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FEDERAL SECTOR
REPORT
April 2005
IN THIS ISSUE
Project and Program
Management Offices
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All-Electronic
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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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