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Point of View: Enterprise Portfolio & Program Management
2 8 18 25
Our point of view and key challenges
How can PwC help?
Our frameworkCurrent trends
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Competitive intelligence
November 2015
Select qualifications
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The difference between winners and losers comes down to their ability to execute
Current trends
Enterprise Portfolio & Program Management
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CEOs identify 3 global trends that will transform their business over the coming 5 years
Technological advances
Digital economy have put power in the hands of more people than ever before. Collaborative networks are replacing conventional corporate modes of operating. Consumers are swapping information and advice on the virtual airwaves.
Demographic shifts
Demographic shifts caused by slow – or no – population growth in some countries are causing a massive redistribution of the world’s workforce. And since work is what generates wealth, that will have a huge bearing on future consumption patterns as well.
Shift in global economic power
On the positive side, for example, a billion people will be better off than they are now, as incomes in the emerging economies rise. On the negative side, unemployment and resource shortages could be exacerbated.
Mark A. Langley, President & CEO, Project Management Institute
Change is happening everywhere, faster and fiercer than ever before…
Source: PwC 17th Annual Global CEO Survey – 2014
“Markets and industries are
changing overnight”
“Technology isevolving
exponentially”
“New competitors are emerging every day
and old ones are disappearing”
Source: PwC 4th Global Portfolio and Program Management Survey – 2014
Current trends
Technological advances (81%)
Demographic shifts (60%)
Shift in global economic power (59%)
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… forcing companies to create value in totally different ways
Putting a robust innovation
framework in place
Focusing on breakdown innovation
Collaborating with an ecosystem of
partners
Breakthrough innovation can help a company rewrite the rules and leapfrog long-established competitors.CEOs are concentrating on innovation. They’re explicitly incorporating it in their strategies. And they’re using technology not just to develop new products and services, but also to create new business models, including forging complete solutions by combining related products and services.
The most successful executives not only focus on breakthrough innovation, they treat it like any other business process.These companies set clear ground rules on the sort of innovation they want, how they plan to measure it and the trade-offs they’re willing to make. They also create a disciplined R&D structure, with dedicated units and rigorous processes that can be reiterated and scaled up.
The top innovators don’t try to do everything themselves. On the contrary, they collaborate extensively with a wide range of partners, both inside and outside their industries. They regularly co-create new products and services with customers. And they experiment with different ways of innovating, including open innovation, incubation and networked innovation.
VALUE
Current trends
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In response to the rapid and unprecedented changes happening globally, at least 75% of CEOs either recognize the need for change, have plans for change or have already started making changes in most areas of business
In response, companies must embrace a shift in their organization…
93% of CEOs named the talent strategies as an area of business where change must occur in their company while 63% of CEOs are concerned about availabilities of key skills.One obvious step is to follow the talent – not only to the big emerging economies like China, but also to places like Indonesia, Vietnam and the Philippines, as the former becomes less competitive. Wage convergence has also benefited advanced economies, with US firms like Ford going back to North America. There are other sources of talent, too. The female labor force, for example, remains a largely untapped asset in many emerging economies. Women still bear most of the domestic load, so family-friendly measures, like maternity breaks, part-time work, day care and elder care, can ease such problems.
91% of CEOs recognize the need to change technology investments and 86% the R&D and innovation capacity.This is a good news. These figures are in harmony with the fact that change is happening faster than ever before, in particular for technological advances, forcing companies to create value in a totally different way.
Source: PwC 17th Annual Global CEO Survey – 2014
Current trends
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Location of key operations or headquarters
Investement in production capacity
Supply chain
Corporate governance
M&A strategies, joint ventures or strategic alliances
Channels to market
Approach to managing risk
R&D and innovation capacity
Use and management of data and data analytics
Organisationnel structure/design
Technology investments
Customer growth and retention strategies
Talent strategies
Recognize need to change
Developing strategy to change
Concrete plans to implement change program
Change program underway or completed
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Executives’ main statements on projects execution failure are about performance, alignment and robustness
… but people who commission change don’t get what they want ...
86% of projects do not achieve their objectives in terms of budget, quality or schedule.
Original success criteria are too often not met. Cost, scope and time constraints are not estimatedwith enough accuracy, then they could not be handled and managed in order to be aligned with allstakeholders expectations.
86%
Performance
55% of executives believe that they would most benefit from aligned strategy withproject portfolio.
By not being focused on executing strategy through an alignment of project portfolio with thisstrategy, executives observe failures in their company’s ability to execute its strategy.
55%
Alignment
42% of executives say their companies aren’t aligned behind their strategy in terms ofcapabilities.
This is consistent with the fact that the talent strategies area of business needs to change and thatCEOs are concerned about availability of key skills. In addition, this also shows that some partsof the organization don’t understand the strategy or resist it: there is a lack ofcommunication between the Executive teams and the Program transformation teams.
