1. PPM Challenge #4
Improving PPM Maturity
2012 PPM Challenge and Opportunity
Webcast Series

2. PPM Challenge & Opportunity Series
Challenge #1
– Prioritizing Demand
Challenge #2
– Project Communications and Reporting
Challenge #3
– Providing Value to All Levels
Challenge #4
– Improving PPM Maturity

3. Recap – Prioritizing Demand
Demand Management
Portfolio Management
Resource Management
Financial Management
What-if Modeling

4. Recap – Project Communication and Reporting
Project Communication Tools
Performance Reporting
Issue and Risk Reporting
Change Management
Resource Reporting

5. Recap – Providing Value at All Levels
Enterprise vs. user needs
Value needed by role
– Senior Mgmt., Middle Mgmt., Team Members
Work Management
– All work in one solution
Project roles and tools
All processes and methodologies
– Support for all

6. PPM Challenges
Challenges:
– Growth and improvement of PPM maturity
across the organization
– Putting plan in place to improve organizational
maturity
– Benchmarking effectiveness

7. PPM Opportunities
Opportunities:
– Establish or improve the organization’s PPM
processes
• Resource utilization
• Portfolio optimization
• Cost control
– Move up the scale in the PPM Maturity Model
– More effective PMO, and higher PPM Maturity
result in a higher project success ratio

8. PPM Maturity Models

9. 6% - Level 1
51% - Level 2
42% - Level 3
1% - Level 4
Gartner

11. Understanding Maturity

12. Five Core Dimensions
Each maturity level is defined by dimensions:
People
PPM Practices and Processes
Technology
Financial Management
Relationships

13. People
People are the most critical part of any project
effort
Interdependency per availability, skills and work
contributions are critical
At higher levels of maturity, leadership ability in
supporting PPM activities becomes critical

14. PPM Practices and Processes
PPM processes include:
– Portfolio Management
– Program Management
– Project Management (i.e. risk and resource management)
Common practice is the establishment of a PMO
– Project Management Office
– Program Management Office
– Portfolio Management Office

15. Technology
Requirements evolve with:
– PPM process changes
– Increasing levels of maturity
PPM processes often require unique tool sets to
fulfill the business functions
– Financial management
– Collaboration
– Project Accounting
– Resource Management
– Others

16. Financial Management
Financial management systems may be adequate
at Level 1
– Lump sum project budgets
Inadequate when forced to support multiple
projects and programs
Effectiveness requires more detailed visibility
– Charge backs
– Allocations
– Tracking value

17. Relationships
Organizations must identify touch points needed to
maintain the PPM processes
This includes:
– Who needs to be informed
– Who needs to be consulted
– Whose help is mandatory for processes to work effectively

18. PPM Maturity and Dimensions
Level 5
Optimizing
Level 4
Managed Enterprise
Orientation
Level 3 Increasing and
Defined Efficiency Beyond
Initial • Network of • Pervasive
Level 2 Integration PPM Leaders Specialized PPM
Leaders
Developing
•Center of
• PMM Leader Excellence, Cap •Enterprise PMO
Emerging Beyond IT
acity Planning
Level 1 Discipline •Shared
Initial Resource Pools •Workflow Tools •Real Time
• PMO in Place Pipeline
Reactive •Projects •Business User Management
•Managed Approved on Tool Adoption
Level 0 • Staffing for Programs and Portfolio Basis •Integration
Nonexistent Priority Projects Resources •Portfolio Tools for
Dimensions •EA Involved Modeling and Reporting
Ad Hoc •Process for •Project Optimization Collaboration
Priority Projects Processes in •Portfolio Analysis
People Place Tools, Dashboar
• First Available •Risk Factored
•Project Sched- ds •Full Program
PPM •No Process uling Tools •Cost/Labor •Benefit Lifecycle
Processes Capture •Cost Capture Realization Financial
•XL •Budget and Forecast Tracked Management
Estimates •Projects Benefit
Technology Estimates •Benefits Related •Relationship •Broader Impact
•No Analysis of
Cost/Benefit/ •IT/Business to Portfolio Mgr. = Considered
Financial Risk Collaborate •Risk Review Strategy Consultants (social, supply
through Business chain)
Management
•Ad Hoc Analyst PM •Relationship •Relationship
Communication Updates Mgr. Emerge Mgr. Trusted
Relationships

