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PM Thought Leadership and
 Industry Best Practices
Agenda
• Introductions
• IT Project Management Basics
   – The right methodologies
   – Industry Best Practices
• IT Risk Management
   – Thought Leadership
• Managing Application Support Risks
   – Management 3.0
   – Projects delivered on time with less rework
• Application Management Case Study
• Managing Project Risks
• How we can help
Introductions
           Agenda
Computer Aid, Inc
•30 Years in IT Consulting Services Business
•Privately Held Entrepreneurial Organization
•3,000 Associates Worldwide
•$300 Plus Million in Revenue in 2011
•Offices in 34 U.S. Metropolitan Areas
•Global offices in Toronto, London, Sydney, and Kuwait,
Singapore
•Off-shore delivery: Philippines, China, Argentina,
Ethiopia, and India
•Headquarters: Allentown, Pa.
IT Project
Management
   Basics
What is the mission of IT?
 Deliver the Information Processing
Capability required by the business at
     a cost that represents value
IT Services
• Implement, operate, and support
   – Infrastructure (servers, mainframes, networks)
   – System software and Tools
      •   Operating Systems
      •   Data Query and Reporting
      •   E-mail and Internet Access
      •   Application design, development, and support tools
• Design, build/purchase, install, operate and support
  application software to support the business
• Store, protect and provide secure access to business
  information
• Provide consulting services to the business
Dimensions of IT Management
•   Strategy and Business Alignment
     –   Strategic Planning: Management Vision, Philosophy, and Objectives
     –   Business Planning: Identify Business Needs
     –   Portfolio Management: Initiate and prioritize projects
     –   Budgeting: Authorize with budgets and funding
•   IT Services
     –   Technology Architecture: Languages, DBMS, Network
     –   Infrastructure Operation: Operations Processes
     –   Application Development: SDLC, Project Management, Standards
     –   User Support and Services: Help Desk, SLA’s
•   Administration and Control
     – Human Resource Management: HR Policies, Training
     – Supplier Management: Purchasing
Dimensions of Project
        Management
•   Cost       •   Integration
•   Schedule   •   Communication
•   Scope      •   Human Resources
•   Quality    •   Procurement
•   Risk       •   Methodology
Dimensions of Operations &
   Support Management
  •   Reliability
  •   Availability
  •   Capability
  •   Timely
  •   Responsive/Performance
  •   Flexibility/Adaptability
IT Risk
Management
What is an IT Risk?

The possibility that IT will not be able
  to deliver the required capability
Risk Management Impact on Project Success
Risk Management
•   Identify - scenarios for failure
•   Analyze - likelihood and consequence of failure
•   Plan - actions required to track and control risks
•   Track - program performance against plan
•   Control - risk issues and verify effectiveness
•   Communicate and Document
Identify & Analyze Risks
• Strategic
  – Does the business strategic plan address information
    processing capabilities?
  – Is there a reasonable budget?
  – Does the Information Processing strategy directly link
    to business goals and objectives?
Identify & Analyze Risks
• Service Management Processes
– Do the services management processes adequately address the
  following areas?
        • Change and Quality Management
        • Incident and Problem Management
        • Availability and Capacity Management


• Service Level Commitments
–   What type of commitments does IT make (by area)?
–   Are they reasonable?
–   What scenarios would prevent IT from meeting the commitments?
–   Can IT respond to changing requirements?
Identify & Analyze Risks
• Application Architecture
  – Is the technology obsolete?
  – Does the application provide flexibility to respond to changing
    business requirements?
  – Is the application reliable and available when needed?
  – Does it handle spikes in processing volumes?
• Hardware and System Software
  –   What scenarios would impact this area?
  –   What is the required capacity, availability, and security?
  –   Do we have visibility of availability, reliability, and performance?
  –   Can faulty components be replaced?
  –   Can we identify trends?
Identify & Analyze Risks
• Application Operations and Support
  – Do the applications provide the required capabilities?
  – How often to they need to be enhanced?
  – How often do they need to be fixed?
  – What knowledge is required to operate and support?
  – Are they reliable, flexible, easy to use?
  – Is the technology obsolete?
  – Can they be easily updated to support changing
    requirements?
  – What do they cost and what value is provided?
Risk Planning
• Define success or the “commitment to deliver”
  (SLA’s, dates, estimates, scope)
• Analyze the “ability to deliver” including
  processes, tools, infrastructure, applications,
  staff, and knowledge
• Identify gaps or scenarios where the ability to
  deliver will not be able to meet the commitment
• Identify prevention or response actions
Track Progress
• Is the available capacity for processing and
  services aligned with the demand to meet
  business needs without wasting resources?
• Are SLA’s being met?
• Are processes being followed?
• What is the level of quality and the reason for
  defects?
• Is the staff size and their knowledge level
  adequate to meet the service demand?
Control
• Is there a formal risk management process?
• Are all risks logged?
• Who owns the responsibility for ownership for
  mitigation or prevention been assigned?
• Are problems analyzed to determine the risks
  that have not been addressed?
• Is there a problem management process for
  permanently fixing problems and eliminating
  risk?
Communicate
• Is there a formal risk management plan?
• Are known risks communicated to the staff so
  they can be aware of the risks?
• Does the business participate in the prioritization
  and mitigation of risks?
• Are the causes and impacts of problems
  communicated?
Scenario:

 Managing
A pplication
Maintenance
   Risks
Application Risk Areas
• Do the applications provide the required capabilities?
• How often to they need to be enhanced?
• How often do they need to be fixed?
• What knowledge is required to operate and support?
• Are they reliable, flexible, easy to use?
• Is the technology obsolete?
• Can they be easily updated to support changing
  requirements?
• What do they cost and what value is provided?
Background
• Mgt. 1.0          Hierarchical, highly filtered
                           information flow



