The Next Generation PMO - VIC
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Our presentation from the SMS Management & Technology Next Generation PMO seminar, held in Victoria and presented by Michael Aizacowitz and Eric Van Zeyl
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The Next Generation PMO - VIC
- 1. The Next Generation PMO Planning for the evolution in business strategy and organisational culture 22 October 2012 Presented by: SMS Management and Technology Program and Project Services (Victoria) Slide 1
- 2. About SMS Management & Technology Hong Kong Vietnam A LEADING ASIA PACIFIC Singapore MANAGEMENT & IT Australia SERVICES FIRM Melbourne (Head Office) Sydney Brisbane Canberra Adelaide Perth Established in 1986 $336m 85% OF THE ASX TOP 20 USE SMS FULL SERVICE END- TO-END SOLUTIONS PROVIDER REVENUE 1,700+ Experienced Professionals 2 Slide 2
- 3. Introductions Eric van Zeyl Over 20 years experience in Financial Services and Professional Services industries. Extensive Program Management experience Including Global ERP Deployment Specialised in PMO Establishment and Transformations Significant improvement in project success Cultural Change driven via Competency Frameworks and PM Competency Assessments Michael Aizicowitz Over 20 years experience in Government, Utilities, Banking and Property Management industries in Australia and Internationally. Extensive Project, Program and PMO experience Including Business and Technology related projects Specialised in PMO Establishment and Transformations Significant improvement in project success Capability Pillar Lead – SMS PMO Services Slide 3
- 4. The Next Generation PMO Today’s Agenda 12:00pm Welcome & Lunch 12:15pm Introductions 12:25pm The Next Generation PMO Best Practices & Real World Examples 1:20pm Q&A 1:40pm Next Steps 1:45pm Open Discussion & Networking 2:00pm Close Slide 4
- 5. Today‟s Discussion Action Plan External Challenges PMO Strategies How do you define your PMO? Enterprise & “Decision-based” Portfolio Alignment Reporting How does your PMO add value to your organisation today? Outcome & Benefit Increasing Focused Stakeholder Power What should your PMO be doing now in order to “People-first” add value Focus tomorrow? Best Practices & Examples Slide 5
- 6. External PMO Best Practices Defining the PMO Adding Value Action Plan Challenges Strategies & Examples PMO Challenges …why a clearly defined PMO matters! Slide 6
- 7. The “current” PMO challenges that many organisations are focused on… Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 7
- 8. Defining the PMO “Most companies have a PMO What is the focus of the “P” in PMO? (87%). Of the few that don‟t, 40% are looking to implement PMO Type Focus one within a year.” Enterprise Helps Executive Management to select PMO and prioritise programs that will best deliver the organisations strategy Portfolio Helps Senior Management select the Management right portfolio and manage the projects Office consistently and successfully Program Helps a Program Manager to deliver a Management number of projects consistently and Office successfully Project Helps a Project Manager to deliver a Management project successfully Office Source: The State of the PMO 2012 – PM Solutions Survey; Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 8
- 9. PMOs have different extent of reach and offer different services Decentralised Centralised Full Services Possible to achieve in pockets of the organisation – Rarely achievable in large companies as it requires needs very strong sponsorship & alignment across very stable and mature organisation hierarchy of PMOs Consulting Provides great improvement in PM capability – Allows corporate thought leadership in PM to be responsive at expense of possible duplication enhanced – requires sponsorship of a Project Managed environment Standardising Most Common target for PMOs – need to overcome Requires cross organisation alignment – much to be problems of multiple ‘standards’ being created gained, but more difficult to implement across very large organisations Reporting Basic Level capability – easiest to ‘sell’ in large Basic Level capability – more easily achieved in federated organisations small organisations Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 9
