Current Status

Following is a summary of where we are now with our practices.

Current Qlobal PMO Metrics. Two and a half years following the merger, we have:

• 60 category A top projects identified and managed

• 137 category B projects identified and managed

• More than 3,500 active IT projects worldwide in the system

• More than 2,000 IT projects completed since the merger in May 2002

• More than 8,000 people who have completed the project management system Web-based training

• More than 56,000 total resources in the project management system resource pool

Global PMO Extended Team Meeting. The Global PMO conducts weekly meetings with the extended PMO groups. The meetings include value-rich and relevant presentations along with providing a forum for bidirectional communication. The extended team PMO managers representing each organization are then able to cascade the communications, share the content covered, and implement the appropriate process within their organizations.

IT Methodology Team Forum. A methodology core team also exists with at least one member from each organization. The team meets biweekly with various subteams meeting the alternate week. Methodology changes are reviewed by the core team and then communicated and implemented in monthly releases.

The Future. The CIO has provided this project management guidance:

• Focused investment in senior project manager training, including enabling project managers to be available for training, will continue to be a high priority.

• Creation of a job family for project managers is required to establish a professional project management career path.

• TeamPlay, the HP standard project and portfolio management system of record, is the only accepted IT project management tool.

• Project management maturity improvements are assessed through use of the project management maturity model (PMMM) and organizational project management maturity model (OPM3) program effectiveness metrics.

Integrating the "What" and the "How." The Global PMO has become integrated with the HP business processes and is part of our continuous improvement, as shown in Figure 9.2-4.

HP is now a global provider of products, technologies, solutions, and services to businesses and consumers. As a result of the merger, it has over 140,000 employees in over 170 countries, doing business in more than forty currencies and more than ten languages.

The annual revenue for the new combined companies is now approaching $80 billion. The firm has an annual research and development budget approaching $4 billion. HP is also among the ten

Figure 9.2-4 Accelerating a High-Performance Organization: PMO Integrating the "What" and "How"

PMO methodology supports balanced scorecard, HP values and strategy

Figure 9.2-4 Accelerating a High-Performance Organization: PMO Integrating the "What" and "How"

PMO methodology supports balanced scorecard, HP values and strategy

Program baselines scorecard/goals Project management system environment policies

Project management standards, skills

• Program scorecard

• Resource management

Source: D. Kingsberry, "HP Global PMO," internal HP Global PMO Web site, June 26, 2003.

Program baselines scorecard/goals Project management system environment policies

Project management standards, skills

• Program scorecard

• Resource management

Source: D. Kingsberry, "HP Global PMO," internal HP Global PMO Web site, June 26, 2003.

largest patent holders in the world, with a total patent portfolio exceeding nineteen thousand, and the current rate of new inventions is generating approximately eleven patents per day.

The IT organization has been combined with the global operations functions of the company and is now responsible for many of the horizontal processes, including the supply chain, e-business, customer operations, and indirect procurement.

One of the most recent large-scale mergers that is also considered one of the most successful is the Exxon and Mobil merger, which promised to deliver a savings of $2 billion over a three-year period. The HP-Compaq merger by comparison was able to achieve over $3 billion in savings in just over one year.

Currently at HP, over 70 percent of the most strategic category A projects are on track to be completed on time, on scope, and on budget, a rate far exceeding the industry average for IT projects. In the first year after the merger, HP also saw a reduction in the average project duration by approximately 39 percent. The average budget for HP's category A projects exceeds $9.5 million, and 57 percent of these projects are global in nature and scope.

HP now has over thirty-six hundred employees with Project Management Professional (PMP) certification, the third largest number of PMP-certified professionals of any organization in the world today. As expected, most of these PMPs are members of HP's external-facing customer services organization, so the challenge has been to increase the number working internal to the company.

In addition to encouraging PMP certification, the organization provides access to George Washington University's School of Business master's program in project management that is delivered by ESI International. Since the merger, over 370 HP employees have received a master's certificate, and over 4,791 people have attended additional project management courses provided by ESI.

While certainly not without its challenges and resistance to change, the organization is moving forward. The future of both business and IT requires professional project management. The PMO is about providing a standard approach to methodology, metrics, priorities, risk management, reporting, communications, and governance. There is an important linkage between strategy, tactical planning, and the actual execution of the work, and this is the role the PMO helps to fulfill.

Today there are tremendous demands placed on the functions of all organizations. Many of our customers often ask us, "How do you manage the size and complexity, how do you prioritize, how do you track all the work, and how do you measure?" The answer is the PMO and the project management discipline we instill.

Don Kingsberry is the director of the Global Program Management Office for Hewlett-Packard's operations and information technology. As a member of Hewlett-Packard's global operations and information technology management teams, he is responsible for H-P's worldwide operations and management information systems program and project management and for driving competitive advantage throughout the company's e-business processes and infrastructure. He has a master's certificate in project management from the George Washington University.

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