IS-IT Project Office set-up in complex environment. A post-merger case

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BigCORP Post-Merger IS/IT Project Office Mission and Operating principles

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This document proposes an approach focused on answering some of the main merger IS/IT challenges from a pragmatic point of view Organizational implications The merger and challenges for IS/IT management Project Office operating principles Value proposition of a Project Office Project Office Mission and principal functions Setting up the Project Office … Some of the main BigCORP Integration IS/IT requirements What can help in this situation? Why will it be useful? How is it going to work? … and, What is next? Next steps Document contents

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3 Organizational implications 1 The merger and challenges for IS/IT management 2 Project Office operating principles Table of Contents 4 5 Value proposition of a Project Office Project Office Mission and principal functions Setting up the Project Office 6 Next steps 7

BigCORP has to face and integrate an increased number of complex IS/IT projects to be delivered on time and budget, as part of the great merger challenge:

BigCORP has to face and integrate an increased number of complex IS/IT projects to be delivered on time and budget, as part of the great merger challenge A highly complex merger project… Merger to be completed in a 24 month horizon focusing on the challenges of… Business continuity Synergies to capture Organizational change High complexity of the merger project several parties International setting Considerable differences in company culture To date, no central integration management … and a difficult context for IS/IT service delivery IS/IT related projects are critical to the success of the merger IS/IT projects contributing to the merger are fragmented in terms of owners, deadlines, size, complexity and impact Business sense of ongoing projects may be affected by the merger and need to be re-evaluated Many important IS/IT merger projects are transversal (corporate, cross sector, cross BU) IS/IT resources do not match the transversal scope of projects, mainly decentralized and reporting to business IS/IT to deliver an increased number of complex projects on time and on budget Complex mix of projects driven by the business transformation Risk of delay due to dependencies and IS/IT resource availability Budget risk due to redundancies, overlapping and external contracting 1

The challenge is relevant at all IS/IT levels, but a corporate perspective is necessary to making a reality possible cross-sector synergies in knowledge, organization, information and costs:

IS/IT Steering Committee The challenge is relevant at all IS/IT levels, but a corporate perspective is necessary to making a reality possible cross-sector synergies in knowledge, organization, information and costs 1 Information Systems Services and Resources Information Systems Planning DG Platform Management Board BU Head BU Head Sector Head CIO Sector Head Corporate vision Sector vision Sector vision will be a success factor, pivotal as per market realities, but a transversal vision of the activity across different sectors / businesses is also necessary in order to manage the achievement of synergies. Synergies never materialize on their own. Their achievement must be managed Plant Head IS/IT project IS/IT project IS/IT project IS/IT project

Specifically, project development presents information, monitoring and management needs on a “corporate perspective” level:

Specifically, project development presents information, monitoring and management needs on a “corporate perspective” level 1 Align projects with IS/IT strategy and identify critical projects Rely on an “information hub” with standard information Have elements for assessment in order to establish mapping of priorities Facilitate & Monitor progress of transversal and critical projects Identify redundancies Corporate requirements Coordination with projects in other sectors and standards for monitoring Be aware of and follow critical projects with transversal impact Access to achievements in other sectors, that can be used in my own sector Identify redundancies Possibility for arbitration Rely on an “information hub” with standard information Sector/Business requirements Which projects and who’s responsible? With what priority? Which resources? What’s the cross-sector impact? Are there redundancies? Can different BUs profit? Which projects, what’s their priority and who’s responsible? What resources do I provide / receive for corporate projects? How can I take advantage of other sectors’ achievements? Are arbitration facilities between projects / sectors available? Can I access up-to-date information on “state of the art” for projects in other sectors and projects which may affect me? facilitate project development and “service delivery”, prioritizing critical projects and maximizing synergy exploitation New requirements New projects BigCORP Merger: IS/IT scenario New Organization On-going projects

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3 Organizational implications 1 The merger and challenges for IS/IT management 2 Project Office operating principles Table of Contents 4 5 Value proposition of a Project Office Project Office Mission and principal functions Setting up the Project Office 6 Next steps 7

Creating a Project Office will substantially facilitate the identification and management of inter-sector questions of interest for BigCORP:

IS/IT Steering Committee Critical Project Critical Project Critical Project Project Office CIO CIO Organization Flat Carbon Long Carbon Stainless … Domain HR Purchasing Accounting … Transversal Network … Monitor Progress Report on Corporate level Report on Sector level Merger issues, quick wins, synergies… Transversal and cross-business/function projects… …monitored by the Project Office support Creating a Project Office will substantially facilitate the identification and management of inter-sector questions of interest for BigCORP 2 Issue Quick Win Synergy Qualification Task Force Ad Hoc Mission Resolution /Capture

Having a Project Office adds value for all stakeholders of the projects:

