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FEDERAL SECTOR
REPORT
April 2005
IN THIS ISSUE
Project and Program
Management Offices
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All-Electronic
for Payments
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(c) 2005 by the P2C2 Group,
Inc.
PROJECT AND PROGRAM MANAGEMENT OFFICES
(PMOs)
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I didn't know a
PMO from a
pineapple when I took a contract position at the Executive Office of
the
President on March 1, 1999. EOP had established a Project Management
Office for
dealing with Y2K issues because many hardware, software, and
communications
products were at risk of failure. Like many others involved in Y2K
drills, I
discovered that the PMO structure and mode of operation was
extraordinarily
effective in producing change and results at lightening speed.
Since that time
and partly
because of the widespread success of Y2K Project
Management
Offices, PMOs have proliferated. They are being viewed as the means to
achieve
a host of goals. Most important perhaps, they are powerful change
agents
for
introducing abrupt improvements in organizational performance. While
not a new
idea, the PMO is becoming a widely-applied strategy. Six years after
the Y2K drills, I find that the PMO is often at the heart of work to
transform the public sector in such diverse areas as financial
management, e-Gov, weapons systems, IT management, the Pentagon
Renovation Program, and the Federal
Enterprise Architecture itself.
Part of the
federal
government's PMO initiatives focus on information technology, and some
of these are
quite ambitious. The Veterans Administration has implemented an enterprise-wide PMO (EPMO), charging it to collaborate "with VA administrations and staff
offices to improve IT project, program, and portfolio management across
the
entire Department. This is being accomplished through a holistic focus
on
People, Processes and Tools that form a stable base on which to build a
strong
organizational IT project management capability."
This article will
bring you
up to 2005, but first let's do a quick take on the story of preparing
for the
millennium. It points out essential ingredients for today's broader and
longer-term PMOs.
During 1998, the
Executive
Office of the President realized that it was seriously behind the curve
in
preparing for Y2K and needed to catch up quickly to avoid glitches on
January 1, 2000. EOP consists of some 16 agencies including the
Council of Economic Advisors, Office of Management and Budget, the U.S.
Trade
Representative, and others. Several hundred computer systems were
involved,
including those directly supporting the White House and the Office of
the Vice
President. There were also many infrastructure issues ranging from
network
switches and fax equipment to firewalls and alarms.
The Y2K response
was set up
as a short-term PMO that had the authority to work across the entire
EOP
organization. This means the Y2K team could move quickly without
getting stuck
in conventional bureaucratic structures. The Y2K Project Director was a
Chief
Warrant Officer on loan from the Army who was smart, articulate, and
focused on
results. He had champions in top EOP management who could clear
obstacles to
accomplishing the mission. What's more, he had a methodical approach to
executing the mission, which included:
- A clear vision
of goals and processes necessary to accomplish the mission
- A project
management strategy and plan
- Processes for
involving all key stakeholders and leveraging their resources, commonly
called a change management plan in today's parlance
- A communications
plan to keep Y2K a visible priority to everyone inhabiting the White
House and the two Executive Office Buildings
- Updated
inventories of hardware and software assets that had to be validated,
renovated, or replaced
- Tracking systems
to monitor status of all issues
- Resources for
executing identified requirements
- Weekly status
meetings with all key participants
- Phone calls and
face-to-face contacts to expedite work
- Intervention and
corrective action when problems arose
- Comprehensive
and structured approaches to evaluating and validating work completed,
including Independent Verification and Validation (IV&V)
- Brief and
to-the-point reporting methods.
The Project
Management Office
staff reported to the Y2K Project Director. The idea was to keep the
PMO
relatively lean and leverage it with the resources of the entire EOP.
The core
of the PMO function was outsourced to SAIC,
and the contractor's Program Manager was David Breese, a man who kept
on top of
hundreds of critical milestones and details but who, nonetheless, was
accessible for thoughtful counsel and brainstorming. Perhaps David's
greatest
asset was an ability to remain calm and focused even during the most
gut-wrenching deadlines.
