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PMO Executive Council™
Key Developments in the PMO2007 Update for Chief Information Offi cers
Featured Prof iles
Alpha Company*Beta Company* Delta Company*Epsilon Company*Gamma Company*Kappa Corporation*Sigma Corporation* Theta Corporation*
� Study Objective
Once a year, the PMO Executive Council provides the chief information offi cers at our member companies with an update of the key challenges, developments, and innovations affecting the PMO function. These updates are tailored to provide quick insight into some of the critical strategic management challenges facing PMO executives today. Our research in 2007 outlined three leading objectives that provide a roadmap for redefi ning the PMO organization’s role within the enterprise.
� Rightsizing Project Rigor
� Maximizing the Value of PPM Tools
� Driving Project Manager Performance
* Pseudonym.
© 2007 Corporate Executive Board. All Rights Reserved.
Note to Members
This project was researched and written to fulfi ll the research requests of several members of the Corporate Executive Board and as a result may not satisfy the information needs of all member companies. The Corporate Executive Board encourages members who have additional questions about this topic to contact the Board staff for further discussion. Descriptions or viewpoints contained herein regarding organizations profi led in this report do not necessarily refl ect the policies or viewpoints of those organizations.
Confi dentiality of Findings
This document has been prepared by the Corporate Executive Board for the exclusive use of its members. It contains valuable proprietary information belonging to the Corporate Executive Board, and each member should make it available only to those employees who require such access in order to learn from the material provided herein and who undertake not to disclose it to third parties. In the event that you are unwilling to assume this confi dentiality obligation, please return this document and all copies in your possession promptly to the Corporate Executive Board.
Legal Caveat
The PMO Executive Council has worked to ensure the accuracy of the information it provides to its members. This report relies upon data obtained from many sources, however, and the PMO Executive Council cannot guarantee the accuracy of the information or its analysis in all cases. Furthermore, the PMO Executive Council is not engaged in rendering legal, accounting, or other professional services. Its reports should not be construed as professional advice on any particular set of facts or circumstances. Members requiring such services are advised to consult an appropriate professional. Neither the Corporate Executive Board nor its programs are responsible for any claims or losses that may arise from a) any errors or omissions in their reports, whether caused by the PMO Executive Council or its sources, or b) reliance upon any recommendation made by the PMO Executive Council.
PMOEC191GIAH
PMO Executive Council
AnalystsAmy Davis
Kirk DuplessisVivek Swaminathan
ConsultantsPallavi Kapnadak
Kabeh Vaziri
Practice ManagerMatthew McWha
Managing DirectorsJaime Capellá
Wayne Gore
Executive DirectorShvetank Shah
Creative Solutions Group
Graphic Design SpecialistTodd Burnett
Publications EditorAndrea Cunningham
PMO Executive Councilwww.pmo.executiveboard.com
Washington, D.C., United StatesTelephone: +1-202-777-5000 Fax: +1-202-777-5100
Chicago, United StatesTelephone: +1-312-730-9000Fax: +1-312-730-9100
San Francisco, United StatesTelephone: +1-415-293-5825Fax: +1-415-293-5826
London, United KingdomTelephone: +44-(0)20-7632-6000 Fax: +44-(0)20-7632-6001
New Delhi, IndiaTelephone: +91-124-417-8500 Fax: +91-124-417-8501
Letter to Chief Information Offi cersOnce a year, the PMO Executive Council provides the chief information offi cers at our member companies with an update of the key challenges, developments, and innovations in the PMO function. These updates are tailored to provide quick insight into some of the critical management challenges facing PMO executives today. Our research in 2007 defi ned three principal initiatives that progressive companies are pursuing to leverage the full potential of their PMOs.
A Focus on the Practical
As always, we have focused our work on providing excerpts of practical, actionable tools and profi les to enable members to quickly and effi ciently implement the practices and strategies they fi nd most relevant to their needs.
We are happy to provide further detail and discuss the issues addressed in this summary and are delighted to continue working with you and your PMO team.
