Project/Program Management: Issues & Trends Presented to the

Project/Program Management: Issues & Trends Presented to the

Project/Program Management: Issues & Trends Presented to the National Institutes of Health (NIH) Project Management Center of Excellence November 12, 2008 1 Todays Presenters Lou Pack, OPM3, PMP Vice President, ICF International PMI Affiliations ICF representative to PMI Global Corporate Council Served on PMI standards development committees Member FAA Academy, Instructor, Acquisition and Project

Management Federal Program and Project Management Transportation, Homeland Security, Treasury, DoD, Department of State, IRS, Postal Service Stan Maoury, PMP Project Manager, ICF International PMI Affiliations Member Current NIH Project Management NIH Office of the CIO NIH Operational Analysis Management Framework development and implementation CIO-ITMC Conference Support

NCI, CBIIT CPIC, Governance, and IT Strategic Planning Support Services Prior NIH Project Management Office of the Chief IT Architect, Program Management Support NHLBI, IT Strategy development 2 Agenda Todays Presenters ICF International Corporate Overview Why Projects Fail Identifying Future Trends in U.S. Public Sector Project/Program Management Open Discussion, Questions and Answers 3

ICF International End-to-end management, technology, and policy services advise, implement, improve Thirty-nine years of experience founded in 1969 More than 3,500 employees Global presence with 31 offices with headquarters in the Washington, D.C. area Diverse client base 79% federal, state, and local agencies; 15% commercial; and 6% international governments NIH OCIO, Governance and CPIC NCI, CBIIT, Governance and Strategic Planning NLM, SIS, NLM SIS/TOXNET Computer System Support eRA, System Support

Public company on NASDAQ with symbol ICFI 4 ICF International (Contd) Project Management Affiliations & Certifications Member of PMI Corporate Council PMI Registered Education Provider PMI Certified Organizational Project Management Maturity Model (OPM3) Assessor and Consultant More than 70 PMI certified PMPs Staff volunteers on PMI Standards work groups 5 Why Projects Fail? 6 Whats Going On? All organizations are trying to get a handle on their

projects . . . . no organization sets out to fail. PM training, certification, tools, processes, controls, centers of excellence . . . but were still missing the mark Projects fail at an astonishing rate by some estimates, over 50%! The toll it takes is not just financial. Demoralized employees Negatively predisposed stakeholders WH Y ? 7 Understanding the Challenges of PM Project Managers Aware of PM best practices, principles, controls, tools, and techniques Recognize the value of the PM methodology and best practices

Are committed to applying them However, other key stakeholders have yet to recognize the value of PM best practices Not aware of PM best practices Underestimate the value of PM best practices Not committed to applying PM best practices Public sector environmental factors Political issues and agendas Funding cycle 8 Understanding the Challenges of PM (Contd) What one believes . . . Its not a needed Doesnt apply to what we do

discipline This SW tool is Project Management Weve got a Gantt chart . . impacts how one behaves Lack of adequate planning Slow executive recognition & support Our Project Managers can handle it all Lack of top management

support Communication breakdowns Underestimated program complexity Inadequate resources I already know how much it will cost, how long it will take, and who will do it Lack of risk management & contingency planning 9

Boiling It Down Organizations are still not committing 1. Senior managers still think that project management is a software tool 2. Organizations underestimate the value of investing in time upfront 3. Prior PmM (Project mis Management) 4. Traditional PM approaches shift attention away from end results toward developing recommendations, tools, and partial solutions 5. Organizations dont know how to implement culture change 10 Project Management Is Not a Software Tool Senior managers still think Project Management is a SW tool. PM is about discipline and proactively applying processes and best practices.

= PM Tools, on the other hand, are about data Provide capabilities to help manage, analyze, and report projectrelated data Introduce PM process efficiency Establish discipline and enforce best practices Tools are only as effective as the underlying processes they enable. Help correct Sr. Management thinking Align processes with tools . . . .illustrate that process is the driver. 11 Invest The Time To Plan! Organizations underestimate the value of investing in time up-front. Knowing what youre doing before you start allows you to manage the work more effectively. Too many organizations tend to jump to DO without considering PLAN Do > Check > Act > Re-do > Check > Act > Re-do > Check > Re-do ...

The Project Schedule is not the Project Plan; it is a component of the Project Plan. Time (schedule) Statement of Need Organization/Project Governance Integration Cost Project Objectives Quality Scope

Human Resources Communications Risk Procurement 12 Learn From The Past Prior Project mis Management (PmM) Perception that PM is too intense and takes focus away from productive work. Not scaling the methodology appropriately to the size of the project? Possibly a misguided attempt at implementing the PM methodology? Account for project dynamics (size, complexity). Tailoring Progressive elaboration (requires senior management understanding) Risk management

Reserves Apply the theory behind the best practice, not the verbatim best practice 13 Traditional PM Approaches Traditional approaches shift attention away from end results toward developing tools, recommendations, and partial solutions. Project managers use project plans, timelines, and budgets to reduce execution risk without addressing: White space risk some required activities wont be identified in advance, leaving gaps in the project plan; and Integration risk that disparate project activities wont come together at the end. Maintain the Project Plan on an ongoing basis to address white space risk and integration risk. Planning does not end with project execution.

