Today's modern IT PMO governance are superior delivery experts in project driven delivery, technology powered, business centric, and BI enabled. IT leaders must embrace constant pressures, changes, and innovation.

1. IT PMO GOVERNANCE
Presentation
By
Thomas Silvestri
June 14, 2016
The Silvestri Group – Shape Shifting the Future
Digital Age of IT Investments

2. PMO GOVERNANCE OVERVIEW
Today's modern IT PMO governance are superior delivery
experts in project driven delivery, technology powered, business
centric, and BI enabled. IT leaders must embrace constant
pressures, changes, and innovation. The capital investment
portfolio and primary decisions criteria for which programs and
projects are funded remains a mystery for most IT departments
lack of visibility to the decision-making processes of their
corporate boards and CEO's.
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“Annually 25% of total IT investment capital leakage approximately a net
loss of $125M on $1B CAPEX invested.”
~CIO Magazine 2016

3. PMO GOVERNANCE SUMMARY
IT Governance and program management industry reports provide me
information on the status of the project itself, however if I wanted to know
how a project was really going in financial terms, I had to get out and speak to
the stakeholders, budget analysts, and related administrators within the
organization. Top-down messages that are too general or full of "enterprise-
speak" leave much open to interpretation and do not enable those in the
organization who will need the PMO support the change management to take
specific action on IT investments in the digital era.
Digital Business Hierarchy
• Integration Services
• Digital Ecosystem
• Bimodal IT
• Postmodern application strategies
• Internet of Things
• Sustainable competitive advantage
• Volatile business relationships
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4. PMO GOVERNANCE STRATEGY
On average, over 20% of projects will fail as businesses are unable to sense
and respond to the project risks and challenges for superior implementation
causing a massive capital leakage across all industries. The tracking of
performance and accountability provides a means for IT governance process
and policy control, with no financial functions capturing the activity-based
costing expenditures that account for the millions of dollars wasted on failed
projects annually.
Strategic Accountability
• Unhappy project team
• Lack of executive sponsorship
• Dissatisfied or disengaged PM’s/Leads
• Lack of collaboration
• Lack of communication
• Disorganized meetings
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5. PMO GOVERNANCE ALIGNMENT
• Cost of PPM increase at a faster rate than the project benefits can
be realized including the NPV and total TCO.
• Senior management does not participate in leadership and support
roles due to the continued lack of success rates and project
deliverables, thus eroding the relationship in the business cultural
dynamics.
• Lack of predictability and oversight of the project portfolio, capital
requirements, change in operations priorities, and relative factors
of outside-in pressures.
• 30% delivery success rates for IT governance and project portfolio
with a 70% failure rate to deliver their expected business benefits
and outcomes.
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6. PMO DIGITAL BUSINESS CASES
Integration Services - Reshaping your integration strategy toward a bimodal
and self-service "pervasive integration" approach is required to achieve
sustainable advantage in the frantically evolving and increasingly digital
business world. Follow our five integration best practices to successfully
tackle this challenge.
Digital Ecosystem — a "nonintegrated digital business" is an oxymoron.
Digitalization does give organizations an opportunity to establish personalized
and responsive relationships by enabling "right-time" integration with their
constituents via social media, business networks, mobile applications and
APIs.
Bimodal IT — To support the digital era's rapid pace of change, organizations
of every size, in every geography and in every industry are increasingly
looking at a two-speed (bimodal) IT strategies where slowly evolving, "run the
business" IT systems (Mode 1) need to coexist and interoperate with fast-
changing and innovative "transform the business" initiatives (Mode 2).
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7. PMO DIGITAL FRAMEWORKS
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8. PMO DIGITAL BUSINESS CASES
Postmodern application strategies — often, organizations look at cloud as the
primary source of innovation in business applications and technology platforms —
while trying to reduce their IT operation costs. However, cloud services must be
integrated with established, usually on-premises, system-of-record applications in
the context of postmodern application strategies.
Internet of Things — The Internet of Things (IoT) can enable unprecedented
degrees of efficiency and business model innovation. However, it also requires
organizations to integrate the new world of "smart things" and the data they
produce with back-end business processes, data and analytical environments.
Sustainable competitive advantage — Modern technologies (such as social,
mobile, analytics, cloud and the IoT) are easily accessible to any organization, but
also to its competitors. They can therefore give organizations short-term, first-
mover benefits; but, alone, cannot help to build a sustainable competitive
advantage. Organizations can, however, maintain differentiation through original,
smart and fast integration of such technologies (see Note 1).
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9. PMO DIGITAL CITIZENS
Business users' adoption of these platforms to address this class
of "personal" integration needs is giving rise to the phenomenon
of "citizen integrators" (see "Embrace the Citizen Integrator
Approach to Improve Business Users' Productivity and Agility”).
You cannot ignore this phenomenon; it's going to happen
whether you approve it or not. You have to manage it, because
you don't want individual business users to pursue DIY
integration in a spontaneous, unregulated fashion. Ungoverned
DIY integration would potentially expose your organization to the
same risks that stem from unmanaged adaptive integration —
only an order of magnitude higher.
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10. PMO DIGITAL CITIZEN FRAMEWORKS
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11. PMO KEY CHALLENGES
Influence: This is where failure starts - IT leaders assume everyone
understands the objectives of the business transformation, and fail to
develop a common vision that unifies everyone's understanding and
drives the business direction.
Communication: Conflicting messages about what is changing splinter
the audience and, ultimately, will derail a transformation effort.
Actionable Intelligence: Top-down messages that are too general or
full of "enterprise-speak" leave much open to interpretation and do
not enable those in the organization who will need to support the
change to take specific action.
Change Management and Training: Organizational change activities
are often an afterthought and commonly associated with training.
IT PMO Implementation
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12. PMO KEY FINDINGS
Make the re-envisioning of your PMO digital transformation strategy a
top priority, because a holistic, pervasive and "high touch" bimodal
integration approach is an entry ticket to the digital era and the PMO
Governance maturity model.
Encourage and enable global systems and platform investments and
governance by driving transformational support and guardrails for all
encompassing spectrum of users. The systematic and adaptive
modeling through a "facilitation team" that complements business and
IT management to build centralized PMO organizations.
Develop new innovation models for internal and external application
development (AD) project leaders into a design-for-interoperability
approach by pushing an decision-making business driven API-first style
supported by appropriate technology.
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Final Conclusions

13. The Silvestri Group
SHAPE SHIFTING THE FUTURE. BEYOND TRANSFORMATION TO
SUPERIOR DELIVERY.
Unlock your potential, challenge your established universe of
thoughts to achieve new paradigms of thinking for global business
superiority.
Partner with agile, adaptive, forward value capabilities to co-create
platforms of success with stakeholders and key global partners.
Thomas Silvestri
Managing Director
773.597.5754
www.thomassilvestri.com
thomas@thomassilvestri.com
The Silvestri Group – Shape Shifting the Future