Specialized
resources were
also added. I was brought in through another company to solve the
acquisition
problem, which had become a bottleneck. Procurement paperwork
traditionally took months and months for
one-at-a-time contract awards. An alternative approach was needed
because over
a hundred systems needed renovation or replacement plus IV&V, and
both the
acquisitions and work had to be completed at breakneck speed. What's
more, the
paperwork had to pass muster with management, the IT shop, the
procurement
office, and legal counsel.
We had a staff of
two--myself and Sandy Dunhill--to solve the acquisition problem. Our
approach to solving the acquisition logjam points out the basic steps
for using
a PMO to optimize a business process and improve results:
- Identify
requirements for
each business process
- Re-engineer and
improve the workflow
- Develop a
defined,
repeatable process
- Automate the
process where possible
- Document
- Evaluate and
improve.
Keep in mind that
we had 30
days to do all of the above; there wasn't time for elegant
methodologies. We
re-engineered the acquisition paperwork process and the work statements
themselves. The result was a template that gained the approval of all
reviewers. The work statements were geared to measurable performance
results.
We didn't attempt to pre-engineer a technical solution--that was the
responsibility of the
successful contractor, who had to meet the technical
performance requirements of test and validation phases. That of course
is
simply the application of performance-based contracting, which
challenges
contractors to be innovative in delivering solutions which are
guaranteed to
work.
With the
increased
efficiency of the process, just two of us were able to package all of
the
acquisitions on time--even though we were also frequently putting
together the technical requirements based on file documents and
interviews.
The re-engineered process went so smoothly that I even had time to code
one of
the simpler replacement applications in my spare time.
One of the points
is that a
PMO should streamline work, not make it more difficult. Another point
is that
PMOs can produce results quickly and effectively only when they have
the
support of leadership, a dedicated team, and the ability to leverage
the entire
organization's resources.
That's the Y2K
story; now
back to the future.
Project
versus Program Focus
Y2K was a
one-dimensional
issue. Today PMOs are being launched to pursue longer term and more
complex
goals, and this has generated a debate about whether a PMO should focus
on PROJECTS
or PROGRAMS. Some people dismiss the distinction as an unnecessary
semantic
exercise, but I believe it merits attention:
A project,
to paraphrase the Project
Management Institute, is a temporary endeavor to create a unique
product or
service within a finite period of time. There is a definite beginning
and a
definite end. A PROJECT Management Office focuses on the business
function of
project management--seeking to support a defined, repeatable process
which
reduces risk, optimizes quality, increases cost efficiency, and
provides
ongoing support to project managers. An example would be a PMO that
supports an
enterprise portfolio of IT projects.
A program,
in the federal sector, is an agency program mission
or business goal. Russ Martinelli and Jim Waddell (Intel and Tektronix
respectively) make the
case for a PROGRAM Management Office: "Program and project
management
are related but distinct disciplines. It
is important for everyone within the organization to fully understand
the
distinctions between the two, as well as the differing roles and
responsibilities of program and project managers. In general, the
greatest difference between
program and project management is that program management focuses on
achieving
business results to create a competitive advantage while project
management
focuses on planning and executing the work required to deliver the end
product."
In the federal
sector, the
distinction project and program is blurred, because federal PMOs
invariably have a mandate to be transformational ... achieving
measurable improvements in program results. After all, the
Clinger-Cohen Act
requires that IT project investments be fully aligned with agency
mission,
programs, and business goals (i.e., Business Architecture). In
addition, most e-Gov initiatives are transformational and de facto programs.
One
Agency's Building Blocks
for a PMO
Recently an
independent
federal agency issued a Request for Proposals for contractor
support of a PMO. We thought the agency did an excellent job of
defining the
key components:
- Portfolio
management
- Project
management
- Project
management automated
systems implementation
- Requirements
analysis
- Earned value
management
- IT management
- Process
engineering
- Software
development
- Budget analysis
and
execution
- Acquisition
support
- IT
administration support.