November 2007
Wayne GoreManaging Director
Matthew McWhaPractice Manager
Table of Contents
Letter to Chief Information Offi cers
Emerging Challenge: Building the Next Generation of Project Management Capability • 1
Challenge I: Disciplining Project Delivery • 2
Challenge II: Leveraging Project Portfolio Management Tools • 3
Challenge III: Building High-Performance Project Managers • 4
Key Challenges for the PMO Organization in 2007 • 5
Assessing Project Risk • 6
Rightsizing Methodological Rigor • 7
Removing Administrative Burden • 8
Refreshing Metrics • 9
Calculating Capacity • 10
Interviewing for Key Competencies • 11
Defi ning Project Success • 12
Communicating with Project Sponsors • 13
PMOEC191GIAH 1© 2007 Corporate Executive Board. All Rights Reserved.
Key Developments in the PMO
Project managers are the most critical resource for project success yet remain a scarce skill set…
Strategic Value of Scarce Resources
PMO Executive Council Survey, 2006
…as outsourcing does not provide end-to-end solutions due to criticality of institutional domain knowledge for role…
Project Manager Outsourcing
PMO Executive Council Survey, 2006
…underscoring the importance of leadership and business skill gaps
Source: PMO Executive Council research.
Outsourced Project Manager FTEs
Despite outsourcing trends for other project team skill sets, more than 80% of project managers are internal staff.
81.8%
18.2%
n = 63.
In particular, senior project managers are scarce.
5.0
2.5
0.0
0% 10% 20% 30% 40% 50%
Average Strategic Value to Project
Percentage of Respondents Citing as Most Scarce Resource
Production Staff
IT Subject-Matter
Expert
Project Manager
Business Subject-Matter
Expert
Emerging Challenge: Building the Next Generation of Project Management CapabilityThe increasingly projectized corporate work environment is driving demand for project managers to unprecedented levels. At the same time, companies are placing more accountability for value delivery on the project management function, necessitating development of the next generation of PMO.
Project Manager: Strategic Company Asset
Internal Project Manager FTEs
Business Partner Savvy“My ‘experienced’ project managers are only experienced for the business unit they currently serve. Once they are moved to a different LOB, they become junior project managers all over again. Knowing the business they serve is an essential tenant of the project manager role.” PMO Executive Fortune 500 Retail Company
Leader Versus Task Master“It’s rare to fi nd a great project manager who is also an effective mentor and leader. Out of the 75 project managers in my organization, only three of them embody the true description of leadership. Naturally, they have been labeled high performers and are destined for the executive level.” PMO Executive Fortune 500 Construction Company
PMOEC191GIAH 2© 2007 Corporate Executive Board. All Rights Reserved.
Key Developments in the PMO
Challenge I: Disciplining Project Delivery Growth in project demand is continuing to outpace budget growth while projects are becoming larger and more complex. Though the number of projects being managed is in line with business objectives, the number of successfully delivered projects continues to fall far below expectations.
Still Not Good Enough
14%
7%
15%10%
16%
7%4%
(6%)
16%13% 11%
4%
27%
10% 9% 10%
Chemicals and Energy
Financial Services
Government and Public Sector
Health Care High Tech Materials Retail
n = 109.
Project demand continues to outstrip budget growth…
Funding and Project Volume Growth Estimates for 2007 by Sector
Percentage Increase from 2006Growth in Project Volume
Budget Growth
Project Performance
Source: PM Networks, May 2006; The State of Project Management 2006, Center for Best Practices; PMO Executive Council research.
Cross-Industry Average
…amidst high project complexity and lackluster performance
Required Time from Initial Planning to Completion
2003–2006
< 2 Months
> 1 Year6–12 Months
2–6 Months
36%
43%
14%
62%
25%
6%
7%
Projects Completed Successfully
Projects That Remain Troubled (Fail to Meet Expected Budget, Schedule, Scope, or Quality)
Projects That Are Terminated
with Reason
Projects That Fail Outright
More than one-third of projects take more than one year to complete.
Of those surveyed, 38% of projects did not complete successfully.