- 10. PMOs have different extent of reach and offer different services Decentralised Centralised Full Services Possible to achieve in pockets of the organisation – Rarely achievable in large companies as it requires needs very strong sponsorship & alignment across very stable and mature organisation hierarchy of PMOs Consulting Provides great improvement in PM capability – Allows corporate thought leadership in PM to be responsive at expense of possible duplication enhanced – requires sponsorship of a Project Managed environment Standardising Most Common target for PMOs – need to overcome Requires cross organisation alignment – much to be Overproblems of multiple ‘standards’ being created 60% of PMOs are not strategic or operating gained, but more difficult to however are trending in at the corporate level, implement across very that direction large organisations Reference: The State of the PMO 2012. PM Solution Reporting The greater the capability of the PMO, the greater the value the PMO contributes and the greater the overallLevel capability – easiest to ‘sell’ in large Basic performance of the organisation. Basic Level capability – more easily achieved in federated organisations small organisations The State of the PMO 2012. PM Solution Reference: Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 10
- 11. Methodology and Governance Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 11
- 12. External PMO Best Practices Defining the PMO Adding Value Action Plan Challenges Strategies & Examples Is your PMO adding value to the organisation? Slide 12
- 13. What defines “Adding Value” • The difference Evolve between the benefit of the Measure • Provide finished • PMO is the „first expertise, profe place someone product/service • Increase in ssionalism, insig thinks of‟ to and the cost of value that a ht, and engage‟ when a the inputs to business experience problem arises make it creates by or assistance is undertaking the needed product/service Demonstrate Define Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 13
- 14. What distinguishes a high performing PMO? Nearly twice as likely to engage in performance measurement functions Addressing the issues that matter most to executives, including alignment with business objectives and strategy execution Impacts not only project performance, but boosts organisational performance Manage more project managers and engage in more training activities Source: The State of the PMO 2012 – PM Solutions Survey Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 14
- 15. External PMO Best Practices Defining the PMO Adding Value Action Plan Challenges Strategies & Examples …but being successful is more than meeting the current challenges, its planning for the future challenges Slide 15
- 16. Will your PMO add value tomorrow? …what are the current & future external challenges you need to be thinking about today Global Workforce Australian Data Market- Demo- Economy Growth place graphics Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 16
- 17. Challenge #1: Global Marketplace …has your organisation felt higher levels of competition in the last three years? Are you and your executives being asked to make more complex and rapid decisions? Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 17
- 18. Challenge #1: Global Marketplace The post-GFC recovery has been hampered by global economic factors including the Euro crisis and most recently a cooling of China‟s growth. Meanwhile, competition is increasing : Acceleration of workforce globalisation Increased mobility of workforce Consumer-based international trade increasing exponentially Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 18
- 19. Challenge #2: Australian Economic Outlook …has your organisation tightened its budget in the last five years? Have you noticed stronger emphasis on where and how money is being spent? Slide 19
- 20. Challenge #2: Australian Economic Outlook The RBA quotes from May 2012, show a period of moderate growth or decline in some sectors…. • “Outside of the mining sector…business investment intentions remain weak • Moderate household spending in late 2011 and early 2012 • Employment forecast to be fairly subdued in the near term • Measures of business and consumer sentiment below, long-run average Source: http://www.rba.gov.au/publications/smp/2012/may/html/eco-outlook.html Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 20
- 21. Challenge #3: Workforce Demographics …is your PMO positioned to support this new and evolving workforce? Slide 21
- 22. Challenge #3: Workforce Demographics • By 2015 • Generation Y will account for 40% of the workforce • Generation X will account for another 40% • Baby Boomers will decline by 22% to a total of 20% • What do we know about Gen Ys? Sociologists (Howe and Ross, 2000) have identified common characteristics of Gen Y: • Achievement-oriented • High self-expectations • Team-oriented • High use of technology – „digital natives‟ Source: http://www.rba.gov.au/publications/smp/2012/may/html/eco-outlook.html Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 22
