OPM – The Missing Link · – Learn more about PMI’s Foundational Standards (OPM, PMBOK Guide,...

OPM – The Missing LinkJane Betterton, BS,ChE. , PMP

PMIRGC [email protected]

JaneBetterton.com/ BTSResults.com

Presentation Overview• In this session you will learn how PMI’s latest foundational standard, The Standard for

Organizational Project Management (OPM) (released June 2018) is the missing link needed to “advance an organization’s performance by developing and linking portfolio, program, and project management principles and practices.” OPM is defined as the integration of people, knowledge, and processes, supported by tools across the portfolio, program and project management domains of the organization. Most organizations organically integrate their portfolio, program and project management activities, but this standard provides insight and guidance to developing a more conscious approach based on established and accepted best practices. OPM is a “useful standard for any organization that is seeking to better meet its strategic objectives, and this standard is particularly beneficial for organizations that do not have a unified project management approach.” Come learn more about this integrating standard just released by PMI.

• Learning Objectives– Understand the importance of OPM as a guidance on the development of organizational methodologies, i.e.

project management practices that are tailored to fit an organization’s structure, culture, and practices.– Learn more about PMI’s Foundational Standards (OPM, PMBOK Guide, Program Management, Portfolio

Management, Business Analysis, OPM3) and how their use supports successful projects.– Learn the difference between PMI’s Foundational Standards and Practice Guides.

• References– The Standard for Organizational Project Management (2018)– The Standard for Program Management – Fourth Edition (2017)– The Standard for Portfolio Management – Fourth Edition (2017)– Governance of Portfolios, Programs, and Projects: A Practice Guide (2016)

Slides Authorized for PMIRGC 2018 IPMD 2

Presenter

Presentation Notes

Slide will be hidden for presenting but part of the presentation for historical purposes

What Makes Organization’s Successful?

• Strategies deliver the benefits and value needed to grow/ sustain the organization

• Priorities for products and outcomes that deliver value are clear to the organization even as they change

• Repeatable processes to plan, execute work and balance resources are used to deliver products and outcomes

• Embedded processes and culture focus resources on what is important to the organization


Presenter

Presentation Notes

Planned activity with the group. If I can do polling with phones, have them vote for their top 2 and discuss. If not, have them discuss with their neighbor and pick top 2 then go through and see number of votes by show of hands

Org. Success and Connection to PPP• Strategies deliver the benefits &

value needed to grow/ sustain the organization

• Priorities for products and outcomes that deliver value are clear to the organization even as they change

• Repeatable processes to plan, execute work and balance resources are used to deliver products & outcomes

• Embedded processes and culture focus resources on what is important to the organization


Portfolio Management

Program Management

Project Management

“PPP”

Presenter

Presentation Notes

Discuss how success characteristics are tied to PPP

Characteristics of Successful Projects1. Finish on time and on budget2. Products or outcomes of the project are accepted by

the customer3. Changes are tracked and impact of changes (time,

money, scope, quality) are expected by the sponsor and the customer

4. Unplanned overtime is minimal5. Priority is maintained throughout the project

• Usually shows up as resources are available when planned6. Lessons learned are collected for future projects7. Products or outcomes of the project are in use 1-3

years after the project’s completion8. Team recognizes that their collective efforts are

stronger than their individual effortsSlides Authorized for PMIRGC 2018 IPMD 5

Presenter

Presentation Notes

Do similar activity used earlier if time permits

Characteristics of Successful Projects1. Finish on time and on budget2. Products or outcomes of the project are

accepted by the customer3. Changes are tracked and impact of changes

are expected by the sponsor and the customer

4. Unplanned overtime is minimal5. Priority is maintained throughout the project 6. Lessons learned are collected for future

projects7. Products or outcomes of the project are in

use 1-3 years after the project’s completion8. Team recognizes that their collective efforts

are stronger than their individual efforts


Less Organizational Integration is Needed

More Organizational Integration is Needed

Presenter

Presentation Notes

Discuss ties to organizational interdependencies

OPM – The Missing Link


Business Management Practices

Project Management Practices (Includes Portfolio, Program & Project)

Organizational Project

Management“OPM”

Organizational Strategy

Presenter

Presentation Notes

Ref: The Standard for Organizational Project Management (2018)

PMI’s Role in Successful Organizations• PMI’s Purpose

– Project professionals change the world by bringing products to market, developing software, helping with disaster recovery, building new infrastructure, and so much more. Projects are how things get done. That’s why the work PMI does is so important.

