Making project management indispensable for …pmi-metrolina.com/downloads/2014_PDD_Presentations/2014_09_metrol...Making project management indispensable for business results.®

Making project management indispensable for business results.®

Strategy and the PMO Imperative

PMI Metrolina Professional Development Day

Steve DelGrosso, PMP

Vice Chair, 2014 PMI Board of Directors

September 2014

Overview

• PMI Board of Director Strategy Setting

• The PMI Vision

• The PMO Imperative

3

Strategy Setting

Watching the Total PMI Environment From

the Outside In

The World (The Macro Environment)

The Industry (The Business Environment)

Our

Organization

(The Transactional

Environment)

• Social

• Technological

• Economic

• Environmental

• Political

Key Forces

Key Factors

• Market size, growth,

and volatility

• Customers

• Competitors

• Suppliers

• Owners

• Communities

• Partners

• Market Conditions

Report

Environmental

Monitoring Using

Scenario Thinking

Watching Market

Conditions

• CEO Report

• Quarterly Report

• BSC Report

• Financial Audit

• Annual Report

© Global Business Network

Tracking PMI

Strategic Plan

Progress

Key Metrics

Scenario Thinking Process

PMI BOD Strategic Dialogue and Planning Cycle

BOD January Meeting

[Data Analysis]

BOD EMEA Meeting

[Synthesis]

BOD NA Meeting

[Decision]

New Patterns

Inp

uts

Pro

ce

ssO

utp

uts

To

ols

Any other reports

ready for BOD

Recommended

changes to BSC

Outputs from

SDOC PRT

Meeting

External Group

Discussion Outputs

Draft Program Plan

and Budget

BSC And/Or CEO

Report

Approved MotionsUpdated Strategic

Plan

Selection of B.I.G.

Strategic Alternative*

Approved Program

Plan and budget

Board Motion Template

Knowledge Based Decision Making and Online Community Forum

Scenario Thinking (Process and Templates)

Approved MotionsUpdated Strategic

Plan

Review Strategic

Risk Register

Version: 9Last Update: 27 Sept 2013

Pattern Recognition

Team Meeting

Act

ors PMI Staff

SDOC Members

BOD Members BOD Members BOD Members

Summary of Key

Pattern ReportsSummary Scenario

Thinking Website

Market Conditions

Report

Signpost

Monitoring Report

PMI Strategic Plan

and Assumptions

PMI Business Model

Discussion of current pattern status Identification of any new patterns and

associated risks Utilize the strategic questions for

board dialogue to identify challenges Develop contingent strategies Test contingent strategies for

robustness on the scenarios

Validation of

Priority Patterns

Pattern Report

Key Pattern Implications (Risks: Threats

and Opportunities) and Contingent

Strategies

Strategic Risk

Register

Market Conditions

Report

Signpost

Monitoring Report

Strategic Risk

Register

Summary Scenario

Thinking Website

PMI Strategic Plan

and Assumptions

PMI Business

Model

Strategic Risk Management Dialogue Bold Ideas Greenhouse Dialogue (as

required)* Emergent & new patterns dialogue Existing, new contingent strategies

dialogue Implications of new patterns on

strategic plan & PMI's business model

Strategic Risk

Register Updated

Directives to address emergent

Patterns

Pattern Update

Reports

Strategic Risk

Register


required)* Consideration of any Motions arising

from previous meetings Motion Dialogue and Vote

Strategic Risk

Register Updated

Any other reports

ready for BOD

Pattern Update

Reports


required)* Consideration of any Motions arising

from previous meetings Motion Dialogue and Vote

Recommended

changes to BSC

Strategic Risk

Register Updated

Strategic Risk Register

Outputs from

SDOC Pre Board

Meeting

Outputs from

SDOC Pre Board

Meeting

Strategic Risk Register Updated

Strategic Risk

Register

EMG EMG EMG

Bold Ideas Greenhouse (B.I.G.)*

PMI Risk

Framework

PMI Risk

Framework

PMI Risk

Framework

Selection of B.I.G. Strategic Alternative*Selection of B.I.G. Strategic Alternative*

PMI Risk

Framework

*To be confirmed upon completion of B.I.G. pilot

6

PMI Vision

What Does PMI Want to Accomplish?

7

Our Path…

Establish PMI as the preferred source for project, program and portfolio management resources and information (in 3-5 years)…

Our Path…

By providing products and services, community, and content that are credible, findable and easy to use…

Our Path…

To 51 million practitioners, and organizations, around the world who wish to gain competitive advantage by improving their practice of project, program and portfolio management.

Through Differentiation…

Differentiation through Product Leadership

Creating products and services that

that improve the practice of project

management and enable global

networking and community building.

Product Leadership

Differentiation through Thought Leadership

Developing content, tools and

templates that help project managers

get better at what they do and improve

project outcomes in organizations

Thought Leadership

Differentiation through Advocacy

Demonstrating the value of project

management as a strategic business

driver through promoting successful

outcomes and organization best

practices

Advocacy

Differentiation through Partnerships

Co-branding and creating resources

with other like-minded organizations,

including academic institutions, to

advance the practice of project

management

Partnering

16

The PMO Imperative

strategy

implementation

say

of organizations

strategic is

%

1 7

Forrester: Strategic PMOs Play a Vital Role in Driving Business Outcomes

They have a seat

at the executive table

They are a vital part of the strategic planning team

They embrace core competencies

They use consistent objectives across industry and regions

Key Findings

Identity Crisis

?