42%
Robustness
Sources: PwC 17th Annual Global CEO Survey – 2014PwC Strategy and Execution Survey – 2014
Current trends
7
Top three reasons for project delay –Regular themes since 2004
… and reasons for project delay have not changed in 10 years
15%
Lack of change-
control management
6%
Change in
environment
8%
Change in
strategy
15%
Lack of executive
sponsorship
6%
Ineffective
procurement / supplier
21%
Weak project
planning
30%
Insufficient
resources
41%
Change(s) in scope
mid-project
39%
Poor estimates in
the planning phase
Source: PwC 4th Global Portfolio and Program Management Survey – 2014
Regular themes are raised as reasons for project delay since 2004. Changes, Planning, Resources, Executive sponsorship… are still not managed and controlled enough in order not to be anymore a reason for project delay, even if these themes could sound like a basis for every project and program manager. After 10 years, we are still not doing things differently.
2014
2004 2007 2012 2014
Bad Estimates/missed deadlines Bad estimates/ missed deadlines Poor estimates in the planning phase
Change(s) in scope mid-project
Change(s) in scope mid-project Change(s) in scope mid-project Lack of executive sponsorship Poor estimates in the planning phase
Changes in environment Insufficient resources Poorly defied goals and objectives Insufficient resources
Current trends
Our point of view
… and key challenges
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It is not necessarily what organizations do but how they do it thatmakes them successful and establishes their competitiveadvantage
• With increasingly uniform access to market intelligence, customer insights and strategic advice, the difference between winners and losers comes down to their ability to execute. Those who execute faster and better are positioned to capitalize on the changes and thrive.
• It is not necessarily what organizations do but how they do it that makes them successful and establishes their competitive advantage. When it comes to projects, programs and portfolios, the No. 1 differentiator is strategic initiative management. You can’t produce better results without better execution.
• Executives and PPM professionals need to re-evaluate their priorities and approach to delivering successful change programs.
Organizations can improve only if both executive teams andprogram transformation teams act to progress on maturity
• Engagement is too often superficial: there is a disconnect between Executive Teams and those leading and delivering programs. It is not enough for leaders to ask for change. They must invest in it.
• There must be closer co-operation between all parts of an organization so that change programs are able to deliver the benefits that were expected at the outset. Improving the communication and interaction between those that sponsor change and those delivering it will reap benefits. However it must be done in the right way, at the right times and there must be collective responsibility for success.
It is not necessarily whatorganizations do but how they do it
Our point of view
Our point of view 10
03People frequently lack the
training, tools and resources to deliver results
Enable your people to deliver success
02React quickly and
appropriately when change occurs
Be flexible, change fast
01Ensure that portfolio delivers
value, manages risk and maximizes returns
Optimize Portfolio to maximize return 05
Organizations are not measuring progress towards
achieving the desired outcome and benefits on a
regular basis
Measure and address the harsh facts to maintain direction
04Those leading change and
those delivering it have different perspectives on how
change is delivered
Connect the Executive teams to program delivery
Five main challenges have to be addressed to move up to next maturity levels
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1st Challenge: Optimize Portfolio to maximize return
Today’s CEOs must be hybrid leaders capable of managing dualhorizons, combining the best of the old with the new and piloting theirorganizations through enormous changes to make them fit for the future. ButCEOs often don’t have the time to stop and reflect on decisions theyhave previously made – are they still going in the right direction? Hastheir portfolio grown organically into something that doesn’t fit with theirstrategy and deliver the desired returns? Too many programs are not underthe control of a well defined portfolio of strategic change that can be clearlylinked back to the organization’s strategy.
45% of respondents report that portfolio performance is notregularly reviewed by key stakeholders so that it aligns withthe organization’s strategy.
A methodical approach to selecting the portfolio can be wasted if it isnot regularly reviewed to ensure the expected outcomes and benefitsare still on track. Governance arrangements should include formalreviews at regular intervals through the full project life cycle.
Only 53% said that decision making across the portfolio issupported by objective criteria and quality data to ensurealignment to the organization’s priorities.
Only by taking a methodical approach to the optimization of theportfolio can an organization be sure that its investment in changeprograms is being effective and remains aligned to deliver thenecessary value.
Source: PwC 4th Global Portfolio and Program Management Survey – 2014
%
Creating an organizational portfolio of change programs or projects requires a blend of experience and science. It requires the experience and knowledge of key individuals to set the direction and construct of the portfolio, together with the science behind portfolio management and optimization to ensure that it delivers value, manages risk and maximizes returns. Too often portfolios are left to chance and they are not developed and then managed in a methodical way.
Notre point de vue et vos principaux défis à relever
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0 20 40
Don't know
Projects are commisioned locally within theorganisations to local agendas/needs
Projects receive budget approval, but do notnecessarily align to organisational strategy
The majority of projects align with ourstrategy but there is no formal approvals
process
Most change initiatives align to the strategyvia an approvals process
All change activities are driven from thestrategy by leadership
C-Suite & Employees
C-Suite
General Employees
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2nd Challenge: Be flexible, change fast
Both Executive Teams and PMs have to start getting the basics right –more effective planning and creation of a clear scope at the outset ofprograms will help organizations be more agile. Poor estimates keep beingcited as key reasons for delay – 10 years of survey data tell us that. Oftenthe planning phase is not given sufficient importance as the demands to“get started” override the correct option of ensuring estimates are as goodas they can be.
