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The Mystery of Projects Why IT Projects are Late and Over Budget Vivian Conboy NYS Dept of Taxation

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A project is a one-time job that has: - Definite starting and ending points ... projects failed or were classified as challenged in 2000. 8. A Balanced Project. Time ... – PowerPoint PPT presentation

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Title: The Mystery of Projects Why IT Projects are Late and Over Budget Vivian Conboy NYS Dept of Taxation


1
The Mystery of Projects Why IT Projects are
Late and Over BudgetVivian ConboyNYS Dept of
Taxation Finance
2
Why Should We Care about PM?
  • Projects are investments. Investments need to be
    chosen carefully and monitored constantly
    regularly (the project portfolio)
  • Everything that is new or improved in an
    organization happens through projects
  • Project efficiency drives an organizations
    ability to deliver
  • Projects are the means by which the strategic
    plan is turned into reality

3
What is a Project?
  • A temporary endeavor undertaken to create a
    unique product or service
  • A project is a one-time job that has
  • - Definite starting and ending points
  • - Clearly defined objectives
  • - Scope / Specifications
  • - Usually a budget

4
Projects and Operations
  • Aspect Project Operations
  • Duration Temporary Continuous
  • Product Unique Normal business
  • Goal Deliverable Smooth operation
  • Staff Multiple disciplines Single discipline
  • Organization Matrix Hierarchical
  • Risk Actively managed Corporate controls
  • Activities Must be developed Already in place

5
A Typical Project?
  • Over budget
  • Late
  • Never ends
  • Scope changed
  • Doesnt produce what is needed
  • Constant firefighting
  • Excessive rework
  • Uncommitted team members
  • Dissatisfied customers
  • Unrealistic customer expectations
  • Unrealistic management expectations

6
Reasons Why Projects Fail
  • Lack of senior management support
  • Lack of user involvement
  • No experienced project manager
  • Unclear objectives
  • Scope expansion
  • No infrastructure to support operations
  • Changing requirements
  • Lack of a formal methodology
  • Unreliable estimates
  • Ineffective team

7
Project Failure
  • The Standish Group, a research firm, found that 3
    out of 4
  • (approximately 75) of all Information Technology
    (IT)
  • projects failed or were classified as challenged
    in 2000

8
A Balanced Project
Agreement between Customer and the Project Team
9
A Balancing Act
  • Cost
  • Schedule
  • Scope
  • Quality

10
Characteristics of a Successful Project
  • The Customer is Satisfied (Delighted) with the
    final Deliverable
  • The Project Team has stayed within the Scope,
    Schedule, Budget and Staffing allocations
  • Team members have increased their knowledge and
    skills as a result of the project
  • The Organization has benefited from the lessons
    learned from the project

11
Benefits of PM
  • Faster Projects
  • Improved Efficiency/Quality
  • Reduced Risks/Managed Risks
  • Improved Management Control
  • Repeatable Processes
  • Improved Communication
  • Scaleable to all Sized Agencies

12
PM 101 - How to Manage Projects
13
What is Project Management?
  • Project Management is the application of
    knowledge, skills, tools, and techniques to
    project activities to meet the project
    requirements.
  • A Guide to the Project Management
  • Body of Knowledge, 2000 Edition

Project Management is coordinating and managing
all the stuff necessary to be sure a project
ends successfully.
14
PMBOK Project Management Body of Knowledge (PMI)
  • 9 Knowledge Areas to Manage
  • scope - human resources
  • time - communications
  • cost - procurement
  • quality - integration
  • risk

15
The NYS PM Guidebook
  • Developed by the OFT PMO
  • 1st version released September 2001
  • 2nd version released May 2003
  • Based on concepts and practices outlined in the
    PMBOK
  • Utilized best practices from 18 state agencies
  • Organized according to the PM Lifecycle

16
Project Management Lifecycle
Remember OIPEC
O - Origination I - Initiation P - Planning E -
Execution and Control C - Closeout
17
Origination An idea is born
  • A procedure for envisioning, selecting and
    prioritizing projects
  • It ensures the organization
  • (1) Selects those projects that will best
  • support mission needs
  • (2) Identifies and analyzes a project's
  • risks and returns before spending
  • a significant amount of effort
  • (3) Establishes a prioritization for the
    project

18
The Project Charter
  • The first official document that describes the
    project
  • What, Why, When, Who, Where, How and To What
    Extent
  • Facilitates Executive Go/No-Go decision at the
    Portfolio Review Board.
  • Serves as a Contract between Project Sponsor
    and Project Team.
  • Provides the authority to expend resources for
    the creation of project deliverables.

19
Initiation (Is it bigger than a breadbox?)
  • Establish the basic requirements of the
    project, proposed solution, and parameters
    (cost, scope, schedule, quality standards)
  • Begin regular project status reporting
  • The official start of the project

56
20
Planning The Devil is in the Details
  • Define the precise scope/deliverables,
    establish the baselined project schedule,
    final budget, and quality standards
  • Define the working level parameters of the
    project and ensure all the pre-requisites for
    Project Execution and Control are in place.

