Evaluating Projects in the New Economy<br />Chris Chambliss and Bill Yarberry<br />
Agenda<br />Setting the Stage<br />The PMO and Business Alignment<br />The Bottom Falls Out<br />Project Evaluation Here a...
Setting the Stage:NCI Building Systems<br />
Setting the Stage:PMO…The Early Days at NCI<br />Only 28% of projects started ever reach their time / cost / quality targe...
Setting the Stage:PMO…The Early Days<br />PMI Methodology<br />Scope Control<br />PMBOK Processes<br />Requirements Gather...
<ul><li>Direction and influence for enterprise project management
Manage continuous improvement and cross-department collaboration to achieve strategic business goals
Continues to build relationships with stakeholders, customers and vendors
Oversight and control to other PMO units</li></ul>Stage Four:<br />Advanced PMO<br /><ul><li>Focuses on integrating busine...
Applies common practices to projects and business; a “projectized” organization
Can be a separate business unit
State of the art PM practices and tools
Advanced staffing</li></ul>Stage Three:<br />Standard PMO<br /><ul><li>Improved PM capabilities and maturity
Introduce project reporting tools and collaboration techniques
Interface between the business, executives and project teams
Full set of PMO functions in use
Provides standard and repeatable PM methodology for all projects
Develops common tools for all projects
Emphasizes the foundation of a viable PM environment</li></ul>PMO and Business Alignment:PMO Competency<br />Strategic Ali...
Applies project management techniques
No program level authority</li></ul>* The Complete Project Management Office Handbook<br />
The Bottom Falls Out:What Goes Up Must Come Down<br />
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Texas Technology Summit April 7 Th Presentation V5 Final

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Describes the process and criteria for selecting IT projects in a depressed economy. Slides are based on experience of PMO at NCI Building systems. Speakers were Chris Chambliss, VP of PMO at NCI, and Bill Yarberry, President of ICCM Consulting.

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Texas Technology Summit April 7 Th Presentation V5 Final

