Duke Energy PMCoEPMI Metrolina Chapter PDD

Agenda

Duke Energy at a Glance Project Management Center of Excellence (PMCoE) Overview PMCoE Governance Duke Energy PM and PC Career Paths Strategic Initiatives Take-Aways and Wrap-Up

Duke Energy Overview

World’s largest publicly traded utility Fortune 250 company Serving 22 million people Employing 28,000 $6B annual capital spend Operations in:

Regulated business Renewables Commercial transmission & power International markets

Enterprise Portfolio

PMC Major Projects

PMC Program

PMC Project

PMC Project

PMC Project

PMC Maint/Ops

Transmission Major Projects

Trans Program

Trans Project

Trans Project

Trans Maint/Ops

International/ Commercial

Com/Intl Programs

Com/Intl Projects

Intl Projects

Commercial Projects

Distribution Major Projects

Dist Program

Dist Program

Dist Projects

Dist Projects

Dist Maint/Ops

IT PMO

IT Project

IT Project

IT Project

IT Project

IT Project

IT Project

HR PMO

HR Project

HR Projects

HR Projects

Finance PMO

Finance Project

Finance Projects

Finance Projects

Etc …

Etc.

Etc.

Etc.

Etc.

Etc.

Etc …

Special Projects

Special Projects

Business Connection to Projects

2,200+ involved in

projects40+ Departments

doing projects$6 Billion in

Capital Dollars

HUMAN RESOURCES

ITFINANCE

Types of Projects – Shared Services

Financial System Integration Sales & Use Tax Enterprise non-retail Billing

SharePoint Upgrade Workstation Refresh Active Directory Integration Enhanced Cyber Security

Job Harmonization PeopleSoft Integration PeopleSoft Self Service Upgrade

DISTRIBUTIONTRANSMISSIONCONSTRUCTION

Types of Projects – Traditional

Coal Plant Retirement Environmental Retrofits to

Existing Plants New Plant Construction

Transformer Replacements Capacity Upgrades Sub Stations

Smart Meter Grid Modernization

NUCLEARWINDSOLAR

Types of Projects – Traditional

Joint Ventures in AZ, CA,

NJ, MA and PA Duke Owned Projects in

NC, TX, CA, AZ, and FL

Duke Owned Projects in TX,

WY, PA, KS, CO and WI Notrees Battery Storage

Project

Fukushima Response Plant Retrofits New Plant Licensing

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PMCoE Background

Duke EnergyPM Deep Dive

2010Integration

Team 2011

Progress Energy PM Gaps

2007

Duke EnergyPMCoE

2012 - Future

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A PMO is an important central hub with a mandate to coordinate and deliver all project activities as determined by the organization's needs.

The PMO strives to standardize and introduce economies of repetition in the execution of projects.

Tasks may include monitoring and reporting on active projects, programs and sub-portfolios, and reporting progress to top management for strategic decisions on what projects to continue or cancel.

PMCoE vs. PMO/Major Projects

Policy

PMCoE “What”

Dep’t Procedures “How”

The PMCoE is a central hub with a mandate to provide a consistent framework to deliver the organization’s projects consistently.

The PMCoE supports the PMO in the execution of projects and continuously improves corporate governance.

PMCoE Vision and Mission

Vision Become the Industry Leader in Project Management

Mission The PMCoE will:

Establish a consistent and scalable process leveraging best practices,

Provide training, tools and oversight to enhance project performance and certainty,

Engage the project management community to focus on the pursuit of excellence, knowledge sharing and skills development.

Enterprise PMCoE

PMCoE Organization

PMCoE Executive Governance Committee

Director of Enterprise PMCoE

Enterprise PM Governance

Enterprise PC Governance

PMCoE Support and Services

Senior PM

Training and Support Services

Sr Project Controls SpecialistProject Director

Training Project Manager II

Project Director Manager of Project Controls Manager Support Services

Senior PM

Career Path Development

Policy & Standards Training

Tools & Templates

Team Workshops

Answers to Questions

Diagnostics• Acumen Fuse Schedule Analysis

Assessments• Portfolio Reviews

Reviews• Independent Estimate

• Stage Gate

PMCoE Framework

Best Practices Lessons Learned Benchmarking

PMCoE Policy and Standards

Project Management Center of Excellence Support Services

Excellence in Project Management

Governance Hierarchy

Company Policies Tier 1 – Policies, Laws and Regulations (POLICY)- Approval of Business Transactions Policy - Achieving Excellence in Project Management

PMCoE Standards Tier 2 - Enterprise Standards (ENTSTD)- Stage-Gate Authorization Standard through Project Career Path Qualification and Training Standard

ImplementationStandards

Tier 3 – Implementation Standards (IMPSTD)- Group, department, section and/or unit procedures, as applicable

GeneralReference

Tier 4 – General Reference Materials (GENREF)- Project Management Institute (PMI), Project Management Body of Knowledge (PMBOK), etc.

