IT Services Delivery - Program Management Office (PMO)

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Program Management in IT services delivery is different from managing programs in other businesses. In this slide deck, I tried to r

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IT Services Delivery - Program Management Office (PMO)

  1. 1. IT Service Program Management & PMO Program Management in IT Services Business -- VSR April, 2009 The views mentioned in this document are solely by the author and1 does not reflect the views of any organization or entity - VSR
  2. 2. Presentation Outline  IT Services Business Environment  IT Service Program Definition  Value delivery from IT Service Program  Knowledge Areas of IT Service Programs  PMO for IT Services Business2 - VSR
  3. 3. IT Services Business Environment3
  4. 4. Indian IT Services Business - Journey towards providing business value to customers Align IT for Business Transformation Align IT for Business Growth Reduce Total Cost of Ownership Deliver Quality Projects at Velocity4 - VSR
  5. 5. Program definition in IT Services Business Program in IT ServicesVARIANT 1 Set of interrelated projects relating to single customerVARIANT 2 Set of non related projects for single customerVARIANT 3 Set of non related projects for multiple customers (region, industry, technology etc)5 - VSR
  6. 6. Program definition in IT Services Business (contd..) Program Variant 1: A Program is a group of related projects for a customer, managed in a Business coordinated way to obtain business benefits, Value control and transformation that is not available from managing them individually In IT Services Business, we Program Variant 2: A Program is a group of have to manage non-related projects for a customer, managed three variants of in a coordinated way to optimize the Total Cost the program of Ownership and to align IT with the Business IT Value of that customer Program Variant 3: A Program is a group of non-related projects for multiple customers, Project managed in a coordinated way to improve the Value individual project performance.6 - VSR
  7. 7. Value Delivery from IT Service ProgramsS. No Type of IT Program Value Parameters 1 Program Variant 1 Business Value • Reduce Time to Market Set of interrelated projects • Improve Gross Margins relating to single customer • Increase Revenue • Improve Cash flow 2 Program Variant 2 IT Value • TCO (Total Cost of Ownership) Set of non related projects for • Optimal Outsourcing Mix single customer • Business and IT alignment 3 Program Variant 3 Project Value • Schedule Set of non related projects for • Productivity multiple customers (region, • Total Defect Containment industry, technology etc) • Cost of Software Quality7 - VSR
  8. 8. Possible Project Mix in a IT Service Program S. No Project Type 1 Application Maintenance & SupportPROGRAM 2 Composite Applications Implementation 3 Consulting Each Program 4 Custom Composite Applications Development consists of 5 Custom Applications Development (Traditional) the mix of 6 Enterprise Applications Integration different projects 7 Information Management 8 Infrastructure Management 9 Legacy Modernization 10 Package Implementation (Traditional) 11 Package Upgrade 12 Platform Migration (e.g Oracle to SAP)8 - VSR
  9. 9. Variant 1 Knowledge Areas: IT Service Program Management VARIANT 1 – IT PROGRAM MANAGEMENT Project Program Scope Program Time Program Cost Program Quality Program Management Management Management Management Dependency Management Management Communication & Delivery Excellence / Risk & Issue Stakeholders Information Management Throughput Management Management Management Program Operations Management Program Knowledge Management (infrastructure, space, invoicing, Visa, recruitment, BGC etc ) Value Realization Benefits Realization Transition Management Change Management Management Management Business Risk Management Disaster Recovery Management Business Continuity Management Relationship Associate Relationship Customers Relationship Management9 - VSR
