Program Management The Financial Sector Presented by Bob Walker 3 shaping the future of program...

Program ManagementProgram ManagementThe Financial SectorThe Financial Sector

Presented byPresented byBob WalkerBob Walker

3shaping the future of program managementwww.pcubed.com

shaping the future of program management

3 Program Planning Professionals

The Financial SectorThe Financial Sector

Two Case StudiesMerger Between Two International BanksOrganisational Change and Project Management

Project Management Supporting Change



Project Management Processes Supporting Technology


Technology can be utilised without processes

– Small operations– No/few links to other organisations or

projects

Long term planning at portfolio level requires processes

Integration of projects in a consistent manner requires processes



Project Management Processes Supporting Technology


Both case studies revolve around the processes required to meet specific tasks

Technology is an integral part of the processes and Microsoft products feature within both solutions



Introduction - The MergerIntroduction - The Merger

The ProjectThe acquisition of a major US Investment Bank by a European

BankThe integration of two organizations in a four month periodNew Organization of 95,000 employees

The ChallengeEnsure that all the necessary steps to integration are takenCo-ordinate activities between companies, business lines and

geographicallyIdentify RisksIdentify the key information required for decision makingInitial work coincided with preparations for euro conversion


Detailed Analysis and Mapping

450450

Nov 98

Integration

11

May 99

Planning ApproachPlanning Approach

WorkstreamTesting

200200

Integration Testing

2525



Planning ApproachPlanning Approach

Build a project plan, consisting primarily of a series of milestones per Business Stream - approximately 8000 milestones

Update weekly via Email and Excel

Publish Red AmberAmber Green (RAG) status

weekly

Issues Management Database, built in Access



MS AccessMS Access

DataDataExportExport

Pcubed ProcessPcubed Process

ExcelExcelFour week Four week look-aheadlook-ahead

UpdatedUpdatedRAGRAG

StatusStatus

ActivitiesActivitiesTo beTo be

updatedupdated

UpdateUpdateWorksheet(s)Worksheet(s)

EMAILEMAIL

Project PlansProject PlansScheduled weekly Scheduled weekly



RAG Status ReportRAG Status Report



RAG Status ProgressRAG Status Progress

RAG Status Progress

0

500

1000

1500

2000

2500

1 2 3 4 5Week No.

No

. of

Mil

es

ton

es

No Data

Red

Amber

Green

Complete

Total N/A's



Milestone MeasurementMilestone Measurement

Milestone Status Percentage Chart

11%

14%2%26%

47% No Data

RED

AMBER

GREEN

COMPLETE



Integration WeekendIntegration Weekend

Two Dress rehearsals over weekends– 24-Hour Coverage– Logistics

Co-ordinate Activities World-wide Identification of Critical Activities and Risks Final Integration Weekend



Real time Update of Plans - Start and Finish Times

TaskTaskOwnersOwners

TaskTaskOwnersOwners

DatabaseDatabase

Project Plan Project Plan DatabaseDatabase

Hourly Schedule

IIS Web IIS Web PublishingPublishing Hourly Publication

AccessAccess InterfaceInterface

Population via ExcelPopulation via Excel

Integration Weekend - Planning InfrastructureIntegration Weekend - Planning Infrastructure



Integration Weekend - Command and Control StructureIntegration Weekend - Command and Control Structure

GlobalGlobalCommand and ControlCommand and Control

New York HubNew York HubLondon HubLondon Hub

Business Lines



Summary - The MergerSummary - The Merger

The ChallengeTwo diverse Organisations and culturesIdentify what work needed to be completed, when, how and who

byProvide a technical solution to allow information to be entered from

anywhere in the Banks, worldwide, for central decision making

The SolutionRed, Amber Green milestone tracking and reporting on a

weekly cyclePlanning support where required to identify resource

shortages and riskFinal technical solution based upon the standard bank

software tools



Introduction - Program ManagementIntroduction - Program Management

The ClientIT and Operations for a major world-wide BankRecently subject of a merger of two Banks8400 resources

The ChallengeImprove visibility of projectsRecommend a program designed to introduce a Project Management

culture for the organizationDesign and develop the structure and processes to manage the projectsIdentify the key information required for decision making



IntroductionIntroduction

ThemesGlobal vs. regional

Financial control

Relationship to the business

Standardization

Roles and responsibilities

Culture

Transparency

Accountability

Optimization

Consistency

Key opportunitiesInterview sections

Roles & resp. of the organizationProject Management

ProcessPeople

Environment

Current Projects

Senior Management

Interviews



Changing EnvironmentChanging Environment

OR

GA

NIZ

AT

ION

BU

SIN

ES

S

COST CONTROL

PLANNING

CROSS PRODUCT CO-OPERATION

PROACTIVE

CONTROLLED GROWTH (DOWNTURN?)

