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The Risks of Transformational Change & what the PMO can do about it © fotomek - Fotolia.com atrick Mayfield

Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

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Keynote Presentation to the PMO International Summit, at Banco Central Do Brasil, Brasilia, 9th April 2014. Patrick highlighted seven common risks to true transformational change, and the role PMOs have in averting those risks.

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Page 1: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

The Risks of Transformational Change& what the PMO can do

about it

© fotomek - Fotolia.com

Patrick Mayfield

Page 2: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

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Fails

7 Reasons Transformational

Change

Page 3: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

WARNING!

Some of these could offend …

You might be exciting some of them!

Page 4: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

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1. Stick to the Plan

… at ALL COSTS!!!

Page 5: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

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What’s wrong with sticking to the plan?!

… nothing … unless the context changes

Page 6: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

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Merger ‘Millennium Bug’

Story of a late ‘90s Global Logistics System2 Strategic Shifts:

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INSTEAD:Align to Changing Strategy

… We Live in a VUCA World

Page 8: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

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‘VUCA’?

Volatile . Uncertain . Complex. Ambiguous

Page 9: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

StartEnd

“deliverable”“output”“product”

a project delivers …

Page 10: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

I can deal with risks

Page 11: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

��

��

😩- beyond competence

😩- overloaded with admin

Page 12: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

That office is great ... can we use it as well?

Hey! We can help you with that ...!

Page 13: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

+ more consistency

That office is great ... can we use it as well?

I do like that ....

Page 14: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

Capability a‘single

source of truth’

… then along came programmes… … & the programme office …

Page 15: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

… then portfolio management…

Page 16: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

the ‘single source of truth’ now extends across the portfolio, it’s programmes & projects …

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making a “Governance Backbone” that provides…

+ support

+ “centralnervous system”

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2. Treat as a Technical Problem

manage merely as a system of Tasks, Processes, Governance Structures, Documents

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What’s wrong with that?! It’s what the books teach us!

manage merely as a system of Tasks, Processes, Governance Structures, Documents

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Also:Lead the Change

… It’s more about Influencing

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A Tale of Two Bullies

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3. Assume the Purpose is Obvious

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It’s not always Obvious, is it?(You’re getting this)

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NPfIT (National Programme for IT

divergent visions from the beginning

Page 25: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

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Result?

£14bnwritten off from public investment

Page 26: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

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INSTEAD:Envision a Better Future

… and Communicate It like Crazy

Page 27: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

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4. Manage as a Mega-Project

See it as a mere aggregation of projects

Page 28: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

projects as temporary silos

projects are notstructured for the free flow of relevant information between them

Page 29: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

Value SynergyProject 1

Business Case

$20m+

Project 2Business Case

$30m+

Project 3Business Case

$25m=

ProgrammeBusiness Case

$75m

If that’s all the programme business is, then leave the projects to get on with it.Be programme-skeptic. Expect more from the whole than the sum of the parts.

Page 30: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

Add Value

… not just Sum the Projects

INSTEAD:

Page 31: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

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5. Focus on Delivery

… and the Rest will Follow

Page 32: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

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so what’s so wrong with that?

… nothing except it is not what you should focus on

Page 33: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

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A Stock Fulfillment System

key stakeholder did not exploit a delivery to the point where benefit was realised

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INSTEAD: Focus on Benefits

… and the Threats to Them

Page 35: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

Copyright © Patrick Mayfield 2013

Two key behaviours support climbing on the value ladder:1. Leaning to people2. Leaning to action

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6. Sweat the Specification

… and everything else will Fit

Page 37: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

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Ebbw Vale Redevelopment

managing as separate projects endangered a good outcome

until it was co-ordinated through a programme

Page 38: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

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INSTEAD:Deliver a Coherent Capability

Design & Deliver

Page 39: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

Motion without Movement

Reactingto the latest

driver

Reactingto the latest

driver

Unaligned initiatives

Unaligned initiativesOutcomes

without benefits

Outcomeswithout benefits

CurrentCapabilityCurrent

Capability

Time

Str

ate

gy –

Perf

orm

an

ce a

gain

st

KP

I’s

Page 40: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

The Target Operation

Time

Str

ate

gy –

Perf

orm

an

ce a

gain

st

KP

I’s Target

Operation

CurrentOperation

CAPABILITY GAP

Page 41: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

Programme Management and the Capability Gap

Key milestones

Str

ate

gy –

Perf

orm

an

ce a

gain

st

KP

I’s Target

Operation

CurrentOperation

Operational plansrefocused

Projects aligned tostrategic objectives

Managethis withProgrammeManagement

Page 42: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

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7. Forget the Past

… It’s Happened. Concentrate on Today’s Problems

Page 43: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

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Learn from Experience

Page 44: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

The Deming Cycle

The Learning Organization

Adapt

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7 Principles

Universal . Empowering . Self-Validating

Page 46: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

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7 Principles1.Remain Aligned with Strategy

2.Lead Change

3.Envision & Communicate a Better Future

4.Focus on Benefits & Threats to them

5.Add Value as a Programme

6.Design/Deliver a Coherent Capability

7.Learn from Experience

Page 47: Risks of transformational change: Keynote to PMO Conference, Banco Central Do Brasil, April 2014

Thank You!

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@[email protected]