Duke Energy PM Governance 14.09.27 PMI PDD

Report
Duke Energy PMCoE
PMI Metrolina Chapter PDD
Agenda
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Duke Energy at a Glance
Project Management Center of Excellence (PMCoE) Overview
PMCoE Governance
Duke Energy PM and PC Career Paths
Strategic Initiatives
Take-Aways and Wrap-Up
Duke Energy Overview
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World’s largest publicly traded utility
Fortune 250 company
Serving 22 million people
Employing 28,000
$6B annual capital spend
Operations in:
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Regulated business
Renewables
Commercial transmission & power
International markets
Business Connection to Projects
Enterprise Portfolio
PMC Major
Projects
Transmission
Major Projects
International/
Commercial
Special
Projects
Special
Projects
Distribution
Major Projects
IT PMO
HR PMO
Finance PMO
Etc …
PMC Program
Trans Program
Com/Intl
Programs
Dist Program
IT Project
HR Project
Finance
Project
Etc.
PMC Project
Trans Project
Com/Intl
Projects
Dist Program
IT Project
HR Projects
Finance
Projects
Etc.
PMC Project
Trans Project
Intl Projects
Dist Projects
IT Project
HR Projects
Finance
Projects
Etc.
PMC Project
Trans
Maint/Ops
Commercial
Projects
Dist Projects
IT Project
Etc.
Dist Maint/Ops
IT Project
Etc.
IT Project
Etc …
PMC
Maint/Ops
Types of Projects – Shared Services
FINANCE
 Financial System Integration
 Sales & Use Tax
 Enterprise non-retail Billing
IT
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SharePoint Upgrade
Workstation Refresh
Active Directory Integration
Enhanced Cyber Security
HUMAN
RESOURCES
 Job Harmonization
 PeopleSoft Integration
 PeopleSoft Self Service Upgrade
Types of Projects – Traditional
CONSTRUCTION
DISTRIBUTION
TRANSMISSION
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Coal Plant Retirement
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Transformer Replacements
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Smart Meter
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Environmental Retrofits to
Existing Plants
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Capacity Upgrades
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Grid Modernization
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Sub Stations
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New Plant Construction
Types of Projects – Traditional
SOLAR
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NUCLEAR
WIND
Joint Ventures in AZ, CA,
NJ, MA and PA
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Duke Owned Projects in
NC, TX, CA, AZ, and FL
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Duke Owned Projects in TX,
WY, PA, KS, CO and WI
Notrees Battery Storage
Project
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Fukushima Response
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Plant Retrofits
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New Plant Licensing
PMCoE Background
Duke Energy
PM Deep Dive
2010
Integration
Team
2011
Duke Energy
PMCoE
2012 - Future
Progress Energy
PM Gaps
2007
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PMCoE vs. PMO/Major Projects
 A PMO is an important central hub
with a mandate to coordinate and
deliver all project activities as
determined by the organization's
needs.
 The PMO strives to standardize and
introduce economies of repetition in
the execution of projects.
 Tasks may include monitoring and
reporting on active projects,
programs and sub-portfolios, and
reporting progress to top
management for strategic decisions
on what projects to continue or
cancel.
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The PMCoE is a central hub with a
mandate to provide a consistent
framework to deliver the
organization’s projects consistently.
The PMCoE supports the PMO in
the execution of projects and
continuously improves corporate
governance.
Policy
PMCoE “What”
Dep’t Procedures
“How”
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PMCoE Vision and Mission
Vision
Become the Industry Leader in Project Management
Mission
The PMCoE will:
Establish a consistent and scalable process leveraging best practices,
Provide training, tools and oversight to enhance project performance and certainty,
Engage the project management community to focus on the pursuit of excellence,
knowledge sharing and skills development.
PMCoE Organization
PMCoE Executive Governance
Committee
Enterprise PMCoE
Director of Enterprise PMCoE
Enterprise PM
Governance
Enterprise PC
Governance
PMCoE Support
and Services
Project Director
Manager of Project Controls
Manager Support Services
Project Director
Sr Project Controls Specialist
Training Project Manager II
Senior PM
Training and Support Services
Senior PM
PMCoE Framework
Excellence in Project Management
Project Management Center of Excellence
Support
Services
Career Path Development
Diagnostics
• Acumen Fuse Schedule Analysis
Policy & Standards Training
Assessments
Tools & Templates
• Portfolio Reviews
Team Workshops
Reviews
Answers to Questions
• Independent Estimate
• Stage Gate
PMCoE Policy and Standards
Best Practices
Lessons Learned
Benchmarking
Governance Hierarchy
Company Policies
Tier 1 – Policies, Laws and Regulations (POLICY)
- Approval of Business Transactions Policy
- Achieving Excellence in Project Management
PMCoE Standards
Implementation
Standards
General
Reference
Tier 2 - Enterprise Standards (ENTSTD)
- Stage-Gate Authorization Standard through Project Career Path
Qualification and Training Standard
Tier 3 – Implementation Standards (IMPSTD)
- Group, department, section and/or unit procedures, as applicable
Tier 4 – General Reference Materials (GENREF)
- Project Management Institute (PMI), Project Management Body of
Knowledge (PMBOK), etc.