INCREASED COMPETITION (top 4)

NEW TECHNOLOGY (e-COMMERCE)

COST REDUCTION

Tomorrow

FLEXIBILITY

DELIVERY FOCUS

BUSINESS USER EMPOWERED

REACTIVE

TREMENDOUS REVENUE GROWTH

GREAT SPEED TO MARKET

7th LARGEST INVESTMENT BANK

Today

EFFECTIVEEFFECTIVEOPPORTUNISTICOPPORTUNISTIC

EFFICENTEFFICENTPLANNEDPLANNED

Project Management Culture



CUSTOMERCUSTOMER

COSTCOST

CONTROLCONTROL

COMPETENCYCOMPETENCY

Changing EnvironmentChanging Environment

Tomorrow

CUSTOMERCUSTOMER COST

CONTROL

COMPETENCY

Today

Strategy

Project Management



Operational ModelOperational Model

Lack of:

D

M

L

K

J

B

C

D

M

L

K

J

B

C

D

M

L

K

J

B

C

D

M

L

K

J

B

C

Autonomous

+ -

Entrepreneurial

Successful

Transparency

Accountability

Optimization

Consistency

Today



BusinessStrategy

BusinessStrategy

Operational ModelOperational Model

E

Z

N

M

K

J

I

A

B

F

G

H

E

Z

N

M

K

J

I

A

B

F

G

H

E

Z

N

M

K

J

I

A

B

F

G

H

E

Z

N

M

K

J

I

A

B

F

G

H

Education, Training and Development

Portfolio Mgt. MIS

DivisionStrategy

DivisionStrategy

Portfolio

Mgt.

Portfolio

Mgt.

Project

Mgt.

Project

Mgt.

Cross product

co-operation

Cross product

co-operation

Better

management of

priorities

Better

management of

priorities

Better

cost control and

savings

Better

cost control and

savings

Consistent

delivery

Consistent

delivery

Portfolio Management Process

Project Management Process

CommunIcatIon

Tomorrow Stronger Senior

Mgt. Involvement

Stronger Senior

Mgt. Involvement

Service MIS



Transition ComponentsTransition Components

BusinessStrategy

BusinessStrategy

DivisionStrategy

DivisionStrategy

Portfolio

Mgt.

Portfolio

Mgt.

Project

Mgt.

Project

Mgt.

PORTFOLIO MANAGEMENT MIS

Better

management of

priorities

Better

management of

priorities

Cross product

co-operation

Cross product

co-operation

Better

cost control and

savings

Better

cost control and

savings

Consistent

delivery

Consistent

delivery

Stronger Senior

Mgt. Involvement

Stronger Senior

Mgt. Involvement

SERVICE MIS

PORTFOLIO MANAGEMENT PROCESS




BusinessStrategy

BusinessStrategy

DivisionStrategy

DivisionStrategy

Portfolio

Mgt.

Portfolio

Mgt.

Project

Mgt.

Project

Mgt.


Better

management of

priorities

Better

management of

priorities

Cross product

co-operation

Cross product

co-operation

Better

cost control and

savings

Better

cost control and

savings

Consistent

delivery

Consistent

delivery

Stronger Senior

Mgt. Involvement

Stronger Senior

Mgt. Involvement

SERVICE MIS


Project SlateResourcesTimelinesMilestonesPrioritiesCost

Example



IssuesIssues

Cost TrackingCost Tracking

PlanPlan

DocumentationDocumentation

Project 1Project 1

- Documentation

- Plan

- Cost Tracking

- Issues

Business StrategyBusiness Strategy- Cost Reduction

- New Market Development

- Market Development

- E-Commerce Integration

- Integration (Day 2)

Business StrategyBusiness Strategy- Cost Reduction

- New Market Development

- Market Development

- E-Commerce Integration

- Integration (Day 2)

Cost ReductionCost Reduction

A

A

B

B

B

Project 1

Project 2

Project 3

Project 4

Project 5

25

3

1

12

4

25.8

3.4

.8

13.2

3.5

Budget ($m)

Forecast ($m)

Project List


Project 1

Project 2

Project 3

Project 4

Project 5

Schedule


A

A

A

B

B

Project 1

Project 9

Project 12

Project 15

Project 6

25

4

.3

8

1

25.8

10

.4

8.2

1.3

Budget ($m)

Forecast ($m)

Project List

Portfolio Management MISPortfolio Management MIS




BusinessStrategy

BusinessStrategy

DivisionStrategy

DivisionStrategy

Portfolio

Mgt.

Portfolio

Mgt.

Project

Mgt.

Project

Mgt.