19. Characteristics of Level 1 - Reactive
People • Priority projects get appropriate staffing — everything else gets staffing when
"first available."
• Nascent PPM leader role — there is still primarily an individual-manager focus.
• A few people begin to work toward stopping the pain and getting organized.
PPM Practices and • All internal processes are centered on the management of critical projects.
Processes
• The approach to process is centered on necessity and observation of processes
brought in by outside vendors working on large projects and programs.
Technology •Project-scheduling tools and milestone reporting are adopted on a project-by-
project basis.
•There are no formal management tools.
Financial Management •Projects have budgetary estimates. Actual costs can be estimated.
•There are some benefit statements.
Relationships •Previous informal relationships begin to break down, and it becomes necessary
to formalize roles, including that of a "stakeholder."

20. Characteristics of Level 2 – Emerging Discipline
People Project: The project manager role is formalized. Project staffing/resource capacity issues
begin to be addressed, with formalization around other roles and skills to increase utilization
and productivity. The most common PPM leader role that emerges is the purveyor of
methodology and standards, followed by a resource manager, as both roles are critical to
support effective resource capacity issues.
Program: Little distinction, if any, exists between a project manager and a program manager.
Portfolio: No true portfolio management roles exist.
PPM Practices and Project: Initial PMOs are established. Initial project processes are instituted. Understanding
Processes of project-level risk management is becoming more common. An approach to demand
management and prioritization is instituted.
Program: Little, if any, program-specific processes or practices exist.
Portfolio: While something resembling portfolio management may be used during funding
cycles, no true portfolio management processes or practices are in place.
Technology Project: Automation at the project level occurs, largely with desktop solutions. Project
collaboration and team work spaces are occasionally supported.
Program: While existing technology may support programs, process immaturity usually
renders this superfluous.
Portfolio: While dashboards (where available) may aggregate data, no formal technology
support for portfolio management exists (that is, no technology-spanning projects, programs
and portfolios are in place).

21. Characteristics of Level 2 – Initial Integration
Financial Management Project: Estimates for costs and benefits are made for each project. Project cost and labor
hours are generally captured.
Program: No financial management specific to program management exists.
Portfolio: There is no true portfolio management capabilities showing aggregate risk and
return against objectives.
Relationships Project: Relationships within projects strengthen as a focus on the project as the operating
entity emerges. Cross-functional governance committees begin to emerge.
Program: No formal program management relationships are officially sanctioned at Level 2.
Portfolio: No formal relationships exist to support portfolio management.

22. Characteristics of Level 3 – Initial Integration
People Project: The concept of disciplined teams working on projects is developed. Specialized PPM
leader roles are formalized. Career paths are defined, factoring in skills and capabilities of the
individuals.
Program: The role of the program manager exists and is distinct from that of the project
manager.
Portfolio: The role of the portfolio manager exists and is distinct from that of the chief
methodologist or resource manager.
PPM Practices and Project: Projects are approved on a portfolio basis. Project management practices and
Processes processes are aligned with enterprise architecture and software development life cycle.
Program: Programs increasingly are managed in-house. Program management-specific
practices and processes, distinct from project management-specific practices and processes,
are instituted.
Portfolio: Portfolio management is instituted, but largely for project approval only.
Technology Project: Reporting dashboards that focus on providing actionable information are available.
Program: Technology support for programs and their associated projects exists.
Portfolio: A portfolio management tool is in place.

