Gm591 Unit 3 Group D Assignment Morris Corporation 2
- 1. The Morris Corporation– Portfolio Project Management Vanessa Hartsfield Jessica Jones Paul Unger March 27, 2012 GM591: Strategic Project Management Kaplan University Online – Professor Wanda Curlee
- 2. Project Overview • Evaluate a case analysis of The Morris Corporation - A Product and Services Organization • Develop a model of a project portfolio management organization
- 3. Morris Corporation OrganizationChart CEO Clyde Morris Project Marketing Regulatory Operations Management Manager Manager Manager Office Manager Project Staff Staff Staff Manager Project Staff Staff Staff Manager Project Staff Staff Staff Manager
- 4. Project Management Office(PMO) • What is a PMO? • Why use a PMO at Morris Corporation? • What functions does it perform?
- 5. Project Management OfficeSkills Chart Project Management Office Manager Administrative Support Services PM Process / Librarian / Relationship / Project Portfolio Tools Support / Methodology Documentation Account Manager Administration Trainer Control Manager Project Manager Project Manager
- 6. Current Project NeedsAssessment What is the current project workload at Morris Corporation? o Revenue Producing Projects versus In-house Projects o Product Projects versus Service Projects o Repeat Customer Projects versus New Customer Projects
- 7. Current Project NeedsAssessment What is the true workload? • Repeat Business • New Business • In-house Projects
- 8. New Project Assessment NewProject Categories • Meets the Corporation’s Strategic Goals • Creates Revenue for the Corporation • Develops and Delivers New Products and Services • Effects Organizational Change
- 9. Risk Assessment • What is Risk Assessment? • Morris Corporation’s Current Risk Assessment Method • Proposed Risk Assessment Method • What is Unacceptable Risk
- 10. Process and ProjectSelection Needs Contract • Customers Assessment • Project Manager Completion • Sales • Functional Representatives • Customer Managers • Customers • Sales • R&D as needed • Sales Representatives Representatives • Costing • Project Manager • Pricing New Business Risk Opportunity Assessment
- 11. Organizational Project PortfolioComponents Characteristic Criteria Project Size Small Projects: 50%; Medium Projects:40%; Large projects 10% of business Core competencies Projects will be selected on the basis of fit into core competencies Business risk Projects (product) will have >= 90% degree of success Project risk Goals have >= 70% chance of success Technology New requirements will be compatible with existing core competency growth plans. Profitability Expected profitability of >= 15% R&D Evaluate for appropriate volume and direction Life-cycle Phases Does work provide for continuity of work or interrupted work flow. Urgency of Need Is delivery possible within the desired time frame.
- 12. References • Astiz, Paul. n.d. IT Project Management Office. Retrieved from my.aryanapm.com/getfile/pid.../PMO-Presentation-Color-Final.ppt • Cleland, David & Ireland, Lewis. 2006-08-21. Project Management : Strategic Design and Implementation (Kindle Locations 5918-5919, 5923-5924, 5661- 5662). McGraw-Hill Professional. Kindle Edition. • Cleland, David & Ireland, Lewis. 2007. Project Management Strategic Design and Implementation (5th ed.). New York, NY: McGraw Hill • Egeland, Brad. 2009. The Successful Project Management Office. Retrieved from http://pmtips.net/successful-project-management-office/ • Project Management Institute. 2008. Project Management Body of Knowledge (PMBOK Guide) (4th ed.). Newtown Square, Pa: Project Management Institute, Inc.
Editor's Notes
- #4 A project oriented corporation that retains traditional staff functions and titles is structured like a Composite Organization (PMBOK, n.d., 32). The Morris Corporations retained traditional staff functions and their titles to interface with external organizations and regulatory agencies efficiently (Cleland & Ireland, 2007, pg. 218).Brown boxes represent staff engaged in project activities.
- #5 Photo: http://www.deskshare.com/blog/en/post/Encourage-teamwork-in-your-office-with-Team-Task-Manager.aspxThe PMO can serve as the central focus for projects in an organization. (Celand & Ireland, 2007).A Project Management Office (PMO) should be created to organize and maintain the projects handled by Morris Corporation. Common drivers for the creation of a PMO are late and over budget projects, a need for consolidated project reporting to drive prioritization/decisions, increased project workload, and more complex environment and/or solutions (Astiz, n.d., slide 5). The Morris Corporation is experiencing all of these drivers. The successful implementation of a PMO results in “80% ROI, 20% reduction in project time, and 30%-35% successful project delivery. Companies without a PMO may experience a 74% failure rate (Astiz, n.d., slide 6).”Functions of the PMO include: managing a portfolio of programs and projects, managing project management processes and standards, facilitating the development of organizational products, services and processes and assisting in establishing a program and project oriented mindset.