The trend also shows that scope changes are also recognized as a keyfactor that delay projects – perhaps reflecting a lack of clarity in theoriginal objectives. Without getting these issues right at the outset it ismuch more difficult to react quickly and appropriately whenchange occurs mid project. Once programs are up and running it iscrucial that both Executive Teams and PMs are flexible and agile – able toreact to the ever changing environment in which they operate – and it ismore than simple change control or good phasing. A differentapproach is needed – agile, yet grounded in good data. As programsprogress rigorous change control can help keep them on track.
Not everything is within the control of the PM, or indeed theExecutive Team. Being flexible enables organizations to make the rightdecision about the future of a program – sometimes closure is the rightanswer.
Source: PwC 4th Global Portfolio and Program Management Survey – 2014
Change is required to be happening faster but programs are not embracing this in terms of pace of delivery.
Notre point de vue et vos principaux défis à relever
Top 2 reasons for project delay
0%
%
20% 40%
Poor estimates
in the planning phase
Change(s) in scope mid-
project
Top 4 reasons for project failure
47
19
0%
%
20% 60%
Re-prioritization
Benefits not being realized
40%
Change in strategy
Change in environment
41
22
39
41
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3rd Challenge: Enable your people to deliver success
Insufficient resource is allocated to change – people are stilltrying to deliver really important programs “off the side of their desk”.Organizations are resourcing programs alongside their day to day activity– fitting it in with the day job indicating that they do not make sufficientdifferentiation between “running” and “changing” the business.
There is a paradox regarding training as 73% of PPM professionalsfelt that PPM is recognized as a critical skill, and invested in… yetin most organizations less than 40% of people are certified in theorganization's methodology and 55% thought that their organization didnot provide enough program management training. Certification inthe organization's preferred methodology is essential forprofessionals delivering any size of program, and while not aproxy for capability, it can at least ensure that the organization's programmanagement community have a common understanding of how theorganization expects them to deliver programs, and how theycommunicate across the organization using a common PPM language.
64%
Skilled workforce enhancement is a priority
40%
Program Management on top of core responsibilities
Source: PwC 4th Global Portfolio and Program Management Survey – 2014
People deliver change programs and often they are not being effectively enabled to do so by their organizations – they frequently lack the training, tools and resources to deliver results. Without this, no amount of structure, process or planning will deliver change successfully.
Executive Teams may see the need to change, and have plans, but their organizations are often far from ready. Only a minority of CEOs feel that their organizations are well-prepared for delivering change programs across most business functions. Organizations should ensure that the PM community is enabled to deliver change by creating the right environment.
40% of the Executive Teams and General Managers manage their change program responsibilities on top of their fulltime core task responsibilities. Only 6% said they had been seconded full time.This increases delivery risk. PMs get to spend less time with the people in the business who are responsible for delivering the program’sbenefits. Successful delivery needs everyone involved on a regular basis.
64% of CEOs say that enhancing their skilled workforce is a priority over the next three years.This is good news, as it is people that deliver change not processes or tools. A skilled workforce that can turn ideas into reality that allows organizations to leap ahead of the competition is essential. Between 2010 and 2020 an estimated 16 million new project management jobs will be added globally – but organizations are already struggling to fill some positions due to a talent gap. Do CEOs see professional PMs as an area they need to strengthen? If not, this could lead to large programs being put at risk.
Notre point de vue et vos principaux défis à relever
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4th Challenge: Connect the Executive teams to program delivery
We might expect different segments of a workforce to view change programs differently as some are driving the change and others are on the receiving end. It is perhaps a reflection that people across an organization have a different perspective on various elements of an organization's activities as their focus is on different levels of the organization's hierarchy.
30% of Executive Teams believe they perform better at change activities than their peers, while only 21% of staff think that’s the case.
While this could simply be down to the Executive Teams having a better awareness of the impact their change programs can have on performance there is still good reason to want to improve the knowledge of this across the organization.
There is a disconnect between those leading change and those delivering it – they have different perspectives on how change is delivered. If they were more obviously connected then results would improve. But leadership is not the sole responsibility of the Executive Team – PMs and program sponsors can help leaders deliver more effective programs of change.
PM professionals can bridge this gap and help the Executive Teamsdrive programs of change. There is a need to consider differentperspectives when developing new solutions or improvingexisting systems. Very few people see the whole picture, orindeed the same picture.
PMs can step up and correct some basic issues themselves –not wait for the Executive Team to help them do so. Executive Teamsshould expect more of their professional PMs in this respect. IfPMs are to be more recognized as a professional body they must bemore forceful in helping Executive Teams lead and drive programs usingprofessional methods and tools.
75% of Executive Teams said that when change is commissioned business outcomes are clearly defined and generally understood. However only 61% of General Managers agreed with this.
Is this more hope than reality from the Executive Team? This difference points to the need to still do more to ensure that the whole organization understands the business outcomes, and perhaps specifically what General Managers can do to help drive towards those goals.
Notre point de vue et vos principaux défis à relever
15
5th Challenge: Measure and address the harsh facts to maintain direction
Some of the basics of program management need to be carried outin a much more effective way – setting clear objectives and scope at theoutset, as well as being clear on the intended outcomes and benefits to berealized help set the program up for success. Maintaining this focus anddiscipline throughout delivery is equally important and evidentlychallenging.
24% of PMs say that costs are not clearly defined at the appropriate level within the lifecycle of delivery or scrutinized prior to approvals.Programs going over budget are almost typical – without clear costs agreed at the outset it is little wonder that budgets go outof control – this is a basic that PMs must ensure are completed properly.
