Montana State University
MSU STRATEGIC INVESTMENT PROPOSAL FOR INSTITUTIONAL PRIORITIES
PROPOSAL OVERVIEW
TitlePlanning and Program Management Office (PPMO) Request Date2012-11-30
DepartmentIT Center Emailanne.milkovich@montana.edu
RequestorAnne Milkovich Phone994-5715
INSTITUTIONAL BENEFIT
Campuses Bozeman Billings Havre Great Falls FSTS Extension MAES
Cross Depts  
TIMEFRAME
Proposed Dates Start: 03/01/13 End:  
PROPOSAL SUMMARY
The Bozeman IT Center is launching an enterprise Planning and Program Management Office (PPMO) to facilitate prioritization of projects and resources serving all departments and campuses. The PPMO has three roles: 1) inform institutional decision making in selecting and prioritizing IT innovations and report on results; 2) direct large-scale programs and multi-project initiatives; 3) develop and support project management as a discipline to improve organizational performance.

The IT Center is funding core time and effort, seeks institutional startup support.
STRATEGIC ALIGNMENT
The PPMO manages IT resources and facilitates prioritization of institutional investments. As such it supports every objective of the strategic plan. It most closely aligns with Objective S.3, Stewardship of Economic Resources by maximizing and effectively allocating resources in support of the MSU Strategic Plan.
COST AND REQUIREMENTS
Funding Type: One-Time Only Funding Base (3-yr Recurring) Funding
  FY13 FY14 FY15 Base ($) OTO Startup ($)   FTE;
Salaries       60000     
Benefits       19200       
Materials & Supplies         4000     
Travel         6000     
Contracted Services         50000     
Capital         70000     
Other Operations         20000     
TOTAL 79200  150000   
Please comment, if necessary, regarding cost and requirements.

3-YR RECURRING BASE

Project Manager @ 60,000 salary

Benefits @ 32% = 19,200

TOTAL RECURRING BASE = 79,200 

OTO STARTUP costs are based on other organization's experiences with comparable PPMO startups

Materials @ 4,000: furniture, books, supplies

Travel @ 6,000: professional development

Contracted Services @ 50,000 = software implementation, sharepoint development, project management training for distributed PMs, change management consulting

Capital @ 70,000 = software, hardware, desktop equipment

Other @ 20,000, unforeseen startup costs

TOTAL OTO STARTUP = 150,000

PROPOSAL SCOPE
Describe the Proposal

The Planning and Program Management Office delivers intended benefits and maximizes resources of information technology investments including projects, assets, and services that sustain institutional information infrastructure. The PPMO is responsible for facilitating IT Governance, including ensuring informed and rational mission-centric decision-making and transparency of IT investments. The PPMO is also responsible for communications with constituents on institutional programs and projects.

While PPMOs typically begin by serving IT needs, the discipline is gradually expanding scope to serve institutions as a whole by managing the governance, prioritization, and reporting of a range of resource investments such as non-IT administrative or academic programs.

PPMOs that return the greatest ROI are those that focus on portfolio and program management governance and transparency rather than project management command and control. The MSU PPMO is positioned as an enterprise-wide PPMO across IT that can also facilitate governance and resource alignment of non-IT administrative or academic programs that draw on shared resources.

The proposed PPMO consists primarily of existing director and staff from the IT Center. Expanding demands for organizational change initiatives such as OpenMSU projects require greater management, communication, and reporting of results. The new enterprise-wide IT governance structure requires staffing to inform decisions on IT projects, assets, and services.

To serve these increasing needs the PPMO requires software and a proficient project manager.

 
Describe the broader impacts and benefits of this proposal

Information technology enables institutional efficiency and innovation on all four campuses and is a high-value investment with commensurate risk. The PPMO balances the investment portfolio, manages risk, aligns resources cost-effectively, facilitates governance of resources, reports results to stakeholders and communicates with constituents. The PPMO ensures responsible stewardship of resources, informed decision-making, organizational agility, strategic alignment of high-value investments, and transparency for stakeholders and constituents. As such it benefits the entire institution enterprise-wide.