- #6 There are many skills required to run the Project Management Office (PMO). These skills may reside within office itself or someplace within the company (Astiz, n.d., slide 13). For small scale projects individual project managers will execute them. For large customers with multiple projects in action with the corporation, there may be a portfolio manager that handles that grouping. The Morris Corporation will have a portfolio that covers both the customer project load as well as projects internal to the organization.
- #7 Photo: http://www.cooltribe.com/editorial_article/full-green-your-officework-guideRevenue producing projects are projects that customers bring to Morris Corporation. They may be product or service related. These project create the revenue stream that keeps the company in business. In-house projects involve activities that the company initiates to enhance their product and service line; and maintain their equipment and technology. Morris Corporation has an existing issue with resource conflict between revenue producing and in-house projects.Morris Corporation produces products and related services. No service line related issues were brought up in the “all hands” meeting. There were issues in the Product Division. The Sales Division was successfully developing new projects but the projects were not properly evaluated for scope (Cleland & Ireland, 2007, pg. 218). This causes the potential of missed delivery dates and faulty costing. The Morris Corporation is an established business. It is funded by a strong repeat customer base. Its reputation in the industry is such that it is able to attract new customers. Business is good. It is important to continue to satisfy the existing customer base, both new and repeat. All current customers must be serviced to a high level of satisfaction.
- #8 Photo: http://www.deskshare.com/blog/en/post/Facilitate-group-projects-in-the-office-with-Team-Task-Manager.aspxExisting projects should be sorted between new customer projects and repeat customer projects. If there are any customers with multiple projects underway with the company, those projects should be grouped. All customers with multiple projects should have their projects reviewed for consolidation. A common complaint concerning existing projects is that they were not properly evaluated for scope and requirements. Most often this indicates that the projects were underpriced and that the delivery date was established based on misinformation. A fresh evaluation of these project groups can accomplish several things: the projects can be properly scoped with realistic delivery dates, the grouping may uncover an industry trend that the valued customer is following, the projects can be converted into one larger scale project, there could be a new and better solution to the original project grouping for the customer need, appropriate pricing for the work required can be introduced. The customer now deals with a single project manager and gains an experience of being valued by the corporation. The corporation has improved its relationship to the customer, gets better use of its resources, receives appropriate compensation and reduces the number of projects. New customer projects will be re-evaluated for scope and effort requirements. These adjustments should be compared to compensation for services. Projects that still have an adequate ROI should be placed in one group and those being completed at a loss should be placed in another. All reevaluated projects should be placed into a central scheduling system to insure adequate resources are available to make execution dates. Every effort should be made to complete all currently accepted projects in order to maintain good customer relations. Residential Complexes have a hierarchy of need for project completion. That order is as follows: safety and security; compliance issues, system failures, regular maintenance, and complex attractiveness. The first three areas could be escalated to emergency status depending on the area affected. On-Call staff should be made available to service these issues as they arise.Internal projects should not have been subject to the same scope and requirement errors that occurred with those conducted by the sales force. These projects should be executed in order of importance and scheduled alongside the revenue projects. In this way resource overload should not occur. Revenue projects and internal projects should remain clearly identified through the scheduling system so that appropriate decisions can be made throughout the execution process. The Morris Corporation dedicated project methodology for all development and delivery of products and services (Cleland & Ireland, 2007, 218). If project manager overload begins to appear, these projects can be deferred if possible or the work can be transferred to Operations for completion.
