Project Management Standard Date: April 4, 2009
VirginiaCommonwealthUniversity
Project Management Standard
Scope: / This standard is applicable to all IT projects implemented by VCU faculty, staff, students, contractors, business partners, and IT service providers.Approval Date: / 6/3/2009: Approved by Senior Vice President for Finance and Administration and Provost
Pending final review by all VPs
Effective Date: / July 1, 2009
Compliance Date: / July 1, 2009
Authority: / VCU Project Management Office
Review Frequency: / Annually, or as needed
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Project Management Standard Date: April 4, 2009
Table of Contents
Project Definition
Overview
Project Categories
IT Project Management Structure
Strategic Planning
Project Management
Project Portfolio Management
Auditing
Glossary
VirginiaCommonwealthUniversity
IT Project Management Standard
VCU is committed to continuously improving the delivery of information technology (IT) solutions within budget, on schedule, within scope and in a way that maximizes their contribution to the University's strategic mission. To this end, the University has established a standardizedIT project management methodology based on proven best practices promoted by the Project Management Institute (PMI)to assist IT project leaders in planning and managing their projects. This standard and associated guidelines were developed in full accordance with and in support ofthe VCU Information Technology Project Management Policy and will be maintained by the VCU Project Management Office (PMO). The PMO will monitor the future development of project and portfolio management best practices and incorporate into VCU’s methodology those that are proven to improve project performance in a higher education setting.
Project Definition
The definition of a project covered by this standard isa temporary information technology process with an established beginning and end time that has a set of defined tasks and assigned resources, undertaken to deliver a unique product, service or result.
Overview
Project management activities begin at the Initiation Phase where a project has been approved by management with funding identified. It continues on through the remaining life cycle phases of Planning, Execution and Control, and Closeout. This PM standard addresses the governance and management of any IT activity that meets the definition of a project.
Project Categories
VCU IT projects are categorized by budget, resources, time and risk as: (1) Fast Track, (2) Low Complexity, (3) Medium Complexity, and (4) High Complexity. Any activity that is determined by management to be undertaken as a project in one of these categories is covered by the Project Management Standard. The amount of oversight and documentation required is directly related to and increases with project complexity. High complexity projects are typically high risk and/or high dollar value projects, requiring extensive integration and stringent control processes. The nature of high complexity projects drives the requirement for extensive planning, documentation, and strictly enforced change and configuration management processes. Although Medium complexity projects require thorough planning, typically less documentation and control processes are needed to deliver the project product or service as specified in the project scope. Low complexity projects also require complete planning but less documentation and fewer control processes are needed to deliver the project product or service as specified in the project scope. Fast Track projects require only basic documentation with minimal control and tracking information.
The operational controls, documentation, and tracking required for IT Projects of High,Medium, Low, or Fast Track Complexity are identified and available on the PMO Web site.
IT Project Management Structure
Information Technology Governance Board
The University’s Information Technology Governance Board (ITGB) is charged with reviewing and prioritizing High Complexity Projects, including project development and associated contracts. The ITGB also advises on the termination of High Complexity Projects, and provides guidance on ensuring the maximum Return On Investment (ROI) for all projects is obtained from the University’s portfolio.
CIO
The CIO serves as the chief administrative officer of Technology Services. Other responsibilities of theCIO include developing policies, standards and procedures for technology and project management, granting funding approval for all TS-sourced projects, approving IT procurements, and approving Invitations for Bids, Requests for Proposals, and contracts. The CIO may also direct the modification orsuspension of any IT Project that has not met the performance measures agreedto by the CIO and the Project Sponsor if such action is appropriate and consistent with the terms of any affected contracts. A decision regarding suspension of a High Complexity Project will be made in consultation with the ITGB and Board of Visitors.
Project Management Office (PMO)
The roles and responsibilities of the PMO are established in the PMO Charter. On behalf of the CIO, the PMO implements an integrated approach to the management of information technology investments. The PMO consults with University departments and business units and assists them with the analysis and documentation of project proposals. The PMO serves as coordinator between project sponsors and the University IT Governance structure by reviewing project documentation and preparing recommendations for the CIO and the ITGB as appropriate. Other duties of the PMO include facilitating project submission, selection, and prioritization, creating and managing a central repository for project information and analysis, maintain the standard set of project management best practices, provide effective communications to project stakeholders, make available the education and training required for project managers, and supply the services necessary to insure Commonwealth requirements for project management and auditing are met.