23. Characteristics of Level 3 – Emerging Discipline
Financial Management Project: Value-based estimates are adopted. Actual costs are captured and forecast. Benefits
are identified and related to strategy in the portfolio.
Program: Financial management is applied to programs, distinct but related to projects.
Portfolio: Portfolio value and risk become considerations.
Relationships Project: Cross-functional groups are easily formed, and collaboration is the norm. Project and
program staff view themselves as reporting to the project first and their home department
second. Relationships with related disciplines (for example, enterprise architecture and
application development) ally.
Program: Increased integration fosters collaboration across projects and programs.
Portfolio: Alliances with related roles, functions and disciplines emerge.

24. Characteristics of Level 4 – Effective Integration
People Project: A network of PPM leaders is emerging. Companywide centers of excellence improve
workload management. Project assignments are made based on the specific skills and
capabilities of the individual.
Program: The role of the program manager exists internally.
Portfolio: The role of the portfolio manager exists internally. Senior leaders and key
stakeholders actively participate in the governance and management of the portfolio through
formal structures.
PPM Practices and Project: Related projects are managed as programs. The portfolio is actively maintained.
Processes Multiple methods exist and are used by all project managers (PMs).
Program: Increased use of program management methods, often with multiple program
management methods available for various scenarios or profiles.
Portfolio: Increases sophistication in portfolio practices (for example, modeling and portfolio
triggers).
Technology Project: A single PPM repository of reporting data is available for the enterprise in order to
support a project-capable organization.
Program: Technology supports programs, with the ability to enable underlying projects as
well.
Portfolio: Technology supports portfolio modeling.

25. Characteristics of Level 4 – Effective Integration
Financial Management Project: Project budgets are meaningful, and such techniques as monthly estimates to
complete are beginning to be common.
Program: Programs operate in much the same manner as operating divisions having the right
to adjust their funding between projects without exceeding their stated budgets.
Portfolio: The portfolio is modeled and appropriately optimized, factoring in risk. Benefit
realization is tracked. Greater reliability in the portfolio is driven by greater reliability in its
underlying projects, programs and supporting processes.
Relationships Project: The organization has adopted a project-centered view that supports enterprise-wide
teams, promoting collaboration and sharing. No more "us vs. them."
Program: Program management is an enabler to enterprise-wide teams.
Portfolio: Synergy develops between the portfolio and the stakeholders involved with its
management as it becomes a tool for success, as opposed to a system to go around.

26. Characteristics of Level 5 – Effective Innovation
People Project: Project managers exist throughout the organization, and project management is
considered a core capability designed to support allowing individuals to manage projects in
their particular area of competency. Self-selection and self-direction are encouraged as
enabling behaviors. Periodic training is expected.
Program: Programs are considered the primary way to execute strategy and make changes,
and program management experience is considered a key element of career development on
the way to senior management positions. Innovation and out-of-the-box thinking are
encouraged in the program management role.
Portfolio: Portfolio managers exist within the organization and support optimal results.
Portfolio managers support innovation and ideation, and play a key role in ensuring that all
projects and programs are presented in a manner such that they can be fairly evaluated and
prioritized.
PPM Practices and Project: Practical, low-overhead approaches to project management have been adopted
Processes toward project management to make it accessible to the entire company.
Program: Common program management processes and methods evolve in a cycle of
continuous improvement, with rapid dissemination of these processes and methods
throughout the program management community. While best practices are applied to
familiar programs, adaptive approaches exist for less structured programs, with program
managers knowing which to apply and when. More-sophisticated analytical approaches (such
as agent-based modeling and simulation) are available and applied when appropriate.
Portfolio: Portfolios exist for all project work throughout the enterprise, harmonized by a
consistent enterprise approach to portfolio management. The EPMO oversees strategy
execution. One or more innovation or discovery portfolios exist, replete with supporting
processes for innovation, ideation, investment management and dissemination.
Sophisticated practices, such as simulation and agent-based modeling, are used when
appropriate.

