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Slide 1: Global Project Management Toolkit 2001 A Comprehensive Guide to Establishing and Developing a Global Project Management Office and Embedding Learnings into the Wider Organisation New York, 12th April 2001
Slide 2: Table of contents  Executive Summary  Overview of the Global Project Management Methodology  Step 1: Establishment of the Global Project Management Office  Step 2: Development of the Global Project Management Office  Step 3: Embedding Learnings and Best Practice and Developing them into Organisational Competencies DRAFT Author: Gemma Harman (London Office) 12-04-01 DRAFT 2
Slide 3: Executive Summary DRAFT Author: Gemma Harman (London Office) 12-04-01 DRAFT 3
Slide 4: Rationale for Developing a Global Project Management Toolkit As the number of truly global projects increase, rapid establishment and effective ongoing project management is critical. Regardless of key project success factors such as pioneering thought leadership, new content methodology or strong client support of the project, effective project management remains the cornerstone of ensuring project success in the consulting world. The lack of a globally recognized and applied best practice “A. T. Kearney approach” has often led to duplication of effort in establishing and managing project offices or even worse - many large-scale projects (and consultants) experiencing unnecessary organisation and mobilisation conflicts, hindering teams’ abilities to meet client expectations and reducing the impact of valueadded work and future relationships. ome of the most quoted reasons for project failure by lients and consultants alike revolve around the lack of a oncise and practical approach to project anagement: Objectives of the project are not clearly understood and communicated to all stakeholders Key stakeholder management strategy is not developed Workstreams are not fully identified or fully resourced Targets for each workstream are not clearly The purpose of this toolkit is threefold: 1. To ensure that as one of the leading global consultancy companies, A. T. Kearney joins its competitors in having a definitive world class approach to project management 2. By disseminating best practice throughout the global organisation, we can ensure powerful contributions to the client focus on solving client issues and not duplicating or resolving efforts 3. Providing know how and capability to global teams, regardless of the projects they are working on, a proven comprehensive project management methodology and toolkit, thus allowing them to “hit the ground running” DRAFT The toolkit focuses on providing project managers insight and templates to develop a wide range of fundamental materials, for example, how to develop a PMO terms of reference, an intranet strategy, a global savings methodology and competency centre, to name but a few. In summary, our recent experience demonstrates that a wellestablished PMO offers more than an efficient management of a large-scale project. A PMO with effective coordinating, tracking, and communicating mechanisms is well positioned to identify new opportunities to harness, develop and embed internal best practices. This ability may lead to strengthened client relationships and further work. Therefore, it is essential that the PMO is not just developed as a central administrative body but one of the most visible symbols of effective working, a key enabler of results and the engine to drive tangible growth opportunities. Author: Gemma Harman (London Office) 12-04-01 DRAFT 4
Slide 5: Overview of the Global Project Management Methodology DRAFT Author: Gemma Harman (London Office) 12-04-01 DRAFT 5
Slide 6: Definitions of a Project Management Office (PMO) Regardless of the various ways the PMO function may be defined, one core element remains – it is fundamentally a central organism that drives action and results impacting the wider organisation “Ambassadors for the Project” “Spearheads the Initiative” Wider Organisation “ Direction Setters” The Project & Programme “Symbol of how well the Project is doing” The PMO “Is the driving force to ensure the right actions are driven by the right people at the right time” “The “Generals”…the people who can see the bigger picture and therefore see what needs to happen where” “Central administration” “Responsible for tracking and measuring deliverables” “Key communicators of the Project” Author: Gemma Harman (London Office) 12-04-01 6 DRAFT “Represents A. T. Kearney’s ability to make things happen” “Policemen” “Coordinators for training and learning” Source of definitions: Quotes from clients, and consultants, April 2001 DRAFT
Slide 7: Three steps are required to effectively establish a Project Management Office and develop sustainable competencies in the wider organisation to meet strategic objectives DRAFT Step 1 Establishment of the Global Project Management Office Step 2 Development of the Global Project Management Office Step 3 Embedding Learnings and Best Practice and Developing into Organisational Competencies Achievement of Strategic Objectives Author: Gemma Harman (London Office) 12-04-01 DRAFT 7
Slide 8: Each step has a specific set of activities and deliverables Steps Required to Establish a Project Management Office (PMO) and Transition Learnings into the Wider Organisation Step 1 Step 2 Develop Methodologies & Processes Post Project Kickoff • Identify project • Set up War Room information with 3 main sections: requirements (in terms a) Project Tracking (see of processes and dial templates) methodologies) b) Transformation • Develop project war Progress (according room, Bible, eRoom to other and Workplan strategic/organisation • Examine external al objectives) examples of working c) Project Reference processes and (methodologies, methodologies terms of reference) • Determine the • Develop principles for each measurement and process quality checking • Develop required systems processes and • Continuously methodologies perform quality audits • War Room Framework • Bible Document • eRoom Directory • Workplan • Set of methodologies & processes • Communication and Intranet Strategy and Plan • Determine communication objectives for each stakeholder group • Develop value proposition per stakeholder and create tailored communication processes • Review the existing communication vehicles/media and brainstorm on the potential communication procedures • Develop, implement, and monitor the communications plan/strategy • Develop best practice learning collection plan through utilisation of existing vehicles: • Filter information and store in the War Room Step 3 Develop Communication and Intranet Strategy Determine Objectives and PMO Functions Identify Roles and Responsibilities Build the PMO Infrastructure Capture learnings and best practice DRAFT Time: Pre-Project/Diagnostics • Map project objectives and • Estimate the number deliverables to PMO terms of and level of required reference: resources • Objectives • Develop and agree on • Scope (workstreams) the RACI • Resources (Responsible, • Milestones Accountable, Consulted, and • Develop key stakeholder map Informed) Process • Develop Governance structure: • Develop job • Establish linking descriptions for each mechanisms to the rest work stream of the organization (champion sponsor, • Identify resources and key stakeholders, complete staffing business) • Initiate contact with key stakeholders Key Activities: • Identify critical enablers for the strategic objectives (no more than 5) • Map out the infrastructure required to develop and sustain the Competencies (see template) • Disseminate as appropriate to the teams through • Map out the resources and development of packs and workstreams required to education tools (through the build the Competencies teams themselves to ensure • Identify the approach ownership) required to develop the Competency • Prioritise development and implementation of the Competencies • Develop monitoring and tracking system of Competency Development • Methodology to capture learnings • Process to develop learnings and best practice • Framework of a competency development centre • Training Plan to transition core competencies into the wider organisation Author: Gemma Harman (London Office) 12-04-01 8 Deliverables Per Step: • PMO Terms of Reference • Governance Structure • Quality Process Plan • Roles & Responsibilities Overview (RACI) • Stakeholder map DRAFT Develop and implement Competencies
Slide 9: Step 1: Establishment of the Global Project Management Office DRAFT Author: Gemma Harman (London Office) 12-04-01 DRAFT 9
Slide 10: Step 1 addresses the establishment of the Global Project Management Office Steps Required to Establish a Project Management Office (PMO) and Transition Learnings Step 1 Step 2 Step 3 DRAFT Determine Objectives and PMO Functions Identify Roles and Responsibilities Build the PMO Infrastructure Develop Methodologies & Processes Develop Communication and Intranet Strategy Capture learnings and best practice Develop and implement Competencies Author: Gemma Harman (London Office) 12-04-01 DRAFT 10
Slide 11: Step 1: Methodologies, Processes and Templates Step 1 DRAFT 1. 2. 3. 4. 5. 6. 7. 8. The Role of the Project Office RACI Methodology Stakeholder Management Template 1: PMO Vision, Working Values and Team Meetings Template 2: PMO Quality Process Template 3: Roles and Responsibilities Overview Template 4: PMO Terms of Reference Template 5: Stakeholder Mapping and Methodology Author: Gemma Harman (London Office) 12-04-01 11 DRAFT Determine Objectives and PMO Functions Identify Roles and Responsibilities
Slide 12: 1. The Role of the PMO Three main roles of the PMO over time  The Role in General    Function as “arms and legs” or execution interface of Steering Committee Make sure initiatives around the world are synchronized and coordinated through a single point of focus Terms to describe role: Conduit, Facilitator, Optimizer, Translator DRAFT  The Immediate Role  Communicate frequently with Steering Committee and Operating Units as we understand what will happen and what is already underway • Reason is to act as a resource allocation mechanism •Ensure resources are not duplicating work unnecessarily •Ensure resources are deployed in areas of highest impact •May want to request additional resources where necessary  The Long-term Role   Set up as a mechanism to surface barriers and to quickly pull levers to remove barriers Act as the catalyst to identify, collect and transition core learnings and best practice into the wider organisation Author: Gemma Harman (London Office) 12-04-01 12 DRAFT
Slide 13:  How will PMO accomplish its given role    Develop a strategic framework through which Client X will achieve its strategic objectives Provide training to enable Client X to achieve its strategic objectives Develop a roadmap to define how people, groups, and organizations will interact with each other over time DRAFT  What does the PMO need from the Steering Committee in order to succeed in its role • The Steering Committee needs to identify new ways of operating to enable step change quickly Illustration of PMO role Steering Committee PMO Change Community Author: Gemma Harman (London Office) 12-04-01 13 DRAFT
Slide 14: Measurement and tracking philosophy  Set up/recommend mechanisms so people can control at the local level  Have the ability to receive and communicate an update at any time on all Operating Unit projects  All initial plans are collected and compiled in a master binder for on the spot updates/status DRAFT  Focus “tracking” resources on the most critical projects  Balance of tracking efforts is done on and “exception” / “issue” basis Author: Gemma Harman (London Office) 12-04-01 DRAFT 14
Slide 15: The PMO has three key activities Create Framework & Mechanisms • Define savings measurement system • Determine data & IT support requirements • Build for knowledge transfer mechanisms • Ensure internal capabilities to sustain performance DRAFT Communication • Internally to our people • Externally to our business partners • One voice Coordinate Activities • Single point of focus for overall programme (IC, training, risk) • Activate the necessary change programme (aid change mgt) • Develop interfaces between all Client X businesses (governance) Author: Gemma Harman (London Office) 12-04-01 DRAFT 15
Slide 16: Project Management provides the critical link between decision making and managing “on the ground” issues DRAFT Steering Committee Project Direction Project Teams Responsibilities • Strategy • Project championship • Critical resources • Decision making • DD Risk management • Development of guiding principles • Guiding principles • Visible and active support • Resource support • Master planning • Risk management • Performance measurement • Positioning/Communications • Quality control • Change management • Master project plan • Over project risk assessment • Project benefits measurement • Local management & control • Project execution Deliverables • Individual project plan • Individual project risk assessment Author: Gemma Harman (London Office) 12-04-01 DRAFT 16
Slide 17: 2. Definition of RACI Methodology • • RACI is a powerful charting technique for identifying function areas where there are ambiguities, bringing out differences into the open and resolving them through team effort RACI means: Responsible, Accountable, Consulted and Informed – see below: Name Responsible Key R Description  The individual who actually completes the task  The doer and operator  Responsibility can be shared  The degree of responsibility is determined by the individual with the “A” Accountable A  The individual who is ultimately responsible  Includes yes or no authority and veto power  Only one “A” can be assigned to a function or workstream  Approves and signs off Consulted C  The individual to be consulted prior to a final decision or action  2-way communication  Support  Provider of input Informed I  The individual who needs to be informed after a decision is taken  1-way communication Author: Gemma Harman (London Office) 12-04-01 17 DRAFT DRAFT
Slide 18: Overview of the 8-step RACI process Overview of the 8-step RACI process Step 1 2 Description  Hold introductory meetings to agree and inform management of the RACI process  Develop decision and function lists  Collate into a master function list 3  Conduct workshop to finalise functions and assign RACI codes  The output is a RACI responsibility chart for the AS-IS organisation 4  Examine the AS-IS RACI to reveal areas for improvement  Hold second workshop to develop and agree changes per role  The output is a RACI responsibility chart for the TO-BE organisation 5  Document and distribute the TO-BE RACI organisation  Agree implementation date 6 7 8  Communicate to relevant stakeholders  Meet with stakeholders for follow-up  Meet with team to ensure relationships and RACI functions are being adhered to DRAFT Author: Gemma Harman (London Office) 12-04-01 DRAFT 18
