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Case Study of TIAA-CREF – Cross Organizational PMO/Methodology Consolidation-Alignment
- Navigating the corporate political landscape to effect change across multiple PMO’s
- Successful PPM Practices along the way- Lesson's Learned – All things change over time
Date: September 24th, 2015Steve Smith
Housekeeping Items
• Everyone will be muted throughout the entire presentation• You are welcome to ask questions at any time using the chat and/or
Q&A feature• We will have a brief Q&A session at the end of the presentation to
make sure that we answer your questions
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PPMP Mission Statement
• Mission: Our mission is to foster our individual member’s learning through the sharing of knowledge, best practices, experiences, lessons learned and by engaging with industry experts and thought leaders.
• Purpose: Our goals are to enhance the professional capabilities and skills of our individual members and to bring value to the overall project portfolio management industry.
• Who we are: PPM Professionals is a Professional Association of project portfolio management working in multiple industries.
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PPMP Governance
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Steering Committee – Bay Area• Ross Boon, Bank of the West• Drew Feraios, First Republic Bank• Prashanth Naidu, Hitachi Data Systems• Todd Hobert, VMware• Nadeem Bawani, Kaiser Permanente• Ashok Vuppala, Google
Steering Committee – Denver• Dana Albright, CenturyLink• Thomas Rieck, Vail Resorts• Grant Merrill, Level 3 Communications• Cindy Canino, IHS
PPMP Benefits
Networking• Leveraging and sharing with your peers• In-person and Online
Chapter Meetings• Assistance in Developing a Chapter in Your City• Becoming a Steering Committee Member
Events• Attend our Annual Events• Stay in the Know of All PMO Events in your Area
Knowledge Base• Library of Presentations, Videos, and Recordings• View Discussions from you Peers
Participate/Contribute• Become a Guest Speaker• Become Author/Blogger/Thought Leader
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Agenda
• Introduction to PPMP• Our featured speaker• TIAA-CREF Overview• The Challenge of multiple PMO’s and methodologies• A new PMO Model – Enterprise wide SDLC• Key Lessons Learned
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Our featured speaker today:
Steve has over 35 years of experience in insurance, consulting, and financial services with roles in sales, project/program management and PMO implementation.
Over the past 21 years he has worked in a range of corporate business and IT project environments at Bank of America, TIAA-CREF, Great-West, and Anthem Health and presently with Munich Re.
Steve is currently leading a program PMO for a $36M global transformation effort and in his previous position, with TIAA-CREF, implemented an enterprise wide project methodology standardization effort and ran a large IT Application Development Division’s Project Management Office with a $175M portfolio of IT projects.
Steve SmithAVP, Project Management OfficeMunich Re
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TIAA-CREF Overview
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TIAA (Teachers Insurance and Annuity Association) was chartered in 1918 as a stock life insurance company to provide employees of nonprofit education and research institutions with the means to enhance their future financial security.
CREF (College Retirement Equities Fund), a companion nonprofit organization to TIAA, was founded in 1952 to provide retirement annuities based on investment in common stock. In the 1980s, CREF registered with the Securities and Exchange Commission (SEC) as an investment company under the Investment Company Act of 1940
TIAA-CREF helps provide lifelong financial security for those in the academic,cultural, governmental, medical and research fields. We invest for the long termand apply our deep expertise across a wide range of traditional and alternativeassets. Our mission to serve, our record of performance and the values weembrace make us a different kind of financial services company.
•Retirement Plans•After-Tax Annuities•IRAs •Education Savings•Mutual Funds•Brokerage Services•Banking •Life Insurance
https://www.tiaa-cref.org/public/about-us
TIAA-CREF High-Level Departmental Structure with PMO Alignments (2007)
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InstitutionalIndividual Asset Management
Finance
Marketin
g Legal
TIAA‐CREF Business Areas
IT Infrastructure
I&I Application Services.
EPMO
PMO’s
Asset Mgt
Web
TIAA‐CREF IT & Operations Areas
Operations
HR,
Others
The Challenge • New leadership and organization structure being implemented in I&I
Application Services• PMO Lead established - Individual Contributor • Division Executive direction:
– The politics are brutal and business doesn’t like IT– You don’t have any authority or mandate– You don’t have any resources budgeted for the PMO and won’t get them– You need to build relationships with the businesses and their teams– You need to align all the PMO’s– You need to provide a clear view of “all” projects underway and in the pipeline– You need to control the pipeline of project requests– You need to make sure we have the right project lead resources – PM / BA– You need to establish clear estimation and financial tracking processes– You have my full support, “We’re the 800lb Gorilla here” and if you can’t do it I’ll
find someone who can
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Project & Methodology Landscape: 2007• Seven variations of SDLC methodologies were in use across the
enterprise: – EPMO (1) , IT Infrastructure (1) , Application Services (2) , Asset
Management (1) ,Operations (1), CSAP Project (1)• 10+ PMO or PMO like groups existed across Business & IT areas• No broad Project Portfolio Management processes in-place and
operational • 12+ Individual area project portfolios plus a 300+ item backlog of
project and enhancement requests• Resource Management – time/allocation, tracking tool just being
introduced (CA-Clarity) • Multiple Project Managers per project• 60+% of project resources were contractors• IT Audit had identified the lack of an enterprise-wide SDLC
(Software Development Life Cycle) as a high-level risk that had to be addressed.