  10. 10. Variant 2 & 3 Knowledge Areas : IT Service Program Management VARIANT 2 & 3: IT PROGRAM MANAGEMENT Scope Cost Time Knowledge Profitability Project Management Management Management Management Management Management Quality Project Operations Management Communication Risk & Issue Management (infrastructure, space, invoicing, Visa, recruitment, BGC etc ) Management Management Multi Project Management Delivery Excellence / Throughput Management Business Risk Disaster Recovery Management Business Continuity Management Management Account Growth Account Mining/Presales Management Account Attrition Management Management Relationship Associate Relationship Customers Relationship Management10 - VSR
  11. 11. IT Service Business – Program Management Office (PMO)11
  12. 12. Assumed Environment in a typical Indian IT Services Company  There is separate Delivery organization which owns the Service Delivery (Head Delivery, Program/Delivery Managers and Project Managers)  There is separate Quality organization, which takes the responsibility of building assets of Program Management and conduct program management process audits  There is separate Learning Academy , which takes the responsibility of building Program Management competency12 - VSR
  13. 13. IT Services Business - PMO Focus 1 Provide Central Visibility Of Program 2 Institutionalize Program Management Processes 3 Enable enhancement of Program Throughput 4 Provide Program Management Consultancy 5 Build Program Management Competency and Provide Mentoring Support 6 Maintain Relationships with Delivery Team and Customers 7 Communication and Change Management13 - VSR
  14. 14. IT Services Business - PMO Focus Provide Central Visibility of Program • Maintain Executive cockpit , conduct Stage Gate Reviews and provide Alerts • Conduct Predictability analysis and provide Alerts • Maintain and analyze Programs Repository • Conduct Program Risk Analysis14 - VSR
  15. 15. IT Services Business - PMO Focus Institutionalize PgM Processes • Standardize Program Management Practices / methodologies and Provide Tool Kits • Select and implement Program Management Tools • Establish Process Capability Baselines and improve Process Capability of Program Management15 - VSR
  16. 16. IT Services Business - PMO Focus Enable Enhancement of Program Throughput • Promote Innovation and thought leadership to improve throughput of a Program • Enable Defect Prevention Management to reduce rework in Programs • Enable various techniques to optimize Offshore-mix of a Program • Enable usage of Delivery Accelerators to improve quality and productivity of Program deliverables • Promote Best Practices, Lessons Learnt and Knowledge Management culture within Programs (Blogs, wikis, Disc Forums , SIG etc)16 - VSR
  17. 17. IT Services Business - PMO Focus Provide Program Management Consultancy • Provide general consulting to Programs/Projects • Provide consultancy in Benchmarking & Industry Practices in Program Management • Provide Trouble shooting17 - VSR
  18. 18. IT Services Business - PMO Focus Build Competency in PgM and Provide Mentoring • Forecast and enable building Program Management Competency • Enable Program Management Careers • Mentor Program Managers/Project Managers18 - VSR
  19. 19. IT Services Business - PMO Focus Maintain Relationships with Delivery Team and Customers • Maintain relationship with Delivery Team • Maintain relationship with Customers (as applicable)19 - VSR
  20. 20. IT Services Business - PMO Focus Communication & Change Management • Communicate and Brand PMO • Enable Change Management to accept PMO20 - VSR
  21. 21. Indicative PMO Organization Structure in IT Services Business Executive Sponsors Steering Committee Internal Program Management Office Learning Academy Internal Quality Head Delivery Unit Consultancy/Mentoring Program Manager/ Delivery Manager Competency Management Standardization and Institutionalization of Program Manager/ Practices Delivery Manager PMO Program Visibility Management Structure Program Manager/ Thought Leadership & Program Throughput Delivery Manager Enhancement PgM Intellect Capital Management Program Manager/ Delivery Manager Relationship/ Partnership Management21 - VSR
