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carrier, offering a range of communications services to businesses across Canada a year of massive growth from 15 to 500 employees and several key acquisitions.

Managing that magnitude of growth is never easy, acknowledges Allan McNeely (2001), Norigens director of program management; but with a strong corporate commitment to project management behind it to keep the company on track, business continues to thrive.

The powerful thing about what were doing here at Norigen is the way were set up. We have a formal program management office where we handle not only all of our projects, but we also handle the processes ... Project Management gets into every aspect of the business its absolutely full spectrum. (p. 1)

Under McNeely is a team of nine project managers who execute specific projects in specific departments. If a project spans multiple departments, that project is termed a program and is handled by a program manager charged with the task of pulling it all together. One reason for the groups success is that company president and COO Bill Baines throws 170 percent support behind the concept, said McNeely. Another is that it breaks down the communication barriers between departments, building a more collaborative and efficient work environment. McNeely continued:

The biggest thing project management brings to the table is to help a company stop looking at itself as a functional matrix, the classic silos (departments) of doom where you have information randomly popping out of the top. Some lands in the next silo but a lot lands in between and just rots away. (p. 2)

Instead, a project management focus helps a company align itself horizontally so that information from departments is shared. They dont fly the plane, but they have a view of whats going on across all of the projects, he says. Its a model he has seen in other companies during the course of his research in the area and one he prefers to others.

In a June 1999 report designed to find ways to improve IT project management, Shevlin concluded that although companies were managing IT projects well, they were not achieving results. The problem he identified was that more emphasis was being placed on the process of managing the project than on the application or product being built. To help shift the focus back to the product, Shevlin advises dividing project office teams into two groups: product managers and project managers. Product managers focus on the business reasons for doing the project while project managers focus on the process itself.

Finding good candidates, however, isnt easy. McNeely, who interviews people daily, says:

It is a challenge to find people who are real project managers. There are a lot of folks out there who have the title project manager or project coordinator, but theyre not really professionally trained project managers.

Case No. 2: City of San Diego

Facing the challenges of running more than 160 IT projects concurrently at any given time, the city of San Diego hired RCG Information Technology to set up a project office to establish formal project management policies, tools, and methodologies appropriate for the citys structure. RCG IT was selected for the job because they were flexible in the way they implemented a truly effective project solution, by aligning the citys IT projects with the selected project



methodology. Richard Wilken (2002), director of IT&C, said:

Our IT projects are sometimes not successful or vary significantly project to project. We needed help bringing our house in order as far as establishing strong and clear accountability for project management in the organization and improving project delivery, project management practices, and communication overall.

Experiences with CMM

Some organizations have seen tremendous benefits using a CMM approach. Motorola Transmission Products, transitioning from a Level 1 to a Level 2 organization, had the following experience:

They went from having great difficulty predicting ship dates to predicting schedules within 15 percent of baseline.

They formerly could not measure quality before the product hit the field and had to fix products after delivery to customers, but the CMM approach helped them control quality and limit field problems to less than two per month.

Raytheon Equipment Division transitioned from a Level 1 to a Level 3 organization, and they found that the following was achieved:

A $7.70 return on every dollar invested in process improvement. A $4.48 million savings over six projects in one year. A 140 percent increase in productivity.

According to Bill Pollak (2001), public relations manager for the Software Engineering Institute (SEI) at Carnegie Mellon University, where the Capability Maturity Model was developed, there are two general kinds of metrics for software development metrics that focus on management, such as CMM, and metrics that focus on technical practices and performance such as lines of code written and function point analysis (a tool for measuring changes in functionality from software development projects). These metric standards do not compete and the performance metrics are part of a later stage of the CMM model. Watts Humphrey (1989), creator of the Capability Maturity Model, claims that Microsoft could have saved $4 billion in development costs with proper quality processes and better testing procedures.



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Project Methodology Processes

As discussed in earlier chapters, the necessity for having solid project processes in place remains undisputed. Some of these essential project processes are:

Issue management process.

Risk management process.

Change control process.

Procurement process.

Planning process.

Estimating process.

Quality assurance process.

Figure 8.3 shows the various levels that company processes affect. For example, in the financial process, which has a ripple effect throughout any project, the internal financial process for issues such as estimating, quoting, invoicing, credits, and disbursements should be understood before starting a project.

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Figure 8.3: Integration of process areas on a project. I Ell




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