Slide 19: Developing the RACI responsibility chart • • In the RACI process, the functions/decisions and the team members and their inter-relationships are arranged in a matrix Output of the responsibility chart is a role sheet for each team member Team members Functions/Decisions Activity A Activity B FTE 1 FTE 2 FTE 3 FTE 4 FTE 5 FTE 6 FTE 7 DRAFT A C I R A R I Example Author: Gemma Harman (London Office) 12-04-01 DRAFT 19
Slide 20: Developing the RACI role sheet • The role sheet can be used to develop/modify detailed job descriptions and identify needs for change to existing team functions Role Sheet Manager of the War Room Accountable 3. Design new warroom layout to reflect the new project needs Design new warroom principles 7. Responsible 3. 5. Design new warroom layout Approve changes in war-room layout Make changes in war-room layout Consulted 3. Informed Aware of when and how the changes will be made DRAFT Support 3. generation of ideas for new war-room layout 5. Author: Gemma Harman (London Office) 12-04-01 DRAFT 20
Slide 21: Critical Success factors • • • • • Need for RACI Facilitation Willingness of the team to employ a participative process and invest time for the AS-IS and TO-BE Team members learning how each task relates to the other tasks Taking actions once gaps/issues are revealed: • • • • • • No As or Rs Duplicate As Excess Rs Insufficient/Excess Cs Insufficient/Excess Is No empty spaces – potential overload DRAFT • Team willingness to ask the following questions once AS IS is revealed: • • • • • Should the function be performed at al? What is the value added by the function? Is the function also performed elsewhere in the organisation? Is the function performed at the appropriate level? What is the impact of the function? Author: Gemma Harman (London Office) 12-04-01 DRAFT 21
Slide 22: 3. Stakeholder Management Identification and Mapping of Stakeholder Positions Stakeholder Group 1 (Internal) Involvement Level Stakeholder Group 2 (External) Involvement Level x DRAFT x x x x x x x x x x x x x x x x x Against Change For Change x x Against Change x x x x x x For Change Key: Group 1 Group 2 Group 3 Group 4 Author: Gemma Harman (London Office) 12-04-01 22 DRAFT
Slide 23: Value propositions must be built for each stakeholder group with tailored messages Change and New Policy Concept What’s in it for me What’s against my interest Message DRAFT Author: Gemma Harman (London Office) 12-04-01 DRAFT 23
Slide 24: Mapping out A. T. Kearney coverage of key stakeholders A. T. Kearney Coverage of the Key Client Stakeholders DRAFT X X X X X X X X X X X X X X X X X X X X A. T. Kearney Officer/Principal/Manager Author: Gemma Harman (London Office) 12-04-01 DRAFT 24
Slide 25: A. T. Kearney Stakeholder Schedule Stakeholder X X X X X Title Chairman CIO Director Director Director, Corporate Development Director, Finance & Technology Director, Personnel Date TBC TBC TBC TBC March Communication/Content Desired Outcome X X X X X Responsible/Owner DRAFT X TBC X X TBC Author: Gemma Harman (London Office) 12-04-01 DRAFT 25
Slide 26: Template 1: PMO Vision, Working Values and Team MeetingsTemplate 1: PMO Team Vision • Operate as a high performance team to support the X Initiative to deliver X • Responsibility: anyone who has an action by their name is wholly responsible for validating scope, timing, the exact deliverable and communication required to make it happen • Openness to Improve: as a team we are all responsible for ensuring that we regularly check the effectiveness of our modus operandi and act on identified improvement steps • Renewal of Information: after any number/content change the owner of the task is responsible for updating any older and/or related presentations and communicating the change to the team • Having fun! Date/ Time Attendees Purpose Objectives -Update on deliverables -Identify weekly actions -Identify/discuss risks Agenda -Review action list -Go through individual sheets -Generate new action list DRAFT Team Working Values Product Action list Monday X 1100-1200 Team Meetings Friday 1000-1100 Weekly X progress update X Quality Stopcheck -High performance check -Review team progress -Identify what went well -Stakeholder management T Acct. (T-Accnt) -Identify any “even more -Coaching contract feedback -Identify burning issues for Monday Author: Gemma Harman (London Office) 12-04-01 26 DRAFT
Slide 27: Template 2: PMO Quality Process 7-step PMO Quality Work Process 1 Monday Progress Meeting Identify Task 2 Agree owner, scope and deliverable 3 Book time for Quality Check 4 Seek/Obtain team input (content) if required 5 Hold Quality Check 6 Make final adjustments 7 Deliver on time Friday Stopcheck Meeting DRAFT • Required for all work for key stakeholders • Discretionary for all other individual tasks Dials/Financials: Format/Spelling: Content/Final Check To X Examples of Quality Checks General Formatting: • Check and add the source • Validate and add notes • Lead titles in bold/shadow/Arial font 24 • Check font consistency throughout • Increase font size for presentations • Check page layout when printing presentations • Observe confidentiality guidelines • Title graphs, tables and charts • Check spelling • Maintain version control • Check date on the bottom right hand corner Finance: • Check when the latest update was – state date of next update • Check reporting quarter and year • Check percentages • Check difference between submitted/identified/actual/total savings • Check latest movements on dial hands and if correctly represented • If numbers change - ensure other documents are updated Author: Gemma Harman (London Office) 12-04-01 DRAFT 27
Slide 28: Template 3: Roles & Responsibilities Overview Name Responsibilities Accountable to DRAFT X •X Project mgt support Focus: Organisation/Stakeholder Mgt and Communications • Managing project stakeholder management, organisation change and and overall communications • Accountable for ensuring project quality and effectiveness • Support: risk management •X (Project Tracking & Reporting/Analyst) •X (PMO/Analyst) • Owner and analyst of the global project tracking/reporting • Owner and site manager of the intranet site • Owner and manager of the project team database and tracking system • War Room manager • Manager of PMO war room presentation • Support for savings methodology, baselining and modelling • Coordination of Intellectual Capital, Strategic Sourcing Training, E-room library X Author: Gemma Harman (London Office) 12-04-01 DRAFT 28 •X Project Mgt Focus: Commercial • Responsible for ensuring the project strategy/objectives stays on track • Owner and manager of overall project savings methodology and reporting frameworks • Communication liaison for X • Accountable for project teams KPIs and benefits/milestone reporting
Slide 29: Template 4: PMO Terms of Reference Project Management Office Terms of reference DESCRIPTION X DRAFT SIZE OF OPPORTUNITY • Develop X • Deliver X by X OBJECTIVES • Create framework and mechanisms • Communicate objectives and progress • Coordinate activities SCOPE • Project Tracking • Benefits Measurement • KPI Development RESOURCES • Client: X • Information Requirements • Progress and risk reporting • Stakeholder management and communication • Consultants: X Author: Gemma Harman (London Office) 12-04-01 DRAFT 29
Slide 30: Template 5: Stakeholder Management Map Stakeholder Mapping and Methodology Stakeholders Involvement Level x Methodology DRAFT • Brainstorm with client and team separately who the key stakeholders are x • List stakeholders (example: governing body, sponsors, finance, internal and external communities) x • Define “for change” and “against change” • Define “level of involvement” • Map stakeholders x x x For Change Against Change x • Brainstorm key objectives, action plans and value propositions per stakeholder • Set up a future mapping session schedule to measure results Author: Gemma Harman (London Office) 12-04-01 DRAFT 30 • Collect organisation charts
Slide 31: Step 2: Development of the Global Project Management Office DRAFT Author: Gemma Harman (London Office) 12-04-01 DRAFT 31
Slide 32: Step 2 addresses the development of the Global Project Management Office Steps Required to Establish a Project Management Office (PMO) and Transition Learnings Step 1 Step 2 Step 3 DRAFT Determine Objectives and PMO Functions Identify Roles and Responsibilities Build the PMO Infrastructure Develop Methodologies & Processes Develop Communication and Intranet Strategy Capture learnings and best practice Develop and implement Competencies Author: Gemma Harman (London Office) 12-04-01 DRAFT 32
Slide 33: Step 2: Methodologies, Processes and Templates Step 2 Build the PMO Infrastructure •Develop War Room •Develop the Bible •Build the eRoom •Develop the Work plan Develop Methodologies & Processes • Project Information Collection Process •Measurement Methodology • Risk, Phase and Prioritisation Methodologies • PMO Progress Measurement Develop Communication and Intranet Strategy DRAFT 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Development of the PMO War Room Development of the PMO Bible Development of the PMO eRoom Development of the Work plan Develop Project Information Collection Process and Measurement Tools (see Word and Excel Attachment) Develop the PMO Risk, Phase and Prioritisation Methodologies Develop Communication Strategy Develop PMO Intranet Strategy Template 1: Saving Measurement Dials Template 2: PMO Progress Report Template 3: PMO War Room Visitor Log Book Template 4: PMO War Room Project Timeline Template 5: PMO War Room Project Roadmap Template 6: Communication Strategy Scorecard Author: Gemma Harman (London Office) 12-04-01 Template 7: PMO A. T. Kearney Activity Tracker (for ATK only meetings) 33 DRAFT
Slide 34: 1. Development of the PMO War Room The War Room is a central room which is PMO’s primary communication tool to display the status of all ongoing initiatives • The objective of the War Room is to display the status of all ongoing activities and developments under the Purchasing Initiative • As such, the information displayed in the War Room should track the progress of the project by: • displaying performance against targets and milestones • highlighting current issues, risks, and key success factors • maintaining information on global activities • providing information on PMO’s plans for “Way Forward” • Moreover, the materials presented should be dynamic, up-to-date, and displayed in a logical sequence DRAFT Author: Gemma Harman (London Office) 12-04-01 DRAFT 34
Slide 35: “War Room” approach is a means by which the PMO uses visual communication and performance measurement to integrate initiatives with strategy War Room Wall Plan 1. What is Client X future business direction? 2. 3. DRAFT • Why are we here and where are we going? • How will we get there? • How will we know? • Performance Metrics • Value Drivers/Strategic Map • Prioritized Initiatives • Roles and Responsibilities • Market Connectivity • Process Effectiveness • Objectives Timeline • Key Performance Indicators What are the high-level issues of focus? • Rationale for Prioritized Issues • Impact Assessment to related initiatives and business • Action plan 4. What are the key messages? • Communication Plan What is our Progress and Status? • Targets model • Operating Statistics • Overall Performance How are issues being addressed? • Risk Management Scorecard 7. 6. How is Client X performing? 5. Author: Gemma Harman (London Office) 12-04-01 35 DRAFT What is Client X’s Vision? How will the vision be achieved? What is the State of the Union? What does Client X need to get there?
Slide 36: The War Room provides an effective method of objectively communicating project progress, issues, risks, and processes within the organization Illustrative Wall One - Project Management Milestone/ Deliverable -------------------Start & End Date xx/xx/xx xx/xx/xx -------------------xx/xx/xx xx/xx/xx -------------------xx/xx/xx xx/xx/xx -------------------xx/xx/xx xx/xx/xx -------------------xx/xx/xx xx/xx/xx -------------------xx/xx/xx xx/xx/xx OS ----------------------------xx/xx/xx BeS ----------------------------xx/xx/xx OS ----------------------------xx/xx/xx BeS ----------------------------xx/xx/xx OS ----------------------------xx/xx/xx Status OS Comments (Priority/Impact) -------------------Action Required & By Whom ---------Action Due By xx/xx/xx DRAFT Wall Four - Project Process A •---------•----•---•---------•------------- War Room Methodology • Objective and current summary of relevant project information for entire organization • Central meeting and communication area • Central decision-making point • Present and future focus • Modular and scalable • Real-time Performance Measurement Wall Two - Metrics Development(1) Project ------------------------Mainframe Metrics Deliverable(s) Issue(s) ---, ---, ----,--------------------, ---, ----,--------------------, ---, ----,--------------------, ---, ----,--------------------, ---, ----,--------------------, ---, ----,-----------------Owner ------------------------------------------------------------- Wall Three - Risk Management Risk Management Project Risk(s) Mitigation Plan Owner ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Note: (1) Refer to Project Progress Tracking templates enclosed in this IC pack Author: Gemma Harman (London Office) 12-04-01 36 DRAFT
Slide 37: Four steps are necessary to setup and manage a Best-Practice War Room Steps Required to Setup and Manage a War Room Agree on the Information Content Assign Responsibilities for Information Collection Organize Display of Information Achieve Continuous Improvement DRAFT Key Principles: • Information content • Information is • Information display • Information is should fully reflect collected according is visually attractive continuously updated vision and objectives to a process • Information is • Internal and external of the Project or the previously agreed presented in a views and practices are Program, prior upon logical sequence incorporated (via achievements, current regularly held “War status, and plans for Room Improvement” future meetings, visitor surveys and visits to other War Rooms) Author: Gemma Harman (London Office) 12-04-01 DRAFT 37
Slide 38: 2. Development of the PMO Bible PMO Bible is a dynamic centrally managed document containing the most up-to-date, concise and comprehensive information on the Project and the PMO Principles of the PMO Bible • The PMO Bible is for the use of PMO team members and PMO stakeholders only DRAFT • PMO Bible is a central document that contains all the critical information regarding • the vision and the objectives of the Project or Program • current Project status (e.g. progress of each workstream, ongoing PMO initiatives) • future plans • methodologies and procedures set by the PMO • A hardcopy will be kept in the War Room, an electronic copy will be maintained in the PMO eRoom and several copies will be distributed to key stakeholders (e.g. Steering Team, A.T. Kearney Client and Project Officers) • Bible will be updated according to an agreed update procedure • PMO members and key stakeholders will be regularly informed of modifications to the PMO Bible by a weekly Bible update email1 stating: – what has been updated/added – what has been taken off Author: Gemma Harman (London Office) 12-04-01 38 DRAFT