The PPMO is primarily staffed with existing resources (director, communications specialist, purchasing agent, finance analyst) and needs additional staff (proficient project manager, part-time administrative support) to meet demands. The return of benefits for the entire enterprise including accountability to taxpayers compared to the investment in a handful of positions and a software installation is extremely high.

 
ADDITIONAL INFORMATION
Implementation Plan

The PPMO is being foundationally built with existing leadership and staff. Pending proposal approval, one additional project manager will be hired and software purchased to provision dashboards, resource alignment, program management, project management, project accounting, and stakeholder reporting. Implementation is planned in 3-month intervals:

Q1:
Begin implementation of strategic objectives.
Hire project manager.
Investigate and install software.
Create enterprise-wide and campus-specific governance strucutre.
Launch institutional project (EDMW).
Develop constituent communications platform and methodology.
TBD assume program management of OpenMSU.

Q2:
Develop portfolio management platform for strategic alignment of resources.
Create quarterly stage-gate cycle for IT governance to approve or table IT projects enterprise-wide.
Create executive and governance reporting techniques.
Launch project management training program.
Meet project and program milestones.

Q3:
Operationalize IT governance and portfolio management in standard operating procedures.
Perpetuate portfolio management and strategic alignment.
Maintain strategic plan and objectives.
Meet project and program milestones.
Report on IT costs and investments by program.

Q4:
Capture lessons learned and adapt implementation.
Perpetuate governance and portfolio management, stakeholder reporting, constituent communications, program and organizational change management.
Meet project and program milestones.
Evaluate and report on results.

 
Assessment Plan

AT 6-month intervals an assessment of progress against milestones will be conducted. Key Performance Indicators (KPIs) will be evaluated and scored on a Capability Maturity Model (CMM) scale (Humphrey, Watts. Carnegie Mellon University) from Initial to Optimizing with input from primary stakeholders. Failure to make overall progress in the KPIs will result in sunsetting.

Key Performance Indicators:

Portfolio: Project, asset, and service information is current and compiled in portfolios.

Reporting: Dashboards and/or scorecards are readily available and known to stakeholders. Dashboards and/or scorecards are easily understood by a wide range of stakeholders.

Communications: Current information about projects, assets, and services is readily available to constituents through push and pull methods.

Program Management: Programs are managed with appropriate oversight and communications. Intended benefits are targeted and communicated. Organizational change is actively managed.

Project Management: Projects under the oversight of the PPMO are managed with appropriate rigor. Distributed personnel in project management roles are supported by the PPMO with resources and training.

Procurement and Contract Management: IT procurement across the university is coordinated through a central point and aligned with strategic objectives. IT contracts are managed for vendor performance and renewal.

Resource Management: Resources are demonstrably aligned to strategic objectives.

Investment Management: Program costs are reported to executive sponsors, governance, and stakeholders. The institution knows the cost of IT investment.

Enterprise Strategic Planning: Strategic objectives are defined and measurable for all campuses. Enterprise objectives support and integrate with individual campus objectives.

Enterprise IT Governance: Enterprise IT Governance is structured and functioning in a manner comparable to benchmark standards (COBIT, ISACA, ValIT).

 

 
If assessed objectives are not met in the timeframe outlined what is the plan to sunset this proposal?

If the PPMO does not demonstrate progress along the Capability Maturity Model or does not demonstrate cost-effective results to the institution the function will be sunsetted as follows:

a) The incumbent in the project management position will be repurposed in the organization or the contract will be non-renewed.

b) All other personnel will continue their normal duties and discontinue PPMO-specific duties (procurement management, communications management, portfolio management, organizational change and program management).

c) Reporting to executives and stakeholders and communications to constituents will cease.

d) Portfolio and program management will cease.

e) Governance decisions will return to uninformed ad hocracy.

f) The software license will be discontinued.

 
SIGNATURES
Executive/VP: Dewitt Latimer (dewitt@montana.edu)