Vous êtes sur la page 1sur 19



Texas Instruments Business Applications Project Execution

ne of the worlds oldest and largest semiconductor makers, Texas Instruments Inc. is the market leader in digital signal processors. For more than six decades, Texas Instruments has created milestone innovations, including the rst commercial silicon transistors, the rst integrated circuit, and the rst electronic hand-held calculator. More than half the wireless phones sold worldwide contain Texas Instruments digital signal processors, which are also found in many other devices such as VCRs, automotive systems, and computer modems. Texas Instruments semiconductor oerings also include logic chips, microprocessors, and microcontrollers11. Ranking 197 on the 2004 Fortune 500 list, Texas Instruments employs more than 34,000 people worldwide and reports 2003 revenues of $9.83 billion. In addition to Semiconductor, the companys businesses include Sensors & Controls and Educational & Productivity Solutions. Texas Instruments is headquartered in Dallas and has manufacturing, design, or sales operations in more than 25 countries. For the purpose of this case study, Texas Instruments focused on information technology projects: customer-initiated projects (projects paid for by customers), internal support projects (e.g., IT system upgrade and developing new human resources policies), and internal improvement initiatives. Texas Instruments IT services considers its pre-project analysis exemplary among its project management practices. For this analysis, Texas Instruments IT services project execution group (PE group, also referred to as a project management oce or PMO) researches the business problem or problems to be solved and develops high-level cost and schedule estimates. Together with information gained on risks,


Source: www.hoovers.com and www.ti.com (retrieved 4/2/2004)

Project Management 2004 APQC



constraints, assumptions, etc., the analysis project allows the sponsor to review the potential project from a cost/benet standpoint. From January to October 2003, 18 pre-project analysis projects were performed, resulting in 14 projects sponsors decided not to pursue.
Texas Instruments Information Technology Services Business Applications History

IT services established its business applications function to support enterpriselevel business applications and execute project/program management for those applicationsprojects funded by the business or IT. Enterprise-level business applications are those such as SAP and i2 (Texas Instruments key applications); mainframe legacy applications of Modplan, SPS, SCAS, and PDB; and other applications including Vertex, XMS, Viewstar, Clarity, and 1099. IT services 1999 SAP implementation was a major undertaking and the rst global, single-instance SAP implementation. IT services spent the rst few years stabilizing the systems and educating people. To facilitate this stabilization, IT services organization model initially worked along functional lines. By 2002, each vertical function (plan to start, order to cash, and purchase to booking) was responsible for the running and maintenance of applications, projects, and enhancements. Along the lines of the business functions, project managers focused exclusively in one of these three areas. Texas Instruments project management professional Robin Bray said, People viewed their roles as I support planning or I support department XYZ. It was a functional model with a silo approach to support and development. By 2003, IT services discovered that although functional alignment allowed people to focus on a particular knowledge area and build a depth of expertise, it resulted in: limited knowledge sharing between functional areas, very few people with cross-functional knowledge, dierent processes and inconsistent results across silos (and therefore an inability to gauge success), and an inability to rationalize resources across the organization and ensure people work on the right priorities. Thus, IT services ipped the organizational model by breaking down silos and replacing them with a process focus. People from technical resources became part of a consolidated technical support organization responsible for project execution and level 2 and level 3 supports, which involved a change for 130 people. (IT Operations handles data center responsibilities and level 1 customer service; it is a separate group that aligns with the business processes, is responsible for the core technology that all Texas Instruments personnel use, and reports to the CIO.) After the changes, IT services project managers viewed their roles dierently. They saw themselves as project managers responsible for business projects and running SAP


Project Management 2004 APQC


and IT systems. The new model resulted in: each groups responsibility for a single process across all enterprise resource planning applications, a consistent framework around all enterprise resource planning activities, a project focus on process as well as product, and a foundation that allowed project management best practices to be developed. As with all changes, Bray said, it also introduced a new set of challenges.

The concept of project managers was foreign to Texas Instruments IT services group prior to the 2003 organizational model change. This large shift was accomplished successfully through three best practices identied by IT services: 1. an outstanding leadership team that works with each of the project managers to mentor and develop them, 2. a formal documented process for project management that details what is required while executing projects in the organization, and 3. a knowledge-sharing forum for project managers with the focus on all knowledge areas necessary to be an outstanding project manager.