24%
Costs not clearlydefined
50%
No appropriate baseline to measure benefits
Source: PwC 4th Global Portfolio and Program Management Survey – 2014
In addition to not being clear about the objectives at initiation, organizations are not measuring progress towards achieving the desired outcome and benefits on a regular basis, and therefore they are unable to tackle the tough issues that arise. By failing to maintain a line of sight to the end goal, programs can lose their way and fail to deliver on their promises.
Another feature is that the regular measurement of progress,both tactical and strategic, is not undertaken in all programs.This measurement needs to extend beyond the parameters of time andcost to a regular and ongoing assessment of whether or not theprograms is on track to deliver the outcomes and benefits it wasintended to.
Benefits are the fundamental driver of any change anorganization invests in, yet whilst many will invest time and effortin defining and quantifying the benefit to justify the investment, fewremain focused on realizing them. Programs start off with goodintentions, but if Executive Teams don’t show continuing interest theyoften stop measuring after 3-6 months. This unsurprisingly coincideswith the project starting to fail.
50% of PMs agree that there is no appropriate baseline to measure all benefits in their organization.
Only half say that a baseline exists, and of those only half are measured regularly – this could mean that only 25% ofprogress is being measured.
Notre point de vue et vos principaux défis à relever
Competitive intelligence
Industry practices today
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Competitive intelligence17
Our observations of practices among various industries
Firm A Firm B Firm C
Optimize portfolio to maximize return
Dedicated project portfolio organization and function within the organization.Governance process to improve decision cycle.
Structured, consistent and integrated processes across portfolio management. Initiatives have multiple delivery versions including in-flight exit versions. Portfolio is quantitative and mapped against an enterprise efficiency frontier.
Investment decisions are typically made locally on a case-by-case basis. Resourcing and management is done at a BU and departmental level. Capital expenditure procedures and policies are the main governance controls.
Be flexible, change fast
Initial plan is addressed by anticipating / forecasting further obvious change steps that will occurs during execution. Change process is considered within an overall new operating rhythm of delivery where change is expected, embraced and harnessed for the power of delivering accelerated benefits.
Multiple planning horizon management supported by governance, organization and dedicated model. Cross functional and organization accountability throughout the organization. Capability management approach of planning securitization and management.
Initial planning is handled as a separate program activity involving contributors within a coordinated data collection process. An efficient governance is in place to challenge and arbitrate change request allowing effective decision making. Changes preparation follows an industrial approach.
Enable your people to deliver success
The organization affects PM to initiatives considering program complexity and PMs background. Executives are committed to support dynamics enhancing effective and professional project work across the organization.
PM is considered as a distinct profession internally. Hard and soft skills required are clearly identified and staffing decisions are taken accordingly. Continuous investment in training programs (methodology, tools…) are secured and carrier path adapted
PM accountability to establish robust target operating model. Capability and capacity approach.
Connect the Executive teams to program delivery
Top down review of project portfolio. PM bridge strategy formulation and delivery regularly ensuring the alignment between both is maintained. Executives understand the importance of program management and delivery issues; they continuously take part to informal / formal program governance
Strong involvement of Executives in the pre-scoping phase of the project until the Go decision is provided. Then few participation / limited connection with PM Teams in the project execution. Connection is mainly triggered by escalation process
Measure and address the harsh facts to maintain direction
Operational benefits are tracked and reviewed in parallel and complementary to traditional progress monitoring. Project risks are reviewed based on the magnitude of impact they could cause on organization critical operations
Network organization Governance to anticipate and mitigate risk. Sensitive and scenario based approach.
Organization has setup “best-in-class” tools and efficient processes to regularly collect and interpret project progress vs. plan as well as effective and forecasted benefits. Risks not to reach expected operational outcomes are closely follow-up and mitigated
Leading On Par Lagging
Our framework
To manage your programs and projects
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Our framework19
The five components of our framework tackle your challenges to turn execution capabilities into a competitive advantage
Component #1: Define a proactive portfolio management approach
Move from simple Reporting / Monitoring function to a more proactive
portfolio optimization roles based on financial and operational criteria
and new roles in creating new ideas.
Component #2: Think big, Start small, Act fast
Follow an holistic approach supported by a Leadership, Strategic,
Cultural and Behaviors approach
Component #3: Create High Performing Team
Create High Performing Team exceeding expectation and focusing each
member of the organization to deliver well, to contribute to goal and to
help people around to be successful
Component #4: Adopt a Push / Pull approach
Communicate the operating teams the objective of the program change,
involve the team in a “learning by doing approach” and guide the
executive team to define clear challenge and metrics to follow the plan
Component #5: Keep the focus on the target
Regularly assess the sensitivity of the current situation compared to the
original objectives and milestones, in order to maintain or adjust the
project path and methods leading to the achievement of expected results.
Keep the focus on the target
Create High Performing Team
Define a proactive portfolio management approach
Think big, Start small, Act fast
Adopt a Push / Pull approach
#1
#2#3 #4
#5
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Component #1: Define a proactive portfolio management approach
Move from simple Reporting / Monitoring functionto a more proactive portfolio optimization rolesbased on financial and operational criteria andnew roles in creating new ideas
Our framework
PortfolioIT Infra.