14 Manage Culture Change Organizations dont know how to implement culture change Changing non-believers into believers requires more than PM training. Perceptions, attitudes, and beliefs require a fundamental change in the culture of project management. Culture change is slow and typically begins grass-roots . . . Thats us! PMs and project teams need to create awareness and demand for PM processes Tout both the benefits of PM and the risks of not doing PM Cite real-world examples Obtain executive sponsorship

Plan for culture change 15 What Can We Do About It? ISSUE MOVING FORWARD Sr. managers still think PM is a . software tool Ensure alignment between PM processes and tools. Organizations underestimate the .. value of investing in time up-front Account for planning when developing project budget and schedule estimates; readjust to account for budget limitations.

Prior Project mis Management .. Traditional PM approaches shift .. attention away from end results Change management Learn from prior project mishaps and use them as a case for proper PM methodologies in the future! Leverage integrated change control to maintain the Project Plan on an ongoing basis. Establish a long-term, methodical plan for changing culture in concert with behavior 16 Identifying Future Trends in U.S. Public Sector Project/Program Management

17 Future Trend #1 Accountability & Performance Expectations Are On The Rise 18 Executive Order Improving Government Program Performance (11/13/07) Agencies shall apply taxpayer resources efficiently in a manner that maximizes the effectiveness of Government programs in serving the American people Creation of agency Performance Improvement Officer Agency chiefs must approve program performance goals, plans for accomplishing them and approaches to measure them

Formalizes PART to add bite to Government Performance Results Act (GPRA) of 1993 19 Obama Pledges to Fire Managers, Cut Redundant Programs Go through the entire federal budget page by page, line by line and eliminate the programs that dont work and arent needed PART will be re-organized Fire managers of poorperforming programs Form SWAT team to review programs Chief Performance Officer to lead Joe the Plumber will not be Chief Performance Government Executive Magazine, by Tom Shoop, 9/22/08 Officer in an Obama Administration 20

Future Trend #1 Recommendations for the PM Community Promote PM Best Practices as an Enabler of Increased Accountability & Stronger Performance Link PM Best Practices to Federal Mandates & Laws (for example OMB300s, PART-like process, FAR requirements) Prepare for Rapid Adoption of New Administration Language & Frameworks Subtly Weave PM Value Proposition Into Your Talk Track 21 Future Trend #2 Effective Stakeholder Management Continues to Need Work 22

Measures of Public Sector Programmatic Success Timely completion? Staying within budget? Delivering intended scope? Quality? Delivers value to the taxpayer? Contributes to the political agenda of politicians? Favorable media portrayal? 23 Programmatic Success Sometimes Perception is Reality Managing public perception is sometimes as important as managing at the operational level Program success is not necessarily derived only from internal focus but also external influences Critical aspects of programs can be misrepresented

by the media and misunderstood by the public The need for reactive and proactive strategic communications is integral to program success 24 Programmatic Success Requires Focus on Three Levels Beliefs, Behaviors, & Perceptions Strategic Alignment Operational Program Success

Beliefs & Assumptions Fix Problems Work on the Business System Work on the Human System 25 Future Trend #2 Recommendations for the PM Community Provide a Framework for Consistent Messaging Develop and Maintain Relationships with Influential Reporters Manage Media Coverage Garner Stakeholder Awareness 26 Future Trend #3 The Focus Is Changing From Doing Work

To Getting Results 27 Doing Things vs. Getting Results Outcome Management, Benefits Realization, Results Attainment What are we trying to achieve with this program? A focus on achieving impact vs. doing things Many career feds are deeply committed to their agency missions and positive outcomes NOT managing schedule/cost/performance 28 Outcome Management From Outputs to Outcomes Term

Definition Inputs Resources a program uses to achieve objectives Staff, volunteers, facilities, equipment, money Activities What a program does with its inputs the services it provides to fulfill the mission Sheltering homeless families, providing adult mentors for youth Outputs

Products of a programs activities Number of meals provided, classes taught, brochures distributed Outcomes Desired Project/Program Results Knowledge, skills, attitudes, values, behaviors, higher test scores Outcome Indicators Specific data points that track a programs success on outcomes If healthy lifestyle is outcome not smoking, maintaining healthy weight, blood pressure, cholesterol level, at

least 2 hours of exercise each week Outcome Targets Numerical objectives for a programs level of achievement on it outcomes After measuring outcomes programs can set targets for % or # of participants expected to achieve x Examples 29 Project Management vs. Outcome Management Project Management Outcome Management

Manage costs, inputs, schedule, resources, deliverables Manage outcomes, benefits, Program results, portfolio Deliverables Deliverables Gantt Charts, schedules, work plan, costs, estimates, progress reports, milestones, issues, earned value, PERT charts, etc. Outcomes maps, outcomes registers, value cases, value assessments, value graph, governance reports & structures Measures