Toward a 90% Goal“While we have improved at project execution, our project success rates are hovering around the 60–70% range—not where we need to be. We are reexamining our methodologies to get closer to the 90% range and get our entire organization more disciplined in the way projects are executed.” PMO Executive Leading Pharmaceutical Company
7%
PMOEC191GIAH 3© 2007 Corporate Executive Board. All Rights Reserved.
Key Developments in the PMO
Not Yet Delivering on the PromiseBecause project delivery continues to
be a core challenge across the portfolio…
Projects Completing on Time and on Budget
Percentage of Institutions, PMOEC Survey of Heads of PMOs, 2007
…only to fi nd that vendor promises are not always delivered in practice
35% 38%
62%65%
On Time On Budget
n = 53.
March 2006 (n = 74.)
May 2007 (n = 90.)
3% 1%
42%38%
23%
13%
32%
48%
None Informal Spreadsheets
Custom-Built Software
Tool
Commercial PPM Tool
Organizations using commercial PPM tools increased by 16% from 2006 to 2007.
…organizations increasingly adopt commercial project and portfolio management tools…
Tool Usage
Percentage of Institutions, 2006 Versus 2007
Not a Panacea for Success“We assumed that purchasing the latest, greatest PPM tool would remedy our process defi ciencies,
but one year and $500,000 later, we have the same bad processes and an unused tool.”
PMO Head Fortune 500 Retail Company
Source: PMO Executive Council research.
More than one-third of projects did not complete successfully.
Challenge II: Leveraging Project Portfolio Management Tools In an attempt to drive clarity in an increasingly complex project management environment, many organizations are investing in large, expensive project portfolio management tools. While these tools promise to ease resource management concerns and optimize project portfolios, these benefi ts have yet to materialize.
PMOEC191GIAH 4© 2007 Corporate Executive Board. All Rights Reserved.
Key Developments in the PMO
Challenge III: Building High-Performance Project ManagersAs the economic environment has become more volatile, the project environment has evolved to include more cross-functional, customer-facing initiatives. Successful project delivery has become more critical to business success than ever before, necessitating the development of high-performing project managers.
A Volatile PortfolioIncreased uncertainty about the economy’s direction…
Blue Chip Indicators Growth Forecasts
2007 U.S. GDP Forecast, January–August 2007
…leads companies to hedge their funding decisions…
Top Enterprise Priorities for 2007
Corporate Executive Board Analysis
1. Building mechanisms to mitigate risk of economic downturn
2. Innovating business models to serve multiple customer markets
3. Resolving execution challenges in China
4. Increasing vigilance in executive compensation disclosures
5. Examining the effi cacy of IT investments
Source: “Blue Chip Economic Indicators,” Reuters, 2007; Corporate Executive Board’s State of the Enterprise: The 2007 Agenda ; CIO Executive Board research; PMO Executive Council research.
1. Building mechanisms to mitigate risk of economic downturn
5. Examining the effi cacy of IT investments2006 (Actual)
2007 (Forecast)
U.S. GDP Growth
3.4%
2.5%
2.0%
Downward Revision
Jan. ’07
Aug. ’07
…which, coupled with growing project complexity and criticality…
Evolution of Typical Projects
PMOEC Analysis
…exacerbates uncertainty and pressure on the PMO
Not Getting Any Easier“It’s not just that business is getting more complex, but that the next layer of opportunities for IT happen to be in a more complex part of business. It has become more complex to defi ne processes, drive consensus, develop solutions, and communicate across silos.”
Chief Information Offi cerRetail Corporation
2002 2007
• Single silo• Back-offi ce processes• Medium-sized projects
with minimal dependencies
• Cross-silo• Front-and back-offi ce
process integration• Larger projects with
complex dependencies
PMOEC191GIAH 5© 2007 Corporate Executive Board. All Rights Reserved.
Key Developments in the PMO
Profi led below are leading practices the PMO Executive Council has identifi ed over the course of 2007 that best defi ne the evolution of a progressive PMO organization.
Key Challenges for the PMO Organization in 2007
III.Building High-Performance
Project Managers
Highlighted Practice
II.Leveraging Project
Portfolio Management Tools
Highlighted Practice
I.Disciplining
Project Delivery
Highlighted Practice
Close-Ended Complexity Assessment
Alpha Company determines the appropriate methodological rigor by using an up-front complexity fi lter.
