Delivering Business Value through the PMO
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Transcript of Delivering Business Value through the PMO
#ppmconf16
Developing Business Value Through the PMO
Marisa Silva, Senior PPM ConsultantWellingtone Project Management
#ppmconf16
68%
of organizations
have a PMO
Source: PMI’S 2016 Pulse Of The Profession®: The High Cost Of Low Performance
Has your PMO realised its full potential
in contributing business value to the
organization?
#ppmconf16
The paradox of value in PMOs
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PMOs are suffering an identity
crisis
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Capture
value
• How is value
perceived by
our
stakeholders?
Deliver
value
• Which
services
should we
deploy to add
value?
Measure
value
• How can we
know if we are
delivering
value?
Communicate value
Value lifecycle
How can we demonstrate we are adding value?
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Different stakeholders have
different perceptions
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Role Sound familiar?
Team Member“My priorities are changing all the time. I don’t know what to do
next”
Project Manager “I don’t have time for this. I have a project to run”
Resource Manager“I don’t know if we will have enough people available for the next 3
months”
Sponsor“You’re asking me to approve projects with no clear business case
or priority”
Functional
Manager
“I don’t have visibility over what my team is doing in the next
month”
CxO Level“It’s not easy to understand where our annual budget is being
invested on”Results-
centric
Project-
centric
…and different pains
Adapted from Powersteering, 2011
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Start With Why
“What’s in it for me?”
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One does not destroy what
one helps to build
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Consistency
Quality
We are what we repeatedly do.
Excellence then, is not an act,
but an habit.Aristotle
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Transparency and Visibility
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Talent Management
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Predictability
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Agility Agile >
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Organizational learning
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Alignment
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Strategy
Planning
Strategy
Delivery
PMOs are a communicating bridge
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Adding value is a journey
• Project requests
captured
• PM Methodology
•Governance defined
•QA Reviews
• Simple cost tracking and
scheduling
• Few but meaningful
reports
•Capacity management
•Methodology tailoring
• Training and coaching
•Detailed cost tracking
and scheduling
•Health checks
•Additional and more
sophisticated reports
•Capacity forecasting
• Portfolio planning
• Stage Gates
• Benefits realization
management
•Multiple what-if scenarios
• Predictive cost and schedule
management
• Integrated dashboards
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Resistance
Is this how your PMs
are reacting?
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Which would you rather drive
everyday?
Source: Powersteering, 2011
Costly and complex to deploy
Extensive training and
maintenance
Requires an army to support
Overkill for most situations
Cheap and easy to get started
Limited capability
Doesn’t scale
Quickly outgrown
Versatile
Cost effective
Easy to operate and maintain
‘Just right’ for daily users
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The world has become complex
Coffee in 1996 Coffee in 2016
Source: Truth Facts
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Different context requires different
methods
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S
M
L
Complexity
Controls
One size doesn’t fit all
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You can’t manage
what you can’t
measure
Less is more
Work with your stakeholders
Set baselines and targets
Plan-Do-Check-Act
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Key Performance IndicatorsOrganizational Drivers Examples of KPIs
Value to Business
• Planned ROI vs actual ROI
• Planned benefits vs realized benefits
• % of projects with robust business cases
• % of projects aligned with strategic objectives
• % of projects stopped or cancelled
• % of projects to run the business / grow the business / transform the business
• € at risk
Productivity and Efficiency
• # of days from project conception to project start
• % of resource utilization
• % of billable hours
• # of FTEs by project
• # of projects by project manager
Project Delivery
• % of projects on time
• % of projects on budget
• # of high risks active by month
• # of issues escalated by month
• # of change requests by project
PMO Performance
• Satisfaction scoring from key stakeholders
• % of projects following the established PM Methodology
• # of project health checks conducted
• # of workshops facilitated
• # of hours of training provided
• % of certified PMs
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Would you recommend the PMO?
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Pic or didn’t happen
• Report periodically on the progress of KPIs
• Report the effectiveness of the PMO itself
• Establish regular checkpoints with the PMO Sponsor
• Advertising the PMO’s achievements
• Celebrate success!
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Semantics matter
From:
Compliance
Communication
Resources
Control
Failure
To:
Engagement
Conversation
People
Oversight
Learning
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So…what does a high-performing
PMO look like? They work with stakeholders to understand their needs and expectations (what is
value to them)
They deliver services which enable organizations not only to do the things right
but also to do the right things (how value is provided)
They see maturity as a journey, and recognize that each project is different
They measure progress and performance, including their own (how they know
they are getting there)
They communicate, communicate, communicate (how they demonstrate value)
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Lead by example
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Make it
simple
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Make it fun
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Make it sustainable
CostTime
Scope
Planet Profit
Short-term
Long-termPeople
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OUR PROJECTS ARE OUR FUTURE.
LET’S MAKE IT A GOOD ONE.