21
Planning The basis for control
  • Stakeholder Roles and Responsibilities
  • Communications Plan
  • Deliverable Acceptance Plan
  • Change Control Plan
  • Risk Management Plan
  • Issues Management Plan
  • Implementation Plan
  • Other control plans as deemed necessary

22
Execution and Control
  • Project deliverables are produced.
  • Greatest expense of time and money
  • Team performs the tasks that deliver the product
    of the project.
  • Project Lead manages, adjusts, controls according
    to the Project Plan

23
Closeout It aint over till its over
  • The project does not end when the system is in
    production.
  • Follow up, monitoring, final status checks are
    performed.
  • Determine post-project ROI measurements
  • Document the various challenges and successes
    encountered along the way (Project Closeout
    Report).
  • The project ends when the Project Sponsor
    indicates final approval.

24
The Pitfalls of PMExcuses from the Peanut Gallery
  • This is too much work
  • This is overhead
  • I already know how to manage projects
  • I do it my way
  • If I give you an end date, then youll hold me
    to it.
  • Were too small an agency for this
  • Human nature to resist change

25
Managing the Portfolio of Projects
26
What is PPM?
Project Portfolio Management refers to the
selection and support of projects or program
investments. These investments in projects or
programs are guided by the organizations
strategic plans and available resources
PMI Combined Standards Glossary
27
What is PPM (cont)?
In general, Project Portfolio Management is
taking a mish-mash of projects and organizing
them into a streamlined undertaking of mission
critical initiatives.
28
My Dream Agency.
  • We have plenty of staff.
  • We have just the right amount of work not too
    much and not too little.
  • People finish one assignment completely before
    moving on to another.
  • Everyone knows what should be worked on first,
    second, third, etc.
  • Everyone shops at WallGreens and lives in
    Perfect.

29
Too Many Projects???
  • Resources are moved among projects without a
    valid business reason.
  • Resources are unable to finish a task before
    being directed to start another.
  • Resources frequently forget where they left off.
  • Some resources are over-tasked while others
    under-tasked.
  • In the rush and confusion, mistakes are made.
  • Time is wasted as resources move among projects.
  • Team members are frequently frustrated.

30
What can be done?
  • Do fewer projects.
  • Assign fewer personnel to each project.
  • Allow projects to stretch out longer.
  • Hope for a miracle.
  • Increase your Project Throughput.

31
What is Throughput?
  • The average number of projects that an
    organization can complete in a year.
  • How is it possible to do more projects in the
    same amount of time without getting more people?
  • Implement Project Portfolio Management.
  • Implement Project Management

32
THE PMO APPROACH PORTFOLIO/PROJECT/RESOURCE MGMT
33
What are the effects of PPM?
  • Stem the flow of new projects. Only projects
    critical to the organization are considered.
  • Implement consistent, repeatable processes to
    increase project efficiencies.
  • Encounter fewer project surprises due to better
    planning and better reporting.
  • Reduce bad multitasking.

34
PPM Impact on Throughput
  • Many companies have established PPM and are
    typically seeing improved project throughput.
    (About 20)
  • If an organization completed 50 averaged sized
    projects one year and 55 the next, they
    experienced 10 improvement in project
    throughput.
  • Other state agencies implementing PPM, including
    DCJS, OGS, OSC, OFT.

35
What are the Benefits of Project Portfolio
Management?
  • Bad multitasking is decreased significantly.
  • Consistent processes following a common
    methodology lead to repeatable results, fewer
    problems, less rework.
  • Better planning results in fewer surprises, fewer
    resource shortages.
  • Executives get better information, enabling
    better decision making.
  • Common tools and processing enable more effective
    sharing of project information.
  • Projects are managed using a proven methodology,
    not by the seat of the pants.

36
What Is Required for Successful PPM
  • The Portfolio Review Board (PRB)
  • Project Acceptance/Rejection Process
  • Prioritize the Projects
  • Project Status/Review Process
  • Project Checkpoints/Stage Gates
  • Use an Enterprise Wide Tool, if available
  • A PMO to manage the portfolio.

37
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38
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39
Project Management vs. IT System Development
Lifecycle
Project Origination
Project Execution and Control
Project Closeout
Project Initiation
Project Planning
System Initiation
System Construction
System Acceptance
System Implementation
System Requirements Analysis
System Design
40
The Bear Essentials for PM and PPM
  • Project Charter
  • Regular Status Reports
  • A Project Timeline (schedule)
  • Project Closeout Report
  • Mechanism to Communicate
  • The NYS PM Guidebook

41
Why do Organizations need PM and PPM?
  • Project work is becoming more complex and
    typically involves multiple bureaus, divisions,
    or agencies.
  • The magnitude of change is making PM a
    requirement to conduct business.
  • The number of people assigned to a project
    increases communication issues.
  • Uncoordinated efforts to support PM result in
    redundancy, fragmentation, loss of productivity,
    and increased costs.

42
Why - Summary Continued
  • Organizations have a significant number of
    projects to implement with limited resources.
  • More projects are coming and resources are
    becoming scarce.
  • We need to give Executives and our project
    personnel the best chance for project success we
    can.
  • Consistent processes offer repeatable results.
  • Implementing PPM has proven successful in other
    organizations.

43
Vivs Number One ReasonWhy Projects Fail..
  • Competing Project Priorities

44
QUESTIONS?
Forget it, weve been sitting through this stuff
too long already
45
New York State Department of Taxation
Finance Project Management Office
Vivian Conboy vconboy_at_tax.state.ny.us (518)
457-8660
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