• Mgt. 2.0          Empowered teams make
                         decisions




• Mgt. 3.0          Decision makers use virtual
                    control rooms that integrate hard
                    and soft data with best practices,
                    feedback loops and QA
Definition: Management System
•        Flow of information in the business
         to support decision-making and
         control. Leverages knowledge and
         data (e.g., opinions, judgments, risk
         assessments, risk management,
         intuition, best practices, quality
         assurance, human knowledge,
         decisions, hard data etc.)
•        From first line management to top
         management
•        Not a computer IT system (e.g.,
         ERP systems)
Current Management System: Decision-Making
               Process Model

Hard Data
 (IT, ERP,
 DSS, BI,
    DW)



 Soft Data
  (Human                                Decision-
Knowledge                               Making &
, Intuition,
Judgment)
                                         Control


   Best
Practices,
  Quality
Assurance,                  Filtered Data
  Rules                     Unfiltered Data
Management System
    Information Flow Among Decision-Making Units



   Innovation & Growth




Continuous Improvement




Operate &
Survive
Management 3.0 System
                                            Morale

Hard Data
 (IT, ERP,
 DSS, BI,
    DW)
                                           Collaborati
                                           on




 Soft Data
  (Human
Knowledge            Control
                                          Communicatio
, Intuition,          Room                    n
Judgment)


                     Functions:
   Best              •Collect data
                                              Alarm
Practices,           •Filter data
  Quality
Assurance,
                     •Create
  Rules              dashboards
                     •Create repository
Plan and Manage
• Inventory applications and their capabilities, availability
  requirements, and redundancies.
• Implement application management processes to track
   costs, changes, quality, and value to business.
• Identify missing or deficient capabilities and how
  often they need to be enhanced. Initiate enhancements
  to provide user-controlled configuration.
• Eliminate recurring problems by implementing fixes.
• Document required knowledge and facilitate
  orientation or cross-training of staff.
• Identify solutions for replacing obsolete technologies.
• Develop a retirement strategy.
Management Capability
Visibility
•What services are needed?
•What services are provided?
•When are they provided?
•How often?
•Why are they provided?
•How much do they cost?
Management Capability
Control
•Were the services authorized?
•Did they deliver the correct result?
•Were standard processes followed?
•Were the services delivered on-time and on-
budget?
•Did the customer receive value?
Management Capability
Optimization
•Reduce Risks and Costs
•Decrease Project Rework
•Improve Quality
•Improve Processes
•Improve Customer Satisfaction
•Increase Value to the Business
Scenario:

Mana ging Pr oject
      Risks
Risk Analysis: Why Projects Fail?
              Standish Chaos Report
 •   Incomplete Requirements     13.1%
 •   Lack of User Involvement    12.4%
 •   Lack of Resources           10.6%
 •   Unrealistic Expectations     9.9%
 •   Lack of Executive Support    9.3%
 •   Changing Requirements        8.7%
 •   Lack of Planning             8.1%
 •   Didn't Need It Any Longer    7.5%
 •   Lack of IT Management        6.2%
 •   Technology Illiteracy        4.3%
 •   Other                        9.9%
The solution begins with accountability

• Who is responsible for managing project risk?
• Who is responsible for project success?
• Who is to blame for project failures?
• Does the IT project team have unrealistic
  expectations of the business?
• Does the business have unrealistic
  expectations of the IT project team?
Mitigating Project Risks
• Cleary defining Requirements minimizes changes and
  re-work
• Establish an achievable Scope based on available
  resources, budgets, and expected completion date
• Plan the project to avoid Resource downtime and
  minimize schedule disruptions
• Identify Issues early to prevent problems and avoid the
  resulting re-work
Will you be successful?
        Effective Risk Management answers this question
• Required Information
   – Timely and accurate project performance data
   – Opinions/feedback from all participants
   – Status of all open issues
• Risk Analysis
   – Is the project on-time and on-budget for completed tasks?
   – Is the project on-time and on-budget for active tasks?
   – Has anything changed (scope, resource availability,
     customer satisfaction, levels of overtime)?
   – What is the reason and impact of the change?
   – What is the impact of open issues?
Information Requirements
• Stakeholder and Team Communications
   – Requirements
   – Status
   – Issues/Concerns

• Project Performance data
   – Actual effort/cost vs. estimates
   – Total Changes and the impact of changes
   – Total Re-Work by reason (requirements changes vs. errors)
   – Lost time due to schedule disruptions
Solutions
• Improve communications with all project
  participants without disrupting progress
• Ensure compliance with processes

• Collect and analyze project performance metrics
  to identify trends and new risks
• Efficient staff orientation to the project and the
  management processes to enable agile staffing
• Establish accountability
How does CAI succeed?
•   Repeatable Processes are used to manage requirements,
    scope, schedules, risk, issues, changes, quality, and resources
•   Tracer Service Management Tool provides visibility (metrics)
    and status into all assigned activities across projects and
    support
•   Automated Project Office Answers the question “Will we
    succeed?”
     – Early identification of risks by conducting project health
       assessments to analyze project performance metrics and
       surveys of participants and stakeholders
     – Validates compliance with processes
How does CAI succeed?
•   CAI is a thought leader in PMO Goverance
•   CAI has domain experts
•   CAI does this as part of what we do
•   CAI is an innovative organization focused on delivering
    business values
Automated Project Office
    Visibility of Issues
Automated Project Office
    Visibility of Issues
CAI Managed Ser vices
• Application Support Outsourcing
  –   Assume full responsibility for support
  –   Fixed Price
  –   Service Level Commitments
  –   Continuous Improvement Commitments

• Application Development
  – Fixed Price Proposals
  – On-Time, On-Budget, High Quality, Warranty

• Help Desk Outsourcing
  – Service Level Commitments
  – Fixed Price
CAI Clients
Manufacturing                                             Government