  22. 22. Indicative Metrics for IT Services PMO Success DIRECT MEASURES – # of Consulting Engagements for PgM – # of Mentoring Sessions on PgM – # of Competency Building Sessions for PgM – # of Interventions in Improving Program Quality & Throughput – # of Knowledge Sharing Sessions conducted in PgM – % utilization of Program Management Assets – Internal customer Delight index First, baseline the ENABLING MEASURES existing Metrics and  Program Execution Performance – Benefit Realization then set the – Health Index of a Program benchmarks – Productivity of a Program – Risk Index of a Program – Change Requests Index  Program Finance Performance – Profitability – Cost of Quality of a Program – Estimation Accuracy  Customer Delight – External Customer Delight Index22 - VSR
  23. 23. Steps to establish PMO in IT Services Business SCAN ORG. ENVIRONMENT AND CONDUCT GAP ANALYSIS DEFINE PMO FORESIGHT AND ESTABLISH GOVERNANCE STRUCTURE IDENDITY PMO SERVICES FINALIZE PMO INFRASTRUCTURE ESTABLISH PARTENERSHIPS ESTABLISH MEASUREMENT & REVIEW SYSTEM TRIGGER CUTURE CHANGE PLAN FOR QUICK WINS23 - VSR
  24. 24. IT Services Business PMO Architecture/ Components PMO PROCESSES PMO SCORE CARDS PMO SKILLS PMO ORG. STRUCTURE PMO TOOLS / APPS PMO ASSETS COLLABORATION PLATFORM24 - VSR
  25. 25. IT Services Business - PMO Maturity Levels  ENHANCE IT VALUE AND BUSINESS VALUE: Program LEVEL 4 Management Office: Program Focus, Program Value enhancement, Program level tracking and monitoring, benefits measurement and corrective actions, alignment with Customer IT & Business  ENHANCE PROJECT VALUE: Project Management Office: LEVEL 3 Project tracking and reporting, best practice repository and access to PMs, consistency across the projects. Enhancing project value – Enable on-job learning through Apprentice of PMs – Project consulting and mentoring  FACILITATE AND SUPPORT: Project Enabling office: Provide LEVEL 2 support on various aspects of project management. Provide hands on project assistance LEVEL 1  BUILD CULTURE: Communities of Practice: sharing experiences and improving individual capabilities25 - VSR
  26. 26. IT Services Business - PMO Should Focus on both Project Life Cycles and Project Management Life Cycle Integrated Project Management is the Key for success26 - VSR
  27. 27. PMO 2.0 Business Closer to PMO and PMO Closer to Business27 - VSR
  28. 28. Critical Success Factors for PMO in IT Services Business 1 Executive Sponsorship 2 Value Delivery Engine 3 Sophisticated Governance 4 Robust Review Mechanism28 - VSR
  29. 29. Critical Success Factors for PMO Executive Sponsorship • Budget and Time Commitment from Executive Sponsor • Commitment to bring cultural change • Commitment to reward the best • Commitment to take corrective actions as needed29 - VSR
  30. 30. Critical Success Factors for PMO Value Delivery Engine • Commitment to induct right skilled people into PMO • Value adding services to Delivery/Program team • PMO to act like a catalyst for Problem Solving30 - VSR
  31. 31. Critical Success Factors for PMO Sophisticated Governance • System driven mandatory governance controls • System to have regular communication on initiation of Programs • System to bring PMO interventions at appropriate time • Supporting structure in different units31 - VSR
  32. 32. Critical Success Factors for PMO Robust Review Mechanism • System to early detect RED, GREEN, AMBER Projects/Programs • System to have skip level interaction with customers to get the health of Program • System to conduct value adding reviews (asking right and relevant questions ) • System to help resolving issues with regular follow- ups • System to have virtual team to participate in quality reviews • System to have participation of Executive sponsor in critical accounts review • System to get the acceptance that PMO plays a role of Devils Advocate • System to include PMO reviews are seamless and not overhead32 - VSR
  33. 33. IT Services Business - PMO Skills • Program Management experience • Project Life Cycles • Relationship Management • Thought Leadership • Industry/Business exposure • Mentoring • Consulting • Problem Solving • Risk Management • Effective Review Management33 - VSR
  34. 34. Thank You! VSR Blog : http://vsr-blog.blogspot.com/ Facebook : http://www.facebook.com/VSR111 Twitter : http://twitter.com/VSR111 Talks : http://soundcloud.com/vsr111 SlideShare : http://www.slideshare.net/vsr0001 Channel : http://www.youtube.com/TheVSRTV LinkedIn : http://in.linkedin.com/in/vsr11134

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