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Starting Point – Individual Business
• Worked closely with Executives to sell the IT PMO value proposition (Transparency, Accountability)
• Aligned with Business PMO• Standard baseline SDLC methodology defined• Created Portfolio view• Annual Project Planning support• Standardized Tracking & Reporting templates
– Project Overview, Program alignments, Business benefits, Key contacts, Dependencies, schedule Phase/deliverable tracking,
– Financial Highlights: Estimates & actuals, Resources, Benefit Plan (ROI)
• Project performance review sessions established
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PMO Leadership Alignment
• 1X1 Meetings & Introductions• PMO Leaders Forum Established “The new guy”
– Non threatening environment– Cross enterprise information sharing, common issues &
challenges– Discuss various tools & processes in use– Best Practices – team structures– Discuss Applications Services Division direction
• Became the forum used to align methodologies and best practices
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New Work Intake Model / ProcessThe Question:
How do Business Area’s request planning estimates and effectively engage necessary IT support for their projects, initiatives and enhancements.
The Problem that existed: – 13+ different business areas/teams requesting work across IT– no centralized or standard approach – vendor lead change request process from an old project,
• little structure or detail, .• xls spreadsheet,• no accountability, • estimate basis was mostly single source, • no cross organization involvement,• no expectation management.
The Solution: – Business presentation based template & sign-off to bring forward– Panel of 15 business & IT areas to review & estimate– Weekly 90 minute meeting facilitated by the Application Services PMO– Standardized feedback with assumptions and disclaimers, SLA, etc. – Aligned to planning & portfolio management / governance processes in Business & IT– Share Point based request tracking, weekly status, estimate & metrics
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Master Investment Portfolio
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Created a single source representing all Business & IT Funded projects that IT was involved in. Updated from multiple sources across IT, Finance, Business. Generated various monthly dashboards for Business, IT , Finance and Governance/Steering Committees
• Strategic Planning & System ID tracking: (Clarity, Budget Code, PeopleSoft)
• Financial: Budget data Approved, IT, Clarity Actuals, YTD GL, Allocations(fcst), Variance
• Accountability:(Sponsor levels – Bus & IT down to PM)
• Status: Status, Start-end, Phase Dates
Obje
ctive
Tact
ic
Program/Project Name
Clar
ity ID
Budg
et C
ode
Peop
le So
ft Co
de (P
PC)
Project Identification Information
Approved 2009 budget (BAC) (includes T&O internal Costs)
T&O Internal Cost
(Recoverable)
January Clarity Total Actuals - (PIMA)
February Clarity Total Actuals - (PIMA)
YTD General Ledger Actuals
(As of 1/24/2009)
January Allocation - CFPA
Strategic Expense Budget
February Allocation - CFPA Strategic Expense
Budget
Variance (Allocations - GL Actuals
January
Budget Related Information
L2 EMT Sponsor
L3 Business Sponsor
L4 Business (Clarity
Relationship Mgr.)
IT LeaderProgram /
Project Manager
Accountability
Stat
us
indica
tor (
as-
of D
ate)
Proje
ct S
tart
Proje
ct F
inish
Proje
ct P
hase
Phas
e En
d Da
te
Deplo
y Da
te
Status Related Information
PMO Evolution – PMO Model & Staffing• Collapsed Web Services PMO and absorbed resources, absorbed 2
Application Services PMO Teams, disbanded ePMO• Embedded PMO resources in key business facing teams• Tool & Process experts• Piloted processes with various IT & Business teams
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PMO Lead
Embedded ‐Institutional IT
Embedded ‐Individual IT
Embedded ‐ IT Applications
Embedded ‐ IT Systems
SDLC & Processes
SharePoint Admin
Clarity Admin
New Work Intake
Special Projects
PM/BA Assessment – Application ServicesThe Problem:• Needed a clearer understanding of capabilities across our teams, concerns
about existing resources being stretched too thin, job titles not seeming to align with role/skill expectations
The Approach:• Created an organizational need assessment based on existing & anticipated
Project Portfolio• Reassessed & updated job descriptions• Designed standard and objective assessment tools• Panel assessed and scored 94 employees with PM, BA and AA titles
The Result:• We had a clear ranking of qualified Sr. PM’s, PM’s, Sr. BA’s, BA’s • Retitled dozens of Application and Technical support resources• Management was better equipped to align skills to project type & complexity
across the IT Application Services division
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Taking Further Control - SDLC Audit Ownership• In Dec 2008 the responsibility to complete and implement the
enterprise-wide SDLC transitioned from IT Infrastructure to the Application Services / Asset Management PMO’s. Roll-out date May 30th, 2009
• Very political transition but based on:– Application Services teams business customer facing position and actual project
volumes– Need to better align it with Clarity Resource and Project Portfolio Management,
New Work Intake processes, Governance and other Monitor & Control processes
• Initial development of tools & processes completed by the IT Infrastructure Team
• Audit team requested we align our processes & controls to the COBIT framework published by the IT Governance Institute and the Information Systems Audit and Control Association (ISACA).
