The IT PMO has accomplished the following: 1) It established a standardized project methodology based on ASAP and a Process Coordination Team of IT and business managers to oversee projects. 2) It effectively manages the company's project portfolio through strong processes for project selection, prioritization, and governance. 3) Having a PMO with a focus on business and IT integration, as well as flexible use of a project methodology, has led to the IT PMO's success in delivering projects on time and on budget.

1. IT PMO Success Story Presented at MassBay PMO Roundtable March 6, 2010 Ross Losch IT PMO Manager

2. IT Project Management Office (PMO) What is it What it has accomplished Why it has been effective

3. IT PMO Company information: Global company 8,000 employees 17 plants/warehouses SAP ECC 6.0/CRM 7.0/BW/Third-Party Systems PMO established in 2007 Manages all core application projects over $25K - SAP and connected systems 1 FTE; other Project Managers report on matrix basis Average 10 – 15 projects running in parallel

4. IT PMO Accomplishments Developed project methodology Based on Accelerated SAP (ASAP) - phased project waterfall Established Process Coordination Team (PCT) Comprised of IT and Business Managers responsible for project review, development and execution

5. Reasons for IT PMO Success Strong Project Portfolio Management Strong Business and IT Integration Effective Project Methodology PMO

6. Project Portfolio Management Programs Process Coordination Team Sr Mgt Team Projects IT PMO manages full range of activities “ Do the projects right” Project Management “ Do the right projects” Portfolio Management

7. “ Do the Right Projects” Strong Business / IT Integration PMO leads the Process Coordination Team PMO facilitates the Senior Management Team meetings Business/IT VP Level Management Team Sets Project Ranking Priorities Approves projects Resolves issues Business/IT Process Coordination Team Solicits/scopes/ranks projects Presents projects to Senior Mgt Oversees project execution Programs “ Do the projects right” Project Management “ Do the right projects” Project Selection Process Management Team Sr Mgt Team Projects

8. “ Do The Right Projects” Annual Project Selection (Roadmap) Development Process Process Coordination Team PMO oversees process Gather/ evaluate project ideas Month 1 Rank project profiles Strategic Objectives Legal Financial Risk Create project profiles Cost Duration Benefit Scope Month 2 Determineresource allocation Approve annual project roadmap Month 3 Sr Mgt Team Programs “ Do the projects right” Project Management “ Do the right projects” Project Selection Process Management Team Sr Mgt Team Projects

9. “ Do The Right Projects” Project Charter Development and Approval Process Coordination Team (PCT) PMO oversees entire process Project Charter Approval Sr Mgt Team Programs “ Do the projects right” Project Management “ Do the right projects” Project Selection Process Management Team Sr Mgt Team Projects Develop project charter Team members Timeline/WBS Detailed Business Benefits Approved Scope Budget Risks/Mitigations Project blueprint including gap list 1 – 2 months prior to scheduled project start: Confirm business drivers Business/IT project team involvement Project Start-Up PCT

10. “ Do the Projects Right” IT PMO Project Methodology Standardized but flexible project management activities Score-card based weekly reporting during all project phases Quality Gate Reviews Project Preparation Detailed Design Realization Dev. Integration Testing QA Testing Cutover/ Go-Live Stabilization Gate 1 Gate 2 Gate 3 Gate 4 Gate 5 Gate 6 Gate 7 Design Completed and Signed-Off by IT/Business Solution Built and Unit Tested Determination that Systems Operating Effectively; Lessons Learned Review Project Charter and High-Level Gaps Identified Programs “ Do the projects right” Project Management “ Do the right projects” Project Selection Process Management Team Sr Mgt Team Projects Dev. Integration Testing Completed; QA Testing Ready QA Integration Testing Completed; Ready for Cutover All Cutover Activities Completed; Ready for Go-LIve

11. “ Do the Projects Right” Project Communication Plan

12. Successful IT PMO Lessons Learned Good working relationship between Business and IT Creates company-wide ownership in process and projects Effective project portfolio management From project selection through execution Flexible use of project methodology Helps to achieve “buy in” from user community Projects don’t go well – projects start well