Recap – Project Communication and Reporting Project Communication Tools Performance Reporting Issue and Risk Reporting Change Management Resource Reporting
Recap – Providing Value at All LevelsEnterprise vs. user needsValue needed by role– Senior Mgmt., Middle Mgmt., Team MembersWork Management– All work in one solutionProject roles and toolsAll processes and methodologies– Support for all
PPM ChallengesChallenges:– Growth and improvement of PPM maturity across the organization– Putting plan in place to improve organizational maturity– Benchmarking effectiveness
PPM OpportunitiesOpportunities:– Establish or improve the organization’s PPM processes • Resource utilization • Portfolio optimization • Cost control– Move up the scale in the PPM Maturity Model– More effective PMO, and higher PPM Maturity result in a higher project success ratio
Five Core DimensionsEach maturity level is defined by dimensions: People PPM Practices and Processes Technology Financial Management Relationships
PeoplePeople are the most critical part of any projecteffortInterdependency per availability, skills and workcontributions are criticalAt higher levels of maturity, leadership ability insupporting PPM activities becomes critical
PPM Practices and ProcessesPPM processes include:– Portfolio Management– Program Management– Project Management (i.e. risk and resource management)Common practice is the establishment of a PMO– Project Management Office– Program Management Office– Portfolio Management Office
TechnologyRequirements evolve with:– PPM process changes– Increasing levels of maturityPPM processes often require unique tool sets tofulfill the business functions– Financial management– Collaboration– Project Accounting– Resource Management– Others
Financial ManagementFinancial management systems may be adequateat Level 1– Lump sum project budgetsInadequate when forced to support multipleprojects and programsEffectiveness requires more detailed visibility– Charge backs– Allocations– Tracking value
RelationshipsOrganizations must identify touch points needed tomaintain the PPM processesThis includes:– Who needs to be informed– Who needs to be consulted– Whose help is mandatory for processes to work effectively
PPM Maturity and Dimensions Level 5 Optimizing Level 4 Managed Enterprise Orientation Level 3 Increasing and Defined Efficiency Beyond Initial • Network of • Pervasive Level 2 Integration PPM Leaders Specialized PPM Leaders Developing •Center of • PMM Leader Excellence, Cap •Enterprise PMO Emerging Beyond IT acity Planning Level 1 Discipline •Shared Initial Resource Pools •Workflow Tools •Real Time • PMO in Place Pipeline Reactive •Projects •Business User Management •Managed Approved on Tool Adoption Level 0 • Staffing for Programs and Portfolio Basis •Integration Nonexistent Priority Projects Resources •Portfolio Tools forDimensions •EA Involved Modeling and Reporting Ad Hoc •Process for •Project Optimization Collaboration Priority Projects Processes in •Portfolio Analysis People Place Tools, Dashboar • First Available •Risk Factored •Project Sched- ds •Full Program PPM •No Process uling Tools •Cost/Labor •Benefit Lifecycle Processes Capture •Cost Capture Realization Financial •XL •Budget and Forecast Tracked Management Estimates •Projects Benefit Technology Estimates •Benefits Related •Relationship •Broader Impact •No Analysis of Cost/Benefit/ •IT/Business to Portfolio Mgr. = Considered Financial Risk Collaborate •Risk Review Strategy Consultants (social, supply through Business chain) Management •Ad Hoc Analyst PM •Relationship •Relationship Communication Updates Mgr. Emerge Mgr. TrustedRelationships
Characteristics of Level 1 - ReactivePeople • Priority projects get appropriate staffing — everything else gets staffing when "first available." • Nascent PPM leader role — there is still primarily an individual-manager focus. • A few people begin to work toward stopping the pain and getting organized.PPM Practices and • All internal processes are centered on the management of critical projects.Processes • The approach to process is centered on necessity and observation of processes brought in by outside vendors working on large projects and programs.Technology •Project-scheduling tools and milestone reporting are adopted on a project-by- project basis. •There are no formal management tools.Financial Management •Projects have budgetary estimates. Actual costs can be estimated. •There are some benefit statements.Relationships •Previous informal relationships begin to break down, and it becomes necessary to formalize roles, including that of a "stakeholder."
