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Duke Energy PMCoE PMI Metrolina Chapter PDD

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Agenda 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

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Duke Energy Overview Worlds largest publicly traded utility Fortune 250 company Serving 22 million people Employing 28,000 $6B annual capital spend Operations in: Regulated business Renewables Commercial transmission & power International markets

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Enterprise Portfolio PMC Major Projects PMC Program PMC Project PMC Maint/Ops Transmission Major Projects Trans Program Trans Project Trans Maint/Ops International/ Commercial Com/Intl Programs Com/Intl Projects Intl Projects Commercial Projects Distribution Major Projects Dist Program Dist Projects Dist Maint/Ops IT PMO IT Project HR PMO HR Project HR Projects Finance PMO Finance Project Finance Projects Etc Etc. Etc Special Projects Business Connection to Projects 2,200+ involved in projects 40+ Departments doing projects $6 Billion in Capital Dollars

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HUMAN RESOURCES ITFINANCE Types of Projects Shared Services Financial System Integration Sales & Use Tax Enterprise non-retail Billing SharePoint Upgrade Workstation Refresh Active Directory Integration Enhanced Cyber Security Job Harmonization PeopleSoft Integration PeopleSoft Self Service Upgrade

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DISTRIBUTION TRANSMISSION CONSTRUCTION Types of Projects Traditional Coal Plant Retirement Environmental Retrofits to Existing Plants New Plant Construction Transformer Replacements Capacity Upgrades Sub Stations Smart Meter Grid Modernization

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NUCLEAR WIND SOLAR Types of Projects Traditional Joint Ventures in AZ, CA, NJ, MA and PA Duke Owned Projects in NC, TX, CA, AZ, and FL Duke Owned Projects in TX, WY, PA, KS, CO and WI Notrees Battery Storage Project Fukushima Response Plant Retrofits New Plant Licensing

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PMCoE Background 8 Duke Energy PM Deep Dive 2010 Integration Team 2011 Progress Energy PM Gaps 2007 Duke Energy PMCoE 2012 - Future

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9 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. PMCoE vs. PMO/Major Projects PolicyPMCoE What Dept Procedures How The PMCoE is a central hub with a mandate to provide a consistent framework to deliver the organizations projects consistently. The PMCoE supports the PMO in the execution of projects and continuously improves corporate governance.

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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. 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.

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Enterprise PMCoE PMCoE Organization PMCoE Executive Governance Committee Director of Enterprise PMCoE Enterprise PM Governance Enterprise PC Governance PMCoE Support and Services Senior PM Training and Support Services Sr Project Controls Specialist Project Director Training Project Manager II Project DirectorManager of Project ControlsManager Support Services Senior PM

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Career Path Development Policy & Standards Training Tools & Templates Team Workshops Answers to Questions Career Path Development Policy & Standards Training Tools & Templates Team Workshops Answers to Questions Diagnostics Acumen Fuse Schedule Analysis Assessments Portfolio Reviews Reviews Independent Estimate Stage Gate Diagnostics Acumen Fuse Schedule Analysis Assessments Portfolio Reviews Reviews Independent Estimate Stage Gate PMCoE Framework Best Practices Lessons Learned Benchmarking PMCoE Policy and Standards Project Management Center of Excellence Support Services Excellence in Project Management

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Governance Hierarchy Company Policies Tier 1 Policies, Laws and Regulations (POLICY) - Approval of Business Transactions Policy - Achieving Excellence in Project Management Tier 1 Policies, Laws and Regulations (POLICY) - Approval of Business Transactions Policy - Achieving Excellence in Project Management PMCoE Standards Tier 2 - Enterprise Standards (ENTSTD) - Stage-Gate Authorization Standard through Project Career Path Qualification and Training Standard Tier 2 - Enterprise Standards (ENTSTD) - Stage-Gate Authorization Standard through Project Career Path Qualification and Training Standard ImplementationStandards Tier 3 Implementation Standards (IMPSTD) - Group, department, section and/or unit procedures, as applicable Tier 3 Implementation Standards (IMPSTD) - Group, department, section and/or unit procedures, as applicable GeneralReference Tier 4 General Reference Materials (GENREF) - Project Management Institute (PMI), Project Management Body of Knowledge (PMBOK), etc. Tier 4 General Reference Materials (GENREF) - Project Management Institute (PMI), Project Management Body of Knowledge (PMBOK), etc.

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Structure of Standards

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Project Investment Lifecycle PlanExecuteDevelopAssessScan Operate & Maintain Value Inputs Identify Opportunity or Threat Determine Impact / Benefit, Timing and Potential Responses Refine Candidate Responses (Projects) and Prepare for Initiation Develop Project Plan and Prepare for Execution of Major Commitments 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 Operate and Maintain Assets Delivered by Project Generate Return on Investment Retire at End-of-Life or Disposition Asset abcdefgh BuildCommitInitiateSelectIdentify Close Commission

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Enabling a Scalable Project Management Framework Project Rank and Assignment Cost plus Complexity = Project Rank Project Complexity

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Project Rank Comparison Black ~1% Brown ~1% Green III ~1% Green II ~1% Green I ~6% White 90% Brown ~30% Black ~30% White ~20% Green I ~10% Green II ~6% Green III ~4% Total Project Count Total Project Spend

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The Project Delivery System 18 [1] Determine Project Profile Matrix Rank [2] Assign Rank- Appropriate Organization & Project Management [3] Use Rank- Appropriate Processes, Tools & Templates [4] Deliver Products & Services According to Plan SelectInitiateClose DevelopPlan & Execute

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PM and PC Career Paths Sr Project DirectorProject DirectorSr Project ManagerProject Manager IIProject Manager IProject Mgmt Spec 19 Manager PCSupervisor PCPrincipal PCSSr PCSPCS IIPCS I Project Rank Project Controls Project Management

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Change Management Approach 20 Coalition Building (Executive Level Presentations) Active & Visible Participation (EGC Meetings) Direct Communications (Up, Down and Across Organization) Sponsor Engagement Identify Change Agents in Each Department Collaborate with Change Agents to Align Department Processes Workshops with Project Teams Coaching & Org Transformation Enterprise-Wide Cascading Communication Recurring Communications Communication Executive Series Management Series Performance Series Training 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 21

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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 dont work in a vacuum! 22

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Contact Information 23 P. Brandon Lane, MBA, PMP brandon.lane@duke-energy.combrandon.lane@duke-energy.com | (980) 373-2782 LinkedIn: http://www.linkedin.com/in/phillipbrandonlanehttp://www.linkedin.com/in/phillipbrandonlane

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