Case Examples
Methodology- Tailoring Directives
Project Manager Time Reallocation
Lightweight Portfolio Visibility
Epsilon Company streamlines data input requirements to increase returns on metrics gathering activities.
Case Examples
Tool-Informed Demand Management
Competency-Based Case Interviews
Kappa Corporation uses real-life case studies to screen project manager candidates.
Case Examples
Informed Stakeholder Communication Management
Success-Aligned Incentives
Kappa Corporation
Theta
* Pseudonym.
*
*
*
*
* *
*
*
PMOEC191GIAH 6© 2007 Corporate Executive Board. All Rights Reserved.
Key Developments in the PMO
Assessing Project RiskAlpha Company* conducts an up-front complexity assessment of all projects, in addition to the standard size assessment, allowing it to drive greater visibility into possible project delivery risks and assign a project methodology suitable to the needs of the project.
Source: Alpha Company; PMO Executive Council research.
Project Size
Criteria Small Medium Large
1. Work Months < 24 24–170 > 170
2. Budget < $500 $500–$1,000 > $1,000
3. Elapsed Project Duration (Months) < 4 5–12 > 12
4. Project Team Size < 4 5–15 > 15
Look Beyond Project SizeAlpha Company accurately measures project delivery risk through close-ended questions and clear criteria
Complexity Matters“If projects are categorized only by size, you overlook the risk of smaller, more complex projects that can have an impact on multiple systems or multiple business units.”
Senior Manager, IT Best Practices Alpha Company
Project Complexity
Criteria Low Intermediate High
1. Requirements Complexity
Straightforward and well
understood by project team
Complex and well understood by project team
Complex and not well articulated
2. Number of Projects Impacted 0 1 > 2
3. Interfaces to Existing Systems 0 1–3 > 3 or external
4. Internal and External Groups to Coordinate 1 2–4 > 4
5. Processing TypeN/A or batch
processing onlySimple online
query and update
Complex processing—Internet and
distributed systems
6. Data Complexity N/A or < 50 entities 50–100 entities > 100 entities
7. Online Response Time > 7 seconds 3–7 seconds < 2 seconds
8. System Availability N/A or < 95% 98% > 99%
9. Number of Daily Transactions < 1,000 1,000–50,000 > 50,000
10. Business Criticality < 30 days outage tolerable
1 week outage tolerable
1 day outage tolerable
11. Data Quality and Conversion
N/A, good quality, simple to convert or automatable
Fair complexity, average
complexity, average to convert
Poor quality, very complex, diffi cult
to convert
* Pseudonym.
PMOEC191GIAH 7© 2007 Corporate Executive Board. All Rights Reserved.
Key Developments in the PMO
Project AProject A
Rightsizing Methodological RigorDuring the project scoping phase, Beta Company* uses a simple, six-question suitability fi lter to determine whethera project should follow the light or full methodology. A workshop is then held to specifi cally tailor the project delivery methodology.
Exclu
ded
Deli
vera
ble
Com
plete
d D
ate
Exec
utive
Spo
nsor
Proj
ect A
utho
rity
Des
ign M
anag
er
Gat
eway
Man
ager
Appli
catio
ns S
ervic
e M
anag
er
Serv
ice M
anag
emen
t M
anag
er
Appli
catio
n O
wner
Deli
vera
ble
Terms of Reference
Operability Checklist
Service-Level Agreement
Implementation on Readiness Review
User Acceptance Specifi cations
A A
A
A
AR RI
I I
AC
Seeking Clearance for Takeoff…and appropriate deliverables
are selected in a focused meeting…
Methodology Rightsizing Workshop
Participants
…with project managers obtaining sign-off to exclude waiverable deliverables to create a formal management plan
Project Management Deliverables RACI Chart
R Reviewer C Contribute
A Approve I Inform
Program Manager
Project Manager
Design Authority Representative
Business AnalystFinance
Manager
Architect
Project A
Management Plan
Program Manager:
Accountable Project Manager:
Deliverable Waiver
Project: Web Site Interface Update
Project Manager: John Smith
Deliverable: System Infrastructure Defi nition
Approver: John Finn
Signature:
Source: Beta Company; PMO Executive Council research.
