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Making project management indispensable for business results.®
Strategic Initiative Management: The PMO ImperativePresented to PMI Croatia, PMI Forum 2015Dr. Al Zeitoun, PhD, PMP2015 PMI Board of Directors
12 November 2015
PMO Thought Leadership Series: Strategic Initiative Management
Forrester: Strategic PMOs Play a Vital Role in Driving Business Outcomes
Key Findings
1. They have a seat at the executive table
2. They are a vital part of the strategic planning team
3. They embrace core competencies
4. They use consistent objectives across industries and regions
Identity Crisis
The Five PMO Frameworks
1. Organizational Unit PMO/Business Unit PMO/ Divisional PMO/Departmental PMO
2. Enterprise/Organization-wide/Strategic/ Corporate/Portfolio/Global PMO
3. Project Support/Services/Controls Office or PMO
4. Center of Excellence/Center of Competency
5. Project-Specific PMO/Project Office/ Program Office
Organizational Unit PMO/Business Unit PMO/Divisional PMO/ Departmental PMO
% Who Have This PMO In Their Organization: 54%
Primary Functions Performed
Project/Program Delivery Management: 46%
Standards, Methodologies, Processes: 15%
Portfolio Management Prioritization: 15%
Source: Pulse of the Profession®: PMO Frameworks
Example: PMO to Standardize Product Development
Over 40 years experience
More than 13,000 employees worldwide
25 locations in 15 countries
Enterprise/Organization-wide Strategic/Corporate/Portfolio/Global PMO
% Who Have This PMO In Their Organization: 39%
Primary Functions Performed
Project/Program Delivery Management: 30%
Standards, Methodologies, Processes: 25%
Portfolio Management Prioritization: 20%
Source: Pulse of the Profession®: PMO Frameworks
65% more likely than other PMO types to routinely confirm strategic priorities, and to be involved with the alignment of projects to strategic objectives.
Example: EPMOs Enable an Integrated Approach
I came to see, in my time at IBM, that culture isn’t just one aspect of the game – it is thegame. In the end, an organization is nothing more than a collective capacity of its people to create value.
Louis Gerstner, former CEO of IBM,Who Says Elephants Can’t Dance
Comgás PMO
8,000 km of pipeline
Over 1 million customers in 77 cities
– 978,000 households
– 12,000 commercial & industrial customers
25% of Brazil’s GDP comes from the Comgás concession area
30% of Brazil’s total gas sales
Project Support/Services/Controls Office or PMO
% Who Have This PMO In Their Organization: 44%
Primary Functions Performed
Project/Program Delivery Management: 44%
Standards, Methodologies, Processes: 19%
Portfolio Management Prioritization: 12%
Just 37% routinely provide strategic alignment and just 33%confirm strategic priorities
Example: Canada Health Infoway
An independent, federally-funded, not-for-profit organization tasked with accelerating the development of electronic health records
Center of Excellence/Center of Competency
% Who Have This PMO In Their Organization: 35%
Primary Functions Performed
Project/Program Delivery Management: 41%
Standards, Methodologies, Processes: 24%
Portfolio Management Prioritization: 14%
Examples: PMOs Enable Standardization
Enterprise-wide PMO
• Powers IBM’s project-based transformation
• Corporate programs at individual, organization and enterprise levels
• Responsible for strategic policy
Enterprise-wide PMO
• Office of the Chief Engineer
• Responsible for policies, standards, handbooks, future technologies, oversight, expertise teams, knowledge share
• Responsible for strategic policy
Project-Specific PMO/Project Office/Program Office
% Who Have This PMO In Their Organization: 31%
Primary Functions Performed
Project/Program Delivery Management: 46%
Standards, Methodologies, Processes: 16%
Portfolio Management Prioritization: 11%
PMO Alignment Impacts Strategy Implementation
Source: Pulse of the Profession® In-Depth Report: The Impact of PMOs on Strategy Implementation
Nearly half of project-specific PMOs indicate they have realized their full potential in contributing business value to the organization
Just 33% of those responding to our survey stated that theirPMO realized its full potential in contributing business value to the organization.
0%
20%
40%
60%
80%77%
65%62%
58%57%
42%43%
35%
EPMO
Other PMO Type
Organizations that elevate the PMO to a strategic decision-making level are far more likely to be high performers
What High Performers Do
High Performing PMO Roadmap
Create an Organizational Culture of Project Management
Successful PMOs don’t just execute strategy. They take part in its formulation.
Failure
43% of PMO leaders say the key to increasing effectiveness includes a better understanding of project management organization-wide
30% cited a lack of awareness of the benefits of a PMO to the organization
PMI’s Pulse of the Profession® In-Depth Report: The Impact of PMOs on Strategy Implementation
Engaging Senior Leaders
1. Focus on critical initiatives
2. Institute smart and simple processes
3. Foster talent and capabilities
4. Encourage a culture of change
BCG (Boston Consulting Group). Strategic Initiative Management: The PMO Imperative
Continually Evaluate PMO Performance
High Performers
Routinely provide performance reporting and performance
management
– Assessment of key metrics, KPIs, compliance and financial
performance
Are more likely to routinely look for ways to incorporate
process development and improvement
Continually Evaluate PMO Performance
High Performers Routinely provide performance
reporting and performance management– Assessment of key metrics, KPIs,
compliance and financial
Routinely look for ways to incorporate process development and improvement
Evaluate Your C-Suite Communications to Incorporate Strategic Organizational Shifts and Lessons Learned
Continual assessments enable the transfer of valuable knowledge gained with each strategic implementation
Large-scale change is hard and can lose momentum
Summing Up: High Performing PMOs
Are perceived as integral to strategy implementation
Have financial support and skilled employees
Have a high-level of decision-making authority
Have influence at the C-suite level