- 23. Challenge #4: High Volume of Easily Accessible Information … are you able to find the right data when you need it, or present it in a meaningful way? Slide 23
- 24. Challenge #4: High Volume of Easily Accessible Information • The world‟s information is doubling every two years • In 2010, estimates by IDC an increase of 62% on the previous year • The report claimed that by 2020, the amount of data in the world will increase 50 fold Source: http://www.emc.com/leadership/programs/digital-universe.htm Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 24
- 25. External PMO Best Practices Defining the PMO Adding Value Action Plan Challenges Strategies & Examples SMS has identified five key strategies to implement… Slide 25
- 26. The Next Generation PMO External Challenges …five key strategies Enterprise & “Decision-based” Portfolio Reporting Alignment Increasing Outcome & Stakeholder Benefit Focused Power “People-first” Focus Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 26
- 27. Strategy #1 Is your PMO focused on delivering the right list of projects, or a list of projects right? • Global competition demands – develop and deliver high quality products and services Drivers • Dynamic market & economic pressures decreasing profits and eroding budget surpluses • Emphasis on creating Enterprise Portfolios & aggregation of Program-level PMOs to aid portfolio selection Trends • Increasing competition between projects to win & maintain funding Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 27
- 28. Strategy #1 Factoid: Per the SMS 2012 Portfolio Survey… 92% of Top Performing Organisations operate at the Enterprise Portfolio Management 100% 92% 90% 80% % in Top and Bottom Third 70% 58% 60% 50% 50% 42% Top Third 40% Bottom Third 30% 25% 25% 25% 20% 17% 8% 8% 10% 0% At enterprise level At enterprise level By a market-facing By an internal Other by a business led as a finance led business unit operational unit forum and process forum and process such as an IT Department Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 28 28
- 29. Strategy #1 Action #1: Align the focus of your PMO to the support the Enterprise and Portfolio level Roles and Organisational Structure Portfolio Training and Decision …accomplished via a focus Making Coaching on the assessment and uplift Enterprise & of six key functions in the Portfolio PMO… Alignment Contingency and Data Dependency Management Management Risk and Issue Management Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 29
- 30. Strategy #1 “Traditional” Dashboard …Traditional Project Dashboard provides static, one-dimensional data that does not support analysis of trends or mapping to strategic alignment of programs in the portfolio… Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 30
- 31. “Next Generation” Strategic Dashboard Slide 31
- 32. Strategy #2 Does your PMO generate reports that facilitate discussion and decision making? • Increased scrutiny re: financial & asset management resulting in more complex questions being asked Drivers • Executives gaining better understanding of Decision Governance & their roles – learning to ask Based more sophisticated questions Reporting • Strong focus on exception based reporting and trend analysis Trends • Emphasis to maximise resource and asset allocations across programs & projects • Requirements for inter-program contingency & dependency management Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 32
- 33. Strategy #2 Action #2: Collect the right data to build the right reports to enable decision making Data Integrity Tools Data (Collection …concerted effort on data Correlation & Reporting) and information management Decision- is the foundation to based developing decision based Reporting reporting… Security Up-to-date Available (enable self- sufficiency) Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 33
- 34. “Traditional” Strategy #2 Project Status Report …Status report provide project information at a point in time. It does not show dependencies Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Page 34 Slide 34
- 35. “Next Generation” Inter-program Strategy #2 Dependency Diagram …Dependency Mapping showing overall issues and risks help focus on root cause analysis … Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Page 35 Slide 35
- 36. “Next Generation” Inter-program Strategy #2 Dependency Diagram Governance Program Apps & Dev Program Infrastructure Program Data Governance ERP Upgrade VM Upgrade Framework CMS Upgrade DB Virtualisation IT Strategic Review Info Mngmnt Program Operational Program Mobility Program Data Warehouse Service Desk Tool Upgrade Mobile BI ITIL Rollout Knowledge Mngmnt Tablet Rollout Tool People Program Portal Program Collaboration Program Unified Comms HR System Portal Redesign Video Conferencing LMS Upgrade Extranet High Risk Medium Risk Low Risk Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Page 36 Slide 36