Retail          Financials   Transportation / Logistics




Services
                                                          Education

Insurance                     Utilities
Case Study:

Highmar k Ser vice
Excellence Pr oject
Service Excellence Project
Objective:
  Improve IT’s ability to meet or exceed commitments to the business
Year 1 Goal:
  Increase value to the business by increasing time spent on
  enhancements from 4% to 18%
Achievements
•   Time spent on enhancements increased to 22.5% in 9 months and 36%
    after 18 months
•   Enhancement backlog was eliminated
•   Application Problems and Support costs were reduced
•   Business management received increased visibility and control of their
    requested services, required hours, and cost
•   Increased Customer Satisfaction
Risk Assessment Results
 •   Service requests were not logged
 •   Service Level Goals are not formally defined
 •   Most of the available resource hours are spent resolving
     incidents resulting in a large backlog of projects
 •   Customer satisfaction was not measured but it was assessed
     as poor based on informal feedback
 •   Most of the support management processes were informal
     and team specific
 •   Knowledge was undocumented resulting in a dependence on
     “hero experts for each application
 •   “Reactive” management because of limited visibility and
     control
Solution Framework
                                     Optimise
                                     •Improve Processes
                                     •Reduce/Prevent Problems
                                     •Increase Value




                   Control
                   •Implement Processes
                   •Commitments/SLA’s
                   •Enforce Processes
                   •Authorize Services



    Visibility
    •Services
    •Resources
    •Performance
    •Metrics
Resulting Business Value
 •   Increased quality, reduced rework and application problems, and
     reduced support costs
 •   Improved process maturity
 •   Implemented metrics to support ongoing improvement initiatives
 •   Increased staff effectiveness and productivity
 •   Reduced risk
 •   Improved performance against commitments which improved
     customer satisfaction
Case Study

    Pa. Depar tment of
     Transpor tation

Application Management and
        Outsourcing
PennDOT Introduction
 Provides Transportation Management for
  the Commonwealth of Pennsylvania

   Created in 1970 to streamline transportation management
   Annual budget of over $6 bn of state and federal funds
   Total 121,000 miles of state and local highways
   Total 55,000 state and local bridges
   Manage 40,000 miles of highway and 25,000 bridges
   12,000 employees
   11.3 Million vehicle registrations
   8.7 Million driving licenses
   Safety and Emissions control inspection programmes
Commonwealth Directive
                 “Do more with less”
 Commonwealth Budget 2011-12

  Balance budget with no tax increases
  Refocus investment in core functions of government
  Reduce general fund budget by 4% ($1.17 billion)
  State spending overall reset to near 2008-09 levels
  State agencies are directed to focus on delivery and reduce
   administrative overhead
Success




          76,500 Function Points added
                0.2% defect rate
Case Study

          State of Georgia:
 Georgia Technology Authority (GTA)

ITBuzz: PPM/APO/Issue Management
GTA Mission
Vision
• A transparent, integrated enterprise where technology decisions are made
with the citizen in mind
Mission
• To connect Georgians to their government
Goals for FY 2012 - 2014
• Integrate Georgia Enterprise Technology Services (GETS) into a
seamless delivery model
• Establish IT governance that provides transparency
• Enable online services to meet the needs of Georgia citizens
GTA PPM Mission

                  GTA provides risk management for
                  Georgia's data and information systems
                  to ensure security, privacy, reliability
                  and protection of the state's
                  investments. The gap in agency
                  preparedness is a primary concern.
                  Agency management must put a higher
                  priority on planning and assuring and
                  protecting the systems and data used to
                  provide Georgia's citizens with critically
                  needed services. GTA continues to
                  assess, measure and report on state
                  agencies' performance in providing
                  programs to effectively reduce
                  information technology risk.
Project Assurance


In government, four out of five technology initiatives
will fail or not fully deliver on their initial promise. In
the last five years, the state has invested over $450 million
in large technology projects which, based on industry
trends, had a risk of costing the state $212 million more
than planned and delivering only 79 percent of what was
requested, with 29 percent of these projects cancelled
outright.
High return investment on projects

Project assurance is a structured review of technology
projects to evaluate and determine how they can be
successful. Project assurance looks at project organization,
sponsorship, plans, risks, issues, change, dependencies,
resources, and processes to determine how well they are
being executed in the context of the specific project, and
then makes recommendations to mitigate risks. It does not
conduct quality assurance of project deliverables but is
concerned with the way projects are being managed. It
provides line management.
Innovation

One key purpose of the IT roadmap is to ensure Georgia
agencies have access to the most appropriate IT to support their
objectives. New IT capabilities allow innovation of business
solutions. To take advantage of emerging IT capabilities,
agencies may sometimes need to make fundamental changes to
the way they provide services. Without the willingness and
knowledge to change, agencies will not gain the efficiencies and
productivity improvements from emerging business solutions.
GTA is working with a variety of state agencies to identify
opportunities for innovation that will be most valuable for the
state.
Press Release on GTA Website

GTA has established a contract with Computer Aid, Inc. (CAI) to provide a cost-effective, enterprise-
wide Portfolio Management Application. GTA will offer the tool, called Georgia Enterprise Management
Suite (GEMS), to state agencies starting Fiscal Year 2013.

"Agencies told us they needed help keeping large projects on track," said Tom Fruman, director of GTA's
Enterprise Governance and Planning Division. "We believe this portfolio and project management system
will give them insight they didn't have before. They will be able to monitor the health and status of
projects using a combination of traditional operational data and qualitative assessment data from multiple
stakeholders."

GEMS includes selected modules from CAI's project portfolio management application, ITBuzz Enterprise
Management Suite (www.caibuzz.com), which provides visibility and analytics for the purpose of risk
alerts and avoidance. GTA has opted to use the Portfolio Management, Automated Project Office, and
Issues Resolution Management modules. ITBuzz is built on a platform called Advanced Management
Insight (AMI), which allows for rapid development of industry-specific applications and enables users to
build highly customized solutions and robust management information systems quickly and cost
effectively.