Slide 39: Bible Update Protocol Example ACTION Forward updated documents, if any, to X Upload the updated electronic copy of the Bible onto PMO eRoom WHEN Every Thursday noon BY WHOM Section Owners* COMMENTS DRAFT Every Friday X  Whenever a new version is uploaded onto the eRoom • an update notification email will be sent to PMO members • an update notification email as well as the Bible attachment will be forwarded to stakeholders** who do not have access to the PMO eRoom  The master copies will be printed in color  The public version will be left on a specified bookshelf and the confidential version will be locked in the file cabinet Maintain the master copy (both confidential and public***) in the War Room and PMO eRoom up-to-date Continuous X Note: * ** Please refer to the Appendix for Bible Section Owners includes PMO stakeholders such as the Steering Committee, ATK Client Officer, ATK Project Officer (list to be determined) Author: Gemma Harman (London Office) 12-04-01 39 *** Public version is the one where all sensitive information is removed DRAFT
Slide 40: Bible Information Example Bible Section Project Overview Project Objectives PMO Initiatives Workstream Progress Information PMO Methodologies and Procedures Communications Plan PMO Stakeholder List ………………. ………………. ………………. ………………. Contents Project Overview (objectives, vision, plan, and governance of PMO) Detailed information on Project Objectives Information on PMO Website Overview of PMO Intranet Site (objectives, vision, and way forward) Detailed information on Methodologies and Procedures Communication Overview PMO Directory (contact information for the PMO, Operating Unit, Steering Committee, etc.) ……………………….. ……………………….. ……………………….. ……………………….. Author: Gemma Harman (London Office) 12-04-01 40 Owner Date of Last Update DRAFT DRAFT
Slide 41: 3. Development of the PMO eRoom Principles of the PMO eRoom PMO eRoom aims to provide easy access to key documents and achieve efficient version control DRAFT • The PMO eRoom is for the use of PMO team members only • Documents are named in accordance with Client X nomenclature • Only final versions of complete documents and up-to-date (latest) versions of working documents are kept • eRoom is updated every Date X – what has been updated/added – what has been taken off • PMO members are regularly informed of modifications to the eRoom by a weekly eRoom update email1 (on Date Y) stating: Author: Gemma Harman (London Office) 12-04-01 DRAFT 41
Slide 42: Structure of the PMO eRoom PMO eRoom is a central location of reference storing important documents that PMO has accumulated and created during the implementation of the Programme. It should reflect the PMO Bible Example PMO eRoom Folders and Subfolders  Key Presentations (Final Version) • Various Stakeholder Presentations • Project Updates DRAFT  Project Management Information (Up-to-date version of every document in progress and final versions of complete documents) • PMO Bible • Project Collection • Measurement s • PMO Governance • Roles and Responsibilities • PMO Timeline and Roadmap  Training Materials Library (Final materials used in all A.T. Kearney – Client X training Sessions) • Non-sourcing Training Materials • Sourcing related Training Materials  Client X News Weekly News Alerts  PMO Calendar  PMO Contact List • PMO Roster • PMO Stakeholder Roster  PMO Weekly Progress Updates Author: Gemma Harman (London Office) 12-04-01 42 DRAFT
Slide 43: Client X – ATK eRoom Information Client X – ATK eRoom is a central point of communication for ATK consultants working on Client X projects Internal Global ATK eRoom  Inform A.T. Kearney consultants working on Client X projects on recent developments and achievements in Client X projects worldwide DRAFT  Facilitate the share of best practices and tools across groups  Maintain global key A.T. Kearney documents produced (Intellectual Capital Documentation)  PMO Information  Current Status  Public version of the PMO Bible  PMO Contact Information  Archives of the weekly Client X news update Directory: Membership:  A.T. Kearney consultants working on a Client X engagement only  A.T. Kearney’s internal eRoom is password protected Security:  Firewall prevents the access of non-Client X A.T. Kearney consultants into the global eRoom  Confidential materials and work-in progress are not posted  eRoom members are instructed not to share the displayed information with anyone Author: Gemma Harman (London Office) 12-04-01 43 DRAFT Objective:
Slide 44: 4. Development of the Work plan A Week by Week Workplan Across Workstreams Needs to be Developed WORKSTREAM PLANNER PMO Workstreams Phase 1 Intranet Risk management Intellectual capital Communication to Stakeholders Team quality control (ensure all actions are completed, project is on track) Savings methodology Project KPIs, milestone reporting and tracking ATK Global expertise input War Room Display War Room Presentations Bible Timeline Workstream planning chart Roadmap Linking mechanisms between other Projects Tracking Tool Non PMO Scope Organisation Global Training Knowledge Management Other Year X 01-Jan 08-Jan 15-Jan 22-Jan 29-Jan DRAFT Author: Gemma Harman (London Office) 12-04-01 DRAFT 44
Slide 45: 5. Development of Project Information Collection Process and Measurement Tools Objectives  Establish the process for collecting all Operating Unit projects  Define key roles and responsibilities in the collection process for the PMO, Buying Teams and Operating Units  Provide data collection milestones  Provide guidelines to complete Excel Project Collection Template DRAFT Author: Gemma Harman (London Office) 12-04-01 DRAFT 45
Slide 46: What is a “project”?  A “Buying Savings Project” is any initiative resulting in savings that contribute to the Purchasing Project savings targets — In due course, these will be augmented with “Buying Infrastructure Projects” which drive the development of key enablers to build sustained Buying performance  The Project Management Office (PMO) is required to report on Operating Unit progress on buying projects to the Purchasing Project Steering Team DRAFT  The PMO will create and maintain a database which includes all buying projects  For the purpose of risk and project management, it is recognised that the Purchasing Project Steering Team and Buying Teams will focus on projects that meet any of the following criteria: • • • • • Projects which represent a significant proportion of Operating Unit’s savings target Projects that involve two or more Operating Units Projects requiring global resources outside the Buying function Projects that support Purchasing Power Consolidation Projects that support e-Procurement Author: Gemma Harman (London Office) 12-04-01 46 DRAFT
Slide 47: Required Data Fields For All Projects • Unique Project Number (PMO assigned to Operating Unit) • Project Name • Project Description • Operating Unit • Purchase Segment • Buying Team • Purchase Group • Category • Project Contact • Contact’s phone number • Project Phase • Idea • Feasibility • Capability • Launch • Complete • Dropped • Baseline Spend • Project Start Date • Project Risk • Low • Med • High • Savings by quarter (Year A, Year B, Year C, Year C+) • Savings type • Volume concentration • Best price evaluation • Global sourcing • Product specification improvement • Joint process improvement • Relationship restructuring DRAFT Additional Data Fields (not required) • Key Issues, Assumptions and Suppliers Assumptions) Author: Gemma Harman (London Office) 12-04-01 DRAFT 47
Slide 48: PMO project data collection process Example Categories Buying Teams Potential Sources of Projects Operating Units Step 1 Operating Units consolidate projects and complete templates Step 3 Operating Units validate reports and submit any changes to PMO Step 7a Operating Unit assumes full responsibility for managing the project DRAFT Step 4 Step 5 PMO reviews Operating Unit project lists Step 8 PMO completes review and generates final reports Buying Teams PMO PMO consolidates project input and generates draft reports PMO generates revised Operating Unit Project reports Step 6 Buying Team Leaders review Operating Unit project lists Step 7 No Step 7b Ensure lead Operating Unit & participant Operating Units are properly identified and Buying Team Projects Is the project part of a regional/global initiative? Yes Purchasing Project Steering Team Step 9 Purchasing Project Steering Team reviews project reports at meeting PMO Project Collection Technology Data Collection Templates (Excel) Project Database (Access) Reports Author: Gemma Harman (London Office) 12-04-01 DRAFT 48 Step2
Slide 49: Step 1 - Operating Units consolidate projects and complete project templates  DRAFT — The Head of Buying for each Operating Unit will ensure the templates are completed for their Operating Unit.  Coordination: Operating Units return completed templates to PMO via email.  Requirements: Operating Units submit projects that deliver savings exclusively to their group. For cross-Operating Unit projects, each Operating Unit will account for their portion of the project in accordance with the template instructions. Submission should be completed by Date X. Author: Gemma Harman (London Office) 12-04-01 DRAFT 49 Action: PMO will provide each Operating Unit with an Excel based template. The template will ensure that minimum data are captured and consistent responses are provided (e.g. purchase group nomenclature, buying team project names, etc.).
Slide 50: Step 2 - PMO consolidates project input and generates draft reports  DRAFT  Coordination: PMO receives templates from Operating Units. The turn-around time for the generation of reports once the complete set of templates is received is expected to be quick  Requirements: PMO consolidates project templates and generates draft reports Author: Gemma Harman (London Office) 12-04-01 DRAFT 50 Action: PMO will upload the Excel spreadsheets into a database. The PMO will then generate draft reports. The draft reports will provide multiple views of the existing data and provide the Operating Unit, PMO and Buying Teams with a consolidated and consistent view of the project inventory.
Slide 51: Step 3 - Operating Units validate reports and submit any changes to PMO  Action: PMO provides each Operating Unit with a report listing their respective projects. Each Operating Unit Buying Head validates the list and provides any corrections to the PMO DRAFT  Coordination: Unless otherwise noted, the default point of contact for managing project lists and providing interface to the PMO will be the Operating Unit Buying Heads.  Requirements: The Operating Unit Buying Heads must ensure that processes are in place to allow the appropriate validation of the projects they submit and validate under steps 1 through 3. Author: Gemma Harman (London Office) 12-04-01 DRAFT 51
Slide 52: Step 4 - PMO generates revised Operating Unit project reports  Action: PMO generates validated Operating Unit project reports from the Access database DRAFT  Coordination: Reports are distributed to the Operating Units, and Buying Teams and validated for final review by the PMO  Requirements: PMO will have the capability to conduct queries of the project database and will provide support to the Operating Units and Buying Teams as required to validate the projects submitted in step 3. Author: Gemma Harman (London Office) 12-04-01 DRAFT 52
Slide 53: Step 5 - PMO reviews project lists (may occur in parallel to Step 6)  Action: PMO will review each Operating Unit project list for completeness, clarity and accuracy. DRAFT  Coordination: PMO will coordinate any necessary clarification with the Buying Teams  Requirements: The PMO will perform a preliminary risk assessment of the initial project list to assess key areas where additional information/focus is needed, and will subsequently give feedback to the Buying Teams and Operating Unit Buying Heads as appropriate Author: Gemma Harman (London Office) 12-04-01 DRAFT 53
Slide 54: Step 6 - Buying Teams and Buying Team Leaders review Operating Unit project lists  Action: Buying Teams will receive reports on the projects from the PMO. The Buying Teams and Buying Team leaders will assess the projects against their list of projects to ensure a complete list of projects exists. DRAFT  Coordination: Buying Teams need to help ensure that the record of the projects is complete  Requirements: Buying Teams and Buying Team leaders will review and validate project list Author: Gemma Harman (London Office) 12-04-01 DRAFT 54
Slide 55: Step 7, 7a, 7b - Is the project already part of a regional or global initiative?  DRAFT  Coordination: Buying Teams and Buying Team leaders decide if the project is cross-Operating Unit or global — If yes, the Buying Teams need to ensure the lead Operating Unit is identified and that each participating Operating Unit is aware of their appropriate commitment to the project and the associated savings attributed to them. Consistent nomenclature (i.e. an agreed project name) must be used to allow these projects to be rolled up at the global level for reconciliation with Buying Team and Buying Team project lists — If no, the Operating Unit is fully responsible for managing and reporting on the project  Requirements: The short-term tool does not effectively track regional and/or global projects. Therefore, it is important that Operating Units and Buying Teams identify projects which meet this criteria Author: Gemma Harman (London Office) 12-04-01 DRAFT 55 Action: Buying Teams and Buying Team leaders need to review each Operating Unit project list to ensure completeness of category sponsored projects. Additionally, the Buying Teams should scan the lists to identify opportunities to leverage resources and opportunities across Operating Units. Finally, the Buying Teams must ensure that regional and global projects are properly documented in the Operating Unit lists
Slide 56: Step 8 - PMO completes review and generates final reports  DRAFT  Coordination: PMO serves as the single interface to the database and consolidates all feedback from Buying Teams and Buying Heads  Requirements: The PMO will ensure that an overall risk assessment is available to the Purchasing Project Steering Team — PMO will generate final reports for review by Date Y Author: Gemma Harman (London Office) 12-04-01 DRAFT 56 Action: These reports represent a first-pass of the projects by Operating Unit which support the $ x target. This list has been reviewed by the Operating Units, Buying Teams, Buying Team leaders and the PMO for completeness and savings methodology soundness.