IT services project execution leadership team, composed of three project management professionals (PMPs), had to judiciously proceed to change mindsets and engender cautious optimism among senior leaders. These change leaders long history of successful project management helped them establish a successful framework and convince senior leaders of the need for change. Leaders rst focused on project management principles: an organization dened by project roles (e.g., project manager, business analyst, and architect) that enables depth in one area but still spans the entire enterprise resource planning system. This allows for growth of project team skill sets, which rely on industry standards such as the Project Management Institutes Project Management Body of Knowledge and Software Engineering Institute methodologies that set forth a waterfall approach rather than rigid levels. (IT services tailored some of the language and process steps to meet its needs.) Additionally, some team members earned their PMP certication. The leadership team, which was determined to redefine the paradigms, embraced cultural concerns and change management issues. With the radical change in responsibilitiesproject managers are responsible for schedule, budget, and resourcescame a change in minds and procedures across the IT services system. The goal was consistently successful project execution. IT services success has led to four additional project management oces in the company.

Project Management 2004 APQC


TEX AS INSTRUMENTS Formal and Documented Process

Project executive group leaders built a Web site, created project management training classes, established a project management process, and structured a formal project execution organization. Their toolbox consisted of: mentoring; business readinessdetermining customer satisfaction and business value through the right training, people, information, timing, and business sense (i.e., Does this make sense across projects?); tools and templatesto be used as a starting point; communication tools; project reviews; project execution internal Web site; and project execution processthe waterfall approach with an emphasis on time rather than budget or score. From an infrastructure point of view, the project execution process spans seven phases with information technology readiness reviews (ITRs) conducted at certain points to look at infrastructure and hardware: initiate, analyze (ITR0), design (ITR1), build, test (ITR2), install (ITR3), and close. Reviews typically take ve to ten minutes, identify who is involved, and document who gives approval. (A list identies who says yes or no; it is up to the project team to do the work with operations personnel.) The project management process overlays the project execution process: initiating (authorizing the project or phase), planning (defining objectives), executing (coordinating resources to carry out the plan), controlling (ensuring objectives are met through monitoring, measuring progress, and corrective actions), and closing (formal acceptance and orderly ending) (Figure 24). Business readiness is always the focus and an ongoing concern during this process. Project managers focus on users and potential disruptions; they question whether they are acting in the best interests of their customers, accounting for other projects, and presenting a consistent image to customers. They view a quality product as a result of business readiness and ITR: product, project, customer service, and support. Business readiness begins with business alignment on needs and involves key decision makers/inuencers, steering team, and sponsor. It entails project team involvement by stakeholders and power users and includes user stakeholders during deployment. Business readiness existed in IT services prior to project management; they are much stronger together and help IT services present more benecial information for executive decision making. Texas Instruments new CIO focuses on projects that add value to the company.


Project Management 2004 APQC


Project Execution Process

Project team involvement Stakeholders, power users Business alignment on needs Key decision makers/influencers, steering team, sponsor


Defining objectives and selecting best course of action

Authorizing the project or phase

Closing Controlling
Ensuring objectives are met Monitoring Measuring progress Collective actions

Coordinating resources to carry out the plan

Formal acceptance orderly ending Deployment Users, stakeholders

Figure 24

Knowledge-sharing Forum

IT services knowledge-sharing areas are those nine from the PMBOK, slightly modied to t Texas Instruments needs: schedule, budget, risk, scope, business readiness/communications, resources, quality, project organization, and procurement. These are viewed as a house (Figure 25, page 114), IT services is building rooms (process groups) for the house; each room consists of the same steps: initiate, plan, execute, monitor/control, and close. For good scheduling, project managers are now responsible for developing a work breakdown structure for most projects. Microsoft Project has not been installed on everyones computers because IT services wants project managers to avoid getting caught up in tools and instead focus on process. With project executions progress, it is now looking at enterprise portfolio management tools. Key to the house are ve intrinsic skills project managers have at their disposal: communication, influence, problem solving, negotiation, and leadershipthe soft skills (Figure 26, page 114). To better understand soft skills, project managers underwent the Myers-Briggs personality test. IT services knowledge-sharing forum initially focused on project management big picture topics. A two-hour monthly meeting covered project management overview and competencies. The 2004 focus is now on PMBOK knowledge areas, scheduling, quality, and procurement. It includes project management classes, best practices, and Texas Instruments tailoring to discuss PMBOK theory and examples (i.e., templates and real-world examples of how templates were or were not applied). This has grown into an IT services-wide information sharing. The plan is to begin providing additional bimonthly knowledge-sharing/lessons learned sessions just for project managers to retain the useful nature of the earlier, more focused sessions.
Project Management 2004 APQC