– Our products, services and networks help professional project managers advance their careers, drive business results, and deliver on strategies that improve lives.

– We believe in the value that formal project management can bring to organizations and governments worldwide.

– Over 400 PMI staff work closely with 10,000 volunteers who are passionate about the project management profession and our organization’s mission.


Presenter

Presentation Notes

Ref: https://www.pmi.org/annual-report-2017/at-a-glance

PMI Foundational Standards


These standards provide a foundation for project management knowledge and represent the four areas of the profession: project, program, portfolio and the organizational approach to project management.

“Old Standbys”

Newer

Presenter

Presentation Notes

The Standard for Organizational Project Management (2018) The PMI Guide to Business Analysis (2017) PMBOK® Guide – Sixth Edition (2017) The Standard for Program Management – Fourth Edition (2017) The Standard for Portfolio Management – Fourth Edition (2017) Organizational Project Management Maturity Model (OPM3®) – Third Edition (2013)

PMI Foundational Standards

• The Standard for Organizational Project Management (2018)

• The PMI Guide to Business Analysis (2017)• PMBOK® Guide – Sixth Edition (2017)• The Standard for Program Management – Fourth

Edition (2017)• The Standard for Portfolio Management – Fourth

Edition (2017)• Organizational Project Management Maturity

Model (OPM3®) – Third Edition (2013)


PMI Practice Standards


Practice standards describe the use of a tool, technique or process identified in the PMBOK® Guide or other foundational standards.

Presenter

Presentation Notes

Practice Standard for Project Risk Management (2009) Practice Standard for Earned Value Management – Second Edition (2011). Practice Standard for Project Configuration Management (2007). Practice Standard for Work Breakdown Structures (2006) Practice Standard for Scheduling – Second Edition (2011) Practice Standard for Project Estimating (2010) Project Manager Competency Development Framework – Third Edition (2017)

PMI Practice Standards• Practice Standard for Project Risk Management (2009)• Practice Standard for Earned Value Management –

Second Edition (2011).• Practice Standard for Project Configuration

Management (2007).• Practice Standard for Work Breakdown Structures

(2006)• Practice Standard for Scheduling – Second Edition

(2011)• Practice Standard for Project Estimating (2010)• Project Manager Competency Development

Framework – Third Edition (2017)


PMI Practice Guides


Practice guides provide supporting information and instruction to help you apply PMI standards

Presenter

Presentation Notes

Agile Practice Guide (2017) Requirements Management: A Practice Guide (2016) Governance of Portfolios, Programs, and Projects: A Practice Guide (2016) Business Analysis for Practitioners: A Practice Guide (2015) Implementing Organizational Project Management: A Practice Guide (2014) Navigating Complexity: A Practice Guide (2014) Managing Change in Organizations: A Practice Guide (2013)

PMI Practice Guides• Agile Practice Guide (2017)• Requirements Management: A Practice Guide (2016)• Governance of Portfolios, Programs, and Projects: A

Practice Guide (2016)• Business Analysis for Practitioners: A Practice Guide

(2015)• Implementing Organizational Project Management: A

Practice Guide (2014)• Navigating Complexity: A Practice Guide (2014)• Managing Change in Organizations: A Practice Guide

(2013)


OPM – Context for Foundational Standards



Project ManagementPractices(Project, Program, Portfolio “P3”)


Management


New in 2018!!