Structure of Standards

Project Investment Lifecycle

Plan ExecuteDevelopAssessScan Operate & Maintain ValueInputs

Identify Opportunity or

Threat

Determine Impact / Benefit,

Timing and Potential

Responses

Refine Candidate Responses (Projects)

and Prepare for Initiation

Develop Project Plan and

Prepare for Execution of

Major Commitments

Execute Commitments, Refine the Plan and Prepare for

Construction and Installation of

Assets

Construct and Install Assets, Turn Over Assets to the Receiving Asset

Owner and Prepare for Close

of the Project

Operate and Maintain Assets

Delivered by Project

Generate Return on Investment

Retire at End-of-Life

or Disposition

Asset

a b c d e f g h

BuildCommitInitiateSelectIdentify CloseCommission

Enabling a Scalable Project Management Framework

Project Rank and Assignment

Cost plus Complexity = Project Rank

Project Complexity

Project Rank Comparison

Black ~1%Brown ~1%Green III ~1%Green II ~1%Green I ~6%

White 90%

Brown ~30%

Black ~30%

White ~20%

Green I ~10%

Green II ~6%

Green III ~4%Total Project Count

Total Project Spend

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The Project Delivery System

Green III Brown Brown Black

Green II Green III Brown Brown

Green I Green II Green III Brown

White Green I Green II Green III

BlackSenior Project DirectorPrincipal Project Controls Specialist

BrownProject DirectorSenior Project Controls Specialist

Green IIISenior Project ManagerSenior Project Controls Specialist

Green IIProject Manager IIProject Controls Specialist

Green IProject Manager IAssociate Project Controls

WhiteAssociate Project ManagerAssociate Project Controls

Black

Brown

Green III

Green II

Green I

WhiteCompliance with PMCoE Standards at Department Discretion

Required Compliance with PMCoE Standards

Required Compliance with PMCoE Standards including additional requirements defined in Attachments

[1] Determine Project Profile Matrix Rank

[2] Assign Rank-Appropriate

Organization & Project Management

[3] Use Rank-Appropriate

Processes, Tools & Templates

[4] Deliver Products & Services According

to Plan

Select Initiate CloseDevelop Plan & Execute

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PM and PC Career Paths

Sr Project Director

Project Director

Sr Project Manager

Project Manager II

Project Manager I

Project Mgmt Spec

Manager PC

Supervisor PC

Principal PCS

Sr PCS

PCS II

PCS I

Project Rank Project ControlsProject Management

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Change Management Approach

•Coalition Building (Executive Level Presentations)•Active & Visible Participation (EGC Meetings) •Direct Communications (Up, Down and Across Organization)

Sponsor Engagement

•Identify Change Agents in Each Department•Collaborate with Change Agents to Align Department Processes•Workshops with Project Teams

Coaching & Org Transformation

•Enterprise-Wide Cascading Communication•Recurring CommunicationsCommunication

•Executive Series•Management Series•Performance Series

Training

Resistance Management

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Future Initiatives

Continuously Improved Project Management Framework Mature Management of Tail and Reputational Risks Mature our benefits realization process

Highly Skilled and Effectively Utilized Workforce of Project Professionals Comprehensive Workforce Strategy

Match portfolio to human capital Attract > Develop > Retain > Re-Deploy

Transparent Project and Portfolio Performance PPM Deployment

“A consistent enterprise framework enables maturation of the project management competency”

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Key Take-Aways

PMOs and PMCoEs must adapt to business needs and culture of their organization Effective governance should be scalable and aim to provide transparency in decision making Excellence is a journey – actively benchmark and don’t work in a vacuum!

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Contact Information

P. Brandon Lane, MBA, PMPbrandon.lane@duke-energy.com | (980) 373-2782LinkedIn: http://www.linkedin.com/in/phillipbrandonlane

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