Why we work with IT PPM Master Thesis in 2011/12 covered how IT and digitization projects are: started, selected, prioritized and decided in relation to ensuring consistency between strategies, goals and projects.
Why we work with IT PPMMaster Thesis concluded:• IT and digitization projects are started, selected, prioritized and selected decentralized and with high degree of decentralized project and financial anchoring• IT Governance structure with 1 central and 5 decentralized IT steering committees are challanged by the decentralized project and financial anchoring• The steering committees have small IT budgets (reduces the decision rights) compared to the total IT budget (most budgets placed in the departments and with managers).• IT project and PPM model (Octoportal) is not used efficiently and is not supported or used by the steering committees (process is unclear and not accepted)• Aligment and coordination between IT and business strategies are found difficult by the steering committees due to the decentralized project and economic anchoring and non updated and coordinated IT plans.
Why we work with IT PPM• Many projects in the organization (especially many small projects)• Short-term projects are often prioritized instead of long-term projects• Lack of coordination and clarity between strategies and projects• High degree of individual influence on, which projects are implemented• It is often difficult to find, prioritize and assign resources to projects• It is often difficult to find finance to start and implement projects• High degree of swithing and pending on resources between projects (projects loose momentum)• Project implementation takes a loooong time and projects are often delayed.
Why we work with IT PPMWhy IT PPM is interesting as a management tool to Herning Kommune:• The common public digitization strategy (60 to 100 projects 2011-2015)• The joint municipal digitization strategy (35 to 80 projects 2011-2015)• Local Herning Kommune IT strategy and action plans cover development and maintenance of more than 350 different IT systems• Tendering obligation gives pressure on new development and implementation of new IT systems• National legislation triggers constantly changes in IT systems and create organizational changes, where IT will have to support business• Project creativity is massive in Herning Kommune – but are money and resources spent on the “right” projects? Will the decentralized organization be able to handle, prioritize, utilize the project potentials together with their own and IT resources?
Why we work with IT PPM 35-80 Common Public 60-100 Joint municipal digitization strategy projects digitization projects KOMBIT projects Legislation ALIGNMENT • ITS’er Business IT • DDS Corporate strategy Corporate architecture IT Governance Corporate • KITA level • Executive Board Coordination Business Unit strategies Business Unit architecture60 Tenders 2012-2015 Linking Mechanisms Business Unit Development of • Business Unit Management • KITA level + 350 IT systems Project plans Project IT architecture Project Project Management level • Project Managers / Project Teams How many IT and digitization projects have we started? Source: Inspiration from ”IT Engagement model”, Fonstad 2006.
How mature is Herning Kommune in IT PPM maturity?
How mature is Herning Kommune in IT PPM maturity? Ad-hoc phase Definition phase Managed phase Synchronized phase• Uncoordinated selection of • Documented key • Central overview of • Great focus on linkageand decision on projects components in portfolio projects and budgets between strategies and management investment in projects• No central project database •Project Management Officeto handle coordination • Structured project is often establised with • Focused on weeding out overview and overall dedicated resources to PPM projects that underperfom in• No use of financial metrics prioritization of projects relation to strategies andand project goals in selecting through annual action plans • Frequent assessment of benefitsand deciding on projects projects in a portfolio • Project selection and perspective using af PPM tool • Far more focus on•Correlation between management is typically synergies across theprojects and potentials are decentralized • Formal tools to assess enterprisenot assessed benefits (Business Cases) • Benefit realization is based • Systematic project• Correlation and limitations on payback and ROI • Risks are assessed in- selection and decisionin resources are not depth (project level and processes (clear andassessed • Occasionally assessment of portfolio level) accepted) project context and• Risk assessment on and dependencies between • Project dependencies are • Decentralized parts of thebetween projects are not projects assessed in relation to organization is helddone benefits and resources responsible for project • Limited assessment of results and benefit project risk and resource realization• Top management is not • Projects often compete oninvolved in project selection finance and resourcesand decisions • Top management is • Business Cases are sometimes involved in systematic collected centrally •Processes such as and compared frequently• No or limited use of tools project selection and screening, ranking and decision between projects and in theto create an overview of measuring benefits are more portfolio during all projectprojects refined phases • Typical lack of attitude to coordination and aligment between strategies and projects as well as missing standards and prcessesSource: Inspiration from ”Best Practices in IT Portfolio Management, Jeffery and Leliveld – 2004)
How to focus on development of IT PPM ALIGNMENT • ITS’er Business IT • DDS Corporate strategy Corporate architecture IT Governance Corporate • KITA level • Executive Board Coordination Business Unit strategies Business Unit architecture Linking Mechanisms • KITA Business Unit • Business Unit Management level Project plans Project IT architecture Project Project Management level • Project Managers / Project Teams Stage-Gate model a typical way of managing projects Source: Inspiration from ”IT Engagement model”, Fonstad 2006.