Figure 25: Project Management Knowledge Areas Initiate

Business case/ Cost benet analysis Project charter High level milestones High level project estimates Role and responsibility assignmeants Initial business engagement strategy Preliminary risk identication

Dene scope Work breakdown structure Resource requirements Project schedule (tasks/ durations/ resources) Cost estimates Risk planning (mitigations/ contingencies) Statement of work

Work results/ Progress reports Change requests Identify need for performance Improvements Input to performance appraisals Rewards and recognition

Monitor and Control

Necessary updates to: Budget Schedule Scope Risks Contracts Resource plans Performance reports Corrective action

Lessons learned Transition plans Project closure Documentation/ Archives Formal acceptance

Figure 26: The Soft Skills Communication Inuence Problem solving

Speaks effectively Fosters open communication Listens to others Creates compelling presentations Aggressively informs stakeholders (internal and external)

Builds relationships Displays organizational savvy Knows the business Focuses on customer needs Inspires trust

Analyzes issues Uses technical/functional expertise Uses sound judgment Creative/Resourceful

Collaborates Manages disagreements Builds consensus Understands trade-offs

Provides direction Leads courageously Fosters teamwork Motivates others Champions change Coaches and develops Drives for results Shows work commitment Attracts and develops talent Recognizes global implications Manages execution


Project Management 2004 APQC


The IT services Web site gives depth and breadth to facilitate knowledge sharing. It illustrates the project management process and references the dierent knowledge areas. It houses the template repository by mainly relying on PMBOK; documents are listed in alphabetical order by document type (e.g., Microsoft Word, PowerPoint, and Excel). Web site visitors can also easily access project management training information, including details of upcoming training classes as well as an archive of past training presentations.
Improvements to the Process

IT services leaders found that implementing a formal process has been an improvement over ad hoc or project manager-dependent methods because it increases awareness of the project managers role and responsibilities and the understanding of expectations. Leaders smoothed the typical resistance to change by giving more authority to project managers, who decide what makes sense for each project and tailor the process to their needs to get the right amount of process required for success.

IT services follows the Project Management Institutes guideline and denes a project as a temporary endeavor with quantiable results. Programs are multiple, related projects governed by a program management team or individual. The company does not use a minimum time frame or budget to dene a project; complexity of eort drives the denition.
Project Management Organization/Methodology

Texas Instruments project execution project management organizational structure helps ensure consistency in project delivery (Figure 27, page 116). IT services functions as a matrix organization. It has a project management oce with resources dedicated to enterprise projects and uses run/maintain resources as needed on projects. Resources organized in the project management oce typically execute project management; one exception is the smaller project management oce that functions in a more limited area tied directly to a major SAP program. Creating project management oces has enabled more attention to be paid to project execution and delivery, and it has resulted in improved communication to management and better reaction to project risks and issues. The project execution leadership team is the owners of the project methodology.
Project Managers/Teams

A dedicated group of nine project managers is organized in the IT services project management oce. In addition to a direct supervisor, who reports to the project management oce manager, there are four to ve members who function as part-time project managers as needs dictate. 115

Project Management 2004 APQC


Project Execution Organization


Project Management

Business Technical Analyst

Solution Architecture 10 Senior to Master TI Resources

9 Senior TI Resources

13 Junior to Senior TI Resources

Figure 27

The project execution leadership team (project management oce leaders) meets weekly to determine what projects need to be discussed and assigned with project managers. Once assigned, project managers are responsible for fully stang their projects. Some of the project resources come from the project management oce (13 business analysts and ten architects) and some come from the run/maintain groups or resources external to the company (i.e., consultants and other contractors); onsite and osite team members can be used. The project managers must consider their project needs, budget limitations, and transition to support requirements when stang their projects. To help eectively accomplish this, IT services has a transitionto-support representative assigned to all projects from the run/maintain organization; this representatives purpose is to ensure the product can be eciently moved to support status. Resources are determined based on availability, strengths, and desires. The typical project team will have one project manager (and potentially a customer representative with some project management functionality), one to three business analysts, one to two architects and a certain number of developers depending on needs. There is also a transition to support contact for all projects, and many projects additionally have business readiness and communication resources. Leading their teams, project managers are charged with a host of responsibilities. Dene and document the project schedule and build and manage the overall project plan. Identify, request, and manage project resources and manage time commitments and responsibilities of resources assigned to the project and lead project team development.