- 37. Strategy #3 How focused is your PMO on Outcomes & Benefits Achievement? • Program/Project Management has evolved - delivering projects on time and on budget is expected Drivers • Proliferation of transformation enabling programs requires emphasis on outcomes and benefits realisation • New focus is on Benefits Realisation strategy development and planning Trends • Increased use of “Agile” methodology to deliver products and benefits more effectively • Establishing “Rapid Response” & “Business Innovation” teams Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 37
- 38. Strategy #3 Factoid: Per the SMS 2012 Portfolio Survey… 62% of organisations do not know how many projects achieve the predicted benefits • Less than a quarter (23%) said 70% 62% that 75% or more of their 60% projects delivered the 50% expected benefits 40% • Almost two-thirds (62%) do 30% 23% not know how many projects achieve the predicted 20% 12% benefits - indicating that 10% 4% benefits tracking is not often 0% performed > 75% 50% - 75% < 50% Unknown Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 38 38
- 39. Strategy #3 Action #3: Transform the mindset from “on-time/on-budget” to “benefits dominate” Governance Roles Defined Benefits Understand Tracking & Strategic Reporting Objectives …coaching & training – with processes, tools & templates Outcome & to support – will change the Benefit Focused focus and behaviours of the PMO to a fit-for-purpose and Consistency Training & outcome driven of Process & Coaching Measures organisation… Tools & Templates Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 39
- 40. Strategy #3 “Next Generation” Benefits Map End Enabler Business Change Interim Benefit Benefit Strategy Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 40
- 41. Strategy #3 “Next Generation” Benefits Map End Enabler Business Change Interim Benefit Benefit Strategy Cust Client One Stop Greater Take Lower Client More Web Manage- Service Up of Cost Inquiry Self Help Portal ment Delivery Services Services Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 41
- 42. Strategy #4 Are you a Consulting-type PMO with a focus on Stakeholder Relationship Management? • Pressure to show PMO value results in being more stakeholder centric (outward focused) Drivers • PMOs have transformed from Technology- Relationship focused to Operational to Organisational • Strong stakeholder analysis and expectation management at program, portfolio and organisational level Trends • PMO creates linkage between Strategy, Architecture, Delivery & Service Management • Trusted advisor relationship with sponsor Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 42
- 43. Strategy #4 Action #4: Create a culture that values its relationships across the organisation and champions its Stakeholders Stakeholder Analysis Help Customer Navigate the …leverage the uniqueness of Organisatio Centric Culture n the PMO interfacing to all areas in the organisation and Increasing Power of the focus on stakeholder Stakeholder success… Marketing & PMO Best Comms of Practice PMO Clarify Decision Account- abilities Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 43
- 44. Strategy #4 “Traditional” Governance Structures …I may know which board to submit decisions to, but don’t know how to influence the outcome …. Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 44
- 45. Strategy #4 “Next Generation” Network Analysis …need more context on how to successfully deliver projects by understanding the influencers and authority levels… Risk & Delivery & Governance Services Group Group Authority to stop projects – Service Design Package Strong Linking Role Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 45
- 46. Strategy #5 “People-first” Are your PMO staff and Project Managers Focus considered a critical success factor? • Recognition that the skills, experience and culture matter more than procedures and governance Drivers • Significant changing workforce and working Relationship style due to Gen-Y • PM competency assessment (with high focus on stakeholders and lateral thinking) Trends • PMO provides Best Practice / Centre of Excellence • Training & Mentoring Programs Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 46