Portfolio Optimi.
Portfolio Perf.
Portfolio Design
and structure
PortfolioGov.
PortfolioMngt
function
Portfolio ideas
pipelines
Strategic Portfolio Alignment
Take a look of the alignment of project portfoliowith a view to ensuring both program selectionand reviews clearly support the organization’sstrategic goals - being brave enough to stopprojects or programs that are not delivering
Portfolio Optimization
Developing a strong portfolio managementand optimization capability, that has ExecutiveTeam support and involvement, will drivegreater alignment and integration betweenstrategy, change and business as usual
Portfolio IT Infrastructure
Methods, tools and knowledge managementwhich support delivery; of project portfoliosupported with “Business Intelligence ITSolution” to provide a share view and analysis
Portfolio ideas pipelines
Build a sustainable and effective ‘ideaspipelines’ to continually enter newprojects and programs into their portfolio
Portfolio Performance Management
Review the ability of the portfolio to createvalue, both in terms of financial and nonfinancial (e.g. sustainability, customerexperience etc.). Establish quantitativecriteria to measure both performance andcapability robustness and establish auditand review process
Portfolio Governance
Create a Portfolio Governance Structureincluding cross functional committee and anetwork organization to assess scenario andprepare decision making at the executive level
Design and Structure
Create a Portfolio structure to enable a 360° viewand share of project portfolio pipeline providingthe maturity assessment of the project portfolio
Portfolio Management function
Create a portfolio management function from aBusiness architecture perspective, ensuring theright people, process, and tools are in place toeffectively manage the portfolio of changeprograms that consistently align to business goals.
StrategicPortfolio
alignment
ProjectPortfolio
Excellence
21
Component #2: think big, start small, act fast
Follow an holistic approach supported by a leadership, strategic, cultural and behaviors approach
Organizational effectiveness: think big, start small, sct fast
Leadership Strategy Culture Behaviors
Mentoring others to embrace new way of working
Fostering Business led approach
Motivation and morale
Genuine two-way communication
Hierarchy and span of control
Roles and responsibilities (delegation)
Vision and direction
Continual alignment to Strategic priorities
Focusing on appropriate horizon Long and short terms
Capability and skill requirements
Reporting structure
Matrix management system
Embracing greater understanding and larger appetite for risk
Creating ‘platform’ for a flexible team to be assembled
Cultural strength and congruency
Deploying agile program execution and governance capabilities
Situation-appropriate styles and pacing
Healthy tensions managed well
Goal setting and execution management
Sharing successes and recognizing the contributions of staff
Taking pride in work and having passion for the outcomes
Governance, decision making, and prioritization
Having a “how can we” attitude and nourishing / growing people to their potential
Our framework
22
Component #3: Create high performing teamCreate high performing team exceeding expectation and focusing each member of the organization to deliver well, to contribute to goal and to help people around to be successful
Align your Strategy and share a common purpose
(Aligned Goals)
Create a collaborative team environment
(Collaborative behaviors)
Be clear on roles and responsibilities and hold
team members accountable
(Clarity and accountability)
Engage your team in change
(Agility)
Build a High Performing management team responsible to develop Employee Engagement
Develop Employee buy in to transformation plan and alignment with objectives and vision
Smart Management
Employee Engagement
Our framework
23
Component #4: Adopt a Push / Pull approach
Communicate the operating teams the objective of the program change, involve the team in a “learning by doing approach” and guide the executive team to define clear challenge and metrics to follow the plan
Concrete actions can be conducted jointly by executives and program management teams to improve coordination in terms of governance and communication, through programs organization.
Executives teams could:
• Commit in the scale of programs and develop a better understanding of the projects issues
• Be incited to make better use of the experience and the value of their program directors, which could bring them a real advantage by working more closely to structure and conduct programs.
Program managers could:
• Picture more the difference between the company strategy definition and its execution
• Take responsibility to work more closely with sponsors of major programs, be more transparent in their communications, stand up for their point of view and express their opinions
Our framework
Program 1 Program 2 Program 3 Program 4
Phase 1
Phase 2
Phase 3
Framework including KPIs communicated to program; program commits to
organizational objectives
Program responsible for implementing –seek support and “raise their hands for
certification”
Assessment and certification using Health Checks and Maturity Model
Pull(Support)
Push / Pull Approach ExampleTop Management “Push” and Project “Pull”
Push(Impulse)
Push(Impulse)
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Component #5: Keep the focus on the targetRegularly assess the sensitivity of the current situation compared to the original objectives and milestones, in order to maintain or adjust the project path and methods leading to the achievement of expected results.
Get the basics right
Go beyond the basics
Keeping continually in focus the project objectives and the needed milestones for their construction require the team to be able to adjust. Assessing the phases during which the methodologies used are no longer effective and establishing alternative ways can be critical to the achievement of expected results; for example by reviewing a list of risks, ensuring the relevance of benefits monitoring indicators or adapting the methods for challenges steering in each project phase. The ability to be flexible, as described for the second challenge, is critical to adapt to the environment changes. The same principle applies when it comes to methodologies.