Slide 57: Step 9 - Purchasing Project Steering Team reviews project reports at Date X meeting  Action: PMO reports to Steering Team to prepare feedback to Senior Management DRAFT Author: Gemma Harman (London Office) 12-04-01 DRAFT 57
Slide 58: Instructions for Completing Excel Project Template
Slide 59: Project Collection: Excel template  Objective: • This document will provide the guidelines to enable any user to input projects into the Project Management Office database. Projects will be submitted via an Excel spreadsheet template.  DRAFT • All currency information will be denominated in currency X • Users should ONLY input savings estimates that are applicable to their Operating Units (Operating Units). For example, if a single regional project will deliver savings both for Operating Unit X and Operating Unit Y, project leaders from each Operating Unit would input their own savings only • The symbol (*) denotes that the specific field is NOT required input to the database. All other fields are mandatory Author: Gemma Harman (London Office) 12-04-01 DRAFT 59 General Guidelines:
Slide 60: Project Collection: Excel template  General Guidelines (continued): • Input spreadsheet contains six tabs. • • Instructions: overview of general instructions on how to use spreadsheet Project input tabs •Raw materials: projects involving one specific Raw Material purchase groups •Packaging: projects involving one specific Packaging Material purchase groups •Indirects: Indirects projects •Semi-Finished goods: Projects involving Semi-Finished goods (e.g. Co-Packing) Dropdown menu maintenance: contains fields used in dropdown menu. No input necessary. User will input projects according to their Purchase Group classification. E.g. A project delivering savings through volume concentration on dairy products will be input in the “Raw Materials” tab. DRAFT • • Author: Gemma Harman (London Office) 12-04-01 DRAFT 60
Slide 61: Template Field Descriptions 1 Purchase Segment:  No input required. This field is the default that corresponds to the user’s selection among the different “tabs” in the template The default currency for the template is Currency X. All local currencies should be converted under normal reporting conventions (i.e. average prior year rates for non-hyperinflationary countries) This field corresponds to the y number of Operating Units that make up Client X, plus Corporate Center. User selects a group that is responsible for delivering project savings from the dropdown menu options. User enters the date that the template is submitted to the PMO No input required. Database will automatically generate and assign project ID numbers User will enter the project name. As each Operating Unit will claim their own respective savings, users are urged to coordinate with counterparts in other Operating Units to use the same name to describe the cross-Operating Unit projects Author: Gemma Harman (London Office) 12-04-01 2 Currency:  DRAFT Operating Unit: 3  Date Spreadsheet started: 4  Client X PMO ID: 5  6 Project Name:  DRAFT 61
Slide 62: Template Field Descriptions 7 Project Description:  Description should outline the main drivers/considerations by which savings will be attained. Further, for cross category and/or cross-Operating Unit projects, please add note describing interaction/dependency issues (if any) User selects the Buying Team responsible for generating the buying savings from the dropdown menu. The listed Buying Teams are in accordance to those agreed by the Buying Teams 8 Global Buying Team (Buying Team):  DRAFT 9 Purchase Group:  User selects the Purchase Group responsible for generating the buying savings from the dropdown menu. e.g. Yeast (within the “Raw Materials” tab). Input for this field is at level below Purchasing Segment in the materials classification The Operating Unit contact for queries relating to the project Please include international country and city codes Project Contact: 10  Contact Phone No.: 11  Author: Gemma Harman (London Office) 12-04-01 DRAFT 62
Slide 63: Template Field Descriptions 12 Project Phase: This field will describe the status (or phase) of the project. The options from the dropdown menu are Idea, Feasibility, Capability, Launch, Complete and Dropped. Idea: when a project is identified as a potential savings source, although it has not been determined if project will/can be implemented. Nevertheless, project leader, savings type, Operating Unit, category and key assumptions should have been identified. Feasibility: this phase determines that the project is possible and key metrics and assumptions by which to measure project delivery are validated. DRAFT Capability: at this phase, project details are known to support implementation. All key data has been collected (e.g. volume forecast, planned launch date) and required investments and resources have been determined Launch: Project is 'good to go', and the Project Start Date is certain. Further, in cross-Operating Unit projects, allocations have been finalized and project savings have been phased by quarter for Year A, Year B and Year C or Year C+ Complete: project is finalized and firm savings are known and delivered Dropped: project will not be implemented and will not be considered as on going contribution to the PMO target Author: Gemma Harman (London Office) 12-04-01 DRAFT 63
Slide 64: Template Field Descriptions 13 Project Risk:  Description of the perceived risk level of the project. Dropdown menu includes Low/Med/High. This field should refer to the likelihood of the project’s implementation and its ability to deliver the committed savings. Among risks that may affect projects: Schedule (e.g. resources, timing, market changes, impact of Brand Focus initiative, etc) and Financial (e.g. volumes, barriers) DRAFT 14 Project Start Date:  User will input the projected date that the project will be launched. It is possible that projects in idea/feasibility phases may not have firm launch dates but an estimated timeframe will still be required as input 15 Baseline Spend:  User will input the baseline spend amount to which the savings are applied. Input is in thousands 16 Savings:   Project savings should be estimated following the agreed methodology. Calendar phasing: savings should be phased by quarter for Year A, Year B and Year C, except for Year C+ If project is still at a premature stage where phasing cannot be determined, user should input projected savings in Q4 Author: Gemma Harman (London Office) 12-04-01 DRAFT 64
Slide 65: Template Field Descriptions 17 Savings Type:   User will choose description of main driver behind the project savings from the dropdown menu. The options in the menu refer to the six main approaches that lead to Buying Cost Focused - Exploiting Buying Power  Volume Concentration: e.g. consolidate number of suppliers, pool volume across units  Best Price Evaluation: e.g. renegotiate prices  Global Sourcing: e.g. expand geographic supply base, develop new suppliers  Relationship Focused - Creating an Advantage  Product specification Improvement: e.g. substitute materials, optimize life cycle costs  Joint Process Improvement: e.g. share productivity gains, integrate logistics  Relationship restructuring: e.g. develop key suppliers, make vs.. buy, strategic alliances DRAFT Author: Gemma Harman (London Office) 12-04-01 DRAFT 65
Slide 66: Template Field Descriptions 18 Key Issues, Assumptions and Suppliers (*):  This field may include some of the following factors:  Key issues: schedule (delays); financial (resource constraints); opportunity (e.g. supplier market changes, scope changes, etc.  Assumptions: e.g. market price movements; potential barriers, etc.  Key suppliers: main global or regional suppliers involved DRAFT 19 Lead Category:  The primary Product Category that the project impacts Author: Gemma Harman (London Office) 12-04-01 DRAFT 66
Slide 67: 6. PMO Risk, Phase and Prioritisation Methodologies Vision for the Phase and Risk Tracking Procedure Three main improvement areas have been identified that need to be addressed by the new Project Phase and Risk Tracking Procedure VISION The Project Phase and Risk Tracking Procedure • Provides a formal definition for project phase and risk categories • Includes risk tracking feature GUIDING PRINCIPLES DRAFT • Definitions for project phase and risk categories are detailed, clear, and consistent • Actions taken against risks are regularly recorded and monitored • Risks are prioritized at project level and attention in terms of verification of accuracy of the submitted information and risk management is only given to high priority projects • Incorporates a project prioritization methodology Author: Gemma Harman (London Office) 12-04-01 DRAFT 67
Slide 68: Project Risk Definition Various key risk drivers may impact the success of a sourcing project KEY RISK DRIVERS IN SOURCING PROJECTS RISK DRIVER  Constrained Resources  External Dependencies DESCRIPTION Lack of key expertise for a crucial part of a project Timescale dependencies on external factors –e.g. timescale dependencies on other projects (complexity reduction)or external suppliers Complications in transitioning from existing to new suppliers or from old ways of working with existing suppliers to new ways – e.g. slow or inharmonious transition Slow existing decision making process due to lack of executive buying authority or problems in regional innovation decision or category decision making structure Obstacles in achieving savings due to long-term contracts, restrictions on imports, or competitive market dynamics Problems in obtaining data on spend or suppliers due to inadequacy of Management Information Systems Decrease in savings due to negative Underlying Volume Growth (UVG) DRAFT  Implementation Issues  Unnatural Cooperation  Supply Market Constraints  Poor Data  Volume Risks Source: A.T. Kearney Analysis Author: Gemma Harman (London Office) 12-04-01 DRAFT 68
Slide 69: Project Risk Definition The project risk level is determined by two factors: Risk Driver Criticality and Complexity Highly Critical • Less than 75% of targeted savings can be achieved • Delay of achieving the savings is more than 6 months Medium Level Risk Amber Light High Level Risk Red Light DRAFT Critical • Only 75-90% of savings can be achieved • Delay of achieving the savings is 3-6 months Risk Driver Criticality Impact-level on the project Low Level Risk Green Light Medium Level Risk Amber Light Not Critical • More than 90% of targeted savings can be achieved • Delay of achieving the savings less than 3 months Risk Driver Complexity Not Complex • Workarounds are possible and will completely eliminate risk Source: A.T. Kearney Analysis Are there barriers stopping the elimination of risk? Complex Highly Complex • Cost of workaround is higher than projected savings or not possible Author: Gemma Harman (London Office) 12-04-01 • Workarounds are possible but will not completely eliminate risk DRAFT 69
Slide 70: Project Risk Definition Risk Register filled out by Operating Units will allow accurate risk classification and efficient risk tracking Example: Risk Driver Inadequate Resources Phase-In Plan Complexities Highly Variable Commodity Market Description Chemical Engineer is needed to advise chemical ingredient purchases Supplier needs 4 months to update its systems to be ready for joint-process Price volatility reached 10% per month The Project can not be launched until Project X is completed and Project X is 6 months behind the schedule Potential Impact Might delay the launch of the project by 2 months Might delay the launch of the project by 4 months Margin required to smooth down volatility is 5 %, thus projected savings can not be achieved Might delay the launch of the project by 6 months Action Status Contacted Human Resources to hire a chemical engineer Continuous pressure on the supplier to promptly update its systems No Action Action Owner S.Jones Risk Level Low DRAFT H. Holt Medium High Milestone Risk Contacted the owner of Project X S. Jacob High Author: Gemma Harman (London Office) 12-04-01 DRAFT 70
Slide 71: Project Risk Definition Operating Units apply A.T. Kearney’s Seven-Step Strategic Sourcing Methodology Overview of A.T. Kearney’s Seven-Step Strategic Sourcing Methodology DRAFT Key Activities • Define purchase • Determine PG group (PG) based positioning on characteristics according to supply of purchases and market constraints and business impact; market identify sourcing understanding strategy and tactics according to positioning • Develop a • Identify potential • Pursue competitive negotiations suppliers, supplier selection strategy based establish or supplier on PG objectives evaluation development and margins for criteria & depending on negotiation, methodology, strategic conduct RFP develop preprocess qualified supplier positioning list • Transition from existing to new suppliers or from old ways of working with existing suppliers to new ways • Monitor supply market conditions and purchasing group evolutions; reevaluate when deemed necessary Author: Gemma Harman (London Office) 12-04-01 DRAFT 71 Profile Of Purchasing Group(PG) Develop Sourcing Strategy for Purchasing Group Generate Supplier Portfolio Select Implementation Path Negotiate / Select Competitive Supplier(s) Operational Integration With Suppliers Continuous Benchmarking Of Supply Market
Slide 72: Project Risk Definition Project Phase Classification Method can be mapped to A.T. Kearney’s Strategic Sourcing Methodology Overview of the Seven-Step Strategic Sourcing Methodology DRAFT Profile Of Purchasing Group(PG) Generate Supplier Portfolio Select Implementation Path Operational Integration With Suppliers Idea Feasibility Capability Launch Complete Overview of Project Phase Classification Method Author: Gemma Harman (London Office) 12-04-01 DRAFT 72 Develop Sourcing Strategy for Purchasing Group Negotiate / Select Competitive Supplier(s) Continuous Benchmarking Of Supply Market
Slide 73: Project Risk Definition Such a mapping will allow the identification of key activities under each Project Phase Overview of the Five-Step Project Phase Classification Method DRAFT Key Activities • Develop a phase-in plan for new suppliers/ sourcing methods • Identify potential suppliers • Develop a • Define Purchase Group based on Solicitation/ characteristics of purchases and market • Establish Negotiation strategy understanding evaluation/screening criteria • Conduct Request for & measurement • Collect basic data – e.g. volume, methodologies Proposal (RFP) volume trends and forecasts, suppliers, Process pricing, etc - for the PG • Develop pre-qualified • Analyze the supply market (e.g. market supplier list segmentation) and determine PG • Select implementation path positioning according to supply market (competitive supplier constraints and business impact selection or supplier relationship development) • Identify sourcing strategy and tactics depending on strategic according to positioning positioning • Transition from existing to new suppliers or from old • Evaluate Supplier ways of working with • Fully realize Responses – analysis estimated savings existing suppliers to of price and non-price new ways elements • Track accrued savings • Select competitive since the project start suppliers date • Complete transition from existing to new suppliers or from old ways of working with existing suppliers to new ways Author: Gemma Harman (London Office) 12-04-01 DRAFT 73 Idea Feasibility Capability Launch Complete
Slide 74: Project Phase Definition As a guide, the following should be useful to determine the appropriate phase throughout the project life cycle INFORMATION TO BE FILLED ON A TEMPLATE  Place-holder for cross-Operating Unit projects that do not have Operating Unit based identified savings (e.g. large regional/global or indirect projects)  Savings indications only (not counted for reporting purposes) DRAFT FEASIBILITY FEASIBILITY CAPABILITY CAPABILITY LAUNCH LAUNCH COMPLETE COMPLETE  Has the supplier been selected/approved?  Is the project dependant upon significant inputs from other parts of the organisation? • Are these departments aware and committed to the goals? • Have they provided the required resources?  Has the revised specification been approved by the category?  Is capital available if required? Have tooling requirements been specified and commissioned?  Are project related savings being generated and reported?  Are supplier agreements in place?  Is there a project plan/schedule and key milestones identified?  Is there a contingency plan?  Targeted savings are fully achieved and reported Author: Gemma Harman (London Office) 12-04-01 DRAFT 74 IDEA  Has the estimated cost/benefit been established by Operating Unit?  Has an approach been defined (e.g. regional data collection, negotiation, benchmarking, cost modelling)?  Are local and non-local resources identified and available and allocated to the project team (e.g. Buying, Development, Factory, central technical resources as appropriate)