- 47. Strategy #5 Action #5: Focus on management of staff and address changing workforce demographics Selection& Recruitment Collaboration Induction …achieved by aligning all HR functions to create a stakeholder focused, benefits “People First” Focus driven culture … Competency Training & Assessment Mentoring Career Pathways Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 47
- 48. Strategy #5 Benefits of Social Business / Collaboration Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 48
- 49. Strategy #5 “Next Generation” Collaborative Tools Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 49
- 50. Strategy #5 “Traditional” PM Competency Assessment Skill Integration Management 3.0 Procurement Management Scope Management 2.0 1.0 Risk Management Time Management 0.0 Communication Management Cost Management Resource Management Quality Management Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 50
- 51. „Next Generation” PM Competency Strategy #5 Assessment Best Practices & Defining the PMO Adding Value External Challenges PMO Strategies Action Plan Examples Slide 51
- 52. Conclusions • PMOs have historically and will continue to face challenges. • Awareness and understanding of future trends allows strategies to be adopted. • A PMO ahead of the adoption curve will continue to ADD VALUE to the organisation. Slide 52
- 53. Q&A Slide 53
- 54. Next Steps Project / Reporting PMO Program PMO Benefits Capability Maturity Manager Capability Management Analysis & Assessment Capability Uplift Uplift Assessment Building the Next Generation PMO To proceed, contact your SMS Account Director or the Vic Program & Project Services (PPS) Practice Managers, Hidaye Ozeral or James Harris. Slide 54
- 55. Thank you. Slide 55
Editor's Notes
- Our PMO services encompass a full range of services to support you PMO. These services includeCapability assessment PMO Uplift includingDesignPresentation of clear optionsActionable implementation plansResource estimatesProvision of mentoringResource augmentationOperational services”PMO in a box” – a shared service PMO Our people are experienced and certified in all program and project management disciplines.
- Just want to give you an idea of the topics we will be covering - *Firstly look at statistically how common PMOs are, their definitionHow does your PMO add value today, and what should it do to add value tomorrow - *External factors that are impacting they way they operate - *We then look at recommended PMO strategies to meet the challenges- *Action plans to implement the strategy -*and some best practice examples.
- Red chevron to track the topicsApologies to methodology purists, we will be using a mix of “Waterfall” and “Agile” in the presentation. Waterfall up to The PMO startegies, then we will iterate through each strategy with its associated action plan and best practice exampleLet start by looking at some common PMO Challenges
- I am sure these are familiar to youMany of our clients are working on addressing the “current” PMO challenges and are familiar with the problem definition and how to address it. I am therefore not going to focus on all of these topics.The ones in bold How ro handle the volume of reports from the PMOHow do we demonstrate added valueHow do we upskill our PM’sWhy are projects managed in isolationwill be touched on however in a broader contextSo we know that PMO have issues, lets look at how how many organisations have a PMO
- Statistics tell us that PMOs are becoming more common in organisations, and are trending to becoming more strategic and enterprise based.87% have a PMO, and of those that don’t, 40% are looking at implementing one in the next year.This is supported by the growth of PMOs between 2000 and 2012.These statistics have been sourced from the The State of the PMO 2012 – PM Solutions Survey. Reflects responses of over 500 organisations (38% revenue over $1B, 31% revenue between 100m and 1B and 29% revenue less than 100m). Data is cross industry (Fin Insurance, Professional and Technical, Manufacturing Govt …..)Now you all know what a PMO is – I am not going to preach to the converted …. - *Have a think of how you define your PMO, and what services it offers, and if its meeting expectations.We know that 87% or organisations have a PMO, but one PMO is not like another. Lets explore these differences as each one delivers a different service or has a different modus operandi.Lets make this interactive by a show of hands – what type of PMO does your organisation have (it could have more than one)Concerning trend is the proliferation of PMOs at the lower level – which results in creation of terms such as VMO or EMO or BMO (pick any letter except “P”). It’s a way of trying to differentiate. -*Research suggests that the real value add in PMO’s come from the Portfolio and Enterprise PM offices.