Keeping in focus the target and steering programs by benefit management often require a change in the mindset. By focusing on the objectives, executives ask the right questions to ensure the success of the transformation; whereas being too focused on managing daily stress related to the execution brings the risk of contributing to divert the project from its path. Project directors have an important role to play in this development.
Suspending a program and reassessing the surrounding environment and context helps getting time to restructure and focus on the needed effort. This step is necessary for some programs and should not be understood negatively. Finally, the decision to freeze or to close a program must always be an option if it can limit the investments in an initiative that is no longer able to achieve the expected benefits.
The teams in charge of steering the company's transformation can improve the performance of their projects by ensuring that the basic methodological principles are regularly performed. Possible improvements could result from the strict application of the basics for project management.Clear definition of an objective, of the way to quantify it and track it throughout the execution should be addressed ahead of the launch of any project, including during the decision process. The specification of a path, that includes measurable milestones, completes securing the project launching in good conditions.
Our framework
How can PwC help
To drive and support the delivery of quality engagements
25
How can PwC help
By putting our network at your disposal…
Uses a collaborative global network to share best practice to drive and support the delivery of quality engagements
West Cluster534
Central Cluster
377
East Cluster412
PwC’s global network stretches across 154 countries and is made up of over 161,000 partners and staff:
• It is one of the strongest and most complete networks of any professional services firm, and is essential in helping us give clients top quality services, wherever they may be.
• To continually improve the quality and consistency of our program management services, Portfolio and program Management has created a global program management network that is focused on assuring programs and portfolios are delivered in the most effective manner. The network provides a platform for consultants to use their own experience and specialist expertise when tackling complex challenges faced by our clients, with access to program management specialists and better practice program management methodology, tools and techniques.
A global Portfolio and program Management experts network
How our networks help us deliver our services to you:
Through active engagement and communication across geographies and lines of service, the program management network supports and strengthens the delivery of our services by:
• Making sure portfolio and program management is delivered consistently using best practice tools, techniques and methodologies in line with PwC’s globally-consistent framework to approaching and delivering all aspects of transformational change from strategy through to implementation (Transform);
• Providing access to tools and techniques across our global reach so the latest thinking is used for each client challenge;
• Creating absolute integration of the teams brought together to deliver work for clients;
• Broadening and deepening our delivery capability through our ability to provide the required specialist skills combined with project management proficiency ; and
• Providing training and development opportunities across the network to make sure we can continue to improve the quality of our offerings.
Portfolio and Program Management continually remains at the lead of program management best-practice thinking through our global partnerships with industry leaders and relationships with professional organizations such as Programme Management Institute (PMI), Association for Project Management (APM), Major Projects Association (MPA) and academic institutes such as Cranfield Business School.
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… and providing our Portfolio and Program Management expertise…
Our teams help organizations run and deliver change initiatives in the most efficient and effective way
Our people are our most important asset:
• Each sub-competency is made up of technical Portfolio and Program Management specialists and Portfolio and program Management generalists with specific industry experience. We invest heavily in the development of our people through training, knowledge sharing and providing opportunities for external networking and professional accreditation.
• Depending on the services being delivered, scale and complexity of your issue(s), the most appropriate team is mobilized.
How our people help us delivery our services to you:
Our Portfolio and Program Management team collectively possesses a broad spectrum of experience across industry sectors and project-related skills. This matrix of capabilities gives our team the ability to understand more closely the unique Portfolio and program Management challenges within specific industries while also identifying opportunities for cross-industry learning and thought leadership. The foundational aspects of our Portfolio and program Management community, which we believe set us apart from our competitors, are:
• Training – we have a strong focus on training within Portfolio and program Management. Nothing replaces real day-to-day client experience but we feel a strong background on industry practice and certification enhances our delivery capability. This includes external qualification such as: PRINCEII, PMP, MSP, MoR and PgMP;
• Knowledge - we understand the efficiency that can be gained by reuse and refinement of our good practices. This gives our team a tangible advantage when working with clients as we have developed a reputation for high quality, accelerated deployment. Our Partner and Director team actively drives the global Portfolio and program Management agenda by participating in keynotes, learning seminars and thought leadership (whether for top executives or the wider Portfolio and program Management community);
• Accreditation - corporate and individual memberships allow our Portfolio and program Management competency to be engaged with, and contribute to, the wider Portfolio and program Management community which benefits our clients as we engage on your behalf. Professional accreditation, such as ISO 9001, certification that our quality management system has recently been awarded by BSi, demonstrates a level of Portfolio and program Management expertise recognized externally to PwC; and
• Networks - the Portfolio and program Management competency maintains a strong network of working relationships across the wider PwC business and externally. We understand that leveraging our internal or external networks magnifies the value we can deliver to clients and we use those networks actively.27 How can PwC help
28 How can PwC help
PwC
ProjectManagement
Capability
PortfolioManagement
Capability ProgramManagement
Capability
Comprehensive program management solutions that makes success of our clients’ strategic initiatives much more likely
Delivering industry leading project management services to promote the enhancement of business performance
Delivering industry leading project management services to promote the enhancement of business performance
… we help you secure your strategic and complex initiatives
Working with our clients our focus is to:
• Apply governance and financial discipline to improve implementation and maximize benefits.
• Drive strong alignment between business strategy and operational delivery.
• Create enhanced visibility into planning, budgeting, selection and performance of initiatives.
