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TTCSI NSW 2014 – PMI SCC IPMD 2014

Building Bridges to Project Management ExcellenceAchieving Real Value

November 6, 2014

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TTCSI

National Services WeekTheme: Building Bridges

November 3 to 7, 2014

Celebrating 7 years of Commemoration

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November 6, 2014

Celebrating 11 years of Commemoration

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“Achieving a Sustained Competitive Advantage

in the Services Sector through the application of

Project Management”

Theme

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The Services Sector – the largest and most diverse sector Employs approximately 80 percent of the labour force Importance - to diversify the National Economy and

develop the Non-Energy Sector

Diversification of the economy requires a concerted effort comprising countless initiatives (projects) to achieve the intended result

Context

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Making Project Management Indispensable For Business Results

Requires a management approach that considers the business side of the PM discipline Assesses the performance and results delivered

Context

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Achieving a sustained competitive advantage through the application of project management in this sector

Requires us to:Explore the path to continuous levels of excellence (Building Bridges)Realize improved results and value for our organizations

First let us look at the concept of

Value in Project Management and

Value Delivered by projects

Context

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Introduction

Why do organizations invest in

Project Management?

In a Nut Shell:

1)To Control Spending

2)To Improve Performance

Bottom Line:

Governance and Value

Risk Reduction and Value Optimization

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PMI 2008 Study – The Value of Project ManagementIncreased PM Maturity Delivers Greater ValueIntangible Value Appears To Increase In Proportion To PM Maturity Greater levels of intangible value are reported in organizations with higher level of PM maturity However, Tangible Value Is Seen At All Levels Of PM Maturity

“Even the simplest methodology,

if accepted by the organization and

used correctly, can increase your

chances of success” – Kerzner 2006

VALUE

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Even Organizations That Demonstrate Significant Value Today Are Not Assured Of Continued Value Moving Forward

Some Organizations Demonstrating Significant Value And Actively Investing In Their PM Implementation Are In Fact Destroying Value

VALUE

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PMI Pulse 2012 - organizations can: Improve Performance Reduce risk Save money Earn a greater return on investments

through excellence in basic project management execution

VALUE

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PM Solutions 2014

Project Management Maturity & Value BenchmarkThere is a direct and strong correlation between the PM maturity of a firm and its overall performance High-performing firms are much more mature in their PM practices than low performers There is a correlation between the length of time project management has been in place in a firm and its PM maturity and overall performance Organizations have seen considerable value by increasing the level of their PM maturity

VALUE

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PMI Pulse 2013 Report - 46% of organizations do not understand the Value of Project Management

Let us examine value derived from project management in the region

VALUE

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Success or Failure?

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Success?

Over the past few years, organizations have struggled with project delivery and success. Initiatives are: Over budget Behind schedule Poorly executed Failed to deliver on their original intent

The greatest challenges to these organizations included: Inadequate supply of skilled project management resources Insufficient tactical and strategic capability to influence

outcomes that demonstrate value and deliver results

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Success?

2012 – 2013 Study: The aggregated average for deemed Project Success is 63.1% Project Failure is 36.9%

Deeper examination of project success parameters found

no greater than 44% of projects meet the criteria defined for success

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Cost of Failure

PMI Pulse 2013 Study: Effect of poor Project Management = Low performing organizations risk 14 times more money than high performing organizations

As organizations’ project management strategy matures,

the business value derived from it also increases

Average Cost of US $7 Million was spent on Projects reported as failures. 2012 – 2013 Study

56% of projects are behind schedule 46% of projects are over budget 38% of projects do not deliver on their original intent 36% of projects are deemed to have failed

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Improving Performance

The industry practice of creating more projects of smaller investment size does not equate to a resulting risk reduction of the portfolio spend

The results show a contrary result; that project failure increases as the root causes of failure are potentially not being addressed adequately or effectively

Let us now look at the greatest single influencer on project management in organizations

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Centralized team within an organization Creates a home for Project Management Manages the standardization of a project management

methodology, tools, templates, key performance indicators, processes and resources among other responsibilities

The basic value of a PMO Ability to objectively and consistently

provide internal consulting experience Project management knowledge Clear set of performance standards for

getting all of the required work

accomplished

The Project Management Office (PMO)

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Its core purpose is to deliver value When organizations improve their project management maturity,

they experience corresponding gains in project management performance

More importantly, they also show improved organizational performance and substantially greater value in a variety of project management performance measures that matter most to executives

Organizations that implemented PMOs cited significant improvements in:

Financial measures (ROI) Customer measures (customer satisfaction) Project/Process measures (cost, scope, time, quality) Learning and growth measures (employee satisfaction, certification)

The PMO

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The greatest challenges to PMOs in the Caribbean:

Project managers with inadequate project

management skills

Compliance with defined standards

Demonstrating value

Resource management

Executive support

Greatest Challenges to PMOs

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The Value achieved from the PMO depends largely on: Investment it receives Management of the unit by its leader Influence and impact within the organization How it is implemented Level of maturity

The bottom line: The implementation of a proper PMO in an organization creates a home for project excellence and can yield significant organizational performance benefits.