- Another characteristic that defines a PMO is decentralisedvscentralised and service offering which ranges from reporting based (passive) to full service (active)Again via a show of hands:Decentralised : CentralisedReporting – passive reporting of what has happenedStandardising of methodology and functionsConsulting – provides thought leadership and best practiceFull Service – proactive management of all of the aboveHave a think of where your PMO currently resides on this matrix, and where it is headingIn our experience all PMOs that have been mis-aligned or not meeting expectations are due to operating the wrong type of PMO or providing services different to what the business expectsGeneral pattern in the market is start with a Decentralised Reporting PMO (specifically at program / project level), then move to a number of decentralised or centralised PMOs,- *then centralised and strategic. The remainder of my presentation will therefore be biased to this end state, therefore be focusing more on the Enterprise PMO and Portfolio based PMO. For those of you whos interest in project and program based PMO don’t switch off and focus only on lunch – the context for you is being aware of portfolio and enterprise PMOs and how you report to them or align functions to them
- Over and above the PMO variants we have just looked at PMOs also use different methodologies and different governance structures.Governance is another item that PMOs are grappling with, the latest challenge has been agile methodology integration – but what is next?We still see many instances of Agile methodologies being used, yet driven through rigid waterfall style stage gate review cycles and in some instances that being linked to funding cycles. This engenders conflict between the Agile teams and the PMO.Agile is the current governance challenge, who knows what is the next one
- We know that PMOs are facing challenges, we know that statistically there are a lot of them, and we know that the operate differently – this leads to a questionIs your PMO adding value?
- How do we define value?Along the Define – determine how to measure the difference between the benefit and cost Measure – calculate the increased value Demonstrate – provide expertise and professionalism Evolve – make the PMO the first port of call to solve capability problems Important to realise that we can only demonstrate value based on measureable improvements.
- Research distinguishes between high performing PMOs and low performing PMOsProject performance is expected, therefore organisational performance improvement is the targetAlignment to strategic direction - Combine with what matters to exec – costs reduction trends, Benefits Realisation rates improvingTracking and reports PMO performance helps to sell value add, but remember this comes back to measurable performance improvementsTop performing are also more likely to focused on PM competencies and training
- There are numerous external challenges – these change from time to time, and tend to be cyclicalWhen we consult on PMOs these 4 are recurrent themes, that are currently currently having the biggest impact
- Global MarketplaceYou are no doubt being asked to make more complex and rapid decisions - *Post GFC recovery has been slow, and Euro crisis is still loomingCompetition is increasing: Workforce is globalisation, therefore driving mobility and international trade
- Australian Economic outlook - *The reduction in spending will continue, the focus is clearly on obtaining more bang for your buck and therefore selecting the optimum portfolio of projects Given the RBA quotes pointing toward moderate growth or decline in some sectors…Household spending is down due to consumer sentimentEmployment is subdued in the near termBusiness and consumer sentiment is running below the long term average
- Workforce demographicsIS your PMO ready for a workforce dominated by Gen-Y - *In 3 years time Gen-Y will make up 40% of the workforce and will dominate for 20 years. Baby Boomers will also be in the minorityGeneration Y is the most significant change to workforce demographics, and more importantly they bring a different way of thinking and interact with technology differently that will result in PMOs deliver projects in new waysGen Y Preferences:Achievement orientedHigh self expectationsTeam orientatedInteract with technology differently – digital nativesThe rigid process adherence, reporting PMO will no be tolerated
- High volume of informationDo you have lots of data, or meaningful information for decision making? -* Fore example an EPM tool can generate 40 types of reports, we can have Excel versions all over the place, we can be generating another 20 adhoc reports as each board has a different set of reporting requirementsWe know that data doubles every 2 years, and that will increase to 50 fold in the coming decade:The challenge for PMOs is not how to technically cope with data storage, but rather the skills associated with data management such as analysis and reporting
- We have just covered off the 4 biggest external challenges -> As are result of this SMS has identified 5 key strategies
- -* These strategies have been identified based on SMS research and experience helping clients address provide value adding PMO servicesRead 1 – 5In the next slides we are going to talk to each of these topics, and outline the drivers behind them, the resulting trends and show real examples of the assistance we have provided clients
- The first Strategy is Enterprise & Portfolio Alignment Is your PMO focused on delivering the right list of projects, or a list of projects right - *We have already covered the drivers of Global competition and economic pressuresTrend is toward Portfolio Selection & competition between projects
- Per the SMS 2012 Portfolio Survey,92% of top performingorganisations operate at the enterprise level and use a business led forum for portfolio decision makingCompare this to 58% of the bottom third performing organisations who make decisions at an operational unit level
- To build effective enterprise & portfolio alignment requires an uplift of 6 key functions Lets investigate traditional and next generation examples of decision making at portfolio levelRead all sixWe are going to focus on the one in red.Portfolio management is a core function of our Program & Project Services practice with associated methodologies and templates addressing the above areas. For more details around portfolio optimisation, please contact Simon Phillips. I’ll provide a contact list for all of the relevant capabilities at the end of the presentation.