Project Management 2004 APQC


Create the project budget or validate pre-assigned budgets and track project expenditures and notify management and business if project exceeds budget. Determine overall business readiness and acceptance of the project. Depending on size of project, a business readiness team member may be assigned to directly support the project. Communicate project status to IT management, business representatives, and business readiness team, as well as any other project stakeholders. Work any changes to the project (scope, schedule, budget, etc.) and use eective change management processes. Create, manage, and maintain the project repository (server directories containing all project information). Ensure that all project resources have access to all needed hardware and software. Ensure that all project resources are engaged on the project and have a full understanding of their roles and responsibilities. Close out the project by archiving documents and releasing resources. Collaborate with: management and business representatives to dene project scope; the project team in risk identication and analysis; managers of project resources by giving performance feedback; project customers and management by setting and meeting expectations; support transition leader and aected support teams to ensure the project is eectively transitioned to support; and the business readiness representative to gather project closeout metrics (customer satisfaction survey).

Part-time project managers are organized in the project management oce to ensure consistency. IT services is experimenting with a limited number of run/ maintain resources to manage smaller projects. When this occurs, a mentor from the project management team is assigned to them. The organizational structure is set up to maximize communication and focus on projects while also allowing for the appropriate level of focus on run/maintain activities. Additionally, it allows opportunities for involvement in multiple types of projects across many dierent IT services systems. However, there is a split between project resources and run/maintain resources that can present challenges. Multiple skills sets under the project management oce umbrella allow IT services to strike a balance between structure and exibility. In addition to project managers, the project management oce has dedicated business analysts and architects. Thus, as the project needs change, a more varied skill set in the project management oce allows the organization to restructure project resources more easily.

Project Management 2004 APQC


TEX AS INSTRUMENTS Project Management Strategy

Once IT services projects are initiated, they follow this process: preliminary project analysis conceptdevelop options and cost estimates; receive funding approvaldene processes for all sizes of projects; problem definitiontie to business priorities and business value, dene assumptions and constraints, and develop project charter; triple constraint and key constraint discussionsdene scope, budget, and schedule; and staff project and begin work dene business analysts, transition to support, and architects early in the project.

For a project to be worked by the project management oce, it must rst receive funding by a business unit. Once funding has been received (meaning a business group is willing to accept the cost of the project), the project management oce is more secure in the knowledge that the project deliverables will be used. Prior to funding, projects undergo the project management oces pre-project analysis; this analysis delivers a cost estimate and project charter, which are used by the potential sponsors to determine whether they want to accept funding responsibility for the project. The project management strategy aligns with the companys overarching strategic plan. The stated (if informal) purpose of Texas Instruments IT services department is to help Texas Instruments make money. The project management oce relies on its collaboration with the Texas Instruments business units to help determine needs to increase the organizations revenue and prots. When Texas Instruments business units identify a potential project, it is their responsibility to dene the benets to be gained. The project management oce estimates project costs and allows the business to determine whether the project should be funded based on this information. This project management approach has resulted in numerous projects being cancelled prior to their start based on the cost/benet analysis available to business units at the end of a pre-project analysis. The approach allows IT services to spend its time on useful and relevant projects instead of hot-button or reactionary projects.
Resource Assignment

The project managers are responsible for all stang needs of their projects. To help ensure adequate resources, the project management oce management and Web site provide guidance to help them in dening basic project resource needs. Almost invariably, the project business analysts and transition-to-support managers are assigned at the beginning of the project. Prior experience and future goals are reviewed to match resources to specic projects. IT services tries to take opportunities to give employees experience in new areas, whenever possible, while still ensuring that the appropriate amount of expertise resides in each project. To do this, the organization ensures that either the lead business analyst or project manager has experience related to the systems impacted; architects also ensure that the right expertise exists in a project team. 118
Project Management 2004 APQC