Slide 75: Project Prioritisation Methodology Since there are more than x number of identified projects, a Project Prioritization Methodology needs to be established • Project Phase and Risk templates to be filled by Operating Units will provide the PMO with accurate information on project status • However, there are already more than x number of identified projects • Such a detailed reporting of project phase and risk by Operating Units for each undertaken project will be time-consuming • A project prioritization methodology that takes into account both the benefits and drawbacks associated with detailed project phase and risk reporting needs to be established • Under such a project prioritization methodology • Projects must be prioritized by using a globally consistent rule • Operating Units should provide detailed reporting for only those projects that are deemed critical under the project prioritization methodology • Operating Units should only record the project phase (idea, feasibility, capability, launch, complete) and risk profile (low, medium, and high) for those projects that are not found critical DRAFT Author: Gemma Harman (London Office) 12-04-01 DRAFT 75
Slide 76: Project Prioritisation Methodology Alternative methods exists for project prioritization Project Prioritization – Project Size and Project Complexity High Illustrative Project E Project A DRAFT Project D Project Volume Projected Amount of Savings Project B Project C In this example, Project A and Project D are both critical and complex, requiring a detailed project phase and risk reporting Project F Low Low Project Complexity How many dedicated FTEs will be working on the project? Or Complexity Ranking of Savings Type High Author: Gemma Harman (London Office) 12-04-01 DRAFT 76
Slide 77: Project Prioritisation Methodology Alternative methods exists for project prioritization (con’t) Project Prioritization – Project Risk and Project Phase Illustrative High DRAFT Project Risk Medium Project A In this example, Project C and Project E are both critical and complex, requiring a detailed project phase and risk reporting Project B Low Idea Feasibility Project F Capability Launch Complete Project Phase Author: Gemma Harman (London Office) 12-04-01 DRAFT 77 Project C Project E Project D
Slide 78: 7. PMO Communication Strategy A plan must be developed to ensure the right communication processes are put in place to ensure the right messages are delivered at the right time to the right people Develop Communication Plan Supply Demand DRAFT Navigation Actively manage communication to optimise investment in change Leadership Get the senior management to ‘champion’ internal communication Who • are the communicators? • are the audience? What • do they currently know? • do we want them to think? • are the specific messages? How • should we say it? • can we ensure they hear it? • will we know it works? • will feedback be used? Identify Key stakeholders • Brainstorm • Map • Develop strategy plan Enablement Ownership Shift to involving people in creating communication and Use appropriate channels to build commitment to communication and train people how to do it effectively Author: Gemma Harman (London Office) 12-04-01 DRAFT 78
Slide 79: PMO Communication Strategy The communication plan must align itself with the overall programme activity plan and focus on both broad and specific messages across the internal and external communities General From Rudy Markham/ John Rothenburg Broad levels of understanding and awareness to a variety of wide audiences organised in waves Audience Breadth Example DRAFT Buying Community Business Groups Top 100 Execs Programme Plan Focused Specific communications to engage and align parts of the extended organisation behind a specific milestone driven objective x y s u l Audience Depth From Project teams/ Steering Committee to specific business areas Author: Gemma Harman (London Office) 12-04-01 DRAFT 79
Slide 80: PMO Communication Strategy Fundamental principles on how best to communicate must be developed and agreed • Ensure leverage and executive buying slant • Communications & Education will focus on both push & pull tactics to gain buy-in • Sell as the Future of X – not just the project • Identify new required performance metrics to achieve objectives and implement • Develop straightforward and timely communications • Retain a simplistic approach • Involve to obtain buy-in and to avoid resistance • Ensure cultural versatility: tailor for business area, language, culture, local challenges Approach DRAFT Style • Ensure communications are concise • Ensure a quality look and feel to all materials • Ensure there are not too many fancy tools or vehicles but down to earth • Remember not to lecture but to keep interactive Process • Maintain a constant stream of information: little and often • Communicate to all the Business Groups at once - not segmented • Build in formal communication feedback channels that are USED and not forgotten Author: Gemma Harman (London Office) 12-04-01 DRAFT 80
Slide 81: PMO Communication Strategy The internal communications plan must first identify key stakeholders and the nature of their role and impact on the project Stakeholders Individual Senior Management Stakeholders Role Source of Influence High Stakeholder Position DRAFT Executive Champion Ability to enable Change Change Agent Other key stakeholders Global Teams Pupil Supporter/ Gatekeeper Low Low Level of Project Involvement High Author: Gemma Harman (London Office) 12-04-01 DRAFT 81
Slide 82: PMO Communication Strategy Value propositions must be built for each stakeholder with tailored messages Example What’s in it for me • Achievement of savings target • Reinvestment of money saved • Best sourcing deals Stakeholder & Role DRAFT X Business Groups/Change Agents • Hard targets to achieve • Extra work to drive initiative • Lose potential preferred suppliers • Demonstrate success stories • Long-term benefits (leverage) • Make their lives easier once done X/Potential gate keeper or change agent • Confidence in best deal • Makes life easier to find supply solution • Lose potential preferred suppliers • Lose decision-making power • Demonstrate success stories • Long-term benefits (leverage) • Make their lives easier once done X Committee/Change Agent • Confidence in best deal • Makes life easier to find supply solution • Lose potential preferred suppliers • Lose decision-making power • Demonstrate success stories • Long-term benefits (leverage) • Make their lives easier once done Author: Gemma Harman (London Office) 12-04-01 DRAFT 82 What’s against my interest Key Message/Plan
Slide 83: PMO Communication Strategy The plan must integrate with existing communication events to ensure a timely cascade and delivery Example Key Event Communication December January February DRAFT X Author: Gemma Harman (London Office) 12-04-01 DRAFT 83
Slide 84: 8. PMO Intranet Strategy PMO Intranet Vision • To develop a phased and tailored “stages of excellence” intranet site to support the Buying Project and ultimately, the implementation of the Buying Programme and transformation to a new world class supply management organisation Phase 1: • • • • Phase 2: • • • Phase 3: • • • Phase 4: Not in scope • • • “Pilot” Data/Reference Focus/Buying Project only Provide up-to-date quality information for the Buying Project at the right time to the right people to support the achievement of the $ x target Owned by the PMO Learning Focus/New generic site for the new supply management organisation, Global Purchasing Program and Project (PMO site to be integrated as a component of the main site) Provide a dynamic central point for global supply management information and knowledge exchange to ensure support for and completion of projects identified, implementation of the new supply management organisation and the related processes and infrastructure Owned by the Competency Centre Client X Best Practice Focus Development of the Client X global best practice supply management platform through the establishment of an e-supply management university, building global competency and intellectual capital and the required knowledge management infrastructures Owned by Business As Usual Strategic Best Practice Focus Integrated with core strategic suppliers to achieve a truly world-class dynamic information and supply management exchange Owned by Strategic Knowledge Management function DRAFT Author: Gemma Harman (London Office) 12-04-01 DRAFT 84
Slide 85: PMO Intranet Strategy Three development phases are planned from Date X – Date Y to reflect the changing needs of the project Intranet Phase Development Strategy Example DRAFT Data/Reference Focus Learning Focus Client X Best Practice Focus Continuous • Global collection and dissemination of key experiences and lessons learned • Iterated and improved project methodologies and sourcing techniques • Establishment of a global supplier database, compliance processes and benchmarking practices Strategic Best Practice Focus Not in scope 2 Months • Milestone: identify project savings that equate to $ x • Project tracking tool complete • Recast of targets approved and communicated 4 Months • Acceleration of sourcing progress • Identification and mobilisation of crossdivisional big global projects • High level of supplier and market information generated • Sharing experiences and lessons learned regarding various methodologies • Competency Centre established and up and running Key Project Events Author: Gemma Harman (London Office) 12-04-01 DRAFT 85 Phase 1 Phase 2 Phase 3 Phase 4
Slide 86: PMO Intranet Strategy Each phase will focus on increasing the level of interaction and penetration into business as the global “best practice supply management site” Intranet Phase Target Audience, Usage and Interaction Levels High Phase 4 Example DRAFT Business Usage • Various Business Stakeholder Groups Phase 2: Learning Driven by the Competency Centre • • Steering Team • Buying community Leaders • Leadership Team Phase 1: Data/Reference Driven by the PMO Low Low Level of Interaction High Author: Gemma Harman (London Office) 12-04-01 86 DRAFT • Global Supply Management Organisation Phase 3: Client X Best Practice Owned by the business
Slide 87: PMO Intranet Strategy In alignment with each phase, site objectives will change to reflect the new target audience and their information requirements Intranet Phase Target Audience and Information Requirements Site Phase Phase 1: Data & Reference Focus Target Audience  Senior Management Buying Teams Leadership Team Objectives  Increase awareness/understanding of Operating Unit activities  Provide quality and up-to-date easily accessible information on overall progress  Demonstrate that the PMO and project database physically exist  Provide transparency on resources and actual progress Site Content  Progress dials  Project information  Material Classification  Measurement methodologies  Buying Groups activity update DRAFT Phase 2: Learning Focus As above Various Buying Community Groups  Improve/disseminate understanding of “the Project”  Provide key information to help teams mobilise  Educate teams on working methodologies (risk, knowledge management, strategic sourcing etc.)  As above  Home of global project tracking database  Central point of reference for governance meeting information (documentation, minutes, events)  e-Q&A rooms  Project reference library  Stages of excellence of supply management practices  Global best practice tools, techniques and methodologies  Global contact information  Global, interactive supply management euniversity faculty”  Global benchmarking tool and tracking process  As above  Live and dynamic supplier information  Links to global industry best practice sites  Provide a dynamic central point to ask questions and receive just in time answers – promote global information sharing and knowledge  Provide live example tutorials of project “cases” to help troubleshoot and guide progress  Global Supply Management organisation  Communicate global supply management vision, guiding principles, new processes and strategy  Continue to use to update on the Buying Project  Use as a key communication tool for the Buying Programme and e-Initiatives  Utilise to create linking mechanisms between the global organisation i.e. global job rotation opportunities  Develop an e-supply management university with competencies linked to HR development training courses and performance objectives (divisional heads and mnagers as “mentoring experts” to encourage knowledge dissemination and sharing  Build supply management e-university course modules, materials and live e-debates Phase 3: Client X Best Practice Phase 4: Strategic Best Practice  Global Supply Management organisation  Selected strategic suppliers  As above  Integrate the world class best practice supply management site with key strategic supplier live up-to-the-minute data, contract information, preferred supplier services Not in scope Author: Gemma Harman (London Office) 12-04-01 DRAFT 87
Slide 88: PMO Intranet Strategy Different site infrastructures will need to be developed for each phase 10 Intranet Site Infrastructure Building Blocks Business Integration Promotion Investment Structure/Content Measurement Vision/Objectives Ownership/Mgt DRAFT Target Audience Functionality Information Mgt Phase 1 Data/Reference Focus Phase 2 Learning Focus Phase 3 Client X Best Practice Focus Phase 4 Strategic Best Practice Focus Author: Gemma Harman (London Office) 12-04-01 DRAFT 88
Slide 89: PMO Intranet Strategy Phase 1, as the “Pilot”, focuses on targeting a small number of stakeholders to identify future requirements and desired functionality whilst providing a fundamental level of information currently required Building Block Vision/Objectives Definition/Specification Vision: The PMO site will provide up-to-date quality information for the Buying Project at the right time to the right people to ensure the achievement of $ x Objective: 3)Gain an understanding through the provision of an interactive and dynamic 2-way feedback channel of user requirements in order to build a tailored Phase 2 site 4)Provide a strategic overview of the Project 5) Share project data, tracking information and reference materials 6)Provide measurement methodologies to educate key stakeholders DRAFT Target Audience Structure/Content  “Project Collection” contacts , Operating Unit Leaders, Buying Teams, Leadership Team, Senior Management  About “The Project”. The People, Contact Us, Buying Information (Project Savings, Actual Savings, Reference, Links, Site management) Functionality  Progress tracking barometer  Publishing tool  Links  News and Events Update (message board)  Feedback email capability Ownership/Management Promotion Business Integration Investment Measurement Information Management  FTE X  Email “launch” letter to target audience  None in Phase 1  $x for initial development plus $y for additional changes  May send a brief Feedback Review Questionnaire Email to Phase 1 Users  PMO input onto the site  Feedback and comments from users to be structure/discussed at the weekly progress meeting Author: Gemma Harman (London Office) 12-04-01 89 DRAFT
Slide 90: Template 1: Dials - Divisional Project Forecasts(1) Identified Project Savings ($) Division A: $ $ Submitted Projects by Division Status Projects Submitted $ $ $ $ % Target % % % % $ Target: $ DRAFT Division B: $ $ Division C: Total: Division B: $ $ $ Target: $ $ $ $ $ $ Target: $ $ $ $ $ Target $ $ Division C: $ $ Overall Author: Gemma Harman (London Office) 12-04-01 DRAFT 90 Division A:
Slide 91: Division A Actual Qx Year Y Cumulative Savings $ $ Actual $ Identified Project Savings (Year X – Year Z) $ DRAFT Target $x Target $ x $ $ $ Identified Project Portfolio Profile Estimated Timing of Submitted Savings Segment Risk Phase 70% 40% Ingredients Packaging Co-Packing NPI Unidentified Low Medium High Unidentified Launch/Complete Feasibility/Capability Idea Unidentified 20% Year A Year B 30% 10% Year C Total NI 10% Year C+ Author: Gemma Harman (London Office) 12-04-01 DRAFT $ 91 Pending Recast $ $ €634m $
Slide 92: Division A Savings1 Range A Range B Range C Range D Range E Range F Total # of Projects Total Value ($ ‘000) Number of Projects per Savings Range Total Value of Projects per Savings Range DRAFT Percentage Contribution per Individual Project Pctge contribution 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Top 50 projects: - representing: 80% of forecasted savings: $x y % of target x # of projects Number of Projects Author: Gemma Harman (London Office) 12-04-01 DRAFT 92
Slide 93: Division A Project Portfolio Breakdown by Category Category Y Category X Category Z Category Y Category X Category Z Category Y Category X Category Z Category Y Category X 0 Project Portfolio Breakdown by Materials Materials D Materials C Materials B Materials A Materials C Materials B Materials A Materials C Materials B Materials A 0 Top 10 Groups: All Other: Total: $ $ $ x y z DRAFT Key Projects Overview Project Name Project Description Segment Savings ($ million) Risk Phase Submitted by Author: Gemma Harman (London Office) 12-04-01 DRAFT 93
Slide 94: Division A Progress and Risk Report Accountable: Leader: Programme Progress to Date • • • • $ Target $ $ $ $ $ DRAFT Risks / Issues / Dependencies • • • • 70% 40% 20% 10% 30% 10% Year A Year B Year C Total NI Key Upcoming Milestones/Actions • • • • Who Date $a $d $e $f Feasibility/ Capability Year C+ Clas s ification of P roject S avings (Ris k and P has e) $g $h $j Launch/ Complete High $x Regretted Losses Unidentified $b $c Idea Medium Low Author: Gemma Harman (London Office) 12-04-01 DRAFT 94 E s timated Timing of S ubmitted S avings
Slide 95: Division Progress Report A Project Portfolio Breakdown by Region Group F Group D Group C Group B Group A Group C Group B Group B Group A 0 Group A 0 : Identified : Forecast : Savings Target Group E Group D Group C Group B Group A Group D Group C Top 10 Groups: All Other: Total: $y $x $x Project Portfolio Breakdown by Supply Groups (Top10) : Identified : Forecast DRAFT Key Projects Overview Project Name Project Description Segment Savings (€ million) Risk Phase Actions/Decisions Required Author: Gemma Harman (London Office) 12-04-01 DRAFT 95
Slide 96: Dials Key Colour Coding Example • Identified Project Savings • • • Red: Q4 2000 savings less than 75% of 3-year target Yellow: Q4 2000 savings between 75% - 100% of 3-year target Green: Q4 2000 savings greater than 100% of 3-year target DRAFT Author: Gemma Harman (London Office) 12-04-01 DRAFT 96
Slide 97: Template 2: PMO Team Progress report Week: Who Draft x y z Review x y z Final x y z Top 3 Priorities Activity A Activity B Activity C FTE 1 FTE 1/ FTE 2 FTE 1/ FTE 2 DRAFT Actions FTE 1 FTE 2 FTE 3/FTE1 Who Date X Date Y Date Z By When Workstream A: • Activity A • Activity B • Activity C Workstream B: • Activity A • Activity B • Activity C Workstream C: • Activity A • Activity B • Activity C FTE 1 FTE 2 FTE 3/FTE1 FTE 1 FTE 2 FTE 3/FTE1 Date X Date Y Date Z Date X Date Y Date Z Author: Gemma Harman (London Office) 12-04-01 DRAFT 97
Slide 98: Template 3: PMO War Room Visitor Log Book Information Content in Not Useful Slightly Useful Useful Very Useful No Basis for Rating Reason for Rating Panel A DRAFT Panel C Panel D Panel E . What information is missing? Who do you think will benefit the most from visiting the War Room? What improvements could be made (from your experience with other War Rooms)? Include any other comments or suggestions regarding the PMO War Room. Thank you very much for completing our survey, Project Management Office Author: Gemma Harman (London Office) 12-04-01 DRAFT 98 Panel B
Slide 99: Template 4: PMO War Room – The Project Timeline Year A OctDec Year B Jan Feb March April May June July August Key: Launch Key decision Brief Meeting Results Year C Oct Nov Dec Jan Sept Key Enablers DRAFT Workstream A Workstream B Workstream C Workstream D Workstream E Author: Gemma Harman (London Office) 12-04-01 DRAFT 99
Slide 100: Template 5: PMO War Room Project Roadmap Key: Change engines Enabling activities Strategic Objectives Vision BEST PRACTICE A BEST PRACTICE B OBJECTIVE X OBJECTIVE Y OBJECTIVE Z BEST PRACTICE C DRAFT BEST PRACTICE D OBJECTIVE A Continuous Improvement OBJECTIVE B BEST PRACTICE E BEST PRACTICE F OBJECTIVE C BEST PRACTICE G Establish Infrastructure Drive and Embed Change Move into “Business As Usual” Critical Success Factors Author: Gemma Harman (London Office) 12-04-01 100 DRAFT Performance Impact
Slide 101: Template 6: PMO Communication Strategy Scorecard for each Stakeholder Group Broad Objectives for Communications to this Stakeholder Group Existing Communication Vehicles  Roadshows around world  Develop awareness of initiative • Define how it fits with client X’s vision • Focus away from cost reduction toward growth • Establish vision • Clarify objective of initiative  Communicate urgency • Need to take it seriously • Need to contribute to its success  Communicate progress  Client X Today (monthly newsletter)  Regional/local publications  Courses  Email  Internal Websites (multiple global sites) Potential Communication Vehicles DRAFT  Client X Magazine (global, quarterly)  Videotape  CD-Rom Author: Gemma Harman (London Office) 12-04-01 101 DRAFT
Slide 102: Template 7: A. T. Kearney Client Activity Tracker PMO X Office Officer X # of Consultants Duration Highlights: X Key milestones or next steps:  DRAFT Activity Area 1 Officer X # of Consultants Duration Highlights: X Key milestones or next steps:  Activity Area 2 Officer X # of Consultants Duration Highlights: X Key milestones or next steps:  Author: Gemma Harman (London Office) 12-04-01 102 DRAFT
Slide 103: Step 3: Embedding Learnings and Best Practice and Developing Organisational Competencies DRAFT Author: Gemma Harman (London Office) 12-04-01 103 DRAFT
Slide 104: Step 3 addresses the capture, development and transition of best practice learnings into the wider organisation Steps Required to Establish a Project Management Office (PMO) and Transition Learnings Step 1 Step 2 Step 3 DRAFT Determine Objectives and PMO Functions Identify Roles and Responsibilities Develop PMO Infrastructure Develop Methodologies and Processes Develop Communication and Intranet Strategy Capture learnings and best practice Develop and implement Competencies Author: Gemma Harman (London Office) 12-04-01 104 DRAFT
Slide 105: Step 3: Methodologies, Processes and Templates Step 3 DRAFT 1. 2. 3. 4. 5. 6. Identify Project Best Practice Learnings and Core Competencies (Example) Development of the Core Competencies Embedding the Core Competencies Developing a Core Competency Centre to sustain Growth Template 1: Capturing Key Learnings and Best Practice Template 2: Development of a Core Competency Training Plan Author: Gemma Harman (London Office) 12-04-01 105 DRAFT Capture learnings and best practice Develop and implement Competencies
Slide 106: 1. Identify Project Best Practice Learnings and Core Competencies The performance of the Project Management Office is based upon five critical success factors PMO Critical Success Factors DRAFT Long-term Client X Mindset Strong & Active Governance Harnessing the Client X’s Network Knowledge & Information Engine Exploitation of External Insights Each Critical Success Factor is supported by a set of key principles Author: Gemma Harman (London Office) 12-04-01 106 DRAFT
Slide 107: Identify Project Best Practice Learnings and Core Competencies Critical Success Factor 1: Long-term Client X Mindset Global Purchasing Plan (GPP) Project Programme Key Principles • Delivery on the project is the “passport” to successful implementation of the programme • Emphasis placed on achieving both: • • The project goals Putting in place a sustainable effective new supply management organisation DRAFT Client X • Deliver the $ x by Year Y – – – – – Agree Targets Identify Projects Provide Resources Ensure Enablers Measure and Track • Achieve and Sustain World Class Buying – – – – – People Process Suppliers Technology Organization • Transfer the credibility and logic gained from the project targets to the programme Target focus Long-term Project Management Office (PMO) Scope Author: Gemma Harman (London Office) 12-04-01 107 DRAFT
Slide 108: Identify Project Best Practice Learnings and Core Competencies Critical Success Factor 2: Strong and Active Governance Higher Senior Management Committee (HSMC) Big Project HSMC Representative Key Principles Steering Team • Visible steering team reporting to an active champion in HSMC • Small influential team whose members are generally “operators” chosen for knowledge, interest and resource they bring, not x representation • Effective delineation of roles and responsibilities within the team DRAFT Project Direction Steering Committee Sponsor ATK Client Officer Senior Manager A Senior Manager B Senior Manager X Senior Manager Y PMO (PMO) ATK Project Manager • PMO is the operating arm of the steering team • Well-connected, small, nimble and able to deal with ambiguity • Linked to an active operating unit and sponsor and, thus not isolated in an ivory tower • Well defined, concrete target visible both internally and externally • Active stakeholder management up and down to ensure engagement of champions and not just looking from the sidelines Senior Manager Z PMO Operating Units Author: Gemma Harman (London Office) 12-04-01 108 DRAFT
Slide 109: Identify Project Best Practice Learnings and Core Competencies Critical Success Factor 3: Harnessing the Client X Network Client X Organisation Conscious active linkage between other initiatives and X DRAFT Leveraged key Individuals in other areas of the Business PMO Located in a profit centre versus cost centre Did not destroy existing initiatives but harnessed to transfer and leverage Author: Gemma Harman (London Office) 12-04-01 109 DRAFT
Slide 110: Identify Project Best Practice Learnings and Core Competencies Critical Success Factor 4: Knowledge & Information Engine Project Management Office Linking Mechanisms Key Principles • Rigorous – and globally consistent – project tracking Dissemination – and ongoing support – of clear and structured methodologies for all Business Units One living central dynamic coordinating focus: the war room Establishment of working linking mechanisms between the field and the steering team to ensure: • • Identified project savings status reports • operating unit progress reports •Creation of frameworks and mechanisms • Communication updates to the business • Project plans • Project saving reports • Project risk assessments DRAFT Steering Committee PMO Stakeholders • Responsibilities • Strategy • Project championship • Critical resources • Broad decision making • Communication Deliverables • Development of milestones • Project status report • Tracking/measuring results • Develop structure in activities • Coordination of activities • Local management & control • Operational decision making • Project execution • • Credible and fair calculation and distribution of the targets Dynamic flow of information provided on a need-to-know basis • Author: Gemma Harman (London Office) 12-04-01 110 DRAFT
Slide 111: Identify Project Best Practice Learnings and Core Competencies Critical Success Factor 5: Exploitation of External Insights Key Principles DRAFT • Internal intellectual capital • Internal insights PMO • Consulting firm intellectual capital • Access to industry thought leaders • Provision of connectivity that Client X does not possess • Best practice insights • Processes enabling Client X to quickly mobilise • Application of “Assessment on Excellence in Procurement”* benchmarking criteria Maintain external scan and perspective Be open to external ideas to avoid “winning formula” mindset and isolation from trends • • * A. T. Kearney’s regular industry-wide procurement benchmarking study Author: Gemma Harman (London Office) 12-04-01 111 DRAFT Internal External • Regular review of external best practice through A. T. Kearney organised benchmark visits or meetings
Slide 112: Identify Project Best Practice Learnings and Core Competencies Aside from the Principles, several areas of improvement were identified along the way… Learnings from Year 1 DRAFT • Ongoing refinement of the PMO team’s core skills and allocation of roles accordingly • Drive ownership to the field faster • More explicit push of best practice identification, dissemination and sharing (e.g. training) • Celebrate and communicate success! Author: Gemma Harman (London Office) 12-04-01 112 DRAFT • Resource communication roles and responsibilities to the business (both the PMO and steering team)
Slide 113: 2. Development of the Core Competencies Competency Functions are “critical enablers” that need to be developed to drive and embed Programme vision and the thrusts The Supporting Role of the Competency Functions to drive the Programme Competency Function Definition Competency Function “Strategic Sourcing” Competency Function Knowledge Sharing Competency Function “e” DRAFT 1. Fundamental organisational capability critical to effective organisational operation and growth • Information: the “blood” of the organisation • Knowledge Sharing: the “veins” of the organisation • HR: the “brain” of the organisation • Strategic Sourcing: the “mind” of the organisation • “e”: the growth hormone” of the organisation Client X Programme Vision & Strategic Thrusts Window to the Future External Environment 2. Key driver to facilitate best practice development Competency Function HR Competency Function Information Author: Gemma Harman (London Office) 12-04-01 113 DRAFT
Slide 114: Development of the Core Competencies Example of Core Competency Functions Supply Management Organisation DRAFT HR “e” Strategic Sourcing Knowledge Sharing Information Author: Gemma Harman (London Office) 12-04-01 114 DRAFT
Slide 115: Development of the Core Competencies Each Competency Function is aligned with the key Strategic Objectives Competency Function and Strategic Objective Linkages Example only The Five Competency Functions Competency Functions DRAFT Generic Supporting Activities Internal  Benchmarking  Measurement  Communication  Integration with other initiatives External  Benchmarking “e” Knowledge Sharing Information HR Sourcing Author: Gemma Harman (London Office) 12-04-01 115 DRAFT Strategic
Slide 116: Development of the Core Competencies Identification of workstreams to develop the Core Competencies Competency Function and Related Workstream Activities Workarea Career Development Buying Power Consolidation HR Strategic Sourcing Competencies and skills Individual performance measurement Training Rewards Career development Redeployment Leverage strategy Organisation roll-out Supply management Supplier management Complexity Reduction Strategic Sourcing Global category interface Process compliance Complexity reduction Knowledge Management Strategic Sourcing “e” DRAFT Information Infrastructure Classification (nomenclature) Project list database (short-term) Project tracking tool (mid-term) Actual savings reporting capability Buying team support Executive buying information support Market intelligence/knowledge Other infrastructure technology Content Strategic sourcing and savings methodologies E-sourcing Process Benefits management Actuals reporting KPIs and measurement process Project tracking and risk management process Knowledge management process Measurement Analytics and reporting Internal and external benchmarking Strategic Sourcing Organisation and scoping Leverage indirect strategy Investigate use of “e”  E market intelligence Workstreams  E education and roll-out training  Internal connectivity  External connectivity  E auctions Author: Gemma Harman (London Office) 12-04-01 116 DRAFT Competency Function HR Knowledge Sharing HR “e”