Presenter

Presentation Notes

The Standard for Organizational Project Management (2018) The PMI Guide to Business Analysis (2017) PMBOK® Guide – Sixth Edition (2017) The Standard for Program Management – Fourth Edition (2017) The Standard for Portfolio Management – Fourth Edition (2017)

OPM – Foundational Standards

• The Standard for Organizational Project Management (2018)

• The PMI Guide to Business Analysis (2017)• PMBOK® Guide – Sixth Edition (2017)• The Standard for Program Management –

Fourth Edition (2017)• The Standard for Portfolio Management –

Fourth Edition (2017)


Presenter

Presentation Notes

The Standard for Organizational Project Management (2018) The PMI Guide to Business Analysis (2017) PMBOK® Guide – Sixth Edition (2017) The Standard for Program Management – Fourth Edition (2017) The Standard for Portfolio Management – Fourth Edition (2017)

OPM – Context for Practice Standards & Guides



Project ManagementPractices(Project, Program, Portfolio “P3”)


Management


Presenter

Presentation Notes

Governance of Portfolios, Programs, and Projects: A Practice Guide (2016) Implementing Organizational Project Management: A Practice Guide (2014) Managing Change in Organizations: A Practice Guide (2013) Project Manager Competency Development Framework – Third Edition (2017)


Using OPM Model to Deliver Value

Presenter

Presentation Notes

Ref: The Standard for Organizational Project Management (2018) Strategy – High-level plan designed to achieve the major goals using resources from the organization in an effective and efficient manner. Strategic planning is the process of formulating and implementing decisions about an organization’s future direction. Portfolio value decisions – Used to effectively select the initiatives in the portfolio that will support the strategy of the organization to achieve the established major long-term objectives Programs and projects – Used for effective and efficient execution of initiatives aligned with strategies intended to deliver predictable business value Operations – Operationalizes the initiatives and measures the business value through a benefits realization process Portfolio review and adjustments – Aligns strategy and organizational resources through a disciplined business value decision process to reflect internal and external changing conditions Business impact analysis – Analyzes the impact and value from the programs and projects that were implemented and incorporates business results data into the port Value performance analysis – Provides business value realization data from business value fulfillment back to the strategy of the organization Organizational environment – Represents the organizational governance, policies, organizational culture and supporting practices of the organization that are created to support OPM and organization strategy delivery


Operationalizes the initiatives &

measures continued business value

Processes to execute initiatives to assure delivery of business value

Processes to select the right initiatives

to support the Strategy

High level plan that sets future direction for the

organization

OPM Elements

Presenter

Presentation Notes

Ref: The Standard for Organizational Project Management (2018). Strategy – High-level plan designed to achieve the major goals using resources from the organization in an effective and efficient manner. Strategic planning is the process of formulating and implementing decisions about an organization’s future direction. Portfolio value decisions – Used to effectively select the initiatives in the portfolio that will support the strategy of the organization to achieve the established major long-term objectives Programs and projects – Used for effective and efficient execution of initiatives aligned with strategies intended to deliver predictable business value Operations – Operationalizes the initiatives and measures the business value through a benefits realization process Portfolio review and adjustments – Aligns strategy and organizational resources through a disciplined business value decision process to reflect internal and external changing conditions Business impact analysis – Analyzes the impact and value from the programs and projects that were implemented and incorporates business results data into the port Value performance analysis – Provides business value realization data from business value fulfillment back to the strategy of the organization Organizational environment – Represents the organizational governance, policies, organizational culture and supporting practices of the organization that are created to support OPM and organization strategy delivery


Aligns Strategy through a disciplined

business value decision

process based on changes

Analyzes the impact & value from programs/

projects Provides business value realization data

Represents the org governance & culture that support OPM

OPM Elements

Presenter

Presentation Notes

Ref: The Standard for Organizational Project Management (2018). Strategy – High-level plan designed to achieve the major goals using resources from the organization in an effective and efficient manner. Strategic planning is the process of formulating and implementing decisions about an organization’s future direction. Portfolio value decisions – Used to effectively select the initiatives in the portfolio that will support the strategy of the organization to achieve the established major long-term objectives Programs and projects – Used for effective and efficient execution of initiatives aligned with strategies intended to deliver predictable business value Operations – Operationalizes the initiatives and measures the business value through a benefits realization process Portfolio review and adjustments – Aligns strategy and organizational resources through a disciplined business value decision process to reflect internal and external changing conditions Business impact analysis – Analyzes the impact and value from the programs and projects that were implemented and incorporates business results data into the port Value performance analysis – Provides business value realization data from business value fulfillment back to the strategy of the organization Organizational environment – Represents the organizational governance, policies, organizational culture and supporting practices of the organization that are created to support OPM and organization strategy delivery

PMI’s OPM Standard – The

Missing Link


OPM Principles


• PMI’s OPM standard assists organizations to deliver value using the following principles:– Provide a best practice approach to align organizational

strategy– Integrate organizational enablers with alignment,

execution and delivery processes• OE’s are the structural, cultural, technological, or human resource

practices that organization’s needs to support strategy and sustain an organization

– Execute and deliver consistently with transparent and predictable processes

– Foster organizational integration to support cooperation and collaboration of organization’s stakeholders

– Deliver value to the organization in a framework that is predictable, adaptable and understandable

– Supports continuous development of employees to support the organization’s future direction

Presenter

Presentation Notes

Ref: The Standard for Organizational Project Management (2018).