Project Sponsor
The Project Sponsor is the individual, usually part of the University’s management team, who makes the business case for the project. This individual usually has the authority and responsibility to defineproject goals, secure resources, establish project priorities, and resolve intra‐and inter-organizationalissues and conflicts. In addition, the Project Sponsor and ProjectManager work closely to ensure that project objectives are met, resources such as functional subject matter experts are made available to the project and issues areresolved as expeditiously as possible. Project Sponsors should be prepared to dedicatea portion of their time on a weekly, if not daily basis, to attend to project details.
Project Manager
Every IT Project must have a designated Project Manager. The Project Manager is responsible for the management of the project from planning through closeout. Project
Sponsors will advise on the qualifications of Project Managers for their projects and Project Managers will be assigned by University management and/orthe CIO. The qualifications required to manage projects escalate with the project’s complexity. Only experienced and appropriately trained project managers will be assigned High Complexity Projects. All Project Managers are responsible for entering the information for their projects in a repository such as the Project Management Information and Tracking system, and updating that information as required by their project’s classification. They must also regularly report project status in accordance with the published schedule for their project’s complexity level. .
Strategic Planning
The Office of Technology Services (OTS)will develop and maintain an IT Strategic Plan with the primary goal of supporting and adding value to the University’s overall strategic plan. The ITStrategic Plan will establish a broad direction with specific goals for managing information technology and supporting delivery of IT services to VCU’scustomers. IT projects and assets will be viewed as long-term investments that form the foundation for selecting, controlling, and evaluating technology investments as part of a portfolio. The IT Strategic Plan will be updated on a regular basis that retains synchronicity with the University’s Strategic Plan. During development, input on the contents of the OTS IT Strategic Plan will be obtained from University leaders in academia, research, and administration. The IT Strategic Plan will be used to align the IT organization and budget with University initiatives and with organizational priorities, goals, and objectives. The IT strategic planning process will include both University business and technology managers. The OTS IT Strategic Plan is based on and supports the VCU 2020 Strategic Plan. This strategic plan articulates the University’s mission and vision for the future. It provides the basis for IT investment decisions so that the identification, selection, control, life cycle management, and evaluation of technology investments are based upon the anticipated business value of the investment. Technology investments are prioritized and executed based on the benefit to be derived towards achieving University strategic goals.
University leaders must play an integral part in the initiation of any technology investment or projects, by defining the business need and the anticipated outcomes. Involvement by the leadership should continue throughout the life cycle of any technology project, continually validating that the project is on track to deliver the desired business value. A critical aspect of technology management is the early and continuous involvement of University leadership in technology investment decision-making and in providing effective oversight after investment decisions are made.
Project Management
For each IT project, the Project Manager is responsible for observing the current University project management standard and taking the actions needed to ensure the success of the project. This begins when a project is initially proposed and continues through its evaluation, execution and control, and closeout phases. At minimum the project manager: a) preparesdocumentation that is appropriate to the complexity of the project, b) plans and monitors theexecution andcontrol phase using methods approprate to the complexity of the project, and c)obtains appropriate agreement that the project’s goals and objectives have been met and performs Closeout duties as required. The project manager is expected to store andupdate the project’s documentation and plan in the University’s central repository (PMIT) or in a simliair fashion locally. The PM is expected to provide evidence that all required PM activities have been documented and to make them avaialable during any internal or APA audit.
Assessing the complexity of a given project is the responsibility of the Project Manager in consultation with the Project Sponsor. Complexity is measured by several factors including cost, risk, innovation, scope and impact. TheProject Complexity Evaluation Scorecard(available on the PMO Web site) is a tool provided to assist project managers determine the complexity of their project. The complexity level can also be assessed by comparing project characteristics to the Table of Project Level Indicators. The project manager is expected to provide documentation comensurate with the complexity of a given project. Projects that score high in cost, risk, or innovation should be supported with documentation that is substantially more detailed and thorough than for a project that scores medium or low in those metrics. Worksheets for Low, Medium, and High Complexity Projects are provided on the PMO Web site for Project Managers’ reference.
Once the complexity is identified, VCU’sProject Management Methodology outlines the standard project management process with further details on specific techniques and requirements for each level of complexity. These techniques and requirements will be updated as needed and are avaiable on the PMO Web site.
Project Management processes are designed to be customizable to accommodate the wide spectrum of IT project characteristics. But, at minimum, all High Complexity IT Projects are required to complete a Project Plan including sections for:
• Project Management Plan Executive Summary;
• Project Performance Plan;
• Budget Plan;
• Risk Management Plan;
• Quality Management and IV&V Plan;
• Work Breakdown Structure;
• Resource Plan;
• Procurement Plan;
• Communications Plan; and
• Change and Configuration Management Plan.
