management and definitely not Portfolio Management. Choosing the right projects isn’t important? © 2010 SimmTech Management Solutions, Inc 18

31. Let’s Get Real ! Our projects are very unique and we cannot plan for all the things that might occur. There is no way to create a process! Any methodology (process) can be at least loosely defined. Every process has different levels of control. Processes that are out of control have unpredictable results. © 2010 SimmTech Management Solutions, Inc 19

32. Let’s Get Real ! We operate with a very lean staff. We do not have resources to do this stuff. If you are really strapped for resources wouldn’t it be better to assure you are doing the right things and that you are doing them correctly? © 2010 SimmTech Management Solutions, Inc 20

33. How do I Start? Method 1: OPM3 Assessment & Improvement Plan Method 2: Project Management Process Definition and process management © 2010 SimmTech Management Solutions, Inc 21

34. Method 1Assessment Scoring Methods 22 © 2010 SimmTech Management Solutions, Inc

35. Method 2 Identify critical processes Standardize Measure Get under control Continuously Improve Take on the next group of processes © 2010 SimmTech Management Solutions, Inc 23

36. Does it Work? Pinellas County +16% 14+ months (Method 2 Self Assessment) AmeriHealth Provided needed jump start Sony Ericsson RTP +355% 10 months (Method 1 OPM3 Consultant) © 2010 SimmTech Management Solutions, Inc 24

37. Questions? © 2010 SimmTech Management Solutions, Inc 25

38. Presented At Government Sector Interest Group North Carolina PMI Chapter February 4, 2010 SimmTech Management Solutions Mike Simmering OPM3-CC, PMP mike@simmtechsol.com 919-623-2201 © 2010 SimmTech Management Solutions, Inc 26