OPM – Critical Elements


Presenter

Presentation Notes

OPM Methodology – The system of practices, techniques, procedures, and rules used in OPM Knowledge Management – The creation, sharing, and use of experience, values and beliefs, contextual information, intuition, and insights to address the needs of the organization. Talent Management – An organization’s approach to retaining and developing its people with regard to knowledge, performance, and personal competence in order to increase the likelihood of delivering outcomes that meet stakeholders’ requirements OPM governance – The framework, functions and processes for OPM activities in order to align portfolio, program, and project management practices to meet organizational and strategic goals. For additional information, refer to Governance of Portfolios, Programs and Projects: A Practice Guide

OPM Methodology


• A methodology is a system of practices, techniques, procedures and rules used to by those who are doing the work.

• OPM Methodologies provide the following benefits:– Establish a common way of working on projects– Provide structure to projects to support consistency– Establish a common project language and vocabulary– Assure the quality of project management– Facilitate cross-project learning, collaboration and

innovation– Clarify roles and responsibilities

Presenter

Presentation Notes

OPM Methodologies – Typical Content


• Document Templates• Process descriptions, documentation, relationship diagrams, and

guidelines• Role definitions and descriptions• Project minimum and compliance requirements• Schedule and time management templates• Cost and budget management templates• Recommended tools such as software• Portfolio dashboard instructions• Performance report templates• Gate review checklists• Health checks• Sustainability guidelines• Applicable regulatory standards• Change management tools and recommendations



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Presentation Notes


OPM - Knowledge Management


• OPM Framework knowledge management focuses on the following organizational objectives– Improved performance– Innovation– Sharing lessons learned– Documenting best practices– Process integration– Organizational continuous improvement



Presenter

Presentation Notes


OPM – Talent Management


• Factors to consider when implementing a talent management or competency framework– Current and future talent requirements and

associated competencies– Country and political factors – Mentoring and coaching approaches need to be

aligned with project management requirements– Training and development needs to integrate its

portfolio, program, and project management training with the training for other disciplines. Role-based training proves valuable to help individuals receive the training for their current and future needs

– Cultural sensitivities are considered– Continuous improvement mindset is essential for the

growth of the project management practitioners



Presenter

Presentation Notes


OPM Governance


• OPM Governance supports organizational success by:– Forming clear agreements that align PPP– Describing the degree of autonomy &

responsibility that individuals are given to pursue organization’s goals

– Ensuring that PPP goals remain aligned with the strategic vision, operational capabilities, & organizational capacity to execute projects & adapt to resulting changes

– Creating a set of robust key performance indicators (KPIs) to monitor and review the performance of the organization & business decisions

Presenter

Presentation Notes

OPM Governance supports organizational success by: Forming clear agreements as to the ways a sponsoring organization oversees, contributes to and supports or aligns portfolios, programs, and projects Describing the degree of autonomy and responsibility that individuals are given in the pursuit of the organization’s goals Ensuring that portfolio, program and project goals remain aligned with the strategic vision, operational capabilities, resource commitments, and organizational capacity to execute projects and adapt to resulting change Creating a set of robust key performance indicators (KPIs) that provides the ability to monitor and review the performance of the organization to support sound business decisions Establishing respective decision-making boards, which ensure that the results delivered through initiatives are aligned with overall benefits realization


OPM Governance Elements

Presenter

Presentation Notes

Ref: Governance of Portfolios, Programs, and Projects: A Practice Guide (2016)

OPM – Governance Functions


Governance vs. Management


Organizational Governance Organizational ManagementThe structured way to provide control, direction, and coordination through people, policies, and processes to meet organizational strategic and operational goals

