The New Age of Project Management How IT Governance Technologies will change the Future of Project M

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The New Age of Project ManagementHow IT
Governance Technologies will change the Future of
Project Management

• Northeast Florida PMI Chapter Meeting
• July 17, 2006

Alton Gibbs District Manager, IT
Governance Compuware alton.gibbs_at_compuware.com
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Agenda

• Background
• What is IT Governance
• What are the Business Drivers to Adoption
• IT Governances Effect on the Future of Project
  Management
• Controlling the Front door to IT
• Managing the Portfolio of Projects
• Program/Project Portfolio Management
• The New Project Management Paradigm
• Measuring Effectiveness
• Holding the Business Accountable
• The Challenges to IT Governance
• Summary of Benefits

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Project Management Today
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2006 CIO Strategic Management Priorities

• Delivering projects that enable business growth
• Linking business and IT strategies and plans
• Building business skills in the IS organization
• Demonstrating the business value of IT

Gartner Executive ProgramsGrowing ITs
Contribution The 2006 CIO Agenda
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The Challenge and the Opportunity Delivering
Business Value through IT
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How Is IT Doing?
TODAYS REALITY
CHALLENGES

• Communication failure between IT and the business
  on priorities

40 of IT initiatives fail to deliver intended
return
HBS Press
70 of projects fail to meet schedule, cost, and
quality goals

• Ad hoc, manual processes govern the way IT is run

META Group

• Inefficient resource allocation on KTLO vs
  strategic initiatives

50 of IT projects are delivered over budget
Gartner
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The Project Management Challenge
Operational Demands
Strategic Demands
Business Unit - A
Business Unit - B
Business Unit - C
Business Users Business Unit IT
Business Needs
Business Needs
Business Needs
IT Idea
IT Idea
IT Idea
Initial Scrubbing Approval
Initial Scrubbing Approval
Initial Scrubbing Approval
Help Desk Triages incoming service requests and
initiates the appropriate processes to handle
the different types of service requests.
Executives From the Business Units IT
Evaluation Various Committees, councils and
boards to review incoming demand for new
projects, prioritize them and approve or reject
based on established criteria.
Infrastructure related service requests
Minor enhancements, break/fix other software
changes
Fix DB Fix E-mail Fix Network Fix Printer Fix
Server Fix PC
Project - A
Project - B
Project - C
Analysis Design Develop
Analysis Design Develop
Analysis Design Develop
IT Applications, IT Operations, Business Unit
IT Resources
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The Current IT Governance Picture
NAPKIN
Demand
BUSINESS CASE
MANAGEMENT REPORTS
Portfolios
Projects
Resources
Time Exp.
Financial Reporting
POST-ITS
Risk Mgmt
Knowledge
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IT Governance Definition- What is it?

• Published by the IT Governance Institute
• At its core, IT governance is concerned about
  two responsibilities
• IT must deliver value and enable the business,
• IT-related risks must be mitigated.
• Governance of IT encompasses several initiatives
  for board members and executive management
• They must be aware of the role and impact of IT
  on the enterprise,
• They must define constraints within which IT
  professionals should operate,
• They must measure performance, understand risk
  and obtain assurance.

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IT Governance Drivers

• What is the business value of IT?
• Why cant you deliver my projects when I need
  them?
• What in the world are you are your 150 people
  doing all day?
• Why does your budget increase every year but I
  seem to be getting less for it?
• Since you cant deliver when I need it why dont
  we just outsource?
• Sarbanes-Oxley, the new four letter word in
  business!

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Why IT Governance
Evolving from a cost center, IT is taking on the
character, rigor, and practices of a business
within a business. It won't be easy, but for
CIOs it's a matter of survival.
--CIO Magazine, How to Run IT Like a Business
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Integrated IT Management
IT Management (IIM) dashboards, will enable IT
management to reduce IT budgets by as much as 30
while realizing value increases of 10 to 15 in
the first year.
Forrester Research Inc.Integrated IT Management
Drives Efficiency
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IT Governance Process Architecture
Executive Management Reporting
Business Demand
Business Value
DEMANDMANAGEMENT
OPERATIONS
PORTFOLIO MANAGEMENT
Project Requests Benefits Projects
Assets
PerformanceMonitoring
System Availability
Strategic Demand
PROJECT MANAGEMENT
Projects Resources Budgets Risk
DEVELOPMENT
Operational Demand
Quality Assurance
SOFTWARE DEMAND
Design Develop
Projects Enhancements Upgrades Bugs
Workflow and Business Process Automation
Time Tracking and Financial Management
Resource Management
Service Level and Performance Management
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What does the Future Hold-Integrated Information
Technology Management
IT Governance Management Layer
Executive Management Reporting

• Portfolio Management

• Project Management

• Standards Processes

Development
Quality Assurance
Operations

• SDLC Process
• Work Prioritization

• Risk Management
• Work Prioritization
• QA Enforcement

• System Performance
• Benefits Measurement
• Business Accountability

Cost and Benefits Tracking
Resource Management
Service Level and Performance Management
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IT Governance is Here

• All Players in Upper Quadrant are delivering some
  level IT Governance today
• Gartner and Forrester have both validated the
  market space

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Demand ManagementControl the Front Door to IT
According to Gartner Studies on Average Companies
spend 70 of their resource time on operational
Keep the lights on activities.