?

?

?

?

?

The Five PMO Frameworks

Organizational Unit PMO/Business Unit PMO/

Divisional PMO/Departmental PMO 1

Enterprise/Organization-Wide/Strategic/

Corporate/Portfolio/Global PMO 2

Project Support/Services/Controls Office or PMO 3

Center of Excellence/Center of Competency 5

Project-Specific PMO/Project Office/Program Office 4

Organizational Unit PMO/Business Unit PMO/Divisional PMO/ Departmental PMO

Source: Pulse of the Profession®: PMO Frameworks

% Who Have This PMO

in Their Organization

Project/Program Delivery

Management

Standards, Methodologies,

Processes

Portfolio Management Prioritization

Primary Functions Performed (Top 3 with 5 Responding)

54%

46%

15%

15%

Enterprise/Organization-Wide Strategic/Corporate/Portfolio/Global PMO

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.

% Who Have This PMO



Management


Processes



39%

30%

25%

20%

Project Support/Services/Controls Office or PMO

Just 37% routinely provide strategic alignment

and just 33% confirm strategic priorities.

% Who Have This PMO



Management


Processes



44%

44%

19%

12%

Project-Specific PMO/Project Office/ Program Office

% Who Have This PMO



Management


Processes



31%

46%

16%

11%

Center of Excellence/Center of Competency

% Who Have This PMO



Management


Processes



35%

41%

24%

14%

EPMOs Enable an Integrated Approach

We do not need

Departments of Commerce,

Labor, and Education;

we need a Single Department

of Skills that will promote

an integrated approach

to global competitiveness.

- Lou Gerstner Former Chair, IBM

PMOs Enable Standardization

• Powers IBM’s project-based transformation

• Corporate programs at individual, organization and enterprise levels

• Responsible for strategic policy

• Office of the Chief Engineer

• Responsible for policies, standards, handbooks, future technologies, oversight, expertise teams, knowledge share

• Responsible for strategic policy

Enterprise-Wide PMOs

IBM: Becoming a Project-Based Enterprise

IBM’s PM Center of Excellence was Established in 1997 via CEO Charter

• Lack of project management discipline was identified as a major factor in project failure

• Project management was viewed as the key to reliably delivering on business commitments

28


29

Desired

Outcomes

A community of qualified PM Professionals that lead teams and manage on-time, delivery within scope and cost, reducing risk be the use of project based disciplines.

PM Methods and PM tool set, scalable and adaptable to customer program and project needs, that provide the right level of control to match risk and ensure delivery.

Management Systems, infrastructure and process, that provide visibility to project and program information needed to manage the business effectively.

Focus Build skills of professionals

Put key enablers in place

Make PM systemic to our business

Initiatives

Skills

PM education

PM qualification

PM Knowledge Sharing

PM method

PM tools

Guides

Maturity assessments

Executive involvement

Measurements

Mgmt systems integration

Communications

Competence Practitioner Organizational Stakeholder

Time 1997


30

Desired

Outcomes







Initiatives

Skills

PM education

PM qualification


PM method

PM tools

Guides



Measurements


Communications


Time 1997


31

Desired

Outcomes







Initiatives

Skills

PM education

PM qualification


PM method

PM tools

Guides



Measurements


Communications


Time 1997


32

Desired

Outcomes







Initiatives

Skills

PM education

PM qualification


PM method

PM tools

Guides



Measurements


Communications


Time 1997

IBM: From Products to Solutions – via Projects

33

• Interconnected project teams using technology to leverage assets and common processes

• Instrumented metrics and measurements

• Intelligent practitioners who grow their competency through education, experience, recognition and mentoring

Smarter Projects!

IBM: From Products to Solutions – via Projects

Smarter Methods, tools, and processes

• WWPMM IBM’s World Wide Project Management Method based on PMI’s PMBOK

• IBM Program Work Center is IBM’s strategic Project and Program Management tool

• 7 Keys to Success™ is IBM’s simple to use set of project evaluation metrics that allows consistent reporting from all types of projects

34

Work and schedule are predictable

Business benefits are

being realized

Stakeholders are committed

Scope is realistic and

managed

Team is high performing

Risks are being mitigated

Delivery organization benefits are

being realized

Seven Keys to Success™

35

The Value of Project Management to IBM

• Project Engagement Value

• Business Unit Value

• Corporate Value

Making project management indispensable for business results.®

77%

65% 62% 58% 57%

42% 43%

35%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

PortfolioReporting

StrategicAlignment

Confirmation ofStrategicPriorities

Project Alignmentw/StrategicObjectives

EPMO

Other PMO Type

Organizations that elevate the PMO to a strategic

decision-making level are far more likely to be high performers

High Performing PMO Roadmap

Create an

organizational

culture of project

management Continually

evaluate PMO

performance Evolve and

improve through

knowledge

management

and change

management

and Can Lose Momentum

Large-Scale Change is Hard

The End Game: 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

40

Thank You from the PMI Board of Directors

Documents

Making project management indispensable for …pmi-metrolina.com/downloads/2014_PDD_Presentations/2014_09_metrol...Making project management indispensable for business results.®