This document serves as the fi nal methodology roadmap for the project.
A suitability fi lter helps project managers choose a methodology track…
Light Methodology Suitability Filter
Statement Yes No
The project does not require a feasibility study (e.g., it is a tried and tested solution).
The project is using existing technology, environments, and systems.
The project will only make changes to an existing application and will not make fundamental changes to the system.
The project will be delivered in a single implementation.
The project does not involve implementing a new third-party package solution.
The project is being delivered solely for Beta Company’s use and benefi t.
All responses must be “Yes” to approve use of light methodology.
* Pseudonym.
PMOEC191GIAH 8© 2007 Corporate Executive Board. All Rights Reserved.
Key Developments in the PMO
Removing Administrative BurdenDelta Company* introduces the project planner role to ease the administrative burdens of project managers. Project planners support project managers by taking on activities such as project scheduling and planning, PPM tool updates, ad hoc metrics and reports production, and tagging and formatting resources to ensure up-to-date information.
Off-Loading Administrative ActivitiesDelta Company uses a small number of multifunctional project planners…
Description of Role
…to improve consistency across the entire project management community…
Multiplier Effect
IllustrativeProject Scheduling and Planning
1
Project Updates in PPM Tool
2
Ad Hoc Metrics Generation
3
Tagging and Formatting of Resources
4
Source: Delta Company; PMO Executive Council research.
Project Planner
Project ManagersProjects
Seven project planners assist70 project managers in handling 140 projects.
4%
…leading to a 15% increase in time available for external stakeholder management
51%45%
56%
30%
Administration
Internal Responsibilities • Risk Planning• Resource Allocation• Communication Planning• Issue Management• Day-to-Day Management
Project Manager Time Allocation
Before Planners
Project Manager Time Allocation
After PlannersPlanners provide support with risk planning, resource allocation, and communication planning.
Internal
External
14%
Administration
Internal
External
External Responsibilities• Stakeholder Management• Vendor Management Positive Externalities
• Data Consistency• Common Terminology• Immediate Communication• Early-Risk Identifi cation
* Pseudonym.
PMOEC191GIAH 9© 2007 Corporate Executive Board. All Rights Reserved.
Key Developments in the PMO
Measures That MatterEpsilon Company revisits its metrics on a quarterly basis to ensure ongoing applicability
Metrics Decision Rules
Actionable• Does it provide actionable data?• Have we utilized this data for specifi c decisions?
Decision EnablingDoes the metric translate technical project data into business risk implications that executives can leverage for mitigation trade-off decisions?
PredictiveDoes the metric provide directional guidance on readiness to meet future threat scenarios?
Comparable Over TimeDoes the metric capture historical trends in performance?
ModularDoes the metric have features that can be integrated with other metrics to synthesize overall project, portfolio, and PMO performance?
Yes No
Yes No
Yes No
Yes No
Yes No
Adopt Metric
Do we currently track this metric?
Discard unless the metric serves a specifi c and useful purpose.
Retain Metric Drop Metric
Source: Epsilon Company; PMO Executive Council research.
Yes No
Revisit reasons for considering metric to determine its decision-enabling characteristics. Start by understanding specifi c needs of different audiences and their information requirements.
Consider replacing metric with one that highlights “early-warning symptoms” along with specifi c types of risks to forewarn management of potential negative outcomes to be mitigated.
Consider alternative metrics that provide a contextual framework for metrics to facilitate short- and long-term trend identifi cation.
Refreshing MetricsEpsilon Company* applies metrics discipline by reevaluating data collection on a quarterly basis. Specifi cally, they restrict metrics collection to those metrics that are currently used while new metrics are introduced only as needed.
* Pseudonym.
PMOEC191GIAH 10© 2007 Corporate Executive Board. All Rights Reserved.