Structure of Standards
Project Investment Lifecycle
Identify
Inputs
a
Scan
Select
Assess
b
Identify
Opportunity or
Threat
Initiate
Develop
c
Determine
Impact /
Benefit,
Timing and
Potential
Responses
Plan
d
Refine
Candidate
Responses
(Projects)
and Prepare
for Initiation
Commit
Build
Commission
Execute
e
Develop Project
Plan and
Prepare for
Execution of
Major
Commitments
Close
Operate & Maintain
f
Execute
Commitments,
Refine the Plan
and Prepare for
Construction and
Installation of
Assets
Construct and
Install Assets, Turn
Over Assets to the
Receiving Asset
Owner and Prepare
for Close of the
Project
g
Value
h
Operate and
Maintain Assets
Delivered by
Project 
Generate Return
on Investment
Retire at
End-of-Life
or
Disposition
Asset
Enabling a Scalable Project Management Framework
Project Rank and
Assignment
Cost plus Complexity =
Project Rank
Project Complexity
Project Rank Comparison
Black ~1%
Brown ~1%
Green III ~1%
Green II ~1%
Green I ~6%
White ~20%
Green I ~10%
Green II ~6%
Total Project
Count
Green III ~4%
Total Project
Spend
Brown ~30%
White 90%
Black ~30%
The Project Delivery System
Select
Initiate
Develop
[2] Assign RankAppropriate
Organization &
Project Management
[1] Determine
Project Profile
Matrix Rank
Green III
Brown
Brown
Black
Green II
Green III
Brown
Brown
Green I
White
Green II
Green I
Green III
Green II
[3] Use RankAppropriate
Processes, Tools &
Templates
Black
Senior Project Director
Principal Project Controls Specialist
Black
Brown
Project Director
Senior Project Controls Specialist
Brown
Green III
Senior Project Manager
Senior Project Controls Specialist
Green III
Green II
Project Manager II
Project Controls Specialist
Green II
Green I
Project Manager I
Associate Project Controls
Green I
White
Associate Project Manager
Associate Project Controls
White
Brown
Green III
Plan & Execute
Close
[4] Deliver Products
& Services According
to Plan
Required Compliance with PMCoE Standards including
additional requirements defined in Attachments
Required Compliance with PMCoE Standards
Compliance with PMCoE Standards at Department
Discretion
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PM and PC Career Paths
Project Rank
Sr Project Director
Manager PC
Project Director
Supervisor PC
Sr Project Manager
Principal PCS
Project Manager II
Sr PCS
Project Manager I
PCS II
Project Mgmt Spec
PCS I
Project Management
Project Controls
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Change Management Approach
Sponsor Engagement
•Coalition Building (Executive Level Presentations)
•Active & Visible Participation (EGC Meetings)
•Direct Communications (Up, Down and Across Organization)
Coaching & Org
Transformation
•Identify Change Agents in Each Department
•Collaborate with Change Agents to Align Department Processes
•Workshops with Project Teams
Communication
•Enterprise-Wide Cascading Communication
•Recurring Communications
Training
•Executive Series
•Management Series
•Performance Series
Resistance Management
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Future Initiatives
Continuously Improved Project Management Framework
 Mature Management of Tail and Reputational Risks
 Mature our benefits realization process
Highly Skilled and Effectively Utilized Workforce of Project Professionals
 Comprehensive Workforce Strategy
 Match portfolio to human capital
 Attract > Develop > Retain > Re-Deploy
Transparent Project and Portfolio Performance
 PPM Deployment
“A consistent enterprise framework enables maturation of the project management
competency”
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Key Take-Aways
 PMOs and PMCoEs must adapt to business needs and culture of their organization
 Effective governance should be scalable and aim to provide transparency in decision making
 Excellence is a journey – actively benchmark and don’t work in a vacuum!
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Contact Information
P. Brandon Lane, MBA, PMP
brandon.lane@duke-energy.com | (980) 373-2782
LinkedIn: http://www.linkedin.com/in/phillipbrandonlane
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