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Delivering a Enterprise Wide SDLC (on schedule!)• Standard Project Methodology (SDLC)
– Fully documented lifecycle with all supporting templates, tools and training webinars all located on a central SharePoint site
– Project Work Breakdown Structure (WBS) available in CA Clarity to align all projects with the phase based SDLC
– Eight separate process training webinars available and viewed by 512 project resources
– Standing 90 Min User Group Sessions, focused on Methodology and Governance adoption in Clarity. Average weekly attendance 70 PM, BA & Project support
– Adoption stood at 78% of active projects either fully or partially using the Standard WBS phases and deliverables. Grandfathering & pure infrastructure primarily excluded the remaining 22 %
• Governance Model– Fully documented Governance Model and all supporting templates, tools and training
available on SharePoint– Introduction and Orientation meetings held with all major business sponsor areas– Standard Project Repository established on SharePoint for capturing and tracking all
required (Auditable) and supporting project artifacts including Phase gate and Change Control. 69% of projects were fully compliant at launch
– Formal weekly governance meeting schedules were launched and/or scheduled
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Delivering a Enterprise Wide SDLC• SDLC & Governance Process Controls & Monitoring
– Monthly PMO assessment and report out of WBS adoption and SharePoint artifact status
– Key completion dates in Clarity only updateable by PMO– Infopath Governance templates developed for Phase gates, Change Requests,
Issue Escalations and New Project Addition to the Master Investment Portfolio– Governance Decision logs documenting all phase and change request approvals
tracked and stored in SharePoint– Project Close-out Phase assessment, by the PMO, to assure all required artifacts
are complete and in SharePoint (audit ready, searchable for reuse)– SOX evidence requirements validated prior to approval to entry into production.
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Delivering a Enterprise Wide SDLC
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New Work Intake Process
Cross‐Organizational Project Request Review Panel
Project Classification & Estimate / Assessment
Business Planning Phase (Step 1)
‐ Business Case‐ CBA‐ Proj Summary
Status, Financial, Forecast
PORTFOLIOMASTER
PORTFOLIO
Approved, Funded Strategic, Growth and Key
Baseline Projects
Master Portfolio Queue
Approved &
PrioritizedProjects Awaiting Funding
Small EnhancementFunding Buckets
Approved Phases, Changes, Additions
Approved additions & changes
Cross‐Functional Steering Committee(s)
Phase Gate ApprovalsMajor Schedule/CostNew Project Approvals
Portfolio / Project Governance
Cross‐Functional Working Team(s)Phase Gate Reviews
Issue Escalation ReviewsNew Request Reviews
Cross‐Project ReviewProject Support, QA ReviewsStatus, Gates, CCR's, Issues
PLANNING PHASEREQUIREMENTS & DESIGN PHASE
BUILD & DEPLOY PHASE
PROJECT INITIATION PHASE
CLOSEOUTPHASE
Gov Gate 1
Gov Gate 2
Gov Gate 3
Gov Gate 4
CA Clarity Econometrics PeopleSoft & GL
PROJECT MANAGEMENT (SDLC ‐ Phase Gates)
IT Challenge & Change Continued:
• A series of web, phone and other significant IT outages occurred in early 2010.
• Executive Leadership stepped in April 2010 with an external team to do a formal assessment of IT
• Basic finding – IT Environments not well maintained, most everything is broken in the IT Organization, Architecture, Applications, Projects, Funding Approach
• $336M IT Transformation Program launched in Summer 2010. CIO, Sr. Infrastructure and Application Services leadership replaced
• Multiple IT Modernization initiatives launched• IT Organization Transition period began – focus on Agile, “Lite”
Methodology, PMO organization transition, new ePMO, Repackaged SDLC and associated processes
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Key Lesson’s Learned• Culture impacts – Not for profit, Academia, Accountability• Hold the consolidated portfolio view• One Project Manager per project please• Command & control works as long as you are in command & control• When Business won’t prioritize it’s IT’s nightmare• Closely monitor Exec & Sr. Mgt. involvement & delegation• Beware when processes are given your name• Watch out for process groupies• Pride of ownership can kill you• Communicate, Communicate, Communicate• Don’t quietly ignore insufficient IT funding• Budget - Staffing games pitting IT against Business
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Thank you for joining today
Please feel free to connect with me if you have further questions at:
(678) 428-5033
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Next Event: Webinar October 22nd
Demand Management in an Outsourcing World
Elizabeth CoultasSenior Director
Siemens
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Webinar Recording:You can find the recording of this webinarevent, a copy of the presentation & a list ofupcoming events here…
www.ppmprofessionals.org/events
WINNER!
www.ppmprofessionals.orgProject Portfolio Management Professionals (PPMP)
@PPMProfessional
Project Portfolio Management Professionals
Thank You!
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