2 DG Platform Sector CIO’s IS/IT Steering Committee … informational and project monitoring support to facilitate the task of coordinating sector and corporate visions Early recognition of issues and risks leading to resolution Information efficiency Decision oriented reporting Filtering of project-related information Transparency on progress Project managers IS/IT Project Manager … providing an “information hub” … supporting and providing standard principles of monitoring & reporting Information efficiency Action oriented synthesis Filtering of project-related information Transparency on interdependencies, resource usage Identification of eventual redundancies Information Systems Services and Resources Sector & BU CIO’s Information Systems Planning Business Owner / Leader … providing transparency on critical projects in decentralized service delivery … helping to ensure delivery of critical projects Transparency on interdependent projects and option for coordination Assistance for the identification of issues in a changing environment A direct and efficient way to communicate issues and ask for decision Promoting arbitrage when necessary Having a Project Office adds value for all stakeholders of the projects

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3 Organizational implications 1 The merger and challenges for IS/IT management 2 Project Office operating principles Table of Contents 4 5 Value proposition of a Project Office Project Office Mission and principal functions Setting up the Project Office 6 Next steps 7

The Project Office’s mission is to provide service to the direct “stakeholders” of the projects in order to facilitate decision making:

Business Owners / Leaders Project Managers IS/IT Steering Committee The Project Office’s mission is to provide service to the direct “stakeholders” of the projects in order to facilitate decision making 3 For whom? Direct stakeholders Facilitate and monitor progress Ensure coordination and follow-up of IS/IT critical projects Ensure transversal coordination of projects Identify and facilitate arbitrage on conflicts/trade-offs between isolated projects Provide transparency on risks and initiate early mitigation Represent the “information hub” for the program Ensure “information efficiency” by consolidating the project reporting Harmonize and share project-related information On demand, support project managers in integrating with other projects, on methodology aspects or planning of project How so? Principal functions Inform Coach Monitor

Project Office’s mission concentrates on project delivery, but its activities provide transparency to assist throughout the project lifecycle:

Project Office’s mission concentrates on project delivery, but its activities provide transparency to assist throughout the project lifecycle Project Office services Project lifecycle Project Office provides standard templates and tool for monitoring and reporting Project Office directly monitors and reports on critical projects Project Office provides support on demand in project management Project Office serves as a channel for communication Escalates issues Provides information for decision-making Deliver Projects must be managed in coherence with the BigCORP principle of subsidiarity, with Project Office interacting at relevant levels to add value through transparency and monitoring Project Office provides standard templates Project Office provides information that allows stakeholders to quick-scan arcelor environment to identify project alternatives before qualification Project interdependencies Project overlap or redundancies Possible synergies, integration with other projects Qualify Conceive Project Office provides support on demand in project planning Methodology Resources with required skills (having participated in similar projects) Evaluate and Learn Project Office promotes data base Project Office supports objectives tracking for success/failure qualification Project Office provides information for continuous improvement measures Project Office monitors and reports on task forces that implement improvement measures Project Office focus Project Office support Project Office support 3

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3 Organizational implications 1 The merger and challenges for IS/IT management 2 Project Office operating principles Table of Contents 4 5 Value proposition of a Project Office Project Office Mission and principal functions Setting up the Project Office 6 Next steps 7

The Project Office operating principles can be described by answering a number of key questions:

The Project Office operating principles can be described by answering a number of key questions 4 Which projects will be on the Project Office radar ? How to register new projects ? What are the roles of the Project Office organization ? How does the Project Office communicate with the different stakeholders ? Which information is managed by the Project Office ? What do « monitoring » and « reporting » mean ? Which tools can be used by the Project Office?

Which projects will be on the Project Office radar? The Project Office will primarily monitor those projects approved by the Steering Committee:

Which projects will be on the Project Office radar? The Project Office will primarily monitor those projects approved by the Steering Committee 4 Projects approved by the Steering Committee Projects with cross-sector or cross-functional scope Project size > ____ Euros Projects whose non-completion pose an operational risk Projects relying on resources loaned by other sectors Those projects, new or ongoing, defined as such “on demand” Projects “visible” at board level By a member of IS/IT Steering Committee IS/IT Steering Committee must approve and publish criteria determining which projects must be submitted to the Steering Committee Must have a clear guideline for acting Decentralized Service Delivery staff must understand which projects must be reported Criteria for qualifying a critical project Illustrative Monitored by IS/IT SC Approved by IS/IT SC

How to register new projects ? Process for qualifying a critical project:

IS/IT Steering Committee How to register new projects ? Process for qualifying a critical project 4 Proposes Qualifies (Approves) On-going projects New projects Management Board Sector CIO ISSR / ISP Project Office Management Board Sector CIO ISSR / ISP IS/IT Steering Committee IS/IT Steering Committee Critical Project Sector CIO /ISSR/ ISR (Owner/Leader) Project Manager Project Office Interact “directly” around the project Project Manager Sector CIO (*) Project Office Critical Project (*) Or ISSR or ISP Owner /Leader Manager / Delivery Monitoring & Reporting support The project begins to be monitored by the Project Office dossier Project Qualification (*) (*) See next slide Project Qualification (*) ISP: Information Systems Planning. ISSR: Information Systems Services & Resources

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