• Inform decision-making ensuring the optimal mix and execution of the right investments to fulfil business goals and objectives.
• Optimize constrained resources, actively balancing demand management and execution of initiatives.
PwC’s Portfolio & Program Management teams across the globe offer solutions for our clients who are looking todrive successful transformational programs, more efficiently manage complex enterprise portfolios andprograms, and improve overall execution and performance.
Ce que PwC peut vous apporter
PwC helps establish and implement strategic and operational levers
This model helps position:
• Changing versus running a business: the differing considerations and approaches necessary when considering Run and Change functions,
• Macro influences: changing external factors which impact the business,• Embedding strategy: the activities behind successfully embedding strategic
imperatives into the business,• Measuring performance: the necessary metrics and processes for determining
the fitness of current business operations and the effectiveness of delivering change,• Embedding change: the important processes and interactions to be considered
when designing and embedding changes into business as usual.
Leading Organizations should now focus on Portfolio and program Management capabilities throughout the full capital allocation lifecycle:
• Invest – Portfolio Optimization: We work with our clients to develop appropriate frameworks and processes to manage the ongoing selection and refinement of investments to ensure the link between strategic objectives and portfolio selection is maintained and enhanced.
• Execute – Project, Program and Portfolio Delivery Capability: We help our clients improve their capability to manage and deliver projects, programs and portfolios. To do this we gain a deep understanding of the types of initiatives they are undertaking and plan to undertake, the environment and constraints under which they operate and their current and desired levels of capability.
• Realize – Managed Benefits delivering intended outcomes: We help our clients to identify and quantify benefits up front and to ensure that these are realistic and form the foundation of business cases. We also help our clients to track and monitor the realization of benefits and to embed their ongoing realization beyond the lifespan of the project.
High performing enterprises formalize not only the relationship between the Run and Change function but alsothe explicit linking of the business strategy to the transformation portfolio.
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Run the Business Change the Business
Alignmentand
prioritization
Measurementand
refinement
Deploymentand
acceptance
Strategy and corporate
governance
Measurementand
re-balancing
Operating Model
Portfolio Management
and Governance
Program Delivery
Macro
Influences
Qualifications
A selection of key engagements
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Références31
Issues Project context: Harmonization of investment management processes, systems and organization throughout the Group, driven by the implementation of a fully integrated information system covering Middle-Office, Investment Accounting and Investment Reporting departments.
Project Management team: Support of the Program Management in the steeringand the organization of the projects from study phase (investment decision) till implementation.
Approach • Strategy: Definition of governance principles, expected benefits (business case) and project roadmap.
• Planning: support to the Finance Department in designing project plan (planning, budget and resources).
• Governance: Preparation and facilitation of governance project and steering committees (Board level).
• KPIs setup: Design and follow-up of KPIs to provide an objective picture of project progress.
• Operational follow-up: Follow-up of project planning, budget, critical activities, risks and issues.
• Coordination of non recurrent transversal topics (data migration, interdependencies, Go Live strategy,…).
• Methodological support to Finance Department on continuous improvement and decision process.
• Methodological support to project work streams on project management and assessment activities.
• Design and organization of Go-Live detailed plan.
• Animation, coordination and facilitation of Go-Live activities with all business, IT and project stakeholders.
Benefits • Maintenance and improvement of centralized governance bodies and project management processes with IT and business stakeholders.
• Facilitated communication between work streams and internal project management (single point of contact of all stakeholders).
• Internal Project Management represented at all level of the project organization.
• Anticipation and preparation prior to each project phase by the team (organization, indicators, roles and responsibilities).
• Objectivity and neutrality of decisions and reported information on progress, budget, planning and resources.
Business transformation of the finance department –Insurance Company
Références32
Issues The client wanted to transform the technology project office function of the organization to an Enterprise-wide projects and change management function.
Approach PwC was engaged to assist the client with a six month project to transform its technology project office to an Enterprise-wide project and change management function in technology and across the enterprise. The four PwC resources established a governance structure to drive program execution and delivery, provided project guidance and leadership with 'day to day' activities, ensured the timely and accurate production of status, project and risk reporting from the EPPM solution and provided document management from SharePoint. Additionally, PwC provided enhanced methodologies, technology tools and practices to support the change management function. The team included Senior Program Managers, Senior PMO Managers, Business Managers and Financial and Resource Analystswith a US$500,000 budget.
Benefits The successful implementation allowed the executive sponsor committee to make better strategic program decisions, and enhance the Firm's service capabilities by improving methods, technologies and business practices. The EPPM implementation also brought efficiency to the program environment. It transformed program functions and roles, implemented governance to drive program execution and delivery, provided timely and accurate production of status, project and risk reporting to stakeholders/sponsor and executive committee for strategic program decisions. PwC performed milestone based program strategic planning, tracked program financials, and also reduced the total number of overall meetings. Throug²h early identification of program issues, dependencies and risks, the team was able to overcome a lack of a robust project process and insufficient definition and validation of technology and business requirements. The team provided metrics for identifiable and measurable results in order to obtain commitment from the business and executive sponsorship. The team managed unrealistic program, project and reporting schedules by breaking projects into distinct program implementation phases. The team managed staff skill set for project assignments and provided governance standards and forums. The team mitigated the competing demands of other cross functional firm initiatives in order to maintain the momentum of the improvement efforts.