CAI has been in business since 1981 and is headquartered in Allentown, PA. The company has more
than 30 offices throughout the United States, Europe, Canada, Asia Pacific, and Latin America.
Weekly Email from State CIO to Agencies
July 13, 2012
Part of GTA’s original legislative mandate is to track large IT projects in state agencies. A new tool is
giving us and the agencies a clearer picture of the status of those projects.

The team in EGAP recently launched the web-based tool, called Georgia Enterprise Management Suite
(GEMS), and response has been positive. The Department of Public Health (DPH) is already using
GEMS to track a project in Vital Records. GTA contracted with Computer Aid, Inc. for the tool, and
DPH worked with us on requirements and testing.

GEMS comes in response to agencies telling us they need more help keeping large projects on track. It
replaces the current dashboard and incorporates the Agency Project Request (APR) that agencies submit
before a project even gets off the ground. GEMS tracks projects throughout their lifecycle and applies
best practices and industry standards to aid in decisions about moving forward. It uses dashboard dials
to show various health indicators, including schedule, budget, risk, issues, communication and
quality. Data is gathered from questionnaires completed regularly by stakeholders – from project team
members and business owners to agency executives. The result is greater insight into the performance of
projects, programs and portfolios.

We expect the clarity and depth of information provided by GEMS to lighten the load for agency project
managers while also streamlining evaluations by our Critical Projects Review Panel. GEMS represents a
big step forward for project and portfolio management in state government. I appreciate the work of Tom
Fruman and the team that is making it happen:
Were we are today
ITBuzz Opportunities        GEMS
• ITGR – Annual Audit       • Live 8/24/12
  Cartridge                 • 37 Users (2) Agencies
• IT Application Support       – DPH
  Cartridge                    – SOA
• Governors Office –        • Goal to complete all
  Management 3.0              agencies by EOY
  Cartridge
• Critical Panel Review –
  Reporting/Capture
How can CAI help you?
• Fixed price Application Development services
• Application Support Outsourcing to allow your staff
  to work on projects
• Project Management and Transformation consulting
  to improve effectiveness
• Automated Project Office (SaaS) to enable a rapid
  project office implementation
• ITMPI – IT Metrics and Productivity Institute provides
  access to resources and knowledge from world-
  renowned experts in various fields
Thank you

