Program Management in IT services delivery is different from managing programs in other businesses. In this slide deck, I tried to r

1. IT Service
Program Management & PMO
Program
Management in
IT Services
Business
-- VSR
April, 2009
The views mentioned in this document are solely by the author and
1
does not reflect the views of any organization or entity - VSR

2. Presentation Outline
 IT Services Business Environment
 IT Service Program Definition
 Value delivery from IT Service Program
 Knowledge Areas of IT Service Programs
 PMO for IT Services Business
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3. IT Services Business
Environment
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4. Indian IT Services Business - Journey
towards providing business value to
customers
Align IT for
Business
Transformation
Align IT for
Business
Growth
Reduce Total
Cost of
Ownership
Deliver Quality
Projects at
Velocity
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5. Program definition in IT Services
Business
Program in IT Services
VARIANT 1
Set of interrelated projects relating to single
customer
VARIANT 2 Set of non related projects for single
customer
VARIANT 3 Set of non related projects for multiple
customers (region, industry, technology etc)
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6. Program definition in IT Services
Business (contd..)
Program Variant 1: A Program is a group of
related projects for a customer, managed in a Business
coordinated way to obtain business benefits, Value
control and transformation that is not available
from managing them individually In IT Services
Business, we
Program Variant 2: A Program is a group of have to manage
non-related projects for a customer, managed three variants of
in a coordinated way to optimize the Total Cost the program
of Ownership and to align IT with the Business IT Value
of that customer
Program Variant 3: A Program is a group of
non-related projects for multiple customers,
Project
managed in a coordinated way to improve the Value
individual project performance.
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7. Value Delivery from IT Service
Programs
S. No Type of IT Program Value Parameters
1 Program Variant 1 Business Value
• Reduce Time to Market
Set of interrelated projects • Improve Gross Margins
relating to single customer
• Increase Revenue
• Improve Cash flow
2 Program Variant 2 IT Value
• TCO (Total Cost of Ownership)
Set of non related projects for • Optimal Outsourcing Mix
single customer • Business and IT alignment
3 Program Variant 3 Project Value
• Schedule
Set of non related projects for • Productivity
multiple customers (region, • Total Defect Containment
industry, technology etc)
• Cost of Software Quality
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8. Possible Project Mix in a IT Service
Program
S. No Project Type
1 Application Maintenance & Support
PROGRAM 2 Composite Applications Implementation
3 Consulting
Each
Program 4 Custom Composite Applications Development
consists of 5 Custom Applications Development (Traditional)
the mix of
6 Enterprise Applications Integration
different
projects 7 Information Management
8 Infrastructure Management
9 Legacy Modernization
10 Package Implementation (Traditional)
11 Package Upgrade
12 Platform Migration (e.g Oracle to SAP)
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9. Variant 1 Knowledge Areas: IT Service
Program Management
VARIANT 1 – IT PROGRAM MANAGEMENT
Project
Program Scope Program Time Program Cost Program Quality
Program Management Management Management Management
Dependency
Management Management
Communication & Delivery Excellence / Risk & Issue Stakeholders
Information Management Throughput Management Management Management
Program Operations Management Program Knowledge Management
(infrastructure, space, invoicing, Visa, recruitment, BGC etc )
Value
Realization Benefits Realization
Transition Management Change Management
Management
Management
Business Risk
Management Disaster Recovery Management Business Continuity Management
Relationship Associate Relationship Customers Relationship
Management
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10. Variant 2 & 3 Knowledge Areas : IT
Service Program Management
VARIANT 2 & 3: IT PROGRAM MANAGEMENT
Scope Cost Time Knowledge Profitability
Project Management Management Management Management Management
Management Quality Project Operations Management Communication Risk & Issue
Management (infrastructure, space, invoicing, Visa, recruitment, BGC etc ) Management Management
Multi Project Management Delivery Excellence / Throughput Management
Business Risk Disaster Recovery Management Business Continuity Management
Management
Account Growth Account Mining/Presales Management Account Attrition Management
Management
Relationship Associate Relationship Customers Relationship
Management
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11. IT Service Business – Program
Management Office (PMO)
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12. Assumed Environment in a typical
Indian IT Services Company
 There is separate Delivery organization which owns the Service Delivery
(Head Delivery, Program/Delivery Managers and Project Managers)
 There is separate Quality organization, which takes the responsibility of
building assets of Program Management and conduct program
management process audits
 There is separate Learning Academy , which takes the responsibility of
building Program Management competency
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13. IT Services Business - PMO Focus
1 Provide Central Visibility Of Program
2 Institutionalize Program Management Processes
3 Enable enhancement of Program Throughput
4 Provide Program Management Consultancy
5 Build Program Management Competency and Provide
Mentoring Support
6 Maintain Relationships with Delivery Team and
Customers
7 Communication and Change Management
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14. IT Services Business - PMO Focus
Provide Central Visibility of Program
• Maintain Executive cockpit , conduct
Stage Gate Reviews and provide
Alerts
• Conduct Predictability analysis and
provide Alerts
• Maintain and analyze Programs
Repository
• Conduct Program Risk Analysis
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15. IT Services Business - PMO Focus
Institutionalize PgM Processes
• Standardize Program Management
Practices / methodologies and
Provide Tool Kits
• Select and implement Program
Management Tools
• Establish Process Capability
Baselines and improve Process
Capability of Program Management
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16. IT Services Business - PMO Focus
Enable Enhancement of Program
Throughput
• Promote Innovation and thought leadership
to improve throughput of a Program