27. Characteristics of Level 5 – Effective Innovation
Technology Project: Technology supports a robust knowledge management system, and resource
management is enabled for ALL project resources. Collaboration technologies support
communities that may allow external input. Agent-based modeling, simulation and predictive
technologies are available to projects.
Program: Ideation, open innovation platforms, agent-based modeling and simulation
technologies are available to programs.
Portfolio: Open innovation platforms contribute to the portfolio. Ideation technology exists.
Predictive markets provide insight into portfolio decisions. Agent-based modeling and
simulation technologies are applied at the portfolio level.
Financial Management Project: Full life cycle costs and benefits are tracked with feedback to improve financial
management. Creative financial management methods exist to support creative projects
where estimated costs, schedule and benefits are a poor determinant of success.
Program: Full life cycle costs and benefits are tracked with feedback to improve financial
management. Programs have dedicated financial management staff. Creative financial
management methods exist to support creative programs where estimated costs, schedules
and benefits are a poor determinant of success.
Portfolio: Portfolio resources are consciously allocated to innovation and exploration.
Portfolio liquidity is high, with the ability to shift resources, investment allocations and
strategies to respond to market conditions or opportunities.

28. Characteristics of Level 5 – Effective Innovation
Relationships Project: Social responsibility aspects are considered, along with the impact to the
organization itself. Superb communication skills are considered a core competency of project
managers. Team diversity is managed to deliver optimal results. Project communities are
common.
Program: Social responsibility aspects are considered, along with the impact to the
organization itself. Superb communication skills are considered a core competency of
program managers. Team diversity is managed to deliver optimal results. Program
communities are common.
Portfolio: Social responsibility aspects are considered, along with the impact to the
organization itself. Dynamic tension of explore/exploit is accepted. Social network analysis is
openly applied to portfolio optimization.

29. PPM Maturity and Dimensions
Level 5
Optimizing
Level 4
Managed Enterprise
Orientation
Level 3 Increasing and
Defined Efficiency Beyond
Initial • Network of • Pervasive
Level 2 Integration PPM Leaders Specialized PPM
Leaders
Developing
•Center of
• PMM Leader Excellence, Cap •Enterprise PMO
Emerging Beyond IT
acity Planning
Level 1 Discipline •Shared
Initial Resource Pools •Workflow Tools •Real Time
• PMO in Place Pipeline
Reactive •Projects •Business User Management
•Managed Approved on Tool Adoption
Level 0 • Staffing for Programs and Portfolio Basis •Integration
Nonexistent Priority Projects Resources •Portfolio Tools for
Dimensions •EA Involved Modeling and Reporting
Ad Hoc •Process for •Project Optimization Collaboration
Priority Projects Processes in •Portfolio Tools, Analysis
People Place Dashboards
• First Available •Risk Factored
•Project Sched- •Full Program
PPM •No Process uling Tools •Cost/Labor •Cost Capture •Benefit Lifecycle
Processes Capture and Forecast Realization Financial
•XL •Budget Tracked Management
Estimates •Projects Benefit •Benefits Related
Technology Estimates to Portfolio •Broader Impact
•No Analysis of •Relationship
Cost/Benefit/ •IT/Business Strategy Mgr. = Considered
Financial Risk Collaborate •Risk Review Consultants (social, supply
Management through Business •Relationship chain)
•Ad Hoc Analyst PM •Relationship Mgr. Trusted
Communication Updates Mgr. Emerge
Relationships

30. Critical Steps to Improving
Maturity

31. Approach – Top-Down vs. Bottom-Up?
PPM
Strategic Project
Management
EPM
Tactical Project
Management

32. Applying To Your Organization
Objectively assess maturity of current PPM
practices
Determine maturity level required to meet future
needs
Tailor a strategy that first focuses on areas that
most need improvement
Consider strengths and weaknesses in the
roadmap and development plan
Agree on Plan for
Current State Identify Gaps
Target State Improvement

33. Evolving The Level of Maturity
Plan to do incremental phases
Benchmark targeted area of improvement, and
measure
– Measure values for key stakeholders
• Project managers
• Department Managers
• Executives
• Support organizations

34. Sample Phases
Phase 1: Implement basic project management
including initiation, planning, resource
allocation, control, execution, and project closure
Phase 2 Add project risk management to the
basic project management functionality; basic
program management of projects and services by
grouping projects and services into programs for
progress reporting; and portfolio management
processes and capabilities for both projects and
services