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PMI Event

  • 1. PM Thought Leadership and Industry Best Practices
  • 2. Agenda • Introductions • IT Project Management Basics – The right methodologies – Industry Best Practices • IT Risk Management – Thought Leadership • Managing Application Support Risks – Management 3.0 – Projects delivered on time with less rework • Application Management Case Study • Managing Project Risks • How we can help
  • 3. Introductions Agenda Computer Aid, Inc •30 Years in IT Consulting Services Business •Privately Held Entrepreneurial Organization •3,000 Associates Worldwide •$300 Plus Million in Revenue in 2011 •Offices in 34 U.S. Metropolitan Areas •Global offices in Toronto, London, Sydney, and Kuwait, Singapore •Off-shore delivery: Philippines, China, Argentina, Ethiopia, and India •Headquarters: Allentown, Pa.
  • 5. What is the mission of IT? Deliver the Information Processing Capability required by the business at a cost that represents value
  • 6. IT Services • Implement, operate, and support – Infrastructure (servers, mainframes, networks) – System software and Tools • Operating Systems • Data Query and Reporting • E-mail and Internet Access • Application design, development, and support tools • Design, build/purchase, install, operate and support application software to support the business • Store, protect and provide secure access to business information • Provide consulting services to the business
  • 7. Dimensions of IT Management • Strategy and Business Alignment – Strategic Planning: Management Vision, Philosophy, and Objectives – Business Planning: Identify Business Needs – Portfolio Management: Initiate and prioritize projects – Budgeting: Authorize with budgets and funding • IT Services – Technology Architecture: Languages, DBMS, Network – Infrastructure Operation: Operations Processes – Application Development: SDLC, Project Management, Standards – User Support and Services: Help Desk, SLA’s • Administration and Control – Human Resource Management: HR Policies, Training – Supplier Management: Purchasing
  • 8. Dimensions of Project Management • Cost • Integration • Schedule • Communication • Scope • Human Resources • Quality • Procurement • Risk • Methodology
  • 9. Dimensions of Operations & Support Management • Reliability • Availability • Capability • Timely • Responsive/Performance • Flexibility/Adaptability
  • 11. What is an IT Risk? The possibility that IT will not be able to deliver the required capability
  • 12. Risk Management Impact on Project Success
  • 13. Risk Management • Identify - scenarios for failure • Analyze - likelihood and consequence of failure • Plan - actions required to track and control risks • Track - program performance against plan • Control - risk issues and verify effectiveness • Communicate and Document
  • 14. Identify & Analyze Risks • Strategic – Does the business strategic plan address information processing capabilities? – Is there a reasonable budget? – Does the Information Processing strategy directly link to business goals and objectives?
  • 15. Identify & Analyze Risks • Service Management Processes – Do the services management processes adequately address the following areas? • Change and Quality Management • Incident and Problem Management • Availability and Capacity Management • Service Level Commitments – What type of commitments does IT make (by area)? – Are they reasonable? – What scenarios would prevent IT from meeting the commitments? – Can IT respond to changing requirements?
  • 16. Identify & Analyze Risks • Application Architecture – Is the technology obsolete? – Does the application provide flexibility to respond to changing business requirements? – Is the application reliable and available when needed? – Does it handle spikes in processing volumes? • Hardware and System Software – What scenarios would impact this area? – What is the required capacity, availability, and security? – Do we have visibility of availability, reliability, and performance? – Can faulty components be replaced? – Can we identify trends?
  • 17. Identify & Analyze Risks • Application Operations and Support – Do the applications provide the required capabilities? – How often to they need to be enhanced? – How often do they need to be fixed? – What knowledge is required to operate and support? – Are they reliable, flexible, easy to use? – Is the technology obsolete? – Can they be easily updated to support changing requirements? – What do they cost and what value is provided?
  • 18. Risk Planning • Define success or the “commitment to deliver” (SLA’s, dates, estimates, scope) • Analyze the “ability to deliver” including processes, tools, infrastructure, applications, staff, and knowledge • Identify gaps or scenarios where the ability to deliver will not be able to meet the commitment • Identify prevention or response actions
  • 19. Track Progress • Is the available capacity for processing and services aligned with the demand to meet business needs without wasting resources? • Are SLA’s being met? • Are processes being followed? • What is the level of quality and the reason for defects? • Is the staff size and their knowledge level adequate to meet the service demand?
  • 20. Control • Is there a formal risk management process? • Are all risks logged? • Who owns the responsibility for ownership for mitigation or prevention been assigned? • Are problems analyzed to determine the risks that have not been addressed? • Is there a problem management process for permanently fixing problems and eliminating risk?
  • 21. Communicate • Is there a formal risk management plan? • Are known risks communicated to the staff so they can be aware of the risks? • Does the business participate in the prioritization and mitigation of risks? • Are the causes and impacts of problems communicated?
  • 23. Application Risk Areas • Do the applications provide the required capabilities? • How often to they need to be enhanced? • How often do they need to be fixed? • What knowledge is required to operate and support? • Are they reliable, flexible, easy to use? • Is the technology obsolete? • Can they be easily updated to support changing requirements? • What do they cost and what value is provided?
  • 24. Background • Mgt. 1.0 Hierarchical, highly filtered information flow • Mgt. 2.0 Empowered teams make decisions • Mgt. 3.0 Decision makers use virtual control rooms that integrate hard and soft data with best practices, feedback loops and QA
  • 25. Definition: Management System • Flow of information in the business to support decision-making and control. Leverages knowledge and data (e.g., opinions, judgments, risk assessments, risk management, intuition, best practices, quality assurance, human knowledge, decisions, hard data etc.) • From first line management to top management • Not a computer IT system (e.g., ERP systems)
  • 26. Current Management System: Decision-Making Process Model Hard Data (IT, ERP, DSS, BI, DW) Soft Data (Human Decision- Knowledge Making & , Intuition, Judgment) Control Best Practices, Quality Assurance, Filtered Data Rules Unfiltered Data
  • 27. Management System Information Flow Among Decision-Making Units Innovation & Growth Continuous Improvement Operate & Survive