New projects start constantly, and resource availability is considered. Typical project managers have roughly three projects running simultaneously; they have the exibility to reprioritize when necessary. When a current project completes the closeout process, project resources are reassigned. Two project managers and one business analyst are currently located osite. They are part of the project management oce and attend meetings via conference calls and Microsoft NetMeeting or WebEx, and they are involved in attending and delivering training. Care is taken to ensure they are included as much as possible in the project management oce process improvements, and they are involved in multiple process teams. Local resources are also on all project teams in which these osite resources participate. As with all other projects, this allows multiple input points to gather information regarding the projects status and plans.
Project Management Professionalism/Training

The concept of the professional project manager is fairly new to IT services. To encourage its development, project manager has recently been made an ocial job title in IT services. Additionally, there is an IT services-wide project management team dedicated to improving project management capabilities and expertise. Members of the project management oce are on this team. The monthly project management knowledge-sharing sessions have evolved from big picture topics to more narrowly dened topics, including in 2004 cost estimating, communication, scope management, and team development. These sessions are open to people outside of the project management oce and increase overall knowledge of the project management discipline. The project managers in the project management oce are highly encouraged to attend and participate in the monthly knowledge-sharing sessions. PMP certication is discussed with the project managers and the option to study for and obtain the PMP certication is available. Training classes on project management have occasionally been used in the project management oce with good success. Although some multiday training classes have been given, the project management oce typically does not engage in much lengthy, formal training; it has been focused more on smaller, more informal training opportunities. New project managers are also shown processes and given the opportunity to provide suggestions for process improvements. Experienced project managers serve as mentors.
Structuring and Negotiating Project Scope

Stakeholder analysis and discussions launch the scoping process. Initial project scoping is done in conjunction with cost and schedule estimating (i.e., its triple constraint model). Potential project sponsors are given a proposed scope, cost, and schedule. Based on all three of these items, the sponsor can determine whether the project has the benet to oset the costs. If the project is approved, then an initial scope baseline has been established. Proposed changes to the scope will also generate new cost and schedule estimates, which will be reviewed by the sponsors; sponsors 119

Project Management 2004 APQC


must validate that business value objectives are still achievable. (In some cases, the proposed scope change may be transformed instead into budget or schedule changes.) Again, approval based on the cost/benet analysis may be given, resulting in a new scope baseline. This process can continue throughout the life of the project.
Maintaining Consistency in Project Management Delivery

Consistency among projects is gained through knowledge sharing, mentoring, organization structure, process, and training (including PMP). Project manager is a full-time job and a career path in IT services. Turnover in the project management oce has been fairly low. IT services takes steps to understand individual goals and tie them to Texas Instruments goals to ensure people have opportunities to meet personal and career goals. When new project managers are brought into the project management oce, they receive instruction on processes and are placed immediately on process improvement teams. They are given access to the project management oce Web site, which describes project management and software life cycle processes and contains links to multiple tools and templates that can be used. The use of these common tools and templates helps to drive overall consistency.

Texas Instruments projects fall into the following framework (Figure 28). IT services owns infrastructure projects; a business steering committee manages decisions regarding projects less than $100,000; and the IT project review board makes decisions regarding projects greater than $100,000. Business and IT collaboration determines readiness.

IT Services Project Framework

Business IT project review team managed
Large projectsmore then $100K Multiple business, functional Driven by business needs

Business funds

Business steering team managed

Business applications Semiconductors business IT Web solutions Make IT Design IT

IT services owns
Growth Cost Maintainability Security

Figure 28


Project Management 2004 APQC

Business Readiness


IT services project philosophy centers on business benet, positive perception, avoidance of business disruption, and going live only when ready. Projects may be selected based on benets such as increasing revenue, reducing cost, enforcing compliance, and increasing customer satisfaction. They are approved because of the business case/business value expected out of each project; sponsors are required to complete a standard form for each project to explain the need. Milestones do not dictate decisions; rather, decisions dictate milestones. IT services project managers believe in the importance of not compromising quality, performance, or readiness to attain a milestone; and they emphasize the importance of realistic project plans. Texas Instruments IT project review team is responsible for decisions regarding all business-funded and support entity projects that exceed $100,000. The team establishes annual plan project funding levels (with a spending limit) and approves requests for new projects (single, multiple-business, and support entity), which underscores the value of good business cases. The review teams full-cycle governance entails quarterly (and ad hoc as required) meetings to approve new projects and review the status of current projects that are behind schedule, over budget, or out of scope, and the team determines the appropriate course of action, answering the following questions to discern the business value: Are we doing the right things? Are we doing them the right way? Are we getting them done well? Are we getting the benets? Should we stop doing something? Will the project still achieve the intended business results? Do we invest more, reduce scope, or stop? This team comprises numerous representatives. BusinessBusiness entity nance and operations managers, sales and marketing, Make IT, corporate nancial planning, and general accounting representatives IT servicesSelect IT leadership team members
Corporate controller and sponsor Facilitator and business readiness CIO and CFOinvited to participate

