Establishing the HKJC IT PMO
ISACA Forum
Roland Tesmer
Head of IT Strategy and Planning The Hong Kong Jockey Club
2
Mission
Committed to “One Club, One Team, One Vision”, the IT Division will provide
innovative technology solutions that
contribute significantly to the Club’s mission and strategic objectives. We strive to
become a Value Partner for the Club’s business by pursuing excellence in everything we do.
The IT Division handles many projects of all sizes and
shapes
Projects range from highly customised bespoke development to
vanilla off-the-shelf package implementations
Project effort can range from less than 2 weeks to greater than 4,500 man-months (375 man years)
Project value can range from a few thousand to a few hundred
million HK dollars
In any given year we have around 250 IT projects in the pipeline – excluding system maintenance projects
Over 2,100 man-months (180 man years) of project effort is
committed each fiscal year on new systems or system enhancements
IT division organsation chart – where is our PMO in the
structure
IT ARCHITECTURE & INNOVATION IT STRATEGY &
PLANNING DEVELOPMENTAPPLICATION
SYSTEMS ASSURANCE
INFORMATION TECHNOLOGY DIVISION
IT SOLUTIONS &
SERVICES IT INFRASTRUCTURE SERVICES IT OPERATIONS & SERVICES
• Planning
• Network Services • Systems Services • Enterprise
• Racing
• Corporate, Charity & Security
• Membership & Finance • Enterprise • IT Programme Mgt • CRM & Analytics • Transaction • e-Business • Enterprise Application • Customer Services • Data Centre Operations • Field Services
• Operations Support • Telecom Operations
• Transaction & e-Business • CRM and Enterprise • Systems & Implementation • Sustaining Engineering • IT Business Planning • IT Project Services (PMO) • IT Project Standards
Department organsation chart – the majority of our
resources are project and process focused
Roland Tesmer
Head of IT Strategy & Planning ITBP Team Leader IT Project Services Manager IT Project Standards Manager IT Communications IT Admin Finance/HRM Project Portfolio Analyst Project Resource Analyst Process Analyst IT Business Planning Program Management
Office Project StandardsOffice
IT Training & Development PM Coaching & Mentoring X 2 Quality Assurance Analyst Total = 14 FTE PMO/Process/QA = 8 FTE
Do you need a PMO? If the case study below looks
familiar then maybe you do!
Establishing a PMO... What’s in it for you?
Reduce business risk:
z Better management visibility of all projects z Establish consistent standards
z Improve predictability and repeatability of outcomes
Optimize resource use:
z Match skills with demand
z Monitor resource utilisation z Forecast future skills needs
Contribute to business growth:
z Help maximise the business value of delivered projects
z Knowing when to give up ... stop throwing good money after
Classic warning signs at HKJC ...
Why we needed to establish a PMO
Project management was fragmented by a silo mindset
Plans were made but not necessarily followed
Work was not tracked against the plan – plans were not adjusted
Requirements were not consistent – changes were not managed
Estimates were way off – over/under commitment was common
Defects were discovered in system test – or worse still, by the customer
Success often relied on the heroic efforts of a few
A PMO is not just an organisational unit or a job role
PMO
Scope
Ensure projects have people
with the right skills, training and motivation Provide project management tools to facilitate key project delivery processes and work activities
Define and maintain project management standards,
procedures
and methods detailing how projects should be managed
A
C D
The key roles of the HKJC PMO
Standards, methods and best practices
Centralised tracking and reporting for all projects (portfolio mgt)
Project manager mentoring and coaching
Project manager training coordination
Tool selection, implementation and support
Critical success factor 1:
A functioning governance structure is mandatory...
IT Policy / IT Strategy
Execution / Compliance Sponsorship / Biz Strategy
Management / Compliance IT Planning Group IT Departments STRATEGIC LEVEL TACTICAL LEVEL OPERATIONAL LEVEL Configuration Planning Group IT Management Forum IT Governance Committee Forums Project Teams CORPORATE LEVEL Department Meetings Steering Committee Business Divisions PMO IT Strategy Committee Board of Management IT Architecture Group
The IT Planning Group and IT Strategy Committee
provide legitimacy and authority for the PMO to act
IT Policy / IT Strategy
Execution / Compliance Sponsorship / Biz Strategy
Management / Compliance IT Strategy Committee Board of Management IT Planning Group STRATEGIC LEVEL TACTICAL LEVEL OPERATIONAL LEVEL IT Governance Committee Forums Project Teams CORPORATE LEVEL Steering Committee PMO
Critical success factor 2:
Methodology, processes and tools are standardised...
