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Centers for IBM e-Business Innovation :: Chicago

2005 IBM Corporation

IBM Project Management

October 2005

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Studies show that lack of good project management oftenleads to failed projects.

According to a study by Metagroup ('Why Operation Projects Fail?' November

2002) 70% of large IT projects fail or do not meet the expectations. The most

common reasons refer to project management, project planning and

communication.

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Why do projects fai l?(Common PM Reasons)

Solut ion Design Solution Delivery

Lack of

Discipl ine

Accountabi l i ty

Skills

Failure to set and manage customer expectations /

satisfaction.

Failure to reach common understanding of

requirements or completion criteria.

Failure to reach understanding of the proposed

solution.

Failure to establish appropriate contractual baseline.

Failure to adhere to published pricing guidelines,

failure to assign adequate "risk" contingency and

illegitimate "investment pricing" (i.e., low-balling, low

margins, etc.).

Poorly constructed or unauthorized subcontractor

SOWs.

Failure of key subcontractor to deliver.

Inaccurate project estimates.

Failure to plan for risk containment.

Failure to perform QA reviews.

Lack of DOU with other IBM organization(s).Failure to

properly handle multinational issues.

Inability to acquire properly skilled resources.

Ineffective project initiation.

Lack of or inadequate project management.

Lack of Project Management Reviews and effective

follow-up on action plans. Lack of management

oversight / support.

Unfulfilled customer responsibilities.

Failure to implement / exercise proper change

control process.

Starting a phase prior to completing a preceding

phase.

Customer unprepared to support the new system.

Customer represented by Third Party.

Change in customer management team.

Continuous / constant change in scope.

Ineffective relationship between IBM and customer.

Technology / architecture issues.

Ineffective relationship between IBM and

subcontractor. Subcontractor cost overruns.

IBM project team morale or organizational issues..

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Project Management is usually seen as managing theinterrelationship of three critical success factors for each project.

Scope

Schedule Budget

112

2

3

4

56

78

9

10

11

It is essential to find

the optimal balance to

maximize the value of

projects related to the

company's success

considering budget,

schedule and scope.

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But it is not that simple, in order to manage to those threecritical success factors it also involves. . .

Planning

Communication

Coordination

Integration

Execution

Tracking

Budgeting

Control

Reporting

Quality Control

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IBMs Project Management Approach

Project Based Business

Project Management Office (PMO)

Processes/Methodology (WWPMM) Project Management Maturity Guide (PMPMG)

Tools Rational Portfolio Manager

Mentoring/Staffing

Education

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For IBM to become a project based enterprise it was necessary tointegrate project management disciplines into the fabric of IBM.

In 1997, IBM committed to becoming a project based enterprisefor integrating project management disciplines across the IBMenterprise.

Since then, IBM has developed and deployed a number of

worldwide Project Management initiatives for establishing theProject Based Enterprise Charter. These project based initiativesfocused on:

Project Management Professional Development

Project Management Methods & Tools

Project Management Systems

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Project Management Office (PMO)

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The Project Management Office needs to look at many aspectsfor supporting project management within a company.

Project

Management

Office

Culture

Methodology

TechnologySkills

Organization

Measurement

Principles, Beliefs, Expectations, Vision,

Mission, Goals, Objectives, Action PlansCritical Success Factors, Strategies,

Continuous Improvement of Projects,

Investments, Incentives,

Communication, Policies, Attitudes, Practices

Work Product, Quality, Time,

Productivity, Cost, Impact,

Defects, ROI, Value,Satisfaction

Experience, Method Training,

Technical Training, ManagementEducation, On-the-Job Training,

Learning Curves

Methods, Specifications, Outputs,

Procedures, Techniques, Standards,

Guidelines, Controls,

Roles,

Jobs and Responsibilities,

Formal and Informal Structures,

Resources and Resource Allocations,

Support Staff Services,

Relationships

Tools, Tool Classes, Platforms,

Standards, Protocols, Architectures,Physical Environment

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Process and Methodology

WWPMM IBM Methodology to Support PMBuilt around PM Domains, PM Work patterns, and PM Workproducts

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IBMs Project Management Method is a broad, robust andintegrated approach to projects

IBMs PM method (Worldwide Project Management Method WWPMM) drivesconsistency and quality by focusing on three aspects of PM best practices

Work Domains

Work Products

Work Patterns

Work Domains provide detailed guidance on how specific types of PM activitiesshould be carried out

PM must understand how to manage across 13 domains (change, quality, risk, etc.)