Project Planning is the process of defining and organizing activities and resources to deliver a unique product or service. The Project Plan is the primary document developed during the planning phase of the project lifecycle and communicates project activities in terms of:
• what tasks will be performed;
• who will perform the tasks;
• when will the tasks be performed;
• what resources will be applied to accomplish the tasks; and
• how the tasks will be sequenced.
Once the Execution Phase has begun, the Project Manager will begin reporting against the project’s budget, scope, schedule, and performance using the PMO-supplied form appropriate for the project’s complexity. The Project Manager must track and make available to project stakeholders:
• Key Status Indicators;
• Project Status Assessment;
• Measures of Success;
• Actual Expenses;
• Project Baseline; and
• Project Milestones
Project Managers for High Complexity IT Projects must submit baseline changes resulting in changes to project budget, scope, schedule, and performance for approval through the ITGB. Aggregate changes to the approved project budget, scope, and schedule that are less than 10% of the approved Project Charter, or changes that are less than 10% of the latest approved baseline, must be approved by the project’s sponsor and reported to the ITGB. If there are aggregate changes to the approved project budget, scope, and schedule that are equal to or greater than 10% of the approved Project Charter, or changes that are equal to or greater than 10% of the latest approved baseline, the Project Manager must submit the change request to the ITGB for review.
Closeout is the last phase in the project lifecycle. The Closeout Phase begins when the user accepts the project deliverables, establishing operational products or services, and the project oversight authority concludes that the project has satisfied the project purpose described in the Project Charter. The major focus of the Closeout Phase is administrative closure, logistics, and documentation of lessons learned or best practices. A Closeout Checklist is available on the PMO Web site.
Project Portfolio Management
Project Portfolio Management (PPM) is a term used to describe treating projects as part of an overall IT investment portfolio. PPM seeks to shift away from one-off, ad hoc approaches to a methodology with a set of values and techniques that enable standardization, measurement and process improvement. At VCU, proven Project Portfolio Management (PPM) best practices will be applied toward the goal of maximizing the total value of all projects undertaken. As in funds management, a project portfolio seeks an optimum mix to maximize return and minimize risk. The Information Technology Governance Board will evaluate all High Complexity Projects based on their contribution to the University’s goals and objectives and their value to the IT Strategic Plan, relative to their cost and risk. Projects with the highest return/risk ratio will begiven top priority. The process begins with project selection wherein project proposals are analyzed and ranked based on project costs, benefits, and risks. The ITGB makes investment decisions on which projects to propose for funding, and which mix of projects will best meet strategic University goals. Once projects have been selected, the ITGB monitors the execution of those projects through periodic reviews of project progress against established cost, schedule, and performance baselines. The last phase is the evaluation phase where actual results are compared against planned measures of success, and the business value achieved and actual return on the investment is determined. Lessons learned during the evaluation phase provide feedback for future selection and control processes related to improving PPM.
Auditing
The University will provide for periodic audits of IT strategic planning, expenditure reporting, budgeting, project management, infrastructure, architecture, ongoing operations, and security. The Office of Technology Services will work with the University’s Department of Assurance Services and the Commonwealth’s Auditor of Public Accounts in conducting such audits. Independent Verification and Validation of IT projects will be conducted following guidelines appropriate to the level of project complexity and risk.
Independent Verification and Validation (IV&V)
Project IV&V adds value to management and oversight by:
• Increasing the probability that project products and services meet their
requirements;
• Improving product and service performance;
• Supporting a sponsor’s decision to accept a product or service;
• Reducing development cost;
• Shortening the project schedule;
• Reducing risk; and
• Improving project management and oversight review and decision making.
Project managers for Medium and High Complexity Projects are required to include review of the technical, financial, and management aspects of the project and will establish scheduledIV&V reviews and reports as follows:
• At completion of the detailed Project Plan and before project execution begins for Medium and High Complexity;
• One in‐progress review during project execution for High Complexity;
• At project closeout to validate the success of the project for High.
Project Managers for all High Complexity IT Projects must develop a comprehensive plan for the project and will incorporate the IV&V schedule in the plan. Project Managers will have direct interface with the IV&V providers and will utilize the findings and recommendations in managing the project. The Project Manager will coordinate contracted vendor review and responses to IV&V findings as appropriate.
Qualified IV&V Service Providers will have experience and training in verification and validation audits commensurate with the scope and nature of the project. In any High Complexity Project IV&V effort, the IV&V Service Providers must be completely independent and have a separate budget and line of responsibility from that of the Project Manager. All IV&V Service Providers must be free of any conflict of interest in a project where they provide IV&V contracted support.