  • 28. Management 3.0 System Morale Hard Data (IT, ERP, DSS, BI, DW) Collaborati on Soft Data (Human Knowledge Control Communicatio , Intuition, Room n Judgment) Functions: Best •Collect data Alarm Practices, •Filter data Quality Assurance, •Create Rules dashboards •Create repository
  • 29. Plan and Manage • Inventory applications and their capabilities, availability requirements, and redundancies. • Implement application management processes to track costs, changes, quality, and value to business. • Identify missing or deficient capabilities and how often they need to be enhanced. Initiate enhancements to provide user-controlled configuration. • Eliminate recurring problems by implementing fixes. • Document required knowledge and facilitate orientation or cross-training of staff. • Identify solutions for replacing obsolete technologies. • Develop a retirement strategy.
  • 30. Management Capability Visibility •What services are needed? •What services are provided? •When are they provided? •How often? •Why are they provided? •How much do they cost?
  • 31. Management Capability Control •Were the services authorized? •Did they deliver the correct result? •Were standard processes followed? •Were the services delivered on-time and on- budget? •Did the customer receive value?
  • 32. Management Capability Optimization •Reduce Risks and Costs •Decrease Project Rework •Improve Quality •Improve Processes •Improve Customer Satisfaction •Increase Value to the Business
  • 33. Scenario: Mana ging Pr oject Risks
  • 34. Risk Analysis: Why Projects Fail? Standish Chaos Report • Incomplete Requirements 13.1% • Lack of User Involvement 12.4% • Lack of Resources 10.6% • Unrealistic Expectations 9.9% • Lack of Executive Support 9.3% • Changing Requirements 8.7% • Lack of Planning 8.1% • Didn't Need It Any Longer 7.5% • Lack of IT Management 6.2% • Technology Illiteracy 4.3% • Other 9.9%
  • 35. The solution begins with accountability • Who is responsible for managing project risk? • Who is responsible for project success? • Who is to blame for project failures? • Does the IT project team have unrealistic expectations of the business? • Does the business have unrealistic expectations of the IT project team?
  • 36. Mitigating Project Risks • Cleary defining Requirements minimizes changes and re-work • Establish an achievable Scope based on available resources, budgets, and expected completion date • Plan the project to avoid Resource downtime and minimize schedule disruptions • Identify Issues early to prevent problems and avoid the resulting re-work
  • 37. Will you be successful? Effective Risk Management answers this question • Required Information – Timely and accurate project performance data – Opinions/feedback from all participants – Status of all open issues • Risk Analysis – Is the project on-time and on-budget for completed tasks? – Is the project on-time and on-budget for active tasks? – Has anything changed (scope, resource availability, customer satisfaction, levels of overtime)? – What is the reason and impact of the change? – What is the impact of open issues?
  • 38. Information Requirements • Stakeholder and Team Communications – Requirements – Status – Issues/Concerns • Project Performance data – Actual effort/cost vs. estimates – Total Changes and the impact of changes – Total Re-Work by reason (requirements changes vs. errors) – Lost time due to schedule disruptions
  • 39. Solutions • Improve communications with all project participants without disrupting progress • Ensure compliance with processes • Collect and analyze project performance metrics to identify trends and new risks • Efficient staff orientation to the project and the management processes to enable agile staffing • Establish accountability
  • 40. How does CAI succeed? • Repeatable Processes are used to manage requirements, scope, schedules, risk, issues, changes, quality, and resources • Tracer Service Management Tool provides visibility (metrics) and status into all assigned activities across projects and support • Automated Project Office Answers the question “Will we succeed?” – Early identification of risks by conducting project health assessments to analyze project performance metrics and surveys of participants and stakeholders – Validates compliance with processes
  • 41. How does CAI succeed? • CAI is a thought leader in PMO Goverance • CAI has domain experts • CAI does this as part of what we do • CAI is an innovative organization focused on delivering business values
  • 42. Automated Project Office Visibility of Issues
  • 43. Automated Project Office Visibility of Issues
  • 44. CAI Managed Ser vices • Application Support Outsourcing – Assume full responsibility for support – Fixed Price – Service Level Commitments – Continuous Improvement Commitments • Application Development – Fixed Price Proposals – On-Time, On-Budget, High Quality, Warranty • Help Desk Outsourcing – Service Level Commitments – Fixed Price
  • 45. CAI Clients Manufacturing Government Retail Financials Transportation / Logistics Services Education Insurance Utilities
  • 46. Case Study: Highmar k Ser vice Excellence Pr oject
  • 47. Service Excellence Project Objective: Improve IT’s ability to meet or exceed commitments to the business Year 1 Goal: Increase value to the business by increasing time spent on enhancements from 4% to 18% Achievements • Time spent on enhancements increased to 22.5% in 9 months and 36% after 18 months • Enhancement backlog was eliminated • Application Problems and Support costs were reduced • Business management received increased visibility and control of their requested services, required hours, and cost • Increased Customer Satisfaction
  • 48. Risk Assessment Results • Service requests were not logged • Service Level Goals are not formally defined • Most of the available resource hours are spent resolving incidents resulting in a large backlog of projects • Customer satisfaction was not measured but it was assessed as poor based on informal feedback • Most of the support management processes were informal and team specific • Knowledge was undocumented resulting in a dependence on “hero experts for each application • “Reactive” management because of limited visibility and control
  • 49. Solution Framework Optimise •Improve Processes •Reduce/Prevent Problems •Increase Value Control •Implement Processes •Commitments/SLA’s •Enforce Processes •Authorize Services Visibility •Services •Resources •Performance •Metrics
  • 50. Resulting Business Value • Increased quality, reduced rework and application problems, and reduced support costs • Improved process maturity • Implemented metrics to support ongoing improvement initiatives • Increased staff effectiveness and productivity • Reduced risk • Improved performance against commitments which improved customer satisfaction
  • 51. Case Study Pa. Depar tment of Transpor tation Application Management and Outsourcing
  • 52. PennDOT Introduction  Provides Transportation Management for the Commonwealth of Pennsylvania  Created in 1970 to streamline transportation management  Annual budget of over $6 bn of state and federal funds  Total 121,000 miles of state and local highways  Total 55,000 state and local bridges  Manage 40,000 miles of highway and 25,000 bridges  12,000 employees  11.3 Million vehicle registrations  8.7 Million driving licenses  Safety and Emissions control inspection programmes