The organization and coordination of business activities in order to achieve defined objectives

Portfolio, Program & Project Governance

Portfolio, Program, and Project Management

The framework, functions, and processes to provide guidance and decision making for portfolios, programs, and projects

The management activities that are defined, planned and executed to achieve organizational strategic and operational goals

Decision and Guidance Doing the Work

Presenter

Presentation Notes

Governance of Portfolios, Programs, and Projects: A Practice Guide (2016)

Governance & Management Interactions


Presenter

Presentation Notes

Plan to pass out copy so we can discuss importance of this tool to get things started and start differentiating current state activities into their governance and management categories

Governance Reporting Hierarchy


Presenter

Presentation Notes

Plan to have this as full page handout on the back of previous slide to discuss using this approach to document communication flows with OPM environment

OPM Implementation – Key Performance Indicator Examples


• Effective requirements development can result in fewer changes to scope and this can minimize cost/ schedule/ quality impacts. Customer and employee satisfaction can be impacted

• Effective risk management reduces threat exposure and the effects of uncertainty. Effectiveness of risk management processes can be measured by the accuracy of planned allocation for risk contingency for cost and schedule

• OPM governance framework effectiveness can be measured in terms of project delivery reliability (deliver to plan predictability), project life-cycle duration/ cost, effect of project delivery execution on portfolio/ program benefits realization

Presenter

Presentation Notes

Effective requirements development can result in fewer changes to scope and this can minimize cost/ schedule/ quality impacts. Customer and employee satisfaction can be impacted Effective risk management reduces threat exposure and the effects of uncertainty. Effectiveness of risk management processes can be measured by the accuracy of planned allocation for risk contingency for cost and schedule OPM governance framework effectiveness can be measured in terms of project delivery reliability (deliver to plan predictability), project life-cycle duration/ cost, effect of project delivery execution on portfolio/ program benefits realization

Why Start an OPM Initiative?


• An OPM initiative to formalize your organization’s approach may be needed if your organization has several of the following problems:– Projects often overrun schedules and budget resulting in

lower project profit margins and derailing other projects underway

– Numerous unexpected change requests which add to costs, delays and delivery

– Unpredictable projects prohibit the organizational portfolio from achieving its strategic objectives

– Delayed projects impact customer satisfaction ratings which can result in loss of market share and impact future sales

– Quality is impact due to rework which adds to cost and time delays

– Poor communication adds risk to completing work due to conflicting requirements, low work performance and difficulty managing customer expectations

Presenter

Presentation Notes

Possibly do voting here time permitting

OPM Initiative - Example Implementation Plan


Managed/ Control

OPM Path

Port

folio

Prog

ram

Proj

ect

Trai

ning

Define/ Measure

Today 3-5 Years

Repeatable/ Standardize

Standardize Strategic Project Execution & Tie to Measures

Develop Central Resource & Budget Forecast System

Develop PM Governance Approach (PMO Function to Assure Compliance to Internal Standards)

Standardize Risk Management & Change Control Processes

Measure & Analyze Cycle Times

PM for Teams – All Employees / MS Project – All Employees

PM Maturity– Sr. Mgmt. Standardizing PM Processes –Selected Staff

Portfolio Management–Program & Portfolio Mgrs.

Develop Integrated PM Schedule, Cost & Performance Reporting and Analysis

System

Standardize Milestones & Schedule Tracking

Develop Measures That Assure Synergies Are Leveraged (Resource Utilization, rework, etc.)

Implement Change Management & Risk Management

Implement Standard Approach / Template

Identify Program Mgmt. Processes to Standardize

Questions


About the Speaker• Jane works with organizations to apply best practices in project

management that that build their systems and organizational culture to be focused on results. Jane’s work includes supporting organizations to develop an effective Organizational Project Management (OPM) framework that serves as the backbone for repeatable and effective project management that is aligned with the strategic results of the organization. Jane is a PMP and has worked with PMI’s Organizational Project Management Maturity Model (OPM3) since 2008. Jane is an expert in using and training project managers to use PMI Standards/ Guides, MS Project, Visio and Microsoft Office applications to communicate effectively.


OPM – The Missing Link · – Learn more about PMI’s Foundational Standards (OPM, PMBOK Guide,...

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