Key Developments in the PMO
Window into the FutureGamma Company considers operational realities…
Activity Value Matrix Investor Map
Calculating Capacity By outlining the value of individual projects, Gamma Company* gets a deeper understanding of how to prioritize strategic projects. The activity value matrix presents a uniform method to evaluate projects using a consistent set of criteria. Skill-based resource requirements are incorporated into this procedure to match supply of resources with the portfolio.
…to determine project candidate selection, prioritization, and initiative spend
Activity Value Matrix + Investor Map = What-If Scenario Plans in ProSight
Strategic Project Governance Team, Consisting of Senior-Level VPs and Managers
30
Total Prioritization—Estimated Total($): $$$$
$$$$ $$$$ $$$$ $$$$ $$$$
-10
Sum
No Scoring Data Available
Not Recommended Current Year Planned Current Year Potential Future Year Planned
Actual Bucket
CumulativeScore
Items
Color by: Level of Effort Indicator Size by: Prioritization—Estimated Total($)
Activity Activity Level of Effort Benefi t 1 Benefi t 2 Benefi t 3 Benefi t 4 Benefi t 5
Activity Name:
Metric
Maturity Level
Strategy (Circle One)Strategy 1
Strategy 2
Strategy 3
Strategy 4
Strategy 5
Project Type (Circle One)
Regulatory
Product Capabilities
Business Model/Process Transformation
Infrastructure
Customer Experience Transformation
Technology Impact Yes No
Business Capability
Value Description
The value of each activity is described to driving understanding individual projects and how well they align to strategy. Resourcing is informed using high-level, role-based estimates.
Portfolio plans are charted for current and future project needs. Multiyear plans alleviate resource issues up front.
Source: Gamma Company; PMO Executive Council research.
Decisions• Project Selection• Portfolio Prioritization• Initiative Spend
* Pseudonym.
PMOEC191GIAH 11© 2007 Corporate Executive Board. All Rights Reserved.
Key Developments in the PMO
Interviewing for Key CompetenciesTo assess a project manager candidate’s profi ciency in critical competencies, Kappa Corporation* incorporates case-based, behavioral interviews into the hiring process. These case interviews are based on real-life projects delivered by their organization and are designed to highlight the most important skills for successful project management at Kappa.
Round Peg, Round Hole
…to appraise candidates profi ciency level and cultural fi t for project environment
…and develops a corresponding interview guide based on recent project scenarios…
PMO identifi es new-hire competency requirements…
Hiring PortfolioManager
Internal Customer
Representative
EPMO Representative(Peer Level)
PM Candidate
Source: Kappa Corporation; PMO Executive Council research.
Manager and peer-level participation generates buy-in for hiring decisions and provides a litmus test of candidate fi t to current environment and team dynamics.
3
Candidate Evaluation
Illustrative
360-Degree Candidate Interview
Evaluation Approach Competencies
Assess Via Case- and Behavior-Based Interview Questions
• Problem Solving• Business Judgment• Ownership and Accountability• Infl uencing Skills
Observe During Interview Questions
• Poise with Executive Audience• Ability to Inspire Trust• Verbal Communication
Fails to Meet Partially Meets Meets Exceeds
Problem Solving
Business Judgment
Ownership and Accountability
Infl uencing Skills
Poise with Executive Audience
Ability to Inspire Trust
Verbal Communication
?
Case Project: External Web Site Security Authorization Upgrade
Scenario: Critical resource confl ict
Your project is two weeks away from beginning testing. While confi rming resource assignments, you discover a confl ict. The testing resource assigned to your project is working on a different project that has now made him unavailable for eight weeks. This is the only testing resource in the organization that has the skills required to complete testing for your project. What do you do?
Each case interview is followed up with a series of behavior-based questions to further assess candidate’s experience and profi ciency.
Scenario criteria include the following:• Based on recent,
mission-critical project• Encompass “tough call”
situation• Require broad skill-set
to manage
1
2
Case Interview GuideCritical Competencies RequiredPartial List
Kappa Corporation
* Pseudonym.
PMOEC191GIAH 12© 2007 Corporate Executive Board. All Rights Reserved.