A PMO needs to
support
business processes at both the portfolio management and project
management
levels, and the PMO will not function effectively unless it addresses
the needs
of both audiences. Enterprise and program management needs a smooth
process for
making decisions about the overall portfolio, identifying problems,
taking
corrective actions, and assuring outcomes that translate into results
for the agency
mission, its stakeholders, and citizens. At the same time, project
managers and
teams need a process that streamlines their business process, reduces
paperwork
and overhead burden, and provides practical management tools.
The way to
achieve an
effective PMO is to begin with a review of management--strategic plans
and
people (human resources) who will be users at the portfolio and project
management levels. The next step is a requirements analysis--defining
your
specific business goals and desired results. Once requirements are
initially
defined, it is important to baseline existing business processes and
workflows,
which will serve as the framework for re-engineering, process and
workflow
improvement, and automation. Much of the process can be automated, and
we'll
talk about tools in a minute.
Budget
formulation,
analysis, and execution is an integral process for a federal PMO, as is
acquisition. Software development and integration is generally needed
as glue
to cement together multiple software applications, databases, and
workflow
routing. And finally, administrative support is needed to operate the
PMO.
Tools encompass
templates,
software, and other aids. The VA site
mentioned above includes a variety of templates and standard operating
procedures.
Software typically encompasses products from multiple vendors needed to
perform
core functions:
- Decision support
- Portfolio
management
- Enterprise
Architecture Management
- Preparation of
Exhibit 53s
and 300s
- Project
management--work
breakdowns, schedules, milestones, and resources
- Corrective
actions and
status tracking
- Earned value
management
system (EVMS)
- Risk assessment
and
management
- Document
repository and
control
- Calendar of
events and
deadlines
- Online
briefings, libraries,
and tutorials concerning portfolio and project management
Project
management software
is often the driving force in devising the automation solution--such as
Microsoft Enterprise Project Management, Primavera Team Play, and
suites from Welcom
and Metier.
Primavera has the most robust and feature rich solution, and it has been proven
in
many different business settings--ranging from IT to construction
management. Quite a few federal IT-oriented program management offices
are using it, including the Veterans Administration, which has a
reputation for solid IT management. One of the providers of process
automation support is Robbins-Gioia.
Microsoft has set
its sights
on the project management market, and its EPM
Solution
bundles a centralized
server for a Project database with Share Point and Outlook (for routing
and
calendaring). Its advantage is the popularity of its stand-alone MS
Project
software with which many federal managers our familiar. However, EPM is
not an
out-of-the-box solution. Much of the promise for EPM is based on
workflow automation, which is usually performed by a value-added
partner. One such partner is BearingPoint.
Vendors of more
specialized
products usually integrate with one or more of the project management
solutions. ProSight
for example offers an optional bridge to Microsoft EPM. C/S
Solutions' wInsight integrates readily with MS Project including
EPM.
The Human
Resource Factor
Implementing a
PMO requires
a significant investment in human resources. This begins with reviewing
and redefining job positions, which should typically change because of
process and workflow improvements. Obviously training is required to
take advantage of the PMO's re-engineered processes and automated
tools. More
fundamentally, however, an agency requires experienced, trained, and
certifiably competent project, program, and portfolio managers.
Federal
statutes and oversight agencies have placed an incredibly heavy layer
of
overhead expense on federal IT. Simply complying with requirements for
enterprise architecture, e-Gov, information security, capital planning
and
investment, paperwork reduction, etc., is fearsomely daunting. For the
enterprise
or program PMO to realize a return on investment, it must tame this
paper
tiger. Enterprise Process Integration is the way to go. That is, all of
the requirements
need to be integrated into a single workflow that streamlines the
regulatory hurdles as much as possible.