Preliminary project analysis prior to project launch plays an important role in weeding out low-value projects. It provides an indication of whether the project is a good investment of time/dollars for the company by setting forth an upfront review of the project, a problem statement, options, a listing of pros and cons, cost estimates, and recommendations. Following this process, many projects are canceled: in 2003, 14 of 18 projects were cancelled, and half were cancelled in 2004.

Project Management 2004 APQC


TEX AS INSTRUMENTS Allocation of Resources

Resources are requested through a formal process. The project execution leadership team assigns resources to projects based on availability, knowledge, and project need. Changes in project needs may cause resources to be reallocated to the highest priority project or lower priority projects to be put on hold. Final project prioritization decisions come from the project execution project leadership team with knowledge of business needs. Funding decisions are made by business leaders to ensure alignment with the strategic objectives of the company. A spending limit is set for IT projects in general. Each functional area or business must show business value to compete for and obtain funding. The project management oces 35 sta members are assigned to various projects based on priorities; these priorities and project activities are closely monitored. Due to the preliminary project analysis process, IT services rarely goes far down the path of a low-value project. Signicant focus is currently on business value and understanding the business need. If expected value cannot be quantied, then it is dicult to obtain project funding. Approximately one-third of the project management oce groups resources need to be charged out to the businesses; thus, two-thirds of that expense generally comes from the general IT funding. To enhance ongoing management decisions, management uses project scorecards to get a quick understanding of the status of all current projects and remind them of completed or canceled projects. Giving management quick access to project information allows them to make better decisions related to current and future projects.

The IT services project management oce denes success as customer satisfaction, avoidance of business disruption, and business value. This denition links to the companys priorities of execution, market share, and revenue growth. Expected deliverables in each category follow. Customer Satisfaction Ensure project is perceived positively Identify all project stakeholders Eectively communicate benets and impact of project Ensure all stakeholders are prepared for changeno surprises Measure perception: customer satisfaction surveys All project stakeholder groups surveyed Electronic surveys and one-on-one discussions utilized Schedule and budget success are elements of customer satisfaction No Business Disruption No operational impact No impact due to poor product quality No impact due to ineective training or communication 122
Project Management 2004 APQC


No impact due to multiple projects creating time constraints for business stakeholders Accomplished through: Executive steering team guidance Risk averse approach Signicant planning eort Not milestone driven Install when ready Software testing End-user training Organizational change management Business Value Help ensure projects selected are those that will provide the most value to TI Keys to success Leverage existing project management processes Business stakeholder buy-in Incorporation into project funding process To experience no business disruptions and achieve stakeholder satisfaction, the project management oce has concentrated on measuring customer satisfaction using customer surveys. This typically entails a core set of questions asked to ensure scores can be measured and rolled up across projects. This year, the project management oce will begin to calculate other metrics, such as budget and schedule. It does not measure customer satisfaction midstream, but it has processes to get project budget and schedule issues throughout the life cycle. Cost eectiveness for projects is determined by comparing the projects business value to the cost of the project. Business value can be defined in various ways depending on the project, but it should be specic and quantiable.
Business Value: Identification, Monitoring, and Measurement

IT services has recently incorporated a more formal business value process into its IT project process. The value is dened upfront to ensure selected projects are the best for the company; it is monitored over the life of the project, and it is measured on its completion. Specic steps in the business value identication process follow. Business Value Identication Identify expected business value for the project Understand the problem to be solved Understand the business expectations and objectives Understand the alignment with other business priorities Identify appropriate metrics Should be from a business perspective Should use existing business metrics 123