Project vs. maintenance activitiesCost distributionResource usageService Levels

SERVICE MIS

Cross product

co-operation

Cross product

co-operation

Better

management of

priorities

Better

management of

priorities

Better

cost control and

savings

Better

cost control and

savings

Consistent

delivery

Consistent

delivery

Stronger Senior

Mgt. Involvement

Stronger Senior

Mgt. Involvement

Example





Service MISService MIS

BudgetBudget HeadcountHeadcountDevelopment

Maintenance

99 00 01

Development

Maintenance

99 00 01

Problem reportsProblem reports EnhancementsEnhancements

J F M A M J

1 Hour

1 Day

1 Week

J F M A M J

Resources

Problem costProblem cost Enhancement costEnhancement cost

Budget

Budget




BusinessStrategy

BusinessStrategy

DivisionStrategy

DivisionStrategy

Portfolio

Mgt.

Portfolio

Mgt.

Project

Mgt.

Project

Mgt.

BudgetingPrioritizingPerformance measurement Investment decisions


Cross product

co-operation

Cross product

co-operation

Better

management of

priorities

Better

management of

priorities

Better

cost control and

savings

Better

cost control and

savings

Consistent

delivery

Consistent

delivery

Stronger Senior

Mgt. Involvement

Stronger Senior

Mgt. Involvement

SERVICE MIS


Example



MANAGEMENT DECISION

MAKING

MONITORING

WORK(PROJECT AND SERVICE

EXECUTION)

INPUT RESOURCES

PROJECT OR

SERVICE “CONTRACT”

Management actionsManagement actions

IT INVESTMENT DECISIONS

BUSINESS STRATEGYIT STRATEGY

STANDARDIZED PROCESSES, TOOLS AND ARCHITECTURES

STRATEGIC ANALYSISSTRATEGIC ANALYSIS

WORK WORK MANAGEMENTMANAGEMENT

CONTINUOUSCONTINUOUSIMPROVEMENTIMPROVEMENT

ASSET ASSET MANAGEMENTMANAGEMENT

WORK WORK

MANAGEMENTMANAGEMENT

BusinessStrategy

BusinessStrategy

StrategyStrategy

Portfolio

Mgt.

Portfolio

Mgt.

Project

Mgt.

Project

Mgt.

Portfolio Management ProcessPortfolio Management Process




BusinessStrategy

BusinessStrategy

DivisionStrategy

DivisionStrategy

PortfolioMgt.

PortfolioMgt.

Project

Mgt.

Project

Mgt.

EDUCATION, TRAINING AND DEVELOPMENT

Better

management of

priorities

Better

management of

priorities

Cross product

co-operation

Cross product

co-operation

Better

cost control and

savings

Better

cost control and

savings

Consistent

delivery

Consistent

delivery

Stronger Senior

Mgt. Involvement

Stronger Senior

Mgt. Involvement

PROJECT MANAGEMENT PROCESS




BusinessStrategy

BusinessStrategy

DivisionStrategy

DivisionStrategy

Portfolio

Mgt.

Portfolio

Mgt.

Project

Mgt.

Project

Mgt.

Coaching, mentoringCustomized coursesDevelopment centersLessons learned


Better

management of

priorities

Better

management of

priorities

Better

cost control and

savings

Better

cost control and

savings

Cross product

co-operation

Cross product

co-operation

Consistent

delivery

Consistent

delivery

Stronger Senior

Mgt. Involvement

Stronger Senior

Mgt. Involvement





BusinessStrategy

BusinessStrategy

DivisionStrategy

DivisionStrategy

Portfolio

Mgt.

Portfolio

Mgt.

Project

Mgt.

Project

Mgt.

Project initiationMethod “Lite”Life-cyclesIndustry best practicesSAP Methodology


Cross product

co-operation

Cross product

co-operation

Better

management of

priorities

Better

management of

priorities

Better

cost control and

savings

Better

cost control and

savings

Consistent

delivery

Consistent

delivery

Stronger Senior

Mgt. Involvement

Stronger Senior

Mgt. Involvement




Way ForwardWay Forward

6 Months 1-1.5 Years 2-3 Years

0

Acceptable level of Project Management

Executive Middle Line

Portfolio Management MIS

Portfolio Management Process

Project Management Process

Education, Training and Development

Service MIS

Level of effort

Time



Way ForwardWay Forward

DesignBuild

ValidateDeploy

Maintain

MIS

Intranet

Life-cycles

Method Lite

Training

PMO structure

MIS

Intranet

Life-cycles

Method Lite

Training

PMO Structure

Training

Lessons learned

1 Month

3 Months

2 Months

1 Month3 Prototypes:

- Low

- Medium

- High



Summary - Program ManagementSummary - Program Management

The ChallengeNew Organisation from two distinct CompaniesImprove the visibility of Projects for decision making purposesIdentify the required structure and processes to manage these processes

The SolutionPhased approach to allow for level of PM maturityProcess of Education and Knowledge TransferPortfolio management of projects to enable the access to key decision making information

Program Management The Financial Sector Presented by Bob Walker 3 shaping the future of program...

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