  • 53. Commonwealth Directive “Do more with less”  Commonwealth Budget 2011-12  Balance budget with no tax increases  Refocus investment in core functions of government  Reduce general fund budget by 4% ($1.17 billion)  State spending overall reset to near 2008-09 levels  State agencies are directed to focus on delivery and reduce administrative overhead
  • 54. Success 76,500 Function Points added 0.2% defect rate
  • 55. Case Study State of Georgia: Georgia Technology Authority (GTA) ITBuzz: PPM/APO/Issue Management
  • 56. GTA Mission Vision • A transparent, integrated enterprise where technology decisions are made with the citizen in mind Mission • To connect Georgians to their government Goals for FY 2012 - 2014 • Integrate Georgia Enterprise Technology Services (GETS) into a seamless delivery model • Establish IT governance that provides transparency • Enable online services to meet the needs of Georgia citizens
  • 57. GTA PPM Mission GTA provides risk management for Georgia's data and information systems to ensure security, privacy, reliability and protection of the state's investments. The gap in agency preparedness is a primary concern. Agency management must put a higher priority on planning and assuring and protecting the systems and data used to provide Georgia's citizens with critically needed services. GTA continues to assess, measure and report on state agencies' performance in providing programs to effectively reduce information technology risk.
  • 58. Project Assurance In government, four out of five technology initiatives will fail or not fully deliver on their initial promise. In the last five years, the state has invested over $450 million in large technology projects which, based on industry trends, had a risk of costing the state $212 million more than planned and delivering only 79 percent of what was requested, with 29 percent of these projects cancelled outright.
  • 59. High return investment on projects Project assurance is a structured review of technology projects to evaluate and determine how they can be successful. Project assurance looks at project organization, sponsorship, plans, risks, issues, change, dependencies, resources, and processes to determine how well they are being executed in the context of the specific project, and then makes recommendations to mitigate risks. It does not conduct quality assurance of project deliverables but is concerned with the way projects are being managed. It provides line management.
  • 60. Innovation One key purpose of the IT roadmap is to ensure Georgia agencies have access to the most appropriate IT to support their objectives. New IT capabilities allow innovation of business solutions. To take advantage of emerging IT capabilities, agencies may sometimes need to make fundamental changes to the way they provide services. Without the willingness and knowledge to change, agencies will not gain the efficiencies and productivity improvements from emerging business solutions. GTA is working with a variety of state agencies to identify opportunities for innovation that will be most valuable for the state.
  • 61. Press Release on GTA Website GTA has established a contract with Computer Aid, Inc. (CAI) to provide a cost-effective, enterprise- wide Portfolio Management Application. GTA will offer the tool, called Georgia Enterprise Management Suite (GEMS), to state agencies starting Fiscal Year 2013. "Agencies told us they needed help keeping large projects on track," said Tom Fruman, director of GTA's Enterprise Governance and Planning Division. "We believe this portfolio and project management system will give them insight they didn't have before. They will be able to monitor the health and status of projects using a combination of traditional operational data and qualitative assessment data from multiple stakeholders." GEMS includes selected modules from CAI's project portfolio management application, ITBuzz Enterprise Management Suite (www.caibuzz.com), which provides visibility and analytics for the purpose of risk alerts and avoidance. GTA has opted to use the Portfolio Management, Automated Project Office, and Issues Resolution Management modules. ITBuzz is built on a platform called Advanced Management Insight (AMI), which allows for rapid development of industry-specific applications and enables users to build highly customized solutions and robust management information systems quickly and cost effectively. CAI has been in business since 1981 and is headquartered in Allentown, PA. The company has more than 30 offices throughout the United States, Europe, Canada, Asia Pacific, and Latin America.
  • 62. Weekly Email from State CIO to Agencies July 13, 2012 Part of GTA’s original legislative mandate is to track large IT projects in state agencies. A new tool is giving us and the agencies a clearer picture of the status of those projects. The team in EGAP recently launched the web-based tool, called Georgia Enterprise Management Suite (GEMS), and response has been positive. The Department of Public Health (DPH) is already using GEMS to track a project in Vital Records. GTA contracted with Computer Aid, Inc. for the tool, and DPH worked with us on requirements and testing. GEMS comes in response to agencies telling us they need more help keeping large projects on track. It replaces the current dashboard and incorporates the Agency Project Request (APR) that agencies submit before a project even gets off the ground. GEMS tracks projects throughout their lifecycle and applies best practices and industry standards to aid in decisions about moving forward. It uses dashboard dials to show various health indicators, including schedule, budget, risk, issues, communication and quality. Data is gathered from questionnaires completed regularly by stakeholders – from project team members and business owners to agency executives. The result is greater insight into the performance of projects, programs and portfolios. We expect the clarity and depth of information provided by GEMS to lighten the load for agency project managers while also streamlining evaluations by our Critical Projects Review Panel. GEMS represents a big step forward for project and portfolio management in state government. I appreciate the work of Tom Fruman and the team that is making it happen:
  • 63. Were we are today ITBuzz Opportunities GEMS • ITGR – Annual Audit • Live 8/24/12 Cartridge • 37 Users (2) Agencies • IT Application Support – DPH Cartridge – SOA • Governors Office – • Goal to complete all Management 3.0 agencies by EOY Cartridge • Critical Panel Review – Reporting/Capture
  • 64. How can CAI help you? • Fixed price Application Development services • Application Support Outsourcing to allow your staff to work on projects • Project Management and Transformation consulting to improve effectiveness • Automated Project Office (SaaS) to enable a rapid project office implementation • ITMPI – IT Metrics and Productivity Institute provides access to resources and knowledge from world- renowned experts in various fields

