BigCORP Post-Merger IS/IT Project Office Mission and Operating principles PRAGMATICA Management Consulting
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This document proposes an approach focused on answering some of the main merger IS/IT challenges from a pragmatic point of view Document contents
… Some of the main BigCORP Integration IS/IT requirements
The merger and challenges for IS/IT management
What can help in this situation?
Value proposition of a Project Office
Why will it be useful?
Project Office Mission and principal functions
How is it going to work?
… and, What is next?
Project Office operating principles Organizational implications
Setting up the Project Office Next steps
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Table of Contents
1
The merger and challenges for IS/IT management
2
Value proposition of a Project Office
3
Project Office Mission and principal functions
4
Project Office operating principles
5
Organizational implications
6
Setting up the Project Office
7
Next steps
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BigCORP has to face and integrate an increased number of complex IS/IT projects to be delivered on time and budget, as part of the great merger challenge A highly complex merger project… Merger to be completed in a 24 month horizon focusing on the challenges of… Business continuity Synergies to capture Organizational change High complexity of the merger project several parties International setting Considerable differences in company culture To date, no central integration management
… and a difficult context for IS/IT service delivery IS/IT related projects are critical to the success of the merger IS/IT projects contributing to the merger are fragmented in terms of owners, deadlines, size, complexity and impact Business sense of ongoing projects may be affected by the merger and need to be re-evaluated Many important IS/IT merger projects are transversal (corporate, cross sector, cross BU) IS/IT resources do not match the transversal scope of projects, mainly decentralized and reporting to business
IS/IT to deliver an increased number of complex projects on time and on budget
Complex mix of projects driven by the business transformation Risk of delay due to dependencies and IS/IT resource availability Budget risk due to redundancies, overlapping and external contracting
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The challenge is relevant at all IS/IT levels, but a corporate perspective is necessary to making a reality possible cross-sector synergies in knowledge, organization, information and costs Management Board
Synergies never materialize on their own. Their achievement must be managed IS/IT Steering Committee
Sector Head
DG Platform
Sector Head
Information Systems Planning
Sector vision
CIO
BU Head
Corporate vision
BU Head
Information Systems Services and Resources
Plant Head
IS/IT project
IS/IT project
IS/IT project
IS/IT project
Sector vision will be a success factor, pivotal as per market realities, but a transversal vision of the activity across different sectors / businesses is also necessary in order to manage the achievement of synergies.
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Specifically, project development presents information, monitoring and management needs on a “corporate perspective” level
Which projects and who’s responsible?
With what priority?
Which resources?
What’s the cross-sector impact?
Are there redundancies?
Can different BUs profit?
BigCORP Merger: IS/IT scenario New requirements New Organization
On-going projects New projects
Corporate requirements
Align projects with IS/IT strategy and identify critical projects
Rely on an “information hub” with standard information
Have elements for assessment in order to establish mapping of priorities
Facilitate & Monitor progress of transversal and critical projects
Identify redundancies
Which projects, what’s their priority and who’s responsible?
What resources do I provide / receive for corporate projects?
How can I take advantage of other sectors’ achievements?
Are arbitration facilities between projects / sectors available?
Can I access up-to-date information on “state of the art” for projects in other sectors and projects which may affect me?
Sector/Business requirements
Coordination with
projects in other sectors and standards for
monitoring Be
aware of and follow critical projects with transversal impact
Access
to achievements in other sectors, that can be used in my own sector
Identify
redundancies
Possibility for Rely
arbitration
on an “information hub” with standard information
facilitate project development and “service delivery”, prioritizing critical projects and maximizing synergy exploitation PRAGMATICA Management Consulting
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Table of Contents
1
The merger and challenges for IS/IT management
2
Value proposition of a Project Office
3
Project Office Mission and principal functions
4
Project Office operating principles
5
Organizational implications
6
Setting up the Project Office
7
Next steps
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Creating a Project Office will substantially facilitate the identification and management of inter-sector questions of interest for BigCORP
Transversal and cross-business/function projects… Domain HR Purchasing Accounting …
…monitored by the Project Office support
Organization Flat Carbon Long Carbon Stainless …
IS/IT Steering Committee
Transversal Network …
Report on Sector level
Merger issues, quick wins, synergies…
Issue Quick Win Synergy
Qualification
Report on Corporate level
CIO
CIO
Project Office
Resolution /Capture
Task Force Ad Hoc Mission
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Critical Project
Critical Project
Critical Project
Monitor Progress
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Having a Project Office adds value for all stakeholders of the projects
Sector & BU CIO’s Information Systems Planning Information Systems Services and Resources
… providing transparency on critical projects in decentralized service Business Owner / Leader delivery … helping to ensure delivery of critical projects
Project managers
IS/IT Project Manager
… providing an “information hub” … supporting and providing standard principles of monitoring & reporting
DG Platform Sector CIO’s
IS/IT Steering Committee
… informational and project monitoring support to facilitate the task of coordinating sector and corporate visions
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Transparency on interdependent projects and option for coordination Assistance for the identification of issues in a changing environment A direct and efficient way to communicate issues and ask for decision Promoting arbitrage when necessary
Information efficiency Action oriented synthesis Filtering of project-related information Transparency on interdependencies, resource usage Identification of eventual redundancies
Early recognition of issues and risks leading to resolution Information efficiency Decision oriented reporting Filtering of project-related information Transparency on progress
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Table of Contents
1
The merger and challenges for IS/IT management
2
Value proposition of a Project Office
3
Project Office Mission and principal functions
4
Project Office operating principles
5
Organizational implications
6
Setting up the Project Office
7
Next steps
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The Project Office’s mission is to provide service to the direct “stakeholders” of the projects in order to facilitate decision making
Coach
Principal functions
Direct stakeholders
Ensure coordination and follow-up of IS/IT critical projects Ensure transversal coordination of projects Identify and facilitate arbitrage on conflicts/trade-offs between isolated projects Provide transparency on risks and initiate early mitigation
Business Owners / Leaders
Project Managers
IS/IT Steering Committee
Represent the “information hub” for the program
Inform
For whom?
