PMO Series:PMO Series: Developing Leaders?  Look to Your PMO

Presented By:

Art DrakeVice President – AIG Global Operations & SystemsDirector At Large – Enterprise Management Association – International

PMI© San Francisco Bay Area Chapter, October 20, 2010

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Agenda

Background Opening Perspective Leadership Defined Leadership Trends Why The PMO? Competency vs. Maturity Operations Maturity Strategic Design What’s Next?

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Background

Pre-2008 No consistent PM skills model across AIG Defined the AIG Project Lifecycle (had 35 variations) No consistent adoption of a PMO model; Improved ‘project’ governance

mandated Global AIG PMO established; monthly project portfolio reporting implemented

2008 Defined and implemented PMOs across in Corporate and in all Business Units Varying levels maturity; defined a roadmap for each PMO and measured

progress PM/PMO maturity model and approach designed; central PM & PMO training

2009 – “Run for the hills!” 2010

“Operations Professionalism” Global PMO redesigned into the Global VMO Strategic Design and Target Operating Models; disciplined process management Clear directive to “get ready”

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I Say “leader.” You say?

Visionary

Charismatic

Tough

Mentor

Annoying

Energetic

Trusted

Multi-taskerCrazy

Fun

PioneerInnovativeRadical

Thought Leader

Integrity

Creative

CommandEntrepreneur

OrganizerRelationship Builder

Respected

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To Name A Few

Abraham LincolnJack Welch

Ronald Reagan

Mahatma Gandhi

Vince Lombardi

Winston Churchill

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Another Perspective (or Perception?)

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Words To Live By

“If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” John Quincy Adams

“Leadership and learning are indispensable to each other.” John Fitzgerald Kennedy

“Nothing so conclusively proves a man's ability to lead others as what he does from day to day to lead himself.”  Thomas J. Watson, Sr.

“Management is doing things right; leadership is doing the right things.” Peter F. Drucker

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Leadership Defined*

Vision – a clear, vivid picture of where to go, as well as a firm grasp on what success looks like

Openness - being able to listen, accept new ways of doing things that someone else thought of; building trust

*As described in HR World

Integrity – integration of outward actions and inner values; builds trust

Creatively - the ability to think differently, to get outside of the box that constrains solutions

Dedication - spending whatever time or energy is necessary to accomplish the task at hand

Fairness - dealing with others consistently and justly

Magnanimity – ensures that credit for successes is spread as widely as possible throughout the company

Assertiveness - the ability to clearly state what one expects so that there will be no misunderstandings

Sense of Humor – ability to relieve tension and defuse hostility; more importantly, use humor to energize followers

Humility - is not self-effacing but rather tries to elevate everyone

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An Industry Perspective (CCL)

Trend 1: The Rise of Complex Challenges

Trend 2: The Innovation Revolution

Trend 3: The Art of Virtual Leadership

Trend 4: Collaboration Nation

Trend 5: The World of Interruption

10 Leadership Trends

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Trend 6: Authenticity Is the Next Celebrity

Trend 7 & 8: The Fallout From The Baby Boom And Filling The Leadership Void

An Industry Perspective (CCL)

10 Leadership Trends, cont’d

Trend 9: Leadership For Longevity

Trend 10: What’s Next?

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The PMO Executive Council Perspective (1/2)

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The PMO Executive Council Perspective (2/2)

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A PMO Peer Group Perspective

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Competency vs. Maturity

Build on basic organizing and planning skills Develop broader perspective; managing across projects Build relationships and trust to take on more responsibility Provide leadership in the ‘project’ space Learn to manage change “Trusted Advisor”

Leadership

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Time

Maturity

A Balancing Act

Individual Capability

Organizational Maturity

The organization cannot mature until individual capability reaches

required level

The individual cannot exert total capability since organization

cannot adjust

Sub-optimized Organization Optimized Organization

The organization and individual are advancing/growing in maturity

at a similar rate/speed

Individual Capability

Organization Maturity

Levels 10 2 3 4

Knowledge used to sustain performance

Knowledge used to advance performance

Time

Maturity

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Building Competency – One Approach

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Competency Model Structure

Knowledge Domains Main categories that group related/complimentary subjects Knowledge domains align with personnel development (e.g., organization)

Subject Areas Represent the specific project/program/portfolio management functional

and learning activities (e.g., risk management) Proficiency Level

Establish a metric to evaluate the key learning and performance outcomes expected within the subject area

Learning Levels Training content and structure to address competency maturity:

foundational (what I need to know), operational (applying what I know) and transformational (expanding what I know to improve)

Training Focus Alignment of training to the project, program, and portfolio level of

functions (i.e., establish how risk management is performed at the varying levels)

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Knowledge Domains

Organization The activities and skills necessary to plan, scope, structure and resource a

project effort Maturity within this domain is evidenced by the expanded activities and

skills required to coordinate projects as a program. Governance

The activities and skills necessary to ensure alignment between strategy and execution

Effective oversight of the organized work to ensure expected project outcomes are achieved within stated constraints/controls

Leadership Demonstrated and recognized skills to organize, motivate and mentor

project teams Ability to manage change and stakeholder expectations to ensure the

successful outcome of a project, program or portfolio Individual

Personal initiative to learn and develop an understanding of the business and to grow professional skills; learning agility.

