Improving Project Management in the Department of Energy (1999) / Chapter Skim
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5 Organizing for Excellence in Project Management
5 Organizing for Excellence in Project Management
Pages 71-80
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From page 71... ...
The sites are often incompletely characterized, the necessary technologies are not always fully tested; and the political pressures for results are great. DOE's portfolio of projects demands a sophisticated and adaptive project management system that can manage project risks systematically; control cost, schedule, and scope baselines; develop personnel and other resources; and transfer new technologies and practices efficiently from one project to another, even across program lines.
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From page 72... ...
Instead, it has no credible project manager training program, a certification program that has been years in the making but has not yielded significant results, and no identifiable career paths for project managers. Program offices devote significant effort and resources trying to manage projects with well intentioned personnel who do not have the requisite education and experience in project management and are not committed to project management as a career.
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From page 73... ...
The evidence presented to the committee regarding DOE's project management has demonstrated numerous deficiencies and shortcomings. In the opinion of the committee, DOE will continue to experience significant project cost and schedule overruns unless the present organizational structure is changed.
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From page 74... ...
Can the present dominant culture of DOE which is "dysfunctional" (as many DOE personnel stated) with respect to successful project execution, be changed?
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From page 75... ...
Rather than simply calling for DOE to change its culture, the committee believes that DOE's culture can be changed most effectively by changing DOE processes, changing expectations, and positively reinforcing excellence in results rather than compliance with processes. The cultural change "levers" available to the secretary are the recommendations throughout this report, including the following: Create a culture of excellence in project management and execution.
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From page 76... ...
The project management executive would relieve assistant secretaries and program office directors of the need to maintain their own project management capabilities thereby allowing them to focus on their central responsibilities. The project management executive would provide consistent project management systems for all programs and DOE projects as well as the following functions: · standardized reporting and a centralized database on projects to support the secretary, deputy secretary, and program offices · project trend forecasting and early warning of potential problems · management of an independent review process · recommendations for proactive corrective actions · a focal point for responsibility and accountability for projects within DOE and an interface to external organizations on project management issues · a champion for excellence in project management in DOE
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From page 77... ...
To be effective, the proposed project management office must have sufficient staff, including assistant project managers, procurement personnel, contract specialists, cost engineers, planners, schedulers, cost accountants, controllers, systems analysts, and others. The project management office would provide consistent methods and systems to be used for cost estimation, risk analysis, contracting, incentives, change control, progress reports, and earned value management.
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From page 78... ...
Develop and deploy standard project management systems and contractor reporting requirements for progress reports, financial reports, and other reports to determine the viability of each project consistently throughout DOE. Set standards and monitor the execution of project management plans.
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From page 79... ...
To meet these challenges and those that will arise from the current and future portfolio of DOE projects, DOE must move beyond the legislatively mandated minimum performance. Accepting and implementing the recommendations of this committee for improved project management could result in a process in which projects receive strong support and stable funding and would be managed by professionals whose focus would be cost, schedule, and performance.
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From page 80... ...
1998. Assessing the Need for Independent Project Reviews in the Department of Energy.
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