How to focus on development of IT PPM ALIGNMENT • ITS’er Business IT • DDS Corporate strategy Corporate architecture IT Governance Corporate • KITA level • Executive Board Coordination Business Unit strategies Business Unit architecture Linking Mechanisms • KITA Business Unit • Business Unit Management level Project plans Project IT architecture Project Project Management level • Project Managers / Project Teams Archer og Ghasemzadeh’s PPM model – one way to handle projects in a portfolio Source: Inspiration from ”IT Engagement model”, Fonstad 2006.
How to focus on development of IT PPMBasics in successful IT PPM:1. How are decisions on IT and digitization projects made in the organization (gut feeling / rationel / garbage way etc.)?2. Top management involvement- will they support and use IT PPM as management tool?3. Set up IT Goverance structure around IT PPM (i.e. Excecutive board, Steering Committees central and more decentralized – decide on level of PPM)4. IT development budgets should be gathered around IT PPM Governance structure5. Type of projects the IT PPM Governance structure should decide on must be determined and decided (i.e. financial levels, infrastructure projects etc. o.l.)6. Create overview on existing projects running and the finance connected to these - What projects? Who are the project owners? Who has the money to drive them through?7. Focus on standardized overview over existing IT and digitization systems - What systems do we have? Who are the system owners? (reduce risk of redundant systems and processes) - What financial obligation is connected to each system (contract, operating costs etc.)?8. Communicate IT PPM (all over the organization)
How to focus on development of IT PPMProcesses and requirements for projects and portfolio managementare necessary:9. Collecting and handling projects in a project portfolio requires accepted IT Governance structure, designed and approved processes10 Budgets placed with the IT Governance structure will make it possible to require projects to document benefits and support the best projects in the decided portfolio Kilde: (”Portfolio model”, Archer og Ghasemzadeh 1999)
How to focus on development of IT PPMStrategic focus can be established:11. Project portfolio can be divided into strategic buckets, strategic assessment criterias can be created if Business and IT strategies are well-defined12. Project portfolio can be assessed in relation to short-term and long-term projects (strategies, goals, benefit realization, resources and risk)13. Increase requirements to the organizations documentation (business cases with financial BUT ALSO qualitative benefit perspectives)
What is the status of IT PPM in Herning Kommune?
What is the status of IT PPM in Herning Kommune?Which approach have we chosen – and why?• We do as usual – RISK THAT WE WILL CONTINUE AS NOW• All projects covered by IT PPM (Corporate downwards)• Define PPM for all projects – not only IT.• Define PPM from a customer or project type angle• Corporate IT PPM (only focus on cross-cutting projects)• IT PPM on Business Unit Level (portfolio in each Unit)
What is the status of IT PPM in Herning Kommune?• We focus on making a project overview (project ownership, finance and benefit realization responsibility and the challenge in not being able to prioritize the “right” projects
What is the status of IT PPM in Herning Kommune?• Management backup and understanding of IT PPM is a challenge in a decentralized culture !!!!• We creative project overview from several angles 1. IT steering committee in Child and Youth Business Unit 2. IT steering committee in Social, Health and Employment Business Unit 3. The overall digitization steering committee 4. Corporate IT’s department project overview 5. External projects• Dialogue about IT Governance started in the two Business Units in relation to decision and process support for IT PPM• Dialogue about going from agendas in the steering committees to dialogue about projects as a portfolio. We only do small steps in the development of IT PPM
Discussion1. How do you see IT PPM can be established in a company with a very decentralized culture, where budgets and decisions on IT are decentralized placed – what is important to do?2. Is maturity in project management a prerequisite for creating IT PPM or is IT PPM a prerequisite for project management?
Thank you for your timeContact information Kim Nielsen Ranch Project Manger E-mail: email@example.com / firstname.lastname@example.org LinkedIn: http://dk.linkedin.com/in/kimnielsenranch Twitter: @kimnranch Phone: 9628 2609 Mobile: 2960 7034