• All IT demands now funnel through a single system
  of record.
• Configurable workflow drives operational work
  through the business processes.
• Forced Time Tracking captured on Operational
  Work.
• THE BENEFITS
• All resource time is now accountable
• Maintenance Projects become unnecessary
• Drive by Cubings no longer drain your resource
  pool
• The true COST of IT is no longer a mystery

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Screen Shot-Workflow Driven Processes
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Portfolio- Investment Planning
CIOs are under pressure more than ever by the
business to defend what IT is doing with its
investment. Its time to turn the table

• Workflow digitizes the Project Request process.
• All related and required information including
  documents, risks, and business value all tracked
  in a single system.
• Operational and Project Demands are combined into
  a single view for real resource accountability.
• The system drives an ongoing review of value
  metrics as defined by the business.
• THE BENEFITS
• Resource management becomes less of an art and
  more of a science
• Garbage in now has a face, business is held
  accountable
• The VALUE of IT is no longer a mystery

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Sample Screen Shot-Resource Capacity Planning
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Portfolio Business/IT Alignment
In order for the CIO to have a seat at the Board
Room table, they must be able to show IT is
aligned with the business goals and objectives.

• IT Governance request forms and workflow force
  the capture of alignment metrics, such as
  business goals and objectives, as part of the
  process.
• All proposed and existing projects can now be
  analyzed by risk, business goals and return.
• Insight reduces emotional decision-making
  regarding new strategic opportunities and fiscal
  planning.
• THE BENEFITS
• Robust reporting models allow Project Management
  to partner with the business on decisions.
• The true Alignment of IT work is no longer a
  mystery

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Program/Project Portfolio Management
Conversations with IT management in organizations
around the globe make one point very clear IT
management is frustrated with its inability to
see fact-based views of IT activity. Forrester
2006

• IT Governance systems add process automation to
  Project Management and Reporting.
• Risks, Issues, Resource Requests, Scope Change
  Requests are all driven by digitized forms and
  workflow.
• Multiple projects and related activities can be
  associated into operating portfolios.
• Holistic views into project health and risk
  indicators are defined and tracked.
• THE BENEFITS
• Robust reporting models allow Program/Project
  Portfolio Managers manage by exception. Problems
  find you.
• The true Health of all IT projects are no longer
  a mystery

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Sample Screen Shot-Project Portfolio Management
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Project Management
Project management today is group of manual
processes wrapped around a manual reporting
element. In todays world of doing more with
less, this is not sustainable. The business has
automated, so should we.

• IT Governance systems add process automation to
  Project Management and Reporting.
• Project work is pushed to resources via their
  dashboard, email, or pager notifications.
• Lack of response makes a lot of noise.
• Scope Changes are driven and tracked by digitized
  forms and workflow. The business cannot bypass
  the process without approvals and being tracked.
• Project statuses are viewed in real time with
  custom dashboards for each unique project
  manager.
• Holistic views into project health and risk
  indicators are defined and tracked in real time.

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Project Management (Cont)

• THE BENEFITS
• Once you automate, reporting becomes a by product
  of doing the work.
• Automating notifications and escalations means
  the problems find you. No more management by
  hammer.
• Real-time reporting allows you to manage risks
  before they become issues that blow up your
  project.
• The business is now held accountable for what
  they ask for before the project, during the
  project, and after the project.
• The true STATUS, COST HEALTH of IT projects are
  no longer a mystery

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Sample Screen Shot-Project Management
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The Bottom Line

• IT Governance is here to stay and validated by
  the top analyst firms.
• Project management is evolving and taking lessons
  learned from business automation tools like ERP.
• Automation will allow you to do your job,
  eliminating manual efforts, automating reporting,
  and driving standards without being the bad
  guy/gal.
• True resource management is obtainable but you
  must capture the Front Door in to IT.
• The business is about to be held accountable for
  what they do to us.
• This wont be easy but with a good partner and a
  phased roll out approach this dream is a reality.
• Take lessons learned from ERP and CRM roll outs
  to ensure success. This effort is very similar to
  scope and the cultural change they required.

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IT Governance Challenges to Adoption
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Questions and Answers
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THANKS FOR YOUR TIME