Slide 117: Development of the Core Competencies Identification of Responsibility for development of workstream activities across the business Workstream Activity Responsibility for each Linking Mechanism Example only D=Develop, E=Execute, M=Maintain Manager X Activity A Activity B Activity C Activity D Activity E Activity F Activity G Activity H Activity I Activity J Activity K Activity B Activity L Activity M Activity N Activity O Activity P Activity R Activity S Activity T Activity U Activity A Activity B Activity C Activity D Activity E Activity F Activity G Activity H Activity I Activity J Activity K Activity B Manager Y D/E D/E D D D D D/E/M D/E D D Manager Z D/E D/E D/M D/M M M M D/E E E/M E D/E D D D D D D/E/M D/E D/E D D/E D/E Group A Group B Infrastructure Content D DRAFT Process Measurement E E Example only! D/E/M E D D D D D/E D/E D D D D E E/M D/E/M D/E/M D/E/M D/E/M D/E/M Author: Gemma Harman (London Office) 12-04-01 117 DRAFT E E
Slide 118: Development of the Core Competencies Development of the Competency Functions can be addressed by following four process steps Competency Function Development Process Example only 1 Identify and prioritise Competency Functions Stages of Development 2 3 Appoint Workstream Leaders 4 Align and Resource Workstream Teams DRAFT Key activities • Perform diagnostic • Agree workstream of leader selection criteria • Nominate workstream competency levels across the business leaders (this may not be required if there are existing “thought leaders” in the business) • Identify and assign resource for global teams • Align team with Linking Mechanism team/sponsor and other existing resources • Build and execute development plan • Mobilised global Competency Function virtual team/incubator • Established way of working • Competency Function development plan/milestones • Workstream Leaders • Develop transformation objectives and plan • Establish metrics and measurement process across the business Deliverables • Inventory of • List of qualified and Competency Function steering team sponsored levels across the workstream leaders business across the business • Stages of Excellence map • Embedded best practices across the business • Ongoing process of identifying, developing, harnessing and embedding best practice Who • Current PMO • Senior Managers • Workstream Leaders Author: Gemma Harman (London Office) 12-04-01 118 DRAFT Monitor and Track
Slide 119: Development of the Core Competencies Prioritisation of Core Competency Development Prioritisation of Competency Function Workstream Activities Example only Competency Function First Priority Workstream Activities (< 6 Months) Second Priority Workstream Activities (> 6 Months) “e”  Identification & development of e-sourcing tools  Interface with B2B leader  Establish e-market intelligence  Develop & enable supply management e-competency  E-education & roll-out training DRAFT Information  Identify needs & mobilise projects: • Buying Team Support • Executive Buying Info Support  Own Projects: • Intranet Site • Project Tracking Tool  Maintain & Monitor Progress: • Classification • Connectivity  Identify needs & mobilise projects: • Knowledge Management • Other infrastructure Knowledge Sharing  Benchmarking (internal) and development of a best practice database  KPI Development & Roll-out  Knowledge Management Process & Roll-out  Strategic Sourcing Methodology & Tools  Benchmarking (external)  Supplier Management Process  Compliance HR  Skills development & training programmes for team leaders  Develop Awards  Identify needs & gaps  Develop individual scorecard framework  Develop training programmes & educate trainers  Interface with Training and Development Team Strategic Sourcing  Mobilise SWAT teams and launch  Non applicable Author: Gemma Harman (London Office) 12-04-01 119 DRAFT
Slide 120: Development of the Core Competencies Transforming the different Competency Functions into World Class Practices may require different development approaches Example: The Lifecycle of the “e” Competency Centre Identifying E-team Best Practice Harnessing E-team Content, Process & Resource DRAFT Influencing factors on the development of each Competency Function Central Coordination Central Coordination • Level of existing expertise, knowledge and experience • Sophistication of learning and knowledge sharing network • Easily identifiable thought leaders • Access to external best practice insights • Benchmarking regularity and Analyse, Define and Map: • Content/Process Best Practice levels • Best Practice Group per topic area • Resource leverage potential Embedding & Monitoring E-team Best Practice • Each business area is responsible for embedding • Virtual teams support each other • Competency Centre supports where required Developing E-team Content, Process & Resource • Best Practice Group and the Competency Centre lead development • Establish links to “virtual development” teams for input Best Central Practice Coordination Group Central Coordination Key: Bubbles: Operating Units Straight lines: Information flow Dotted lines: Knowledge and Best Practice Flow Author: Gemma Harman (London Office) 12-04-01 120 DRAFT
Slide 121: 3. Embedding the Core Competencies In order to satisfy the new supply organisation principles when selecting workstream leaders to develop and embed Core Competencies, we suggest three implementation considerations Implementation Considerations 1. In order to comply with the overall supply management principles, the workstream leaders must be: • • • • • 2. qualified to lead a global change effort visibly recognised across the business aware of current practices globally able to think and act across business knowledgeable of external best practice DRAFT The workstream leaders must also be empowered to: • • • • identify and utilise resource to establish a team for each workstream lead and coordinate centrally without centralising make decisions and take actions pace and prioritise implementation activities 3. The workstream leaders will be measured on: • • results embedded best practices across the business Author: Gemma Harman (London Office) 12-04-01 121 DRAFT
Slide 122: Embedding the Core Competencies In order to kick-off development of the Core Competencies, there are eight key specific actions Next Step Activities 3. Agree Competency Functions 6. 9. Agree which mobilisation approach (diagnostic versus nomination) Agree immediate resource required Perform Competency Function Diagnostic Prioritise Competency Function development Nominate workstream leaders per Competency Function Announce workstream leaders per Competency Function Introduce workstream leaders Who Senior Managers Senior Managers Senior Managers PMO Senior Managers Senior Managers Senior Managers Senior Managers By When Date X Date X Date X Date Y Date Y Date Z Date A Date B DRAFT 12. 5. 6. 7. 8. Author: Gemma Harman (London Office) 12-04-01 122 DRAFT
Slide 123: 4. Developing a Core Competency Centre to Sustain Growth The Competency Centre Vision is to act as the catalyst to drive and embed the new supply management organisation The Transformation Role of the Competency Centre Degree of Change Global Purchasing Plan Institution Political DRAFT Institution Political Business Social Business Social Tactical push tre en yC nc te pe m Create pull from Co Client X New Organisation • World class ways of working • Continuing change capability Institution Political Business Social Current Organisation • Current ways of working • Limited desire to change Time Author: Gemma Harman (London Office) 12-04-01 123 DRAFT
Slide 124: Developing a Core Competency Centre to Sustain Growth A Competency Centre is based on four key principles 1 Drives Organisational Learning Globally The Competency Centre is based on “bundles” of organizational learning that can encompass skills, technologies or structures, which transcend product lines or business units The Competency Centre’s “competency workstreams” – or capabilities and knowledge are directly related to business objectives and goals Identification and development of internal best practice to facilitate and drive leverage opportunities The Competency Centre is not a static entity - it is dynamic. It must continually map competencies to provide insights into which competencies are core and therefore create value and competitive advantage for the firm DRAFT 2 Translates and Drives Business Goals & Objectives in Practice 3 Develops Best Practice 4 Creates Value and Competitive Advantage Author: Gemma Harman (London Office) 12-04-01 124 DRAFT
Slide 125: Developing a Core Competency Centre to Sustain Growth The Competency Centre is based on “bundles” of organisational learning that can encompass skills, technologies or structures, which transcend product lines or business units  The Competency Centre “bundles” are those that: 1. Provides Competitive Advantage 2. Broadly Applicable 3. Difficult to Replicate 4. Are Means & Mechanisms For Delivering Value to Customers DRAFT  Sources of distinct benefits and functionality  Provide tangible benefits that competitive offerings do not  Possessing utility across products, markets, and businesses  Providing corporate value that warrants funding at business unit level even if not justified by business unit  Blending of proficiencies (relative emphases, unique contributions, interdependencies) are difficult for competitors to disentangle/imitate  Animate: Not a “thing” (e.g., a physical asset, a structural barrier), but rather the process for developing, leveraging and renewing the “thing”  Meaningful and actionable: Specific in definition and intent  Multi-faceted: Weave together various process, people, and technological proficiencies Author: Gemma Harman (London Office) 12-04-01 125 DRAFT
Slide 126: Developing a Core Competency Centre to Sustain Growth The Competency Centre “bundles” – or capabilities and knowledge - are directly related to business objectives and goals Core Competency and Business Objective Connection Business objective Business strategy and model   What is the ultimate goal of the business? (e.g. create shareholder value through increased customer value) How will the objective be achieved? (eg develop innovative products) DRAFT Business goals Evaluation metrics  What goals must be satisfied? (e.g. bring high value, innovative products to market and improve market place positioning) How will each goal be measured? (e.g. NPV of pipeline, NPV of marketed products)  Competencies Core Core  What core competencies enable the firm to meet the business goals? (e.g. product design and specification; flexible manufacturing). Capabilities Supporting Knowledge  What capabilities are required to deploy the competency? What capabilities do we need just to compete? (e.g. packaging design) What specific knowledge is required to enable the capabilities? (shown for completeness only)  Copyright © A.T. Kearney. Proprietary and Confidential. All rights reserved, 1999. Author: Gemma Harman (London Office) 12-04-01 126 DRAFT
Slide 127: Developing a Core Competency Centre to Sustain Growth The Competency Centre identifies and develops internal best practice to facilitate and drive organisational leverage opportunities The Role of the Competency Centre to drive Best Practice DRAFT Codification Structuring Competency Centre Absorbing Scanning Diffusion Author: Gemma Harman (London Office) 12-04-01 127 DRAFT Disseminating
Slide 128: Developing a Core Competency Centre to Sustain Growth The Competency Centre Terms of Reference Competency Centre Terms of reference Example VISION Achieve and sustain Global Purchasing through people, processes, suppliers, technology and organisation DRAFT SIZE OF OPPORTUNITY • Implementation of the new Global Supply Management Organisation • Drive and support the new Supply Management Strategy • Continue to coordinate the Project OBJECTIVES • Develop and drive global core competencies to maximise leverage opportunity • Develop and implement new global processes in alignment with business goals • Establish knowledge management system to create and disseminate best practice • To create value for Client X by continuously mapping and developing core competencies SCOPE • Global Supply Management Organisation RESOURCES • TBC – for review in the document Author: Gemma Harman (London Office) 12-04-01 128 DRAFT
Slide 129: Developing a Core Competency Centre to Sustain Growth In addition, the fundamental difference between the Competency Centre and the PMO lies in the interaction with the organisation and degree of development versus execution The Current PMO Organisation Interaction vis-à-vis the future Competency Centre Current PMO Activity Future Competency Centre Activity Wider Organisation Other Projects/Initiatives Create Geocentric Focus & Interaction With the Organisation DRAFT Competency Centre Communicate Focus & Interaction With the Organisation Coordinate Dynamic Interaction to Create and Implement Core Competencies Author: Gemma Harman (London Office) 12-04-01 129 DRAFT
Slide 130: Developing a Core Competency Centre to Sustain Growth The Competency Centre mapping provide insights into which competencies are core and therefore create value and competitive advantage for Client X The Role of the Competency Centre to create value for Client X Industry Level Analyse & Develop Competencies/ Capability Linkages DRAFT Firm Level s s Determine key stakeholders Overview of knowledge management Conduct customer/ stake holder functionality assessment Develop hypotheses competencies and capabilities s Disaggregate customer functionality into competencies and capabilities Assign priorities Map capabilities onto matrix codification and diffusion/ customer value and application Determine centre of gravity of competency Discuss results s Determine linkages between capabilities Map linkages onto matrix codification and diffusion Determine centre of gravity of linkages Discuss results s s Identify and prioritise development work for each competency/capability Mobilise effort to improve and/or initiate competency development Measure Handover to the business s s s s s s s s s s s Copyright © A.T. Kearney. Proprietary and Confidential. All rights reserved, 1999. Author: Gemma Harman (London Office) 12-04-01 130 DRAFT Conduct Preliminaries Map Competencies and Capabilities Map Competencies/ Capability Linkages
Slide 131: Developing a Core Competency Centre to Sustain Growth The existing PMO should evolve into the “Competency Centre” PMO Resource Profile DRAFT Competency Centre Additional Activities • Ad-hoc project support to Steering Team (e.g. Organisation Design, Communication, Information) Core Activities • Target Allocation • Project Tracking and Savings Measurement • War Room Management PMO Role Time Author: Gemma Harman (London Office) 12-04-01 131 DRAFT Transition to Best Practice / Organisational Learning Core Activities • Knowledge Management (process & content) • E related activities • Information Systems Development • People • SWAT Team Support Embed in the Business
Slide 132: Developing a Core Competency Centre to Sustain Growth Development and establishment of best practice is driven by three key waves Resource Allocation over The Project/Programme Lifecycle Time Wave 1: Build the Infrastructure • Identify and recruit Client X staff • Initial “stop gap” resource support from ATK • Build “way forward” infrastructure • Strategy: identify and drive effort from the centre • • • • • • Wave 2: Implementation & Embedding Onboard Client X additional staff Train Client X additional staff Embed practices into the business Build new content required Kick-off new processes Identify change champions to run with and embed the Global Purchasing Plan learning, principles and targets • DRAFT Level of Centre-led Effort and Resource Required 0 - 0.5 Years 0.5 - 2 Years The time needed to shift to Phase 3 depends on the level of support and commitment across the Business 2+ Years Author: Gemma Harman (London Office) 12-04-01 132 DRAFT Level of Change/Competency embedded Embed practices into the business – in the shift from centre driven to globally organisation driven Wave 3: Business Ownership
Slide 133: Developing a Core Competency Centre to Sustain Growth Harness Identify Embed & Monitor Develop Example The Competency Centre and the Business can be compared to a Conductor and its Orchestra….. The Competency Centre will… • Set the direction and pace of the overall initiative • Maintain and monitor the overall performance • Harness the best of the organisation • Lead and coordinate centrally WITHOUT centralising • Support the business become the best it can be by changing behaviour and embedding way of doing things DRAFT and therefore ensure the business is… • harmonised, playing at the same time in the same direction • using 1 common language to achieve the same goal • maximising talent/knowledge by excellent organisation of resources Author: Gemma Harman (London Office) 12-04-01 133 DRAFT