  1. 1. Evaluating Projects in the New Economy<br />Chris Chambliss and Bill Yarberry<br />
  2. 2. Agenda<br />Setting the Stage<br />The PMO and Business Alignment<br />The Bottom Falls Out<br />Project Evaluation Here and Now<br />Tips and Techniques<br />Questions<br />
  3. 3. Setting the Stage:NCI Building Systems<br />
  4. 4. Setting the Stage:PMO…The Early Days at NCI<br />Only 28% of projects started ever reach their time / cost / quality targets*<br />32% - Inadequate project management and improper use of PM tools<br />20% - Lack of communication<br />17% - Lack of understanding of scope<br />Did some hiring, firing, laughing and crying<br />* Standish Group Chaos Report<br />
  5. 5. Setting the Stage:PMO…The Early Days<br />PMI Methodology<br />Scope Control<br />PMBOK Processes<br />Requirements Gathering<br />Resource Management<br />
  6. 6. <ul><li>Direction and influence for enterprise project management
  7. 7. Manage continuous improvement and cross-department collaboration to achieve strategic business goals
  8. 8. Continues to build relationships with stakeholders, customers and vendors
  9. 9. Oversight and control to other PMO units</li></ul>Stage Four:<br />Advanced PMO<br /><ul><li>Focuses on integrating business objectives into the PM environment
  10. 10. Applies common practices to projects and business; a “projectized” organization
  11. 11. Can be a separate business unit
  12. 12. State of the art PM practices and tools
  13. 13. Advanced staffing</li></ul>Stage Three:<br />Standard PMO<br /><ul><li>Improved PM capabilities and maturity
  14. 14. Introduce project reporting tools and collaboration techniques
  15. 15. Interface between the business, executives and project teams
  16. 16. Full set of PMO functions in use
  17. 17. Provides standard and repeatable PM methodology for all projects
  18. 18. Develops common tools for all projects
  19. 19. Emphasizes the foundation of a viable PM environment</li></ul>PMO and Business Alignment:PMO Competency<br />Strategic Alignment<br />Stage Five:<br />Center of Excellence<br />Business Maturity<br />Process Support<br />Process Control<br />Project Oversight<br />Stage Two:<br />Basic PMO<br />Stage One:<br />Project Office<br /><ul><li>Independent project offices and project managers
  20. 20. Applies project management techniques
  21. 21. No program level authority</li></ul>* The Complete Project Management Office Handbook<br />
  22. 22. The Bottom Falls Out:What Goes Up Must Come Down<br />
  23. 23. The Bottom Falls Out:Why Do I Need You?<br />A new vocabulary was introduced<br />Value Proposition<br />Strategic Alignment<br />Value-Driven ROI<br />Elimination of Suboptimization<br />Autonomous decisions being made<br />PMO adaptation and flexibility becomes key<br />Enterprise perspective of the PMO function is part of the answer <br />
  24. 24. Project Evaluation:Tools & Techniques<br />What the PMO brings to the table<br />Financial evaluation<br />Objective enterprise view<br />Risk assessment<br />Not a standard book approach; case by case<br />
  25. 25. Project Evaluation:Tools & Techniques<br />Project Dashboard<br />Project Request Form<br />Business Value / ROI<br />Risk Assessment Model<br />PMOLC / SDLC<br />Project Life Cycle<br />
  26. 26. Project Evaluation:Project Request Form<br />
  27. 27. Project Evaluation:Executive Management<br />Getting Executive management to the table<br />Look at it from their perspective<br />Understand what they’re going to ask<br />Find a way to make it work in your size company<br />Utilize a project dashboard that’s clear and concise<br />
  28. 28. Project Evaluation:Project Dashboard<br />
  29. 29. Project Evaluation:Risk Assessment<br /><ul><li>Project tier drives level of project management
  30. 30. Depth of deliverables, amount of testing, Internal Audit participation</li></ul>Impact and complexity drive the risk level<br />Risk level results in Tier 1 – Tier 4 project<br />
  31. 31. Project Evaluation:Financials – Cost Estimates<br />Determine if the project is capital or expense<br />Major cost categories:<br />Software / Hardware<br />Consulting Services<br />Employee Labor<br />Expenses<br />Often overlooked cost categories:<br />Training<br />SOP 98<br />Capital Interest<br />Sales Tax<br />Maintenance<br />
  32. 32. Project Evaluation:Financials - Justification<br />Utilize the financial experts in your company<br />NPV, IRR, ROI, Payback Period; what else do you need to know?<br />Every project now demands financial justification<br />Benefit categories from the Project Request now come in to play<br />
  33. 33. Project Evaluation:Benefit Realization & Metrics<br />Compare planned to actual costs<br />Show project completion statistics<br />Build metrics history and use for action<br />
  34. 34. Tips and Techniques:Building Alliances<br /><ul><li>Alliances can be the key to continued success
  35. 35. Working with IT, Accounting, Audit can have its rewards
  36. 36. Gaining understanding of each other’s objectives can help move everyone’s projects forward</li></li></ul><li>Tips and Techniques:FastTrack Model<br />Deliver It<br />Scope It and Do It<br />Request It<br />Streamlined approach<br />Agile response to the business<br />Uses the project request process<br />Reduces the quantity of deliverables<br />Timeline is generally 1-3 months<br />**Goal: To deliver smaller, quick-win projects faster<br />
  37. 37. Tips and Techniques:Growing the Culture<br />Choose quick win projects to show success<br />Educate your peers<br />Understand the maverick / cowboy mentality and how to help<br />Wear multiple hats<br />
  38. 38. Closeout:Elevator Speech<br />Today’s economy demands higher performance and results<br />Get senior management involved<br />Tailor the approach to your company<br />Adopt a methodology…but plan to be flexible<br />
  39. 39. Questions<br /><ul><li>Chris Chambliss
  40. 40. Ph: 281-897-7611
  41. 41. Bill Yarberry
  42. 42. Ph: 713-582-6275</li>

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