Key Developments in the PMO
Defi ning Project SuccessTo reinforce a sense of ownership and commitment to full project outcomes, Sigma Corporation* employs a practice to defi ne “success” for both the project and the individual project manager role. At the beginning of a project at Sigma Corporation, the project manager facilitates an up-front agreement on the defi nition of success key with project stakeholders, which is backed up by clear, quantifi able, and measurable metrics.
Project Success Matrix
Illustrative
Parameter Description Objective Priority Acceptable Variance
Schedule Planned versus actual completion date 40 Weeks 2 +/– 5%
Cost Planned versus actual cost $2.4 Million 3 +/– 5%
Business Value Incremental annualized revenue 6 months after release $1.5 Million 1 +/– 5%
Quality Post-release patches 90 days after deployment 2 5 +/– 50%
Application Response Time Average user response time for North America 2 Milliseconds 4 +/– 10%
Customer Support Reduction in level 1 technical support calls 10% 6 +/– 20%
Service-Level Agreements Web site uptime goal 99% 7 +/– 30%
Source: Sigma Corporation; PMO Executive Council research.
The business sponsor, project manager, and project stakeholders defi ne success for each project up front…
…setting realistic expectations for project success in the project charter
Priority levels indicate relative importance of success dimensions.
2
Clearly defi ned variances serve as guardrails for in-fl ight decisions.
3
Project-specifi c charter outlines consensus-driven defi nition of success.
1
Project Manager Priorities• Setting and facilitating realistic success
measures• Providing a voice of experience• Facilitating trade-off negotiations• Ensuring alignment to strategic objectives• Surfacing program-level interdependencies
(with assistance from program managers)
Project Stakeholder Priorities• Updating customer operations protocols• Establishing monitoring and controls• Standardizing infrastructure requirements• Adhering to architecture and development
standards
Project Sponsor Priorities• Driving value realization• Improving service-level agreements• Ensuring customer satisfaction• Boosting revenue • Approving fi nal sign-off on success measures
Beginning with the End in Mind
* Pseudonym.
PMOEC191GIAH 13© 2007 Corporate Executive Board. All Rights Reserved.
Key Developments in the PMO
Communicating with Project Sponsors To equip project managers with effective tools to better inform their ongoing communication with project stakeholders, the Theta Corporation* PMO leverages analysis and segmentation of stakeholders to drive project manager stakeholder communication strategies.
Mapping the Stakeholder TerrainFormal assessment helps project managers prioritize efforts
for customized stakeholder management strategy and communication
Stakeholder Assessment
Illustrative
Source: Theta Corporation; PMO Executive Council research.
Name: Francisco Santos
Department: Internet Business Solutions Group
Title: Senior Consultant, Operations
Type of Stakeholder
Executive Sponsor Supplier
Project Sponsor Developer
Customer Sponsor’s Boss
Financier Auditor
Super User Other: ___________
User
Communication Preferences
Weekly update e-mail Trigger-based phone call
Weekly update phone call Trigger-based e-mail
Standing in-person meeting Ongoing e-mail CC
Segmentation Matrix
Supportive
Neutral
Resistant
Low Medium High
Degree of Infl uence
Change Posture
Impa
cted
Infl u
enti
al
Mak
e or
Bre
ak
Project: SAP Financials Implementation
Motivations and Incentives
• Reduce administrative burden
• Recognition of consecutive project success to aid 2008 promotion opportunity
• Boost employee morale across department
Primary Infl uencers
• Laura Shah, Director, Operations
• Deborah Goldstein, Team Manager, Customer Service
Strictly Confi dential
Recognizing primary infl uencers aids development of communication tactics to improve or maintain change posture.
2
Change Posture
Supportive
Neutral
Resistant
Prio
rity
Segm
enta
tion
Pers
onal
ized
Com
mun
icat
ion
Assessments are for internal project manager community use only and are shared across project teams.
4
Deliberate effort to identify point of view facilitates understanding of how project will impact stakeholder.
1
Theta
* Pseudonym.
Stakeholders are classifi ed into priority segments to tailor communication strategies accordingly.
3
w w w . p m o . e x e c u t i v e b o a r d . c o m
PMOEC191GIAH
PMO Executive Council
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