• Enable Defect Prevention Management to
reduce rework in Programs
• Enable various techniques to optimize
Offshore-mix of a Program
• Enable usage of Delivery Accelerators to
improve quality and productivity of Program
deliverables
• Promote Best Practices, Lessons Learnt and
Knowledge Management culture within
Programs (Blogs, wikis, Disc Forums , SIG
etc)
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17. IT Services Business - PMO Focus
Provide Program Management Consultancy
• Provide general consulting to
Programs/Projects
• Provide consultancy in
Benchmarking & Industry Practices
in Program Management
• Provide Trouble shooting
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18. IT Services Business - PMO Focus
Build Competency in PgM and Provide
Mentoring
• Forecast and enable building
Program Management Competency
• Enable Program Management
Careers
• Mentor Program Managers/Project
Managers
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19. IT Services Business - PMO Focus
Maintain Relationships with Delivery Team
and Customers
• Maintain relationship with Delivery
Team
• Maintain relationship with
Customers (as applicable)
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20. IT Services Business - PMO Focus
Communication & Change Management
• Communicate and Brand PMO
• Enable Change Management to
accept PMO
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21. Indicative PMO Organization Structure
in IT Services Business
Executive Sponsors
Steering Committee
Internal
Program Management Office Learning Academy Internal Quality Head Delivery
Unit
Consultancy/Mentoring Program Manager/
Delivery Manager
Competency Management
Standardization and Institutionalization of Program Manager/
Practices Delivery Manager
PMO
Program Visibility Management
Structure Program Manager/
Thought Leadership & Program Throughput Delivery Manager
Enhancement
PgM Intellect Capital Management
Program Manager/
Delivery Manager
Relationship/
Partnership Management
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22. Indicative Metrics for IT Services PMO
Success
DIRECT MEASURES
– # of Consulting Engagements for PgM
– # of Mentoring Sessions on PgM
– # of Competency Building Sessions for PgM
– # of Interventions in Improving Program Quality & Throughput
– # of Knowledge Sharing Sessions conducted in PgM
– % utilization of Program Management Assets
– Internal customer Delight index
First, baseline the
ENABLING MEASURES
existing Metrics and
 Program Execution Performance
– Benefit Realization
then set the
– Health Index of a Program benchmarks
– Productivity of a Program
– Risk Index of a Program
– Change Requests Index
 Program Finance Performance
– Profitability
– Cost of Quality of a Program
– Estimation Accuracy
 Customer Delight
– External Customer Delight Index
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23. Steps to establish PMO in IT Services
Business
SCAN ORG. ENVIRONMENT AND CONDUCT
GAP ANALYSIS
DEFINE PMO FORESIGHT AND ESTABLISH
GOVERNANCE STRUCTURE
IDENDITY PMO SERVICES
FINALIZE PMO INFRASTRUCTURE
ESTABLISH PARTENERSHIPS
ESTABLISH MEASUREMENT & REVIEW
SYSTEM
TRIGGER CUTURE CHANGE
PLAN FOR QUICK WINS
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24. IT Services Business PMO Architecture/
Components
PMO PROCESSES
PMO SCORE CARDS
PMO SKILLS
PMO ORG. STRUCTURE
PMO TOOLS / APPS
PMO ASSETS
COLLABORATION PLATFORM
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25. IT Services Business - PMO Maturity
Levels
 ENHANCE IT VALUE AND BUSINESS VALUE: Program
LEVEL 4 Management Office: Program Focus, Program Value
enhancement, Program level tracking and monitoring,
benefits measurement and corrective actions, alignment
with Customer IT & Business
 ENHANCE PROJECT VALUE: Project Management Office:
LEVEL 3 Project tracking and reporting, best practice repository and
access to PMs, consistency across the projects. Enhancing
project value
– Enable on-job learning through Apprentice of PMs
– Project consulting and mentoring
 FACILITATE AND SUPPORT: Project Enabling office: Provide
LEVEL 2 support on various aspects of project management. Provide
hands on project assistance
LEVEL 1  BUILD CULTURE: Communities of Practice: sharing
experiences and improving individual capabilities
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26. IT Services Business - PMO Should Focus
on both Project Life Cycles and Project
Management Life Cycle
Integrated Project
Management is the Key
for success
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27. PMO 2.0
Business Closer to PMO
and
PMO Closer to Business
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28. Critical Success Factors for PMO in IT
Services Business
1 Executive Sponsorship
2 Value Delivery Engine
3 Sophisticated Governance
4 Robust Review Mechanism
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29. Critical Success Factors for PMO
Executive Sponsorship
• Budget and Time Commitment from
Executive Sponsor
• Commitment to bring cultural
change
• Commitment to reward the best
• Commitment to take corrective
actions as needed
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30. Critical Success Factors for PMO
Value Delivery Engine
• Commitment to induct right skilled
people into PMO
• Value adding services to
Delivery/Program team
• PMO to act like a catalyst for
Problem Solving
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31. Critical Success Factors for PMO
Sophisticated Governance
• System driven mandatory
governance controls
• System to have regular
communication on initiation of
Programs
• System to bring PMO interventions
at appropriate time
• Supporting structure in different
units
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32. Critical Success Factors for PMO
Robust Review Mechanism
• System to early detect RED, GREEN, AMBER
Projects/Programs
• System to have skip level interaction with
customers to get the health of Program
• System to conduct value adding reviews (asking
right and relevant questions )
• System to help resolving issues with regular follow-
ups
• System to have virtual team to participate in quality
reviews
• System to have participation of Executive sponsor in
critical accounts review
• System to get the acceptance that PMO plays a role
of Devils Advocate
• System to include PMO reviews are seamless and
not overhead
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33. IT Services Business - PMO Skills
• Program Management experience
• Project Life Cycles
• Relationship Management
• Thought Leadership
• Industry/Business exposure
• Mentoring
• Consulting
• Problem Solving
• Risk Management
• Effective Review Management
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34. Thank You!
VSR
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