Chapter 16 provides knowledge of oversight. Oversight practices are directed to improving the way the organization manages all projects. Oversight or governance in multiproject organizations supports the trend of integration over the last three decades. Centralization of project management activities became imperative as projects became more numerous and became the means to implement organization strategy.
Student Version CHAPTER SIXTEEN Oversight McGrawHill/Irwin Copyright © 2011 by The McGrawHill Companies, Inc. All rights reserved Where Where We We Are Are Now Now 16–2 Project Project Oversight Oversight • Project Oversight – A set of principles and processes to guide and improve the management of projects • Oversight’s Purposes: – To ensure projects meet the organizational needs for standards, procedures, accountability, efficient allocation of resources, and continuous improvement in the management of projects – To support the project manager 16–3 Oversight Oversight Activities Activities • At the Organization Level • At the Project Level – Project selection – Review projects’ objectives – Portfolio management – Decide on issues raised by the project manager – Improving how all projects are managed over time – Assessing and elevating the maturity level of the organization’s project management system – Using balanced scorecard approach to review progress on strategic priorities – Track and assist the project to resolve bottlenecks – Review status reports from the project manager – Audit and review lessons learned – Authorize major deviations from the original scope – Cancel the project 16–4 Importance Importance of of Oversight Oversight to to the the Project Project Manager Manager • Oversight Functions: – Providing support and help to the project manager where needed – Determining the environment in which the project manager will implement his or her project – Influence the performance measures used to hold the project manager responsible and accountable – Providing the oversight group to which the project manager will reporting at predetermined phases in the project 16–5 Current Current and and Future Future Trends Trends in in Project Project Management Management • Forces for Change – Global competition, knowledge explosion, innovation, time to market, and shortened product life cycles • Two Major Outcomes for the 21st Century: – An increase in the scope of project management and system integration • The focus of projects has shifted from tactical to strategic – An increasing discipline in the way projects are managed 16–6 Increasing Increasing Scope Scope of of Project Project Management Management and and System System Integration Integration • Portfolio Project Management – The centralized management of projects to ensure that the allocation of resources to projects is directed toward projects that contribute the greatest value to organization goals • Project Office (PO) – The unit responsible for continued support of consistent application of selection criteria, standards, and processes; training of and general assistance to project managers; and continued improvement and use of best practices 16–7 Phase Phase Gate Gate Methodology Methodology • Phase Gate Review Process – A structured process to review, evaluate, and document outcomes in each project phase and to provide management with information to guide resource deployment toward strategic goals • Decision Gate Components Required deliverables Gate criteria and specific outputs A clear yes/no decision on whether to go ahead 16–8 Organization Organization Project Project Management Management in in the the Long Long Run Run • Capability Maturity Model (CMM) – Focuses on guiding and assessing organizations in implementing concrete best practices of managing software development projects • Organizational Project Maturity Model (OPM3) – Is divided into a continuum of growth levels: initial, repeatable, defined, managed, and optimized 16–9 The The Balanced Balanced Scorecard Scorecard Model Model • Balanced Scorecard Model – Assumes that people will take the necessary actions to improve the performance of the organization on the given measures and goals – Reviews projects over a longer horizon—5 to 10 years after the project is implemented than other models – Has a more “macro” perspective than project selection models – Measures performance results for four major areas of activities—customer, internal, innovation and learning, and financial 16–10 Key Key Terms Terms Balance scorecard Oversight Phase gating Portfolio management Project management maturity Project office (PO) 16–11 Increasing Increasing Discipline Discipline in in the the Way Way Projects Projects Are Are Managed Managed Organization Organization Culture Culture Training Training Outsourcing Outsourcing Risk Risk Management Management Project Project Management Management Discipline Discipline Multicultural Multicultural Projects Projects Information Information Technology Technology 16–12 Unresolved Unresolved Issues Issues How far can virtual project management evolve? How we manage projects under high levels of uncertainty? 16–13 Project Project Management Management Career Career Issues Issues Career Paths Temporary Assignments Pursuing a Career Professional Training and Certification Gaining Visibility Mentors Success in Key Projects 16–14 Increasing Increasing Discipline Discipline in in the the Way Way Projects Projects Are Are Managed Managed • Training – Uniform training extending across team makeup, team culture, outside partners, and organization support allows for standardization in practices and processes related to projects • Organization Culture – A system of shared beliefs supports organizational flexibility in meeting the challenges of managing projects in globalized competitive environments 16–15 ... Now Now 16 2 Project Project Oversight Oversight • Project Oversight – A set of principles and processes to guide and improve the management of projects • Oversight’s Purposes: – To ensure projects... Determining the environment in which the project manager will implement his or her project – Influence the performance measures used to hold the project manager responsible and accountable – Providing the. .. Cancel the project 16 4 Importance Importance of of Oversight Oversight to to the the Project Project Manager Manager • Oversight Functions: – Providing support and help to the project manager where