- Example one dimensional data report – used at a governance level to focus on Red items for discussionOther than a summarsed list it does not provide much context As there is no context, decision on particular projects tend to be taken in isolation based on the project itself, rather than looking at the program and deciding what is best for the organisation as a whole
- Similar report created for a board in the Banking sector – guideline given was CEO statement that I don’t mind spending 1.5 hours with my most senior management, but I have to know we are focus on the right issues and risk. Focus is on a longer time span, therefore more trend based reportingThe reason I want to walk through this example is to show the types of executive discussions that can be facilitatedIf we take the previous list of projects and map them against strategic objectives it helps executives make more meaningful decisions – focus on the biggest risk form the previous report may have little impact on reaching the organisations strategyRemembering that the context of these decisions are still based on optimum portfolio selection – what project can I stop to reallocate the $ and resourcing to deliver the biggest benefit?LHS – current average KPI score, beneath it the trend from last month, mid block shows over exposure (where exposure exceeds appetite) and on the RHS it measures KPI against the 4 strategic pillar. In the middle bottom it shows the risk by exposure type.The decision could be that we are significantly underperforming on the customer strategic pillar, and due to our second highest exposure of poor perception of brand we are going to stop a Financial project with (preferably that’s overexposed us) and allocate to funds to a project that improves customer KPIs and reduces poor brand perception. Now that may not be possible, but the discussion has been facilitatedIndividual projects still need to manage risks to improve project delivery success, but at a portfolio and organisation level its being focused on what really matters.
- The first influence was focused on selecting the right projects, once selected then decisions need to be made on how to best manage them – therefore focusing on business based decisionsThe focus is on measuring what matters, doing meaningful analysis (to present information and not data) and support executives to make decisions – this requires different skillsets in the PMO
- Information and Data Management practice specialised in data management & reporting – managing above functions
- Historically a list of projects are presented and each one reviewed or discussed. This provides no context or exception based focusDecisions are made in isolation, and the broader context is missing – the data is not correlated any any way. This approach forces a silo’d approach to decision making.
- Diagram is fuzzy as it’s a real example with confidential information blurred out. The client was in Federal Government.Client has a culture of things being managed in isolation, lift the issues and risks discussions to an integrated approachA Program can be viewed by dependency mapping which makes a discussions on issues an risks more meaningful.“Highly social” projects are identified and this assists with prioritization as well as a better understanding of where management attention should be.
- Purpose of diagram is to assess dependencies at an Enterprise level and determine the impact of at risks projects against the organisation. Walk through exampleBenefits – Executive focus on the correct area.
- This is the single most important factorAll procedures, governance and activities are there to provide results, not theoretical best practiceThe pressure is broader than the difficulty in governing agile projects – we have seen PMO setup rapid response team, Best Practice Groups and Innovation teams. All of these as well as all projects need to be established “inside” of the PMO governance and reporting – and most importantly the Outcome and Benefits focus.