- #9 Photo: http://strategicresultsllc.com/Services.htmlIdeally, an organization will select projects that align with the strategic goals and ones that build on current capability (Cleland & Ireland, 2007, pg. 211). This promotes the corporation’s brand within the industry. Customers know what they can expect when they approach the organization for business. The corporation will be an industry expert in its market and risk associated with these projects should be relatively low.Projects must be able to earn the corporation adequate revenue. When the scope and effort requirement of the potential project has been completed, a profitability of greater than 15 percent should be present before it is accepted (Cleland & Ireland, 2007, pg. 213). It is imperative for the evaluation of incoming work to be properly evaluated prior to agreement. Errors here can cause a business to cease to be viable. The Morris Corporation has issues in this area within the product sales arena. The sales force should be grouped with project managers during the evaluation process to insure that the customer need is clearly understood and all the requirements are evaluated.Dynamic marketplaces require ongoing R&D for a corporation to remain competitive. Resources must be set aside to insure that this work is completed in a timely manner. Periodic review of existing projects will be needed to insure that the window for these outcomes is still viable. New projects should enhance current efforts (Cleland & Ireland, 2007, pg. 212).In this market environment corporations must be able to change their operating structure as needed to meet marketplace demands. Organizational changes in addition to new product and services are needed to keep a competitive edge.
- #10 Photo: http://stepsandleaps.files.wordpress.com/2009/07/financial-risk-dice.jpgRisk assessment is the act of identify potential project risks based on known and anticipated factors, weighing their probabilities, identifying possible risk mitigation actions, and putting them into some device or spreadsheet for on-going tracking purposes (Egeland, 2009, para. 6). At Morris Corporation the process starts with the sales team and ends with the final project when the (PM) is finished. There is a disconnect between the assigned tasks of management to the PM’s and the required tasks that should be directed by sales. Morris Corporation’s sales department is the front of the organization and they set the tone for all others down the line. When a PM is assigned a task that they are not confident with, are over confident of, or one that is not clear it makes it difficult for the all involved to be consistent in their efforts (Cleveland & Ireland, 2006). These issues ultimately create a personal risk by possibly hurting the relationships that typically make the participants more effective (Cleveland & Ireland, 2006). There is a high level of risk involved when there are multiple personnel handling any project. The project assigned to the project manager (PM) has to be in sync with their abilities and the ideas of the organization (Cleveland & Ireland, 2006). Further, the organization has to be aware of the abilities of their PM in comparison to their abilities in relation to the project. There is a level of risk associated with every new opportunity and this should be used to the advantage of the organization and that opportunity transferred to the PM. Risk assessment should be performed by the PM team – lead by the Project Manager – and preferably with solid input, if not outright involvement from, the customer side project team (Egeland, 2009, para. 6). The team involved in the daily execution of projects holds the expertise in the requirements for getting timely results. They should also be on the front seat for technological changes in the industry and developments from R&D. In the end, they are accountable for the final delivery of the product. The expertise of Marketing is to attract new business and to develop and maintain excellent customer relations. As a result, both the Marketing and Project Management departments need to participate in the contract development phase of new projects. Components of projects with unacceptable risk include “requirements that are largely outside of the corporation’s core competencies, goals with less than 70 percent chance of success, profitability of less than 15 percent, and technological requirements that are not compatible with core competencies (Cleland & Ireland, 2007, pg. 213).” Morris Corporation must insure that it has the needed technological expertise and tools to address its projects and any variations that could arise during production. If the project margin on a project is too slim there may not be enough room in the budget to absorb the unexpected challenges that all projects develop and still make money. In today’s volatile marketplace a 70 percent chance of success could take a nose dive. If it does, the corporation still wants to smell roses. Any projects that fail hurt the corporation’s image in the industry and could cost it the customer.
- #11 The goal of project selection and implementation is to introduce new concepts and change to an organization (Cleveland & Ireland, 2006). A project is a process within itself as it tends to aide the organization for current and future goals. There are core factors to the selection process that play a role in the creation and follow through. The organization needs to evaluate their resources and understand the risks that are involved.Morris Corporation has a selection process implemented that is not working to the mutual benefit of sales, PM’s, or general management. There is an ultimate goal of aligning resources for the best outcome of the business, but these are only realized upon discontentment bring them to attention. From the initial sales tactic there has to be consistency through the assignment of the project. If the proper steps are taken then resources are aligned as best as possible and a good outcome is likely.
- #12 (Cleland & Ireland, 2007, 212)There are many potential categories for project selection. Based on the needs of the Morris Corporation these are the best fit. They address the size of the corporation; and work and financial issues presented in the ‘all hands’ meeting. Residential complexes have urgent needs at unexpected times. The corporation may wish to provide special costing for these emergencies or pass on that business.