35. Sample Phases
Phase 3: Add project cost management, project
procurement management and project quality
management; program risk analysis; and
program resource management
Phase 4: Add services portfolio planning;
business relationship management; services
finance management; program cost
management; program procurements and
program quality management

36. Success Factors
Thought Leadership: Create a roadmap and
vision for the implementation of
processes, organizational change and PPM
software, an explanation of why we’re doing
this, who it will benefit, and the desired ROI.
Constantly communicate this roadmap, benefits
and progress at all levels of the organization

37. Success Factors
Clearly define the requirements, and create
an actionable scope: Scope should be
manageable and achievable within 90 days.
– Scope creep will derail your efforts as teams lose sight
of the payoff
– Frequent successes fuel positive PR for all internal
audiences and maintain sponsorship

38. Success Factors
Staff the effort properly: Three roles/teams
should be present:
– Implementation Team: Defines and implements
processes and puts supporting standards, material and
PPM software into place. This team will carry out each
phase, then hand off to the stabilization team and on-
boarding teams and move to the next phase.
– Stabilization Team: Takes over from the
implementation team to ensure that any process, people
or technology issues in the phase are addressed and
have no impact on the implementation team
undertaking the next phase.

39. Success Factors
Staff the effort properly: Three roles/teams
should be present:
– On-Boarding Team: Trains all end users in the new
processes, standards, supporting material and software
being deployed within that phase. Again, this is
undertaken as a separate exercise so that it does not
divert the implementation project resources away from
the next phase. Effective on-boarding will ensure that
the process improvements and changes will be used
throughout the organization, and raise the level of
maturity. As one phase builds on the next, this team
helps to ensure that the maturity level is raised across
the entire process.

40. Tools Needed to Support
Maturity

41. PPM Maturity and Dimensions
Level 5
Optimizing
Level 4
Managed Enterprise
Orientation
Level 3 Increasing and
Defined Efficiency Beyond
Initial • Network of • Pervasive
Level 2 Integration PPM Leaders Specialized PPM
Leaders
Developing
•Center of
• PMM Leader Excellence, Cap •Enterprise PMO
Emerging Beyond IT
acity Planning
Level 1 Discipline •Shared
Initial Resource Pools •Workflow Tools •Real Time
• PMO in Place Pipeline
Reactive •Projects •Business User Management
•Managed Approved on Tool Adoption
Level 0 • Staffing for Programs and Portfolio Basis •Integration
Nonexistent Priority Projects Resources •Portfolio Tools for
Dimensions •EA Involved Modeling and Reporting
Ad Hoc •Process for •Project Optimization Collaboration
Priority Projects Processes in •Portfolio Tools, Analysis
People Place Dashboards
• First Available •Risk Factored
•Project Sched- •Full Program
PPM •No Process uling Tools •Cost/Labor •Cost Capture •Benefit Lifecycle
Processes Capture and Forecast Realization Financial
•XL •Budget Tracked Management
Estimates •Projects Benefit •Benefits Related
Technology Estimates to Portfolio •Broader Impact
•No Analysis of •Relationship
Cost/Benefit/ •IT/Business Strategy Mgr. = Considered
Financial Risk Collaborate •Risk Review Consultants (social, supply
Management through Business •Relationship chain)
•Ad Hoc Analyst PM •Relationship Mgr. Trusted
Communication Updates Mgr. Emerge
Relationships
Collaborative Enterprise Project Project Portfolio
Project Management Management
Management

42. Project Management Maturity
PPM Expectation
GOAL: PM Capability Risk
Process/System Complexity

43. Solutions For Everyone
Project, Portfolio & Work Management
Solutions For Everyone
Strategic Portfolio, Project
& Work Management
Enterprise Project & Work
Management  Demand Management
 Portfolio Management
Web-based Project
Collaboration  Project Visibility  Financial Management
 Resource Management  Capacity Planning
 Schedule Management  Time Management  Enterprise Governance
 Team Collaboration  Work Management  Program Management

44. Try us out
www.epmlive.com