We caution against
becoming
tool happy. Good program and project managers are too busy to
keep their nose glued to a computer screen, wrestling with too many
mandated
software toys. Process automation should make as much of the busywork
as possible disappear into cyberspace.
Also, some
agencies seem to
have too many templates and guidance documents. Paperwork should be
abbreviated whenever
possible and closeted in automated XML formats where practical. One
agency had a good idea when it informed PMO bidders that it espoused
the goal of implementing a streamlined process whereby the PMO would
make
portfolio and project management faster and easier. Adding paperwork
burden was not a desired outcome.
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Good Reading
There are books
that provide
worthwhile reading about Program and Project Management Offices … and
how to
set them up. Search Amazon
or Barnes
& Noble for a growing list. Here are three of our favorites and
why:
Advanced
Portfolio Management and the
PMO, Multiplying ROI at Warp Speed,
by Kendall and Rollins, 2003. This book is particularly good at the
enterprise
or program mission level because it focuses on portfolio management and
the
processes to do that effectively.
Building
Project Management Centers of
Excellence, by Bolles, 2002. The
focus is on the project management process, and the accompanying CD-ROM
provides a template for defining the PMO process. The template needs to
be
adapted for the federal requirements, but it is full of ideas.
The
Project Management Scorecard, by Phillips, Bothell, and
Snead; 2002. The book
provides detailed and concrete advice (and examples) about how to
measure
project performance on dimensions that go way beyond EVMS and address
results
(Return on Investment).
Thanks
LINKS OF THE MONTH
A NASA white paper reports an Enterprise
Project Management Tools Analysis. The downside is that
it was published in 2002, before the most recent software
versions and wars for market share.
In seeking
process improvements, some PMOs embrace Software
Engineering Institute's Capability Maturity
Models. The Customs Service was an
early achiever of CMM Level 2 for its Automated
Commercial Environment (ACE), the modernization initiative for import
processing. Federal Computer Week reported the accomplishment in a 2003 article.
DFAS GOES ALL-ELECTRONIC FOR
CONTRACTOR PAYMENTS
Effective July 1,
2005, Contract Pay Operations at Defense Finance and Accounting
Service (DFAS) Columbus will reject "hard copy"
submission of specific payment requests for non-compliance if DFARS
Clause 252.232-7003 governs your contract. More information
is available in the DFAS
newsletter.
CONSULTING SERVICES
The P2C2 Group,
Inc. is the
consulting practice of Jim
Kendrick who works on
a subcontract and 1099 basis through outstanding prime contractors.
More
information about his background is at
http://www.p2c2group.com/resume.html.
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Click to go to a fun and useful list prepared by
Jerry Madden, Associate Director of the Flight
Projects Directorate at NASA's Goddard
Space Flight Center
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HOME PAGE
Defining your
goals is a powerful driver for
accomplishment. John, my youngest kid at 23 years, set a goal of riding
his bicycles 1,000 miles a month, and I suspect he will achieve his
target. It keeps him fit, of course, but it also makes him quite a pro
at work, where he is assistant manager for a cycle retailer. He's gone
as far as Minnnesota to find suppliers who make the perfect equipment
and accessories for enthusiasts who want top performance in their
rides.
Elena and I
enjoyed the
cherry blossoms at the National Arboretum this year rather than
downtown. With
over 400 acres of trees and shrubs from around the world, the arboretum
is an
extraordinary treat. It's managed by USDA.
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Azaleas as well as cherry blossoms were on display when we
visited the National Arboretum on
April 9th.
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Best wishes,
Jim Kendrick
4101 Denfeld
Avenue
Kensington, MD
20895
301-942-7985
NEWSLETTER ARCHIVE
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The P2C2 Group, Inc.
4101 Denfeld Avenue | Kensington, MD 20895
Point of Contact: Jim Kendrick, President
e-mail: kendrick@p2c2group.com
phone: 301-942-7985 | fax: 301-942-7986 |
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