Portals are very effective for information dissemination
They provide a simple
gateway to an “approved” information repository
They are cheap to build and maintain
They are user friendly and, if well designed, engaging
They minimise the incentive
for “C” drive process stockpiles
Deliverable templates make the job of process
compliance easier
We use our portal to deliver our methodology
Drill down capability is
provided from the Level “0” view
Process and procedure assets
are aligned to key methodology steps
The Portal tells them what they need to do now – but they can also see what is coming next
Critical success factor 3:
What gets measured gets done...
All projects have on-line dashboards that report project level performance metrics and status
Green, yellow and red “traffic lights” communicate health High level visibility
Top line project metrics enable performance to be
benchmarked and issues followed up
Defects per project man-month provides a common quality metric
that allows different projects to be compared
A threshold value triggers a deeper investigation into below par performance
Critical success factor 4:
Regular communication at the PM level to share
information and motivate improvement
Invite middle level managers to speak to the IT executive team
Give senior IT management an opportunity to provide “leadership”
Regular Project Manager Forum for best practice sharing
Training is helping to “enlighten” IT staff and the staff of
our business partners
Nine IT Project Managers have successfully achieved Project Management Professional (PMP) certification – a certification program for the remaining PMs is in progress
Over 150 IT and business staff have
attended PMO arranged training, i.e. requirements definition, process
improvement, inspections/reviews, estimation, etc...
Critical success factor 5:
Don’t stand still ... invest in and develop your PMO
HP PPM (Hewlett Packard)
PPM will help our PMO deliver
more effective governance of IT projects and programs
Track and manage user demand
Assign and monitor IT resources
Manage: Pipelines Project budgets Project costs Track issues/risks/changes Staff timesheets Staff utilisation Capacity utilisation PPM to be launched in July 2008
Software estimation tools
SLIM Estimate (QSM, Inc.)
Staffing & Probability Analysis
Avg Staff (people)
<Current Solution>
1 2 3 4 5 6 7 8 9 10 11 12 13 14 Jan
'01
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan '02 Feb Mar 0 2 4 6 8 10 12 14 A v g S taf f ( peopl e) 8 7 4 1 R&D C&T WARTY Milestones 1 - HLDR 4 - SIT 7 - GA 8 - EW Milestones 1 - HLDR 4 - SIT 7 - GA 8 - EW
SOLUTION PANEL <Cur r ent Solution>
Duration Effort Cost Peak Staff MTTD Start Date C&T 12.0 106 1059.1 12.0 1.2 2/5/2001 Life Cycle 14.8 127 1273.4 12.0 2.7 1/1/2001 Months MM $ (K) people Days
PI=15.1 MBI=2.5 Eff Obj=274
RISK GAUGE <Current Solution>
LC Duration <= 12 Months LC Cost <= 1500 $ K Peak Staff <= 20 ppl Life MTTD >= 3 Days Duration
Cost Peak Staff
Quality
% 0 10 20 30 40 50 60 70 80 90 100
CONTROL PANEL <Current Solution>
PI 9.1 21.1 15.1 Peak Staf f 0.5 23.9 12.0 Ef f Obj 0 548 274
Project: B2B site development
To support more effective
budgeting, require more accurate estimates at the project proposal stage
Home grown tools have proven to
be ineffective while PM estimates are inconsistent and highly
experience based
Best-of-breed tool has been
acquired to drive consistency and support estimate benchmarking
Will be used to supplement PPM by
providing estimate input data on a role basis
Results achieved after establishing our IT PMO
QC & UAT Fatal/Critical/Minor SQ Raised per Project Man Month
1.4 2.7 2.0 2.83.1 1.3 1.7 1.5 4.4 1.5 1.0 0.6 4.3 1.5 2.1 2.5 2.2 2.8 0.8 1.8 4.3 3.7 3.1 4.0 3.0 3.6 3.8 4.1 2.2 0.8 2.9 3.5 6.1 2.7 5.3 4.1 6.7 2.9 3.6 6.7 3.5 4.4 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 Oct -04 Dec -04 Feb-05 Apr -05 Jun -05 Aug -05 Oct -05 Dec -05 Feb-06 Apr -06 Ju n-06 Aug -06 Oct -06 Dec -06 Feb-07 Apr -07 Jun -07 Aug -07 Oct -07 Dec -07 Feb-08 Q205 Q305 Q405 Q106 Q105 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208