Project Management 2004 APQC


Get buy-in from key stakeholders Understand when and where value should be realized Quantify expected savings or value Quantify how metrics will be impacted by project Calculate in dollar terms when appropriate Baseline agreed-upon metrics Need to baseline to show post-project impact Understand that some baselines may need to be trended over an extended time frame Revise expectations if necessary Determine data collection process for metrics Assign ownership for each metric Understand other key aspects source of data (i.e., system, person, report, and survey) unit of measure when and how often should data be collected documented/repeatable method of collection how data will be evaluated Understand other initiatives impacting metrics Identify the person responsible for post-project business value measurement Business Value Monitoring Revisit expectations and metrics with key stakeholders Monitor changes (external, project, etc.), and assess the impact to business value Revise business value expectations and metrics if necessary Re-solicit stakeholder buy-in Perform ongoing data collection and metrics validation Reassess metrics that may uctuate Test expectations for metrics when possible Reset expectations as necessary Re-solicit stakeholder buy-in Post-Implementation Business Value Measurement Collect and analyze post-project data Collect data for metrics Compare data to baselines and expectations established earlier in the project Assess any changes (i.e., external or project) and determine impact Present business value results Know your audience Be consistent, unbiased, and conservative when presenting results If expected business value is not achieved Discuss reasons why Discuss next steps Document and share lessons learned 124
Project Management 2004 APQC


The project management oce believes it is eective at holding lessons learned meetings and sharing information by word of mouth, but it would like to improve on using this information by capturing it in a repository.
Reviews and Scorecards

Data integrity is ensured during collection via project reviews and status checks with managers. To make data informational and useful, presenters use a standard project review template to focus on the key issues such business problem, scope, schedule, and budget. Reports are monthly and quarterly for key projects; project scorecards are maintained on the Web. Action items gathered during the project reviews are tracked and handled by the project managers or project management oce management Monthly internal project reviews are conducted at the vice president level; this provides visibility for project managers and key business and IT priorities. After each project review, the session is discussed to determine helpful aspects as well as areas that need to be changed; lessons learned are shared to enable continuous improvement. Quarterly IT services reviews focus on large or challenged projects. Project scorecards are used across IT services and reviewed by upper management and business stakeholders. These are Web-based scorecards with green/yellow/red indicators (assigned by project manager judgment); they are reported by business line, IT organization, and major or minor project (major projects must be part of the monthly reviews). These are captured in a Lotus Notes Domino database, and any employee can access them; the stamp identies the person who last modied the document. (Scorecards do not include budget numbers for security issues.) The project leadership team periodically checks to ensure project scorecards are up-to-date. Project reviews include reviewing scorecards and making necessary adjustments to content. Weekly project reviews can result in changes to the indicators; project managers must communicate with sponsors before changing to red. Deep technical issues are not included because the scorecard is also used by the business. If changes are requested of the scorecard format and usage, then a formal team and process is in place to approve or reject it.

Project team members are held accountable for project results. Project performance factors into members organizational ranking and compensation. Members are ultimately responsible for each projects success. They are expected to manage both the hard and soft aspects of the project and are given the appropriate authority to do so. They are not held responsible for anything out of their control, but they are responsible for appropriate escalation by alerting management in a timely and appropriate manner. Performance reviews include specic feedback on project performance to support any strengths or issues being discussed. Typically bonuses are not tied to projects. Yearly bonuses (for certain job grades) and raises are dependent on overall performance 125

Project Management 2004 APQC


for the year. Managers have smaller rewards (e.g., gift certicates, e-mailed notes, verbal conrmation, and team lunches) that can be used at their discretion.
Greatest Measurement Challenges

Measuring project delivery has not been an issue in IT services. However, measuring customer satisfaction, once project team members and other stakeholders have moved on to other eorts, has proven more challenging. Also, there has been no process in the past to measure business value delivered by the project, but this is changing.
FINAL COMMENTS AND THOUGHTS Learning from Project Management Missteps

Two notable disappointments were identied: lack of project success criteria at the beginning of the project and inconsistent project execution. Project management oce leaders expressed disappointment in getting to the end of the project and not understanding how to measure the projects value to the company. Although the project might have been the right thing to do, there was no quantication. Thus, the project management oce began to focus on upfront identication of the business value, monitor value along the way, and measure it post-project. Texas Instruments is beginning to see pockets of achievement in consistency in execution. To facilitate this growth, the project management oce is increasing informal learning and mentoring in the teams of project managers and business analysts; and it is transitioning from process development to skill development. Leaders believe the organization has done a lot of work to help individuals become better project managers but it has not reached a level of maturity where it is consistently successful in managing all projects. Key challenges on the horizon are improving the lessons learned process and transitioning to a learning organization, using customer satisfaction data more eectively, and establishing more metrics for success.


Project Management 2004 APQC