The document discusses establishing a Project Control Office (PCO) to provide project management practices and oversight. It outlines the changing role of IT from support to strategic enabler of business transformation. A PCO's responsibilities include managing project plans, budgets, schedules and issues. Examples of tools include status reports, scorecards and a master project plan template. Establishing a PCO can help projects complete within 5% of budget and schedule compared to 10-50% over without one. The ROI comes from identifying issues earlier to minimize impacts. Next steps to create an effective PCO include buy-in, dedicated resources, and tools.

1. Agenda
• Preface
• The Changing Role of IT
• Critical Components of World Class Organizations
• What Is a Project Control Office?
• Project Control Office Structure & Governance Model
• Examples of Project Control Office Tools/Templates
• State of Michigan Examples of Project Control Offices
• Project Control Office Return On Investment
• Next Steps: Creating A Project Control Office

2. • Think you know IT?
• Think again!
• Today’s focus:
• The changing role of IT in a changing world
• What it means for you (as an IT professional)
• What it means for DTMB (think business transformation)
• And some advice to enable success

3. Re-thinking IT
IT traditionally plays a
support role…
• Provide technical backbone
• Keep the shop running
•
You know us as the geek squad.
But that is so yesterday!
Do you know this guy?

4. Today, IT is infused in everything we do,
transforming how we live and work.
The role of IT is changing from support to:
• Innovation / Business Transformation
• Strategic Enabler
• Agility / Speed to Market
A new era in Information Technology is unfolding

5. Technology
People
Processes
IT Projects Don’t Exist…
They’re Business Transformation Projects

6. Critical Components of World Class
Organizations
• Innovate More
• Tightly integrate business units with IT
• Innovate and Transform leveraging Technology
• Business and IT Portfolio, Program and Project
Management
• Reduce Speed To Market
• Are extremely agile (Business and IT)
• Business and IT Portfolio, Program and Project
Management

7. What’s Required For Success?

8. What Is A Project Control Office?
•The purpose of the Project Control Office is to provide comprehensive and consistent
project management practices and reliable, metrics based statuses. PCO’s provide
value to all types and sizes of IT projects and can be delivered by teams of 1 up to 20+
depending on the size and complexity of the project.
PCO value is delivered by:
• Managing the big picture
• Managing the budget
• Establishes a Project Governance structure
• Providing coordination and communication across projects and agencies
• Identifying issues, risks, benefits, and scope changes
• Resolving escalated issues and mitigating risks
• Managing to a high-level milestone schedule
• Managing scope change
• Maintaining project sponsor support and alignment with the Agency objectives

9. Project Control Office Responsibilities
• The PCO is responsible for:
• Managing a detailed project plan
• Managing budgets
• Managing blocks of work for specific product delivery
• Tracking a schedule that addresses day-to-day detailed tasks
and activities
• Escalating issues that cannot be resolved at the project level
• Escalating risks that have a high probability of occurring and
affect multiple, related projects
• Escalating scope changes that cannot be resolved at the
project level or that effect multiple, related projects

10. Project Control Office Goals
• Schedule Control
• Tracking, monitoring processes
defined
Status, issues, change management
• Tools & environments set up
• Communication & training
•
Communication
• Status meetings, schedules, agendas
• Tools & environments set up (web site)
• Technical Control
• Configuration management processes
defined
• Tools & environments set up
• Communication & training
Driving
Ownership,
Accountability
& Focus

11. PCO Governance
•Strategy: To provide an organization with
governance and processes that recognizes all
stakeholders (Business and Technology) to create:
• Involvement
• Commitment
• Buy-in
• Accountability
• Ownership

12. Management
Teams
Project Leadership
Team
Sub
Project
Sub
Project
Sub
Project
Executive Steering
Committee
Sub
Project
Strategic
Tactical
Provides strategic direction.
Ultimately accountable for
strategic decisions and successful
outcome of the project.
Accountable for overall tactical
coordination, implementation
and focus.
Accountable for operational
execution to provide delivery of
goals and objectives. Operational
Governance Model Overview

13. Project
Control Office
Tools & Templates

14. Weekly Schedule
Monday Tuesday Wednesday Thursday Friday
Collect Metrics
Resolve Schedule
And Status Issues
with Teams
Executive Status
Tracking Metrics
Provided to
PCO
Metrics
Validated /
Schedules
Updated
Issue and Risk Identification and Resolution
Scorecards
Change Control
Mtg
Manager’s
Mtg
Status Reports
Submitted
Collect Timesheets

