How to avoid the consequences of an ineffective PPM/PMO Strategy

1. PAGE 1 • The Disturbing Reality About Today’s PMO
COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS
The Disturbing Reality
About Today’s PMO
Why You Need to Avoid the
Consequences of an Ineffective PPM
and PMO Strategy
The Disturbing Reality About Today’s PMO

2. PAGE 2 • The Disturbing Reality About Today’s PMO
COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS
The Goal
Bridge the Gap Between the PMO
and the Rest of the Business

3. PAGE 3 • The Disturbing Reality About Today’s PMO
COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS
50% of project management offices close within 3 years
(Association for Project Mgmt)
Since 2008, the correlated PMO implementation failure rate is over
50% (Gartner Project Manager 2014)
Only a third of all projects were successfully completed on time and
on budget over the past year (Standish Group’s CHAOS report)
68% of stakeholders perceive their PMOs to be bureaucratic
(2013 Gartner PPM Summit)
Only 40% of projects met schedule, budget and quality goals (IBM
Change Management Survey of 1500 execs)
5 Shocking PMO/PPM Statistics
1
2
3
4
5

4. PAGE 4 • The Disturbing Reality About Today’s PMO
COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS
Primary PPM Functions
Portfolio tracking (performance monitoring)
75%
Portfolio governance and oversight
68%
Portfolio Planning including Resource Allocation
66%
Portfolio Selection and Prioritization
65%
Portfolio Management Process Management
61%
Source: State of PPM Report 2013

5. PAGE 5 • The Disturbing Reality About Today’s PMO
COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS
Gartner PPM Maturity Model
Source: Gartner

6. PAGE 6 • The Disturbing Reality About Today’s PMO
COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS
Consequences of Not Implementing
PPM
• Reluctant to kill projects
• New projects added
• No Focus
• Weak decision points
• Poor “Go/kill/hold/fix
decisions
• No rigorous criteria
• Selection based on
emotion, politics
• No strategic criteria for
project selection
No Portfolio
Management
Means…
• To many projects
• Resources Spread
• Execution suffers
• To many low value
projects
• Good projects starved
• Wrong projects are
selected
• Projects lack strategic
direction and alignment
Immediate
Impact
• Increased time to market
• Higher failure rates
• Too few top product
winners
• Chaotic Launches
• Many failures
• Diluted effort
• New products don’t
support strategy
End Result:
Poor Performance

7. PAGE 7 • The Disturbing Reality About Today’s PMO
COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS
PMOs have been led astray by all sorts of
conflicting organizational demands and
requirements. Quite often if someone doesn’t
know where to put something, they dump it into the
PMO which quickly morphs into an unwieldy mish
mash of roles and responsibilities with vague terms
of reference, uncertain leadership and tense
relationships with the rest of IT.
Source: Itfromhere.com
An All Too Common Scenario…..

8. PAGE 8 • The Disturbing Reality About Today’s PMO
COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS
Barriers to Adoption
• Internal politics & culture: PMOs have to satisfy multiple
stakeholders with differing goals
• Lack of executive sponsorship and top management
commitment to support the PMO
• Inability to agree on a common approach to managing
projects
• Shifting business/project priorities
• Disagreement on the pace of adoption
• Impact on existing processes & software systems
The Internal Challenges

9. PAGE 9 • The Disturbing Reality About Today’s PMO
COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS
PMOs Focus Too Narrowly
• Only 1/3 of respondents support Agile, Scrum, or Lean practices
Lack Of Trust
• 58% of respondents think they don’t get realistic info from their PM’s
PMOs Are Too Busy To Be Truly Strategic
• 75 percent of surveyed PMOs do hands-on project management
An Analyst Perspective
Forrester Research Identified the Three Most
Significant PMO Problems as:
Source: The PMO In An Agile World: Can’t We All Just Get Along?
1
2
3

10. PAGE 10 • The Disturbing Reality About Today’s PMO
COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS
…project delivery within an enterprise
environment involves the
multifaceted collaborations of the
business’ ability to successfully
execute the key project components
seamlessly and as a natural
extension of the business rather
than as separate, alien and
conflicting entities.
Why Project Delivery Can Be Difficult
Source: PPM Master Class
KeyedIn Solutions

11. PAGE 11 • The Disturbing Reality About Today’s PMO
COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS
The Good News: Maturity is Growing
Source: PWC 3rd Annual Global Survey on Program and PM Practices

12. PAGE 12 • The Disturbing Reality About Today’s PMO
COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS
There is Still Much Room to Grow…
Companies who have implemented a PMO:
2% best in class
6% strategic
19% institutionalized
36% established
33% basic
5% informal
But While Maturity is Improving
Source: State of the PMO 2012
8%
Only 8 percent of
PMOs are Best-in-
Class or Strategic!

13. PAGE 13 • The Disturbing Reality About Today’s PMO
COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS
The Bottom Line:
Characteristics of a Best-in-Class PMO
1. Well-defined and achievable objectives
2. Delivers responsibility, governance and oversight
3. Viewed as supporting the business and IT strategy
4. Established methodologies and framework for project management
5. Able to measure and prove the realization of benefits (business
value)
6. Outward focus on business needs, not inward focus on processes
7. Practices good relationship management, from executive sponsorship
to project management

14. PAGE 14 • The Disturbing Reality About Today’s PMO
COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS
Time for Technology
You Need Great
Technology to
Enable PPM and
PMO Improvement

15. PAGE 15 • The Disturbing Reality About Today’s PMO
COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS
Manage Execution
Manage Cost | Billing | Deliverables | Resources | Benefits
Strategy Focused Design
Results&DataVisibility
Goal&ProjectClarity
Executive Team
Drive Business Strategy | Achieve Corporate Goals
Project | Program Management Office
Project / Program
Portfolio
Resource Plan Expense Plan
Project / Program
Milestones
Results Mgmt
Project | Program Managers
Task-Based
Planning
Change
Management
Risk Management
Progress
Management
Progress Status
Reports
Resource
Scheduling
Document
Management
Issue
Management
Create “To Do”
Action Items
Management
Reporting

16. PAGE 16 • The Disturbing Reality About Today’s PMO
COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS
Unique Value Proposition
Strategy-led
approach
• Strategy-driven implementation
• Quick win to prove benefits
• Real-time management dashboard
Native SaaS
technology
• Load-balancing
• Navigation
• Rapid application development
Easy adoption
• Easy to use; self-service
• Fast to live
Highly scalable
• Small Business, Professional and
Enterprise Editions
• Small projects to large project
programmes and portfolios

17. PAGE 17 • The Disturbing Reality About Today’s PMO
COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS
Summary
• PMO Failure Rate is High
• Project Execution is not Enough – you must prove
the business value of the PMO
• Best-in-class PMOs are a small minority but are
seen as strong assets to their organizations
• PPM software provides targeted improvements to
the way your PMO operates and how you engage
project stakeholders
• A comprehensive cloud-based solution from
KeyedIn Solutions can offer both top-down strategy
and bottom-up project execution.

18. PAGE 18 • The Disturbing Reality About Today’s PMO
COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS
Take a Free 15 Day
Trial Today
• Easy to adopt, easy to use
• Intuitive
• Minimise IT cost and
deployment effort
• Delivery is backed by
impressive Service Level
Agreements
• Interfaces with ERP, CRM or
financial/accounting software

19. PAGE 19 • The Disturbing Reality About Today’s PMO
COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS
Questions and
Answers
Thank You
Email: ondemand@keyedin.com
Web: www.keyedin.com/keyedinprojects
Twitter: @keyedinprojects