The PMO

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Most people are focused on Project Execution

Most executives are focused on Project Outcomes

Project Managers are focused on the Management of the

Project

The PMO is focused on the Management of Project

Management, methodology, inputs required, processes,

outputs, tools, templates, business results, organizational

performance, maturity, continuous improvement, etc.

Understanding Perspectives

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So how do we achieve the theme for today?

“Achieving a Sustained Competitive Advantage

in the Services Sector

through the application of Project Management”

Improve ValueImprove Value from ProjectsImprove Value from Project ManagementImprove the PMO

We need A Management Approach to Project Management to deliver value and results that leads to a sustained competitive advantage.

The PMO – Building Bridges

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Getting StartedOrganizations need to decide to invest in project management (Insurance for Assurance)

Consider value attributable to the PMO as per tender evaluation criteria. (Methodology, PM Skill and Experience, Implementation Plan, Schedule, Communication Plan, Change Management Approach)

Attain real project management talent from the onsetFind talent with Business Acumen, Strategic and Executive level expertiseConsider getting help from outsourcingBegin the process

Improving Outcomes

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Improving Outcomes

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How do you achieve and sustain value?Continuous investment to Project Management Focus and commitment to Project Management Retention of leading personnelConsistent alignment of needs between organization and PMOCaution not to cause over-implementation and bureaucratization

Let us look at an organization in pursuit of

“Achieving Real Value” from project management

Achieving Sustained Competitive Advantage

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Evolution

The PM Services Unit at Massy Technologies InfoCom is a continuous evolution and has transformed itself.

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2006

2007

2008

2009

2010

2011

2012

2013

2014

The Pursuit of “Achieving Real Value”

PMO Evolution

ICTS Excellence Awards

1st Publication

2nd PublicationTTCSI Excellence AwardPMI REP Accreditation

3rd PublicationPMI SCC Recognition Award

Communications, Engage Employees, Develop Basic Tools

Embed Tools, Training

Develop More Sophisticated Tools, Certifications

Organization wide training in PM

Develop More Sophisticated Tools

Develop More Sophisticated KPI and Management Analysis

Transformation

Business Results

Increasing Value DeliveredIncreasing Business

Domain Projects

TTCSI Excellence Award

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With increased maturity, you are able to gain more Intangible Value in different ways. For example:

2010: Recognized for Project Management Best Practices in developing a Project Management Culture

2012: Recognized as an enterprise that exhibited excellence and innovation in developing and maturing an organizational structure to support the effective business management of projects; and manifested vision and business insightfulness in carrying out new ideas, methods, or processes that led to quantifiable improvements in project business management that demonstrates real business benefits and value for the organization

2013: Recognized for Project Management Best Practices in PM Excellence, Strategic business of project management, Integrated processes, Effective risk management and PM Culture

Demonstrating Value

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Project excellence transcends triple constraints:

We have shared the reporting format with other projects as a best practice. Willing to go the extra mile to build relationships. Presence was always felt throughout the project.Demonstrated a high degree of flexibility to adapt to a variety of situations throughout the life of the project.

No other project in the global knowledge library yielded as many best practices and going forward, the best practices and lessons learned from this project will be added to the knowledge library and actions taken within the Corporate Project Methodology to ensure that future projects adopt the best practices from this project.

Voice of the Customer

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Financial

Process

Customer

Learning

Growth

Project

Portfolio

Maturity

Metrics, KPIs, Results2012 Increase in Managed Utilization 7% Increase in Internal Satisfaction 9% Increase in External Satisfaction 9%

2013 Increase in Revenue over prior year 150% Increase in Net Profit over prior year 85% Reduction in Support Expenses over prior year 31% External Client services increase over prior year 100%

2014

Revenue 18% above set target

72% of Portfolio = External Client services

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“Achieving a Sustained Competitive Advantage in the Services Sector

through the application of Project Management”

You can achieve value from the application of project management

There is room for improvement in the amount and type of value being delivered by projects and project management

There are levels of maturity and excellence to achieve levels of value in project management

You can achieve MORE* Value and REAL* Value from project management with the right talent providing a management approach to project management excellence leading to a sustained competitive advantage

Matters to the Organization Resulting in ExcellenceRelevant to the Enterprise And Leadership

Closing Thoughts

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“Service Sector Champions”

2012 & 2014

edge@massytechnologies.com

Contact

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Thank you

Building Bridges to Project Management ExcellenceAchieving Real Value