15. Rigorous Methodology

16. Master Project Plan / Timeline

17. Project Status:
Project Phase: UAT (71%)
Weeks to Pilot:07
Timeline
Accomplishments/Major
Milestones
 H1 – Disaster Recovery Plan – Submitted
 I2 – I5 – Training Preparation - Submitted
Key Activities This Week
 Application Development - Continue fixes UAT Work
Requests, CR Development
 Conversion – Work Requests, Benefit Match Rate, Interim
Conversion, Pilot Dry Run
 Technology Management – WR fixes, Pilot CR’s, Vblock
patches, Database Vault
 Implementation - Training Materials, Data Clean up, Office
Readiness, Pilot Readiness, Training Room
 Testing – Recorded QTP Scripts, UAT Testing
Key Activities Next Week
 Technology Management – Apply Exadata patches,
Performance Testing, VBLOCK patches
 Application Development - Work request fixes, UAT,
Change Request Development
 Conversion - Resolve work requests, Benefit match rate,
conversion defects
 Implementation/Training –Data Conversion, Training
Materials, Ideal Office, Train the Trainer
Project Time
1. Requirements
2. Design
3. Development
4. Conversion
5. QAT
6. UAT
7. MCI
8. Pilot
9. Wave 1
10. Wave 2
11. Wave 3
12. Training & Imp
3Q12
2Q12 4Q12 2Q13
1Q13 3Q13
1Q12
On Track
At Risk
Off Track
Not Started
On Hold
Completed
Duration
G
A
R
N
H
C
G
Progress
XXX Project Status
Week Ending XX/XX/XXXX
C
N
N
N
Sept 2011 – Dec 2011
Jan 2012 – Apr 2012
May 2012 – Oct 2012
Oct 2011 – Dec 2013
Nov 2012 – March 2013
Mar 2013 – June 2013
June 2013
July 2013
Sept 2013
Nov 2013
Jan 2014
Oct 2012 – March 2014
N
N
Risks/Issues
 External System interfaces changes may not
be completed on schedule
 Impact of HIX on the ASPEN Project
4Q13
C
G
C
C
G
$105,060,012
$40,694,199
$64,365,813
XXX Project Financials
Budget
Spending
Balance

18. Projects Agency
• BRIDGES DHS
• Treasury Modernization Program Treasury
• CHAMPS DCH
• MiTALENT MEDC
• Michigan Health Data Exchange DCH
• Medicaid Compliance Program DCH
• MiACTS DLARA
• Identity Management Initiative DTMB
• Unemployment Modernization DLARA
• BAM Modernization MDOS
• MiLAMP DTMB
Examples of SOM PCOs

19. PCO Return On Investment
• It was discovered that projects which had PCO related processes
saw their projects completed (on an average)
+/- 5% of the target schedule and budget for the current stage.
• Projects that did not properly utilize effective PM/PCO processes
completed their project anywhere from +10 to +50% over their
project budgets and target schedules.
• Also noted, the projects totaled a savings of +$250M (with
PM/PCO) compared to a total loss of $655M (without or limited
use of PM/PCO).
• This savings was largely due to effective project management
and controls, which gave the project teams the ability to
identify issues early enough to minimize impacts.
Source:
“Measuring ROI on Project Management - Project
Controls “ - JAMK International Business School

20. Assumptions:
• Projects with a PCO come in +/- 5% (budget/schedule)
• Projects without a PCO come in +10%-50% (budget/schedule)
What Does This Mean To Your Project?
• Let’s look at a $10M (2) year project:
Project X
Cost 10,000,000.00
$ Best Case Worst Case
Time in days 730 Low end High end
Without a PCO 10 percent over 50 percent over
Cost 11,000,000.00
$ 15,000,000.00
$
Time 803 1095
With a PCO 5 percent under 5 percent over
Cost 9,500,000.00
$ 10,500,000.00
$
Time 693.5 766.5
So what does this mean:
• Worst Case without a PCO
Your $10M, 2 year project costs you $15M
and takes (36) months to deliver
• Worst Case with a PCO
Your $10M, 2 year project costs you $10.5M
and takes (25) months to deliver

21. Next Steps: Creating An Effective PCO
 Buy-In & Commitment To Governance
Structure and Model
• Organizationally
• Key Processes
 Dedicated Business & Technical Resources
• Executive Owners
• Key Leads
 Dedicated Team Tools & Facilities