Editor's Notes

  1. IT organizations can lose focus because they are responding to daily priorities and become reactive. In order to maintain focus, it is important to clearly define the mission of an IT organization. The “mission” of IT is NOT to provide computer technology and applications. Instead, the “mission of an IT organization” is to: deliver “the information processing capability ” Required by the Business At a “ cost that represents value ” As you can see, this mission statement has two variables. “ Required by the business” and “value”. Both of these can change and they can be subjective. Why is this important? One of the biggest risks faced by IT (and any business) is the failure to recognize changes in requirements and perception of value.
  2. In order to provide the required processing capability, IT provides the following services: Implement, operate and support hardware (servers, networks, printers) Implement support and utilize variety of general purpose tools such as E-mail, Query software, and tools for developing and supporting applications. Design, build/purchase, install, operate, and support applications Store and protect information IT also provides a wide variety of consulting and planning services to the business
  3. IT management consists of three major categories and 10 dimensions. It is important to note that IT is a young profession and standard management frameworks are still evolving. In order to ensure success, each of the management frameworks must address these common areas.
  4. Delivery of IT services consists of scheduled activities and on-demand services. Scheduled activities are typically managed as projects and success requires management of the following areas:
  5. Delivery of IT services consists of scheduled activities and on-demand services. Scheduled activities are typically managed as projects and success requires management of the following areas:
  6. People have different opinions regarding the meaning of terms. If you ask ten people to define a “project” you will probably get ten different definitions. For the purposes of this presentation, we define IT risk as: The possibility IT will not be able to deliver the required capability.
  7. According to this study by Interlink consulting, Risk Management has the biggest impact on project success.
  8. Let us discuss some risk management theory. NASA specializes in managing risk. Their missions are some of the riskiest endeavors ever attempted by man. NASA identifies the following activities for identifying and managing risk: Identify failure scenarios. Analyse the likelihood that the scenario will occur. There is a possibility that you will leave your house and be struck by a meteor but the likelihood of such an event is so remote that you would not take any precautions. On the other hand, if it is cloudy and humid, it is likely there will be rain so you should mitigate the risk by taking an umbrella. Planning includes defining the activities required to track risks and control their impact through mitigation or recovery actions. If you choose not to mitigate the risk, it is important to track the frequency and impact if problems when they occur. Effective Risk Management also includes communication and awareness
  9. The next step is to Analyse the risks. If we agree that a risk is the possibility of not meeting commitments then we should analyse the scenarios that may cause us to meet commitments. Identify the types of commitments, how they align with expectations, determine if they are reasonable, and how to ensure they are met. We must also recognize that requirements will change which will require new commitments. Finally, management processes should be analysed to determine if they are adequate.
  10. The next step is to Analyse the risks. If we agree that a risk is the possibility of not meeting commitments then we should analyse the scenarios that may cause us to meet commitments. Identify the types of commitments, how they align with expectations, determine if they are reasonable, and how to ensure they are met. We must also recognize that requirements will change which will require new commitments. Finally, management processes should be analysed to determine if they are adequate.
  11. The next step is to Analyse the risks. If we agree that a risk is the possibility of not meeting commitments then we should analyse the scenarios that may cause us to meet commitments. Identify the types of commitments, how they align with expectations, determine if they are reasonable, and how to ensure they are met. We must also recognize that requirements will change which will require new commitments. Finally, management processes should be analysed to determine if they are adequate.
  12. Application management is one of the highest risk areas for IT. Applications provide the direct link to the business. They are difficult/expensive to develop or purchase and they also require extensive support. Application inventories should be assessed based on the following criteria:
  13. In order to identify risk scenarios, we need to define success based on commitments. Then we need to address issues with our ability to deliver on these commitments,
  14. Tracking progress is a proactive step. If we do not track progress then we cannot identify trends and anticipate and prevent problems. Examples of progress tracking include:
  15. Control cannot be achieved without a formal risk management process that includes logging risks and issues and assigning ownership for mitigation or resolution. This includes an analysis of problems to identify new risks. This requires incident tracking and problem management capabilities.
  16. If the Risk Management Team does not communicate risks and implement processes to mitigate risks, then they will have to react to the resulting problems without the ability to prevent them. A formal Risk Management Plan provides an excellent mechanism for communicating risks. This also makes it easier for the business to participate in the prioritization and mitigation of risks and the identification of problems.
  17. The following questions should be answered for each application, gaps should be identified, and a plan should be prepared to address the gaps.
  18. The following questions should be answered for each application, gaps should be identified, and a plan should be prepared to address the gaps.
  19. The following questions should be answered for each application, gaps should be identified, and a plan should be prepared to address the gaps.
  20. The following questions should be answered for each application, gaps should be identified, and a plan should be prepared to address the gaps.
  21. The following questions should be answered for each application, gaps should be identified, and a plan should be prepared to address the gaps.
  22. The following questions should be answered for each application, gaps should be identified, and a plan should be prepared to address the gaps.
  23. A plan should be created to address the following areas. Each of these activities should be repeated on a periodic basis. Changes to business requirements or technology may introduce new risks or problems.
  24. Effective application management requires the delivery of a wide variety of operations, support, and change management services. Management must have visibility of these services to answer the following questions. This information helps to ensure the appropriate support capability is available and can also justify the long-term strategy for replacement or retirement.
  25. Once management has visibility of the required services, they can implement processes to provide the required level of control.
  26. Finally, the Application Management processes must provide for continuous improvement to reduce risks and costs, improve quality, processes and customer satisfaction and increase value to the busines.
  27. This section of the presentation will describe an actual case study for a large Health Insurance Company. CAI provided consulting services to assess and mitigate Application Management risks and improve the effectiveness of the organization.
  28. The Standish Group publishes their Chaos report to show the success rate of projects. They conduct additional studies to determine why project fail. Their latest report highlights the most common reasons (as identified by IT organizations). If we look at many of these reasons, IT is blaming the business for the failures. Unfortunately, from a risk management perspective, getting the business to change how they interact with project teams is very difficult. The success rate of projects has not improved much in the last 15 years and this is one of the reasons why.
  29. Many risks begin with the lack of accountability and unrealistic expectations
  30. The following steps can be taken by project teams to mitigate project risks:
  31. Effective risk management must be able to answer the question… “ Will you be successful?” This question must be asked every day because circumstances change In order to answer this question, we need information.
  32. We need information from people as well as our operational systems Getting information from people can involve time-consuming meetings document creation, and E-mail communication Project performance data is typically distributed across multiple systems.
  33. How do we reduce project risk?
  34. CAI delivers fixed price solutions. Managing risk is essential to our success and profitability. We recognize the need for repeatable tools and processes so we developed the following solutions:
  35. CAI delivers fixed price solutions. Managing risk is essential to our success and profitability. We recognize the need for repeatable tools and processes so we developed the following solutions:
  36. Each one of these performance criteria identifies potential risks. By monitoring this criteria, we can anticipate and prevent problems Examples of Risks include: Failure to follow processes Unstable scope Scheduling issues Lost Time Turnover
  37. Tracking Customer satisfaction can provide an early indication of risk or problems. Dis-satisfied customers are an indicator of risk and can disrupt progress.
  38. This section of the presentation will describe an actual case study for a large Health Insurance Company. CAI provided consulting services to assess and mitigate Application Management risks and improve the effectiveness of the organization.
  39. The DVS group was established to provide development and support services for applications that process Dental and Vision Insurance Claims. They were required to bill for all of their costs and had to prove their value to their business sponsor. Their challenge: They could not respond to enhancement requests and projects because too much of their time was spent on problems and support. Their objective: Mitigate the issues and risks to reduce the time/cost spent on support and enable the team to address the growing back log of projects and enhancements. The initiative achieved the following:
  40. The project began with a Risk Assessment which discovered the following issues:
  41. The transformation involved three phases: We ran queries to collect metrics to identify the types of support services, frequency, priority, and cost. Processes were implemented to enhance the ability to manage the support services, establish commitments, authorise work, and enforce processes. Finally, we trained the team to look for new risks or opportunities for improvement. This included implementing permanent solutions to recurring problems to reduce support costs.
  42. The transformation effort delivered the following business value:
  43. We thank you for your time and attention. CAI has developed these management practices and solutions in order to improve our own effectiveness and minimize waste. We use them to provide a variety of services and we license our solultions for use by our customers.