Facilitate and monitor progress
Monitor
How so?
Ensure “information efficiency” by consolidating the project reporting Harmonize and share project-related information
On demand, support project managers in integrating with other projects, on methodology aspects or planning of project
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Project Office’s mission concentrates on project delivery, but its activities provide transparency to assist throughout the project lifecycle Project Office support
Project lifecycle Project Office services
Qualify
Conceive
Project Office provides support on demand in project planning Methodology Resources with required skills (having participated in similar projects)
Project Office provides standard templates Project Office provides information that allows stakeholders to quickscan arcelor environment to identify project alternatives before qualification Project interdependencies Project overlap or redundancies Possible synergies, integration with other projects
Project Office focus
Project Office support
Deliver
Evaluate and Learn
Project Office provides standard templates and tool for monitoring and reporting Project Office directly monitors and reports on critical projects Project Office provides support on demand in project management Project Office serves as a channel for communication Escalates issues Provides information for decision-making
Project Office promotes data base Project Office supports objectives tracking for success/failure qualification Project Office provides information for continuous improvement measures Project Office monitors and reports on task forces that implement improvement measures
Projects must be managed in coherence with the BigCORP principle of subsidiarity, with Project Office interacting at relevant levels to add value through transparency and monitoring PRAGMATICA Management Consulting
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Table of Contents
1
The merger and challenges for IS/IT management
2
Value proposition of a Project Office
3
Project Office Mission and principal functions
4
Project Office operating principles
5
Organizational implications
6
Setting up the Project Office
7
Next steps
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The Project Office operating principles can be described by answering a number of key questions Which projects will be on the Project Office radar ?
How to register new
projects ?
What are the roles of the Project Office organization ? How does the Project Office
communicate with the different stakeholders ?
Which information is managed by the Project Office ? What do « monitoring » and « reporting » mean ?
Which tools can be used by the Project Office?
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Which projects will be on the Project Office radar?
The Project Office will primarily monitor those projects approved by the Steering Committee Criteria for qualifying a critical project
Projects approved by the Steering Committee Projects
Approved by IS/IT SC
Project
size > ____ Euros
Projects
Monitored by IS/IT SC
with cross-sector or cross-functional scope
whose non-completion pose an operational risk
Projects relying on resources loaned by other sectors
Those projects, new or ongoing, defined as such “on demand” Projects By
“visible” at board level
a member of IS/IT Steering Committee
IS/IT Steering Committee must approve and publish criteria determining which projects must be submitted to the Steering Committee •Must have a clear guideline for acting •Decentralized Service Delivery staff must understand which projects must be reported PRAGMATICA Management Consulting
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How to register new projects ?
4
Process for qualifying a critical project
•Sector CIO /ISSR/ ISR (Owner/Leader) •Project Manager •Project Office Interact “directly” around the project
Proposes On-going projects
•Management Board •Sector CIO •ISSR / ISP •Project Office
Qualifies (Approves)
Project Qualification (*)
New projects
•Management Board •Sector CIO •ISSR / ISP
IS/IT Steering Sector CIO (*) Committee Owner /Leader
IS/IT Steering Committee
Critical Project
Critical Project
IS/IT Steering Committee
Project Manager Manager / Delivery
Project Office Monitoring & Reporting support
(*) Or ISSR or ISP
dossier Project Qualification (*)
The project begins to be monitored by the Project Office
ISP: Information Systems Planning. ISSR: Information Systems Services & Resources
(*) See next slide
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