Measuresofof Success Success Initiative delivers on promised On-time, on-budget, delivery of results, maximized business value of specified change enabler (e.g., system, process), risk management portfolio Processes Processes Project initiation, project monitoring, Initiative definition, value definition, portfolio selection, results attainment project close-out, etc. Focus Focus Project/

Project/ Initiative Initiative Timeline Timeline Facilitates the value case, ensures Is accountable to the business sponsor for project deliverables. Is that the initiatives benefits are accountable to the Program Manager achieved for project execution From project planning to From program planning through implementation implementation to results attainment Benefits Realization: Govt of Canada Experience February 6, 2006 30 Weaving the Outcomes Talk Track Into Our Project

Management Lifecycle Monitoring & Controlling What Are We Trying To Achieve? What Are The Intended Outcomes? Benefit Realization Initiating Planning Executing

Closing Define & Authorize Project Plan the Work Work the Plan Close the Project How Will We Measure The Intended Outcomes? Measure and Report on Program Outcomes & Results Attainment

Outcome Measurements? 31 Future Trend #3 Recommendations for the PM Community Know your audience talk about the laws, mandates, drivers, key influences that must be factored into their decisions Park the PMBOK-speak to non-PMBOK speakers Weave the agency mission and outcomes talk track into your interactions with the PM uninitiated Refresh project/program management approaches to ensure that outcome management is a part of your approach 32

Future Trend #4 The Role Of Project/Program Manager Is No Longer Being Seen As Simply Collateral Duty 33 Up Through The Ranks Internal Revenue Service Revenue Agent Department of State Foreign Service Officer Federal Aviation

Administration Pilot or Air Traffic Controller 34 Influencers of PM Competencies Management Challenges Technology-driven changes Legislative Mandates Government Performance & Results Act 1993 Clinger-Cohen Act 1996 35 Addressing the Need To Better Accomplish Agency Missions April 15, 2005, OMB Policy Letter 05-01Developing

and Managing the Acquisition Workforce Establishes the government-wide framework for creating a federal acquisition workforce with the skills to: Deliver best value Find best business solutions Provide best business advice 36 Defining Certifications April 25, 2007OMB Memorandum, Federal Acquisition Certification for Program and Project Managers Trained and experienced PMs are critical to accomplishment of mission goals FAI Interagency Workgroup Certification requirement for PMs of major acquisitions 37

Future Trend #4 Recommendations for the PM Community Investigate To See How Your Agency is Compliant Search for the ideal PM who has both domain knowledge and PM competence PM is no longer simply collateral duty Embrace program management as a career track 38 Future Trend #5 PMOs Are Expanding Their Capabilities & Services 39 Program Management Offices Are Gaining Momentum

Were seeing an increase in PMO activity in the federal government Some PMOs have been around for years May not be called PMOs (and thats OK) Provide a number of different functions to drive the program toward success 40 Not Your Vanilla PMO The traditional cost, schedule, and performance PMO still exists however the PMO role and value proposition is expanding. Cutting-edge PMOs are serving organizations in expanded ways: Strategic Planning Acquisition Mgt

Business Process Improvement Partner Mgt Communications Governance Organizational Change Mgt Benefits Realization Collaboration 41 Extended PMO Examples Department of Justice Wireless Management Office Interoperability Assistance Project - upgrade federal/state/local law enforcement communications and surveillance technology

Department of Homeland Security Fraud Detection & National Security PMO Ensure the integrity of the legal immigration system by deterring, detecting, and pursuing fraud and national security concerns State of Louisiana Road Home Program Program to help Katrina/Rita victims repair/rebuild their homes 42 The Louisiana Road Home Program PMO Governance/ Structure Policies & Procedures Governance Structure & Organizational Design Development of Governance Processes

& Artifacts Staffing of Governance Model Policy & Procedure Review End State-Policy & Procedure Development Policy/Process Modeling Policy & Procedure Storage, Doc Mgt, Version Control Program Control Board Decision Support Metrics Creation/Roll-Out of Program Control Board Portal Config for PCB Risk Management Change Management

Internal Program Communications Establish Cost, Schedule, Performance, Outcome Metrics Design Metrics Mgt Support Environment Build Metrics Management Environment Status, Variance Analysis, Corrective Action Report Acquisition Management Acquisition Support/PBC/ Strategic Sourcing Subcontractor Mgt & Reporting Acquisition Decision Support Tools

Collaboration Portal Design & Implementation Usability Studies Program Portal & PMO Portal Establish Communities of Interest Deliver E-Learning Program Support Special Projects Strategic Communications QA/QC Adaptive Training PM Tool & Template Development Organizational Change Management

Strategic Sourcing for Call Center Data Entry Anti-Fraud Program Tools Development Insurance Data Mart Lean Process Management 43 Future Trend #5 Recommendations for the PM Community Avoid getting hung up on the name of the PMO

Focus on the services the PMO provides not the PMO itself. In fact, focus on the outcomes the PMO is helping the program achieve Message the PMO as an enabler of programmatic success not simply a group of folks that produce outputs Staff the PMO with the right skill sets to deliver the needed services to help the program be successful 44 ICF International Program Management Center of Excellence Take Our Survey 45

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