Work Products are verifiable outcomes that are used to manage projects

IBMs method identifies 51 PM work products that could be used on an engagement

Standards, templates, and how to guidance included in browser enabled tool

Work Patterns are a series of steps designed to meet project management goals or in

response to particular project situations Includes 39 different process steps spread across 7 phases

Equivalent to a Standard Operating Procedure (SOP)

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World Wide Project Management Methodology - WWPMM

WWPMM helps define the PM

System, a collection of plans,

procedures and records that

direct all PM activities and

describe the current state and

history of the project.

Generic templates are providedin downloadable form, from the

WWPMM reference page and

through various PM tools.

When used with appropriate

tools and integrated with

business and technicalmanagement systems, this

material provides a

comprehensive PM

environment.

How the project is shaped, and

how its execution is managed

How the work is done

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Project Management Process Maturity AssessmentLevels

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Level 1

Project Management

techniques do not exist

and are not used.

START UP

Disciplined

Processes

Standard

ConsistentProcesses

Predictable

Processes

ContinuouslyImproving

Processes

Level 2

IN DEPLOYMENT

Basic existence of Project Management

techniques used infrequently and

inconsistently. Techniques are indevelopmental stages.

Level 3

FUNCTIONAL

Project Management techniques

are robust and fullyfunctional.

Processes are standard and

consistent.

Level 4

INTEGRATED

Project Management techniques are

robust and fully functional. The techniques

are integrated and consistently used withpredictable results.

WORLD CLASS

Project Management techniques are world

class and constitute best practices. Feedback

is used for continuous process improvement

and preemptive planning.

Level 5

Summary Definitions of Maturity Assessment Levels

The chart on this page shows the Project ManagementMaturity Assessment Levels. It has been drawn as stair

steps because an organization starts at the bottom and

progresses up from one level to the next -- from START

UP to IN DEPLOYMENT to FUNCTIONAL to INTEGRATED

to WORLD CLASS. The processes are defined and exist

beginning at Level 2, IN DEPLOYMENT, but the degree to

which they are used and the progression of their use

(noted by the arrows) separates one maturity level from

another.

Project Management Process Maturity Assessment Levels

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Project Management Tools

IBM Rational Portfolio Manager

C t f IBM B i I ti Chi

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Typical Tool Challenges for Project Managers - BEFORE

Many projects have manual and semi-automated processes, characterized by

unnecessary data manipulation, inadequate information flow and sluggish cycle time.


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Rational Portfolio Manager is IBMs Solution of Choice -AFTERRational PM provides process automation, thereby increasing efficiency and

reducing the complexity of project and portfolio processes.

One stop shop project repository, including the projectcontrol book

Support more effective project startup

Superior project tracking and control capabilities

Project management process support

Collaborative and communicative project environment

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Project Management Education and Certification

IBM Rational Portfolio Manager


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IBM can supply skilled Project Management Mentoring andStaffing Capability

Certification Element IBM Certification Program PMI Certification Program

PMI Examination

PM Experience 6,000-7000 hrs 4,500 hrs (2+ years)

Technical Experience - - -

People Management Experience - - -

PM Education 200-300 hrs 35 hrs

Technical Specialties - - -

Professional Contributions

(Giveback)- - -

Detailed Qualification Criteria based

on required skills- - -

IBMs certification process is more demanding than the standards set by the Project Management Institute


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IBM supplies valuable Project Management Education

Areas of education

Project Management Principles

Contracting

Financial ManagementLeading Complex Projects Workshop

PMP Examination Preparation

Principles of Project Management

Project Cost and Schedule Management

Project Leadership and Team Building

Project Management Concepts

Project Risk Management

Working on a Project

PMI recognized industry standard Project Management courses currently

available to IBM customers.

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