Slide 134: Developing a Core Competency Centre to Sustain Growth Harness • Capture information across the business • Leverage information across the business • Connect the best of the business together • Harness best practice across the business DRAFT 3.Identify opportunity and the “best of the organisation” 5.Harness existing knowledge, competencies and best practice 7.Develop and coordinate the dissemination of best practice across the business 9.Support the business units embed best practice competencies and continue to monitor new opportunities Identify • Best practice across the organisation/in the industry • Resources to build and disseminate best practice • Efficient processes to disseminate best practice The Competency Centre Development Lifecyce Develop • Content – the knowledge acquired across the business • Information systems and processes to disseminate knowledge • Resources in the business to maintain knowledge management processes/systems Embed & Monitor • Pace the overall initiative • Lead and coordinate centrally without centralising • Support the business embed change and monitor new opportunities Author: Gemma Harman (London Office) 12-04-01 134 DRAFT The Competency Centre has 4 main roles:
Slide 135: Developing a Core Competency Centre to Sustain Growth Harness Identify Embed & Monitor Develop Example Identification of Existing Activities across the Organisation* DRAFT “Identify” Scope/Opportunity: • Content • Process • Resources Competency Centre For: •E • Strategic Sourcing • Information • HR • External Scan Strategic Sourcing E Strategic Sourcing Info Systems 1 Core Process Steps of “Identify” 4 5 2 3 Develop assessment/ audit tool Identify existing Capture & define Identify existing practices practice resources per per working on content business area for each topic area area (ie HR, e) (process & content) C E Identify bench-marks Strategic Sourcing E C * Inner circles highlight existing areas of activity Author: Gemma Harman (London Office) 12-04-01 135 DRAFT Strategic Sourcing Strategic Sourcing Strategic Sourcing
Slide 136: Developing a Core Competency Centre to Sustain Growth Harness Identify Embed & Monitor Develop Capturing and Harnessing Best Practice Example “Harness” Scope/Opportunity: • Content • Process • Resources Capture, funnel and analyse information External Scan DRAFT Competency Centre For: •E • Strategic Sourcing • Information • HR • External Scan Best Practice Stages of Excellence Function E Strategic Sourcing Compliance Information Systes Poor Average Very Good Best in Class 1 Core Process Steps of “Harness” 4 5 2 3 Analyse Information Develop definitions and benchmarks of best practice Establish Build stages of links with Excellence Best Practice Model and group and map other business experts” across the Groups business Set up process to funnel & analyse information across the business Harness Connect experts Competency Centre Author: Gemma Harman (London Office) 12-04-01 136 DRAFT
Slide 137: Developing a Core Competency Centre to Sustain Growth Harness Identify Embed & Monitor # of Business Efforts 1 2 3 4 5 6 7 8 Example Develop As Is: High 4 Level of Duplication to Future Leverage Content Information Resources x X X X X X x x x x x x x x x x x “Develop” Scope/Opportunity: • Content • Process • Resources DRAFT Competency Centre For: •E • Strategic Sourcing • Information • HR • External Scan Best Practice E-Team Incubator Best Practice Information Systems Development Team 1 Core Process Steps of “Develop” 4 5 2 3 Identify owners & developers In the business Define Establish a process virtual Establish virtual of teams dissemindevelop- teams with shared ating ment incubator and/or resources current knowledge teams & ongoing learning Best Practice Strategic Sourcing Development Team Competency Centre Best Practice group & the Competency Centre develop best practice Best Practice Compliance Development Team Author: Gemma Harman (London Office) 12-04-01 137 DRAFT
Slide 138: Developing a Core Competency Centre to Sustain Growth Harness Identify Embed & Monitor Identifying E-team Best Practice Harnessing E-team Content, Process & Resource Develop Example The Lifecycle of the Competency Centre DRAFT Competency Centre Competency Centre Analyse, Define and Map: • Content/Process Best Practice levels • Best Practice Group per topic area • Resource leverage potential Embedding E-team Best Practice • Each business area is responsible for embedding • Virtual teams support each other • Competency Centre supports where required Developing E-team Content, Process & Resource • Best Practice Group and the Competency Centre lead development • Establish links to “virtual development” teams for input Best Practice Group Competency Centre Competency Centre Key: Bubbles: Operating Units Straight lines: Information flow Dotted lines: Knowledge and Best Practice Flow Author: Gemma Harman (London Office) 12-04-01 138 DRAFT
Slide 139: Developing a Core Competency Centre to Sustain Growth Harness Identify Embed & Monitor Develop Example Overview of Step 1 in the Competency Centre Lifecycle Bubbles E-team Responsible PMO-led How  Identify competencies/experience and link with other e-initiative leaders to create a virtual e-team  Link with regional HR  Link with regional heads to identify existing competencies, prioritise and run with global SWAT efforts DRAFT Identifying Best Practice HR Strategic Sourcing (SWAT) Competency Centre  HR team led  PMO-led Communication Knowledge Management  Not applicable  PMO-led as driven by internal and external scans  External: benchmarking by PMO  Internal: link with existing resources and business areas with competencies to create virtual team and new knowledge Management process  Set up projects, identify champions/competencies in the business and roll-out Information Systems  PMO-led initially to mobilise, coordinate and drive thereafter run by the business Author: Gemma Harman (London Office) 12-04-01 139 DRAFT
Slide 140: Developing a Core Competency Centre to Sustain Growth Harness Identify Embed & Monitor Develop Example Overview of Step 2 in the Competency Centre Lifecycle Bubbles E-team Responsible  PMO-led How  Work with virtual e-team to audit, analyse and define e-capabilities in the business  Map out existing “state of the nation”: resource levels, best practices and future trends DRAFT Harnessing E-team Content, Process & Resource Competency Centre HR  HR team led  PMO-led  Not applicable  PMO-led Analyse, Define and Map: • Content/Process Best Practice levels • Best Practice Group per topic area • Resource leverage potential Strategic Sourcing (SWAT) Communication  Launch SWAT teams to perform this stage of the lifecycle Knowledge Management  PMO to divide time between working on external best practice mapping/benchmarking and internal best practices  Business teams to create data and support PMO analysis Information Systems  PMO coordinated and business driven Author: Gemma Harman (London Office) 12-04-01 140 DRAFT
Slide 141: Developing a Core Competency Centre to Sustain Growth Harness Identify Embed & Monitor Develop Example Overview of Step 3 in the Competency Centre Lifecycle Bubbles E-team Responsible  Best practice team led  Virtual business team supported  PMO coordinated/managed How  The identified best practice team to work with the virtual team leaders to develop best practice further DRAFT Developing E-team Content, Process & Resource • Best Practice Group and the Competency Centre lead development • Establish links to “virtual development” teams for input Best Practice Group Competency Centre  PMO adds value by providing external scan insights and coordinating work and managing progress HR Strategic Sourcing (SWAT)  HR team led  PMO-led  SWAT teams identify virtual team leaders and establish/coordinate team learning and dissemination of knowledge  Virtual team leaders develop best practices Communication Knowledge Management Information Systems  Not applicable  PMO-led  PMO to work with virtual team leaders to embed new knowledge management process and content  Business team leaders to work as virtual teams to drive best practice – PMO to coordinate Author: Gemma Harman (London Office) 12-04-01 141  PMO coordinated and business driven DRAFT
Slide 142: Developing a Core Competency Centre to Sustain Growth Harness Identify Embed & Monitor Develop Example Overview of Step 4 in the Competency Centre Lifecycle Bubbles Responsible  Local e-teams: implementation  PMO: tracking and change management support How  Each business leader is responsible for embedding new practices and required change  PMO monitors progress and provides change management support Embedding E-team Best Practice • Each business area is responsible for embedding • Virtual teams support each other • Competency Centre supports where required E-team DRAFT HR Competency Centre  HR team led  Local business teams  Local business teams embed all best practices and strategic sourcing action plans Strategic Sourcing (SWAT)  PMO continues to provide ongoing strategic sourcing insights and change management support Communication Knowledge Management  Not applicable  Local business teams Each local business is responsible for maintaining its role in the knowledge management process and information update  Each local business team is responsible for completing and following a new method of updating information Author: Gemma Harman (London Office) 12-04-01 142 Information Systems  Local business teams DRAFT
Slide 143: Developing a Core Competency Centre to Sustain Growth Example Lifecycle and Roles Identify Harness Develop Embed & Monitor DRAFT  Audit Operating Unit practices/knowledge  Identify current practices (for content and process) in the business  Capture and define best practice  Identify total number of existing resources developing content and process in each topic area  Identify most efficient processes  Map differences in content, process and resources across the business for each topic area (e, HR etc)  Develop definitions and benchmarks of best practice, process and content across each Operating Unit and topic area  Build stages of excellence model with data  Identify THE best practice Operating Unit  Establish links in each Operating Unit to harness ideas as a “virtual team” Not Applicable  Identify other owners and developers in each Operating Unit  Build virtual development/ incubator teams and leverage existing resources  Establish and agree way of working and an ongoing process of working “virtually” Best Practice Group/Team Not Applicable  Nominate a resource to work with the Competency Centre on developing and harnessing input from the virtual teams  Nominate a resource to work in the virtual teams to develop and harness best practice  Lead the change transformation (pilot) All Operating Units  Provide information to the Competency Centre for the assessment audit  Provide name for each topic area for virtual teams e.g. representative in e, HR etc.  Responsible for ensuring acceptance, communicating and embedding new best practices Author: Gemma Harman (London Office) 12-04-01 143 DRAFT Competency Centre  Develop assessment audit  Set up process and methodology to capture, funnel and analyse different practice and knowledge levels  Establish working link with the Best Practice team  Identify change or embedding issues and support teams
Slide 144: Developing a Core Competency Centre to Sustain Growth Each step has a series of tasks that must be accomplished Development plan of the Competency Centre (40% Ramp Up)_ Activities Month Month X Month Y Month Z Month A Month B Month C DRAFT Establish core team • Build induction pack • Deliver induction/training • Establish team roles/responsibilities • Establish team objectives and targets Develop governance • Identify key champions • Build CC global forum • Develop org stakeholder map • Organise first CCGF • Hold first CCGF • Communicate output and targets • Set up regular governance meetings Communication plan • Develop global introduction communications • Develop global communication plan in line with PMO •Execute Author: Gemma Harman (London Office) 12-04-01 144 DRAFT Build development plan • Identify objectives • Build and approve targets • Identify skills and experience required for Competency Centre team • Identify resources for strategy, process, people and e dimensions of the CC Identify and build induction/training required • Set up team location/facilities
Slide 145: Developing a Core Competency Centre to Sustain Growth Immediate steps required to launch the Competency Centre Initiative: 3. 4. 5. 6. 7. 8. Determine Competency Centre Principles Develop Competency Centre Terms of Reference Create matrix with workstreams and linking mechanisms Finalize required resource number Plan mobilisation ramp up Identify tactical next steps DRAFT Author: Gemma Harman (London Office) 12-04-01 145 DRAFT
Slide 146: Template 1: Capturing Learnings Example Methods of Capturing Learnings 3. 5. 7. 9. 11. 13. 15. 17. Forum Groups with key stakeholders Learning Audits and Questionnaires Face to Face Interviews with sample of stakeholders Intranet Feedback and/or Learning Page Using existing meetings to organise “Learning Walls” Collecting information provided by visitors to the PMO war room Requesting 3 lessons learned and best practices from each project team Organising a quarterly best practice competition Author: Gemma Harman (London Office) 12-04-01 146 DRAFT DRAFT
Slide 147: Template 2: Core Competency Training Template Key Training Questions Content What is the “content”? What are the elements/chunks of the “content” to be communicated? Is the “content” a need to know and USE IMMEDIATELY or a nice to know and occasionally use? Is the “content” a one-off piece of training or developed and disseminated over time? Who should be the owner of the “content” post training? Audience What are the audience segments? Are the knowledge/learning levels different in each audience? What are the desired outcomes per audience? What should the audience segments know by when? How do you want the audience to use the “content”? Is the goal for post training “train the trainer”? How can you test whether the audience has a) understood and b) uses it? Author: Gemma Harman (London Office) 12-04-01 147 DRAFT DRAFT
Slide 148: Core Competency Training Template Key Training Questions Delivery Medium Do the audience segments require a central place for information (prereading/reference) – if so, is there a place developed? Does the “content” require demonstration? Can the demonstration be delivered online or face-to-face? What number of the audience segments are online? If face-to-face, where are the audience segments located? Do the audience segments regularly meet in a central place? Is there a normal/regular training vehicle used for each audience segment? Can the “content” be integrated into any existing training forums? Are there any upcoming events that bring the audience segments together? Can the “content” be disseminated as reference on “takeaway” tools? What tools would be most effective per audience segment? Author: Gemma Harman (London Office) 12-04-01 148 DRAFT DRAFT
Slide 149: Core Competency Training Template Key Training Questions Roll-out Can the existing “content” owners train the audience segments? Who can act as supporting trainers? What resources are available/qualified for “train the trainer” roles? Who can train the trainers? What the key characteristics required for trainer roles? Are there timing objectives and prioritisation for training the audience segments? How long will it take to: b) c) d) e) f) g) h) Format content Package content into training modules and relevant supporting materials Develop and test measurement system of implementation and use Identify the trainers Train the trainers Training to be completed per region/function Monitor implementation Author: Gemma Harman (London Office) 12-04-01 149 DRAFT DRAFT