In terms of organizational change in the attached case study, please describe what did and did not work well for the company regarding handling projects? Address the level of organizational capability that was needed for this change. Provide an example of how this could relate to another organization.

AP'S CASE STUDY Project Management Institute AmeriHealth Mercy Driving Results and Increasing Competitive Advantage Through Organization Project Management In 2007, the AmeriHealth Mercy In 2004, AmeriHealth Mercy formed a 2008 OPM3 Assessment and Family of Companies sought to program management office (PMO) Findings improve its ability to systematically which was the result of organizational In September 2008, under Guerrero's deliver its strategy. Facing new ecognition of the importance of direction, AmeriHealth Mercy competition in the managed health creating a resource pool of skilled conducted an Organization Project care industry and facing substantial project managers. The PMO began Management Maturity Model changes due to federal health care creating a set of standard templates OPM3) assessment in conjunction reform, the organization determined and reports that the organization now with Project Management Institute that its existing results could not uses to execute and monitor the PMI). The assessment helped the sustain the growth needed to face an performance of its projects. organization map its existing increasingly competitive landscape. The PMO leader was promoted, and organization project management capabilities and identify AmeriHealth Mercy is a partnership of in 2007 AmeriHealth Mercy brought in improvements that needed to be Mercy Health System, (a non- a seasoned PMO professional to made in order for the organization to profit health care organization continue advancing the PMO and the further improve business delivering services to communities organization's project management. performance. across the U.S., and Independence The new PMO director, Ruth Anne Blue Cross, a U.S.-based health care Guerrero, was familiar with the 'Every PMO wants to improve," Ms. insurance organization. The two concept of organization project Guerrero says. "I wanted to be able to companies joined together in 1996 to management (OPM) and determined objectively determine the maturity of provide Medicaid managed care that the OPM approach would serve our PMO. I wanted to leverage best services, governmental programs that as a roadmap for advancing the practices and, if needed, make provide medical and health-related organization. effective improvements to our services to specific groups of people processes. That is why I chose to in the United States, to underserved For AmeriHealth Mercy, organization have an OPM3 assessment and low-income populations. 1 project management is a critical performed. driver for business success. This AmeriHealth Mercy, a mission-driven approach aligns the organization's OPM3 is a global best practice organization, employs almost 2,500 esources to its strategy through standard used to measure and associates and serves more than 4 disciplined portfolio management, improve an organization's ability to million members in 14 U.S. states. Its integrating the business needs of the deliver its strategy with the use of diverse product lines include full-risk strategy into programs and projects program, portfolio and project health plans, management and so it can deliver the intended benefits management. Created by PMI, OPM3 administrative services for health to the organization. It then executes assessments compare the existing plans, intensive care management, strategy-driven initiatives through capabilities of the organization to the pharmacy benefit management and superior project management. This best practices of organization project behavioral health care services. systematic approach aligns work to management. the strategies of the organization and An ownership change was announced delivers results that advance the on August 9, 2011 and is currently organization's strategy. undergoing regulatory review"It is a diagnostic tool that allows Some of the recommendations given By doing so, it demonstrated the organizations to understand what after the 2008 OPM3 assessment benefits of the changes it they are doing to achieve specific were adopted immediately," Ms. recommended while fine-tuning the business results," says Claudia Baca, Guerrero says. "Others took a processes. PMP, OPM3 Certified significant amount of time and effort Assessor/Consultant, who worked to complete." The improvement implementation with AmeriHealth Mercy to complete was not seamless but in the spirit of the evaluation. Their first step in the 2008 OPM3 organization project management mprovement plan was the completion best practices, Ms. Guerrero and her "What separates OPM3 from other of an organizational matrix that team learned from their setbacks. "It's models," she says, "is that it is flexible outlined the roles and responsibilities an evolution," she says. "That's why I enough to allow the organization to of project leaders and minimized like organization project uniquely define excellence for itself. edundant efforts. This also freed management; you can take the top OPM3 uncovers gaps and lets each additional resources to work on other ten pain points, fix those and then organization determine what projects. find more challenges to solve." improvements are needed to meet their goals." The PMO then created a goal for the AmeriHealth Mercy's adoption of end of 2010 to have benefit organization project management AmeriHealth Mercy's 2008 OPM3 realization in place for 10 percent of yielded the following notable results: assessment revealed that its the organization's projects. In order to AmeriHealth Mercy repositioned the organizational maturity was lower reach this goal, the organization PMO to be more strategic in nature. than desired. Although the company determined that it would have to The PMO previously reported to the had excellent project resources and complete four different improvement Chief Administrative Officer, but in personnel, it also had gaps in its activities in 2009 to reach the 2010 moved to the office of the Chief portfolio processes. There were business alignment goal for 2010. of Staff for the Executive Vice opportunities to improve how President and Chief Operating AmeriHealth Mercy prioritized its The first activity was determining the Officer. This reflected the expanded projects, so that the organization criteria used to prioritize and select ole the PMO is expected to play in would be assured that it was