- SMS 2012 portfolio survey shows that 62% of organisations don’t know how many projects achieve the predicted benefitsThere is currently a very strong trend to improve benefits management competencies across the organisation.From an SMS service perspective we have seen strong demand for benefits competency uplift.We will be running further sessions such as this one focused on Benefits realisation.
- This ties a couple of concepts we have spoken about together:Done with the business, and is in business speakIt’s a reference document that’s used by all parts of the business (across the enterprise)Focuses attention on benefits and keeps them front of mindits concept is simple, but organisations that get it and have regular discussions around it are successfulWe implemented this with a client and they have embraced it – taken this and use it with a RAG statusLets walk through an example - *Technology delivers an enabler (Mobile Phone Service)Business change delivers process changes, efficiencies (Text alert System)Result in interim benefits (one stop service delivery)and these deliver end benefits (more self help) that then deliver against strategic objectives (service delivery at lower overall cost)
- PMO are less insular and more outwardly focusedPMO also better at selling their services and successMarketingCommunications: marketing, branding & communicationsPMO needs to lobby, and talk people to get things approved, needs to facilitate decision making (different skillset)Expectation Management – this includes push back
- Example: Business Middle Managers run projects with high support from PMO
- Objective here is to show how to best navigate the organisation – this is about deliver success.Note that I have not seen this type of network analysis on people, but our IDM practice has done some network analysis for big data relationships. If it can can show how data connects and what data is linking, then PMO stakeholder analysis can show the same thing related to peopleNetwork analysis reveals: informal leadership of the group, influencers, the “reach” of people and the organisationMeasurement of stakeholder engagement and know when its successfulHave you thought of how you engage these people:Blogs, TwitterEG. Induction program that contains contextual information – here is what's unique with this organization (very risk averse)
- Organisations are looking to PMO to bring expertise and best practice to delivery business change.Having the right competencies, experience & business acumen in PMO staff is paramount to success
- Recognise that contractors are significant part of workforce, yet don’t get visibility of goals or performance reviewsSelecting for cultural fit and developing required competencies – PMO plays a supporting roleCentre of excellence – PMO provides consulting servicesMentoring & support via collaborationReward and recognition programsCareer path frameworkAll of the above you will remember as Gen-Y Preferences
- There are many benefits an organisation can expect from becoming more networked or a more social business.Networking the organisation, breaking down old kingdoms, building trust and establishing new cultural paradigms requires a sustained and holistic approachAn organisation can expect to achieve any number of the benefits on the diagram. Which ones they experience will depend on the maturity of their strategies and transformation. It will also depend on the focus of the organisation and which ones they attach a higher value to.
- At SMS I have worked on Salesforce bids using salesforce chatter – work in progress would be posted, people would review and comment, individuals would ask for examplesBreakdown in roles as people with capacity would be asked to contribute – it was not just a PMs who contribute to the schedule.Internally use Magellan which is based on our intranet and crosses organisational boundaries. Questions are posted and those best place to answer do so – further breaking down specific role limitations
- Traditional PM Knowledge Areas – risk, time, quality management.Great project delivery, but could be poor stakeholder management, and not able to deal with ambiguityIn this example CIO had a perception that PMs were not competent and that was causing the failure in project delivery
- Remember that research shows that top performing PMO measure PM competenciesIt should be noted that there is a strong focus on soft skills eg. decision making, negotiation, stakeholder management, influencing, dealing with ambiguityThe way that competencies are measured and reported are now more accurate, and specifically the reporting helps a PMO to determine how to address any gaps:Skills are fixed by trainingMindset relates to how you apply the skills – best improved by workshops and mentoringImpact is “HOW” you use the skill / mindset – its impacted by procedures and policiesI therefore can identify competency deficiencies, as well as understand how to best improve them
- PMOs have historically and will continue to face challengesYour awareness of the external challenges and being able to define strategies to address them will help you stay ahead of the adoption curve, thereby continuing to add value to the organisation,