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Subject Areas

Knowledge Domains Subject Areas

Organization Project/Program Planning Resource Management Project Estimating Project Scheduling Project Budgeting Procurement Management

Governance Strategic Alignment Risk Management Scope Management Execution Management Project Accounting Quality Management

Leadership Relationship Management Change Management Team Development Mentoring Business Acumen

Individual Communication Facilitation / Negotiation Decision Analysis Learning & Growth Personal Leadership

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Model Structure

Knowledge Domain:

Governance

Subject Area: Risk Management

Project Program Portfolio Operational

Fundamental:

Operational:

Transformational:

Advanced:

Framework consistent across domains and perspective (individual vs. organization)

Methodologies, Tools, Training align to the individuals growth plan

Corresponding organizational view to determine gaps

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Start With A Basics

Project Manager Competency Model

PM KnowledgeThe industry knowledge and formal education in project management practices (expertise)

PM PerformanceThe individuals past project management performance (experience)

Personal AptitudeThe individuals personal behaviors and characteristics (qualities)

Competency is generally recognized as a set of characteristics that encompass knowledge, skills, attitudes, behaviors and other personal traits that can be learned, improved and measured.1

1Crawford, Lynn, “A Global Approach To Project management Competence (1997).

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Organizational Competencies

PMO Competency Model

Communications & ReportingThe PMO provides regular and consistent communications to all of its constituents; Data-driven scorecards are used by all levels of management to monitor project performance

Portfolio Oversight & Governance

The PMO exerts control and governance over the entire project

portfolio from an enterprise perspective; Facilitating key

portfolio decisions (alignment / investment)

Operational Controls & Tools

The PMO promotes and enforces the use of

standardized processes and supporting tools to ensure

consistency

At the PMO level, competency is centered around the PMO’s organizational collective ability to drive performance and attain an expected level

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Organizational Capability

VMO Competency Model

OrganizationalPerformanceThe VMO ensures that portfolio outcomes are realized in the business and monitors current initiatives to ensure delivery of benefits

Strategic Planning & Alignment

The VMO actively facilitates the strategic planning sessions,

capturing strategic priorities, ensure alignment, and establishing

the portfolio design

Driving ChangeThe VMO provides direction

and support to key initiatives to ensure change management

is used and that change ‘capability’ is retained in the

business

At the VMO level, competency is focused on the overall organizational change capability.

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Operational Maturity

Project Management

Operations Management

Operations Leadership

Current Operational Performance

Process Improvement

Process Reengineering

Operations Optimization

Competency Levels Process Maturity Levels

Project Management Skills

Operations Management Skills

Operations Leadership Skills

Transitioning from projects (change) to operations (performance)

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The Path To Leadership Development

Use Strategic DesignTM to transform the organization Understand the current operations while planning for the future Actively engaged in the change Encourage and mentor Remain behind; Achieve target performance levels

Organization ACurrent State

Organization AFuture State

Change Strategies

Execution

Business Strategic PlanEnvisioning The

Future

Change Gap Identification

Transformation Plan

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Strategic Design

Baseline the current ‘operational’ state Envision the future and create the strategy Design a future Target Operating Model (TOM) Define the program of work to transition to the TOM ‘Implement’ the program of work – All 14 Dimensions Remain behind to achieve target performance levels

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What’s Next?

First round of organizational assessments planned for 2011 – establish a baseline

Develop the Strategic Design capability by EOY 2010 Integrate project/program performance to personal performance

process by EOY 2011 Integrate program outcomes to Sponsor performance process by EOY

2011

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Biography

Art Drake is currently a Vice President in the Global Operations & Systems Organization, specifically, the Value Management Office at AIG. In this role, Art is responsible for the development of organizational competencies in the areas of portfolio, program and project management across AIG. In his current role, Art has developed several models for measuring the performance of programs and portfolios, leading to improved training and mentoring for program and project managers. Prior to coming to AIG, Mr. Drake was the Director of the Program Management Office and Business Analysis & Strategy Group for EmblemHealth of New York.  Art is currently one of the Founding Directors of the Enterprise Management Association – International (EMA-I). EMA-I is focused on advancing change management competencies for teams and organizations. Art is also the former Executive Chair of the Program Management Office Specific Interest Group (PMO SIG), a PMI © component.