PMO Transformation –Global Payments Service Organization
Références33
Issues The client wanted to deploy a major technology services program in the organization.
Approach PwC was engaged with a team of ten resources to setup and manage the PMO for the client in transforming the technology project office to support a major technology services program with a US$4 million budget. PwC roles included Senior Program Managers, Senior PMO Managers, Business Managers, and Financial and Resource Analysts. PwC’s role included implementing program structure and governance to drive the initiative, including establishing and managing program functions and roles and providing ongoing guidance and regular reporting to leadership. PwC provided timely and accurate production of status, project and risk reporting to leadership. Additionally, PwC assisted in identifying, recruiting and transitioning qualified portfolio project and program management leadership teams.
Benefits As a result of PwC’s involvement, functions and roles underwent a successful transition creating consistency and organization across the initiative. PwC provided enhanced methods, tools and practices that were used to ensure consistent processes were followed and that rules were in place to maintain structure to the program. PwC also introduced and drove accountability to all stakeholder groups, allowing for strategic decisions to be made on a regular basis. Dealing with a lack of a robust project process, insufficient definition and validation of technology and business requirements required the team to identify program issues, dependencies and risks early on. The team created metrics for identified and measurable results to obtain the commitment of the business and executive sponsorship. The team managed unrealistic program, project and reporting schedules by breaking projects into distinct program implementation phases. The team assigned staff with the proper skill sets for project assignments with governance standards and forums. The team focused the client on the initiative at hand to maintain the improvement efforts.
PMO and program/project management – Large Commercial Bank
Références34
Issues A major industrial project for smart meter deployment in France over 35 Millions of Smart Meter
Design of the infrastructure as core platform for the Smart Grid projects
Since 2010, the project has achieved little performance
Strategic decision to terminate the turnkey project and internalize integration and development
PwC was asked to conduct an operational assessment to define the new organization and operating model
Approach • Assess maturity of the current organization and its key interfaces with internal and external key stakeholders
• Establish new organization to support end-to-end System approach, cross –functional governance and agile development
• Define the implementation plan across the different areas of the project
• Mobilize the organization in regards new organization
• Establish key principle to build a clear vision of the project at the horizon 2020
• Define new governance model driven by selected strategic projects and objectives supported by clear leadership and cross functional engagement
• Define and implement strategic programme management governance to secure the strategic objective and the execution
• Propose balance organization for local execution of improvement and with other area of the project
Benefits • Significant improvement of the performance of the System
• Agreed Strategy with the different stakeholders
• PwC’s improvements to Management’s organization, new roles and accountability, governance internal & external, clear and shared vision
• Developed a transformation plan structured in 3 modules: Organization and Governance, Strategic and Tactical Performance improvement, cross functional alignment on finance
Smart Meter deployment in France –Energy Company
Références34
Issues With the entry in force of the Lisbon Treaty in 2009, the role of the European Commission and its responsibilities in terms of space policy have been considerably extended. The Commission is now entrusted with the management of major space programs (mainly satellite navigation and observation programs, as well as space monitoring and tracking).
To meet the "Europe 2020" strategy objectives, the Commission needed support in the management of these major programs, as well as extensive science and technology leading experts of the space sector.
Together with a consortium of experts from the space sector, PwC supports the Commission in defining the strategy and implementation of the European space programs through highly technical studies, impact assessments and program management support activities.
Approach • Supporting the implementation, monitoring and reporting of business in European space programs: project management methodologies and standards suitable to large-scale programs
• Supporting the strategy of the European Space Policy: socio-economic analysis and impact studies, cost-benefit analysis, market research and sector analysis
• Providing legal expert support: space law, delegation agreements writing and legal frameworks establishment for international cooperation
• Providing technical support for product portfolio management and the innovation strategy of space programs: technical studies on innovation and development of applications with different objectives (Earth observation, defense, security ...) and specific requirements ("free" data, big data, etc.)
Benefits • A European team combining a wide range of skills (project management, support in major programs monitoring…) and a deep knowledge of the sector in all its dimensions (economic, legal, environmental…)
• An ability to adapt expertise to programs and projects management according to the different challenges of the client (variety of projects in terms of objectives, size, progress, risks, stakeholders...)
Support in the management of Space Programs – European Commission
Your contacts
For further discussion and to address specific issues in your area, do not hesitate to ask your contact persons:
Financial services
Patrick Akiki Associé
[email protected] 56 57 81 61 | 06 48 00 87 74
Ericson OpouSenior Manager
[email protected] 56 57 58 78 | 06 30 49 11 29
Industry& Services
Vincent Le BellacAssocié
[email protected] 56 57 14 02 | 06 42 82 58 07
Yoann DerriennicDirecteur
[email protected] 56 57 41 11 | 06 70 84 24 42
Public sectorJean Philippe DuvalAssocié
[email protected] 56 57 84 61 | 06 72 79 50 11
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© 2015 PwC Advisory. All rights reserved. “PwC Advisory” refers to PricewaterhouseCoopers Advisory, a French legal entity of the PwC network. PwC refers to the network of member firms of f PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity. This publication is protected under the copyright laws of France. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