projects that would provide the most the delivery of AmeriHealth Mercy's delivering projects that adequately value. The second activity was strategic plans. supported its strategic goals. aligning each project to the business AmeriHealth Mercy had not yet strategy and identifying expected AmeriHealth Mercy has completely embraced the discipline of program business benefits. Each project would eliminated overlapping projec management. have benefit realization metrics to management responsibilities and has prove that the project delivered the streamlined its roles and 2008 Improvement Plan expected business value to responsibilities. Every project now Once the team understood the results AmeriHealth Mercy. reports to the project manager as the of the AmeriHealth Mercy 2008 single point of accountability. Having OPM3 assessment, the PMO And, finally, the organization would a single project manager accountable immediately built an improvement document and implement standard for the end-to-end project has created plan to implement the changes that practices to guarantee each activity's additional capacity for work with the were most important to the successful completion. same number of project managers. organization. Using a building block Project stakeholders and team approach, the PMO developed a Demonstrating Improvement members have benefited from this high-level plan that detailed, quarter The key to proving that AmeriHealth clarity and from improved by quarter, the expected Mercy's PMO improvements were, in communication. accomplishments. fact, successful was the ability to gather data to support the progress that was made. The PMO had to build 2 See chapter 9 - PMO Building Blocks- A a set of measures to gauge Practical Approach for Implementing improvement and then gather the PMO Services, The PMOSIG Program data. Management Office Handbook, J. Ross Publishing, 2010"The AmeriHealth Mercy Family of Move from immature portfolio 2010 Improvement Plan and Companies strives to continue to selection and management Looking Ahead grow, support operations and invest processes to a sophisticated AmeriHealth Mercy is in the process in its people. That's what drives us,' demand management process of finalizing strategic plans for 2012- says Ms. Guerrero. She adds, "Since that engages the business 2015. All projects will need to we've made the right investments to owners to create a strategic demonstrate a connection to one or mprove organization project valuation of all work and align more of the key strategic goals in management, we've seen the that work with the these plans. The company's strategic company meet its strategic and organization's strategies. goals generate annual operating operating plans. The benefits that Design, implement and manage goals, which generate initiatives in we're reaping from the enhanced a benefits realization process their pursuit. PMO are being used to fund that is managed at the additional project work, including individual project level as well Proposed projects are evaluated for future improvements. The PMO has as at the program and portfolio strategic fit, risk, and other truly become a strategic operations level. Changes to benefits are characteristics. As projects are center for the organization." managed as parts of the completed and new project requests change control process that are received, AmeriHealth Mercy's In just two years, AmeriHealth already controlled changes to organization project management Mercy's PMO had become the "go-to" scope, budget and/or timeline. oversees the "demand" and "delivery" organization for change. The Mature project management aspects tied to the plan. AmeriHealth business was getting the results it processes into a continuous Mercy anticipates that the focus on needed from efficiently implementing improvement phase and now benefit realization will result in a the right strategic projects, and the yields more predictability in renewed focus on meeting project PMO concept was being embraced execution. time frames and quality goals. throughout the corporation as the way The organization achieved best-in- to getting things done. class status in several areas, According to Joanne McFall, Chief of including their ability to build a project Staff for AmeriHealth Mercy's Chief 2010 OPM3 Assessment and management community within Operation Officer, "Our success in Finding ealth Mer achieving our strategic goals is During the fall of 2010, after two directly linked to the effectiveness of years of improvement activities, Some challenges still remain, our overall portfolio management AmeriHealth Mercy conducted a however, including: function. By continuing to enhance follow-up OPM3 assessment to our use of organization project determine how well the gaps had The organization still faces management practices, we expect to been addressed, how opportunities challenges with prioritization of see even greater benefits in future were seized and to set goals for the multiple tracks of work. years." future that ensured continuous The program and project improvement. management methodologies The real measure of success and supporting tools are still however, is more tangible to the staff "AmeriHealth Mercy's improvements being refined to support the of the AmeriHealth Mercy PMO. The are a wonderful example of how to new PMO responsibilities. PMO has more requests from grow and mature a PMO to deliver It has become clear that there is business partners for projects to tangible value to its organization," an immediate need to better become parts of the corporate says Baca. understand resource demand portfolio because of the levels of and capacity across a large professionalism, dedication and The results of the 2010 assessment part of AmeriHealth Mercy. leadership exhibited by the PMO showed that AmeriHealth Mercy was staff. Through its consistent able to: approach, the AmeriHealth Mercy PMO has led the entire organization to a new level of organization project management maturity.The results of the 2010 OPM3 journey to maturity will not end here. project management practice? assessment have supported these As the organization makes additional According to Ms. Guerrero,"The conclusions and given AmeriHealth improvements to methodologies, answer is: through the Mercy the ability to set additional tools and skill sets, new expectations implementation of future OPM3 goals in pursuit of continuous and goals will be set. How will assessments and improvement improvement. However, the story of AmeriHealth Mercy ensure that it plans." the AmeriHealth Mercy PMO's continues to mature its organization