Characteristics of Level 2 – Emerging DisciplinePeople Project: The project manager role is formalized. Project staffing/resource capacity issues begin to be addressed, with formalization around other roles and skills to increase utilization and productivity. The most common PPM leader role that emerges is the purveyor of methodology and standards, followed by a resource manager, as both roles are critical to support effective resource capacity issues. Program: Little distinction, if any, exists between a project manager and a program manager. Portfolio: No true portfolio management roles exist.PPM Practices and Project: Initial PMOs are established. Initial project processes are instituted. UnderstandingProcesses of project-level risk management is becoming more common. An approach to demand management and prioritization is instituted. Program: Little, if any, program-specific processes or practices exist. Portfolio: While something resembling portfolio management may be used during funding cycles, no true portfolio management processes or practices are in place.Technology Project: Automation at the project level occurs, largely with desktop solutions. Project collaboration and team work spaces are occasionally supported. Program: While existing technology may support programs, process immaturity usually renders this superfluous. Portfolio: While dashboards (where available) may aggregate data, no formal technology support for portfolio management exists (that is, no technology-spanning projects, programs and portfolios are in place).
Characteristics of Level 2 – Initial IntegrationFinancial Management Project: Estimates for costs and benefits are made for each project. Project cost and labor hours are generally captured. Program: No financial management specific to program management exists. Portfolio: There is no true portfolio management capabilities showing aggregate risk and return against objectives.Relationships Project: Relationships within projects strengthen as a focus on the project as the operating entity emerges. Cross-functional governance committees begin to emerge. Program: No formal program management relationships are officially sanctioned at Level 2. Portfolio: No formal relationships exist to support portfolio management.
Characteristics of Level 3 – Initial IntegrationPeople Project: The concept of disciplined teams working on projects is developed. Specialized PPM leader roles are formalized. Career paths are defined, factoring in skills and capabilities of the individuals. Program: The role of the program manager exists and is distinct from that of the project manager. Portfolio: The role of the portfolio manager exists and is distinct from that of the chief methodologist or resource manager.PPM Practices and Project: Projects are approved on a portfolio basis. Project management practices andProcesses processes are aligned with enterprise architecture and software development life cycle. Program: Programs increasingly are managed in-house. Program management-specific practices and processes, distinct from project management-specific practices and processes, are instituted. Portfolio: Portfolio management is instituted, but largely for project approval only.Technology Project: Reporting dashboards that focus on providing actionable information are available. Program: Technology support for programs and their associated projects exists. Portfolio: A portfolio management tool is in place.
Characteristics of Level 3 – Emerging DisciplineFinancial Management Project: Value-based estimates are adopted. Actual costs are captured and forecast. Benefits are identified and related to strategy in the portfolio. Program: Financial management is applied to programs, distinct but related to projects. Portfolio: Portfolio value and risk become considerations.Relationships Project: Cross-functional groups are easily formed, and collaboration is the norm. Project and program staff view themselves as reporting to the project first and their home department second. Relationships with related disciplines (for example, enterprise architecture and application development) ally. Program: Increased integration fosters collaboration across projects and programs. Portfolio: Alliances with related roles, functions and disciplines emerge.
Characteristics of Level 4 – Effective IntegrationPeople Project: A network of PPM leaders is emerging. Companywide centers of excellence improve workload management. Project assignments are made based on the specific skills and capabilities of the individual. Program: The role of the program manager exists internally. Portfolio: The role of the portfolio manager exists internally. Senior leaders and key stakeholders actively participate in the governance and management of the portfolio through formal structures.PPM Practices and Project: Related projects are managed as programs. The portfolio is actively maintained.Processes Multiple methods exist and are used by all project managers (PMs). Program: Increased use of program management methods, often with multiple program management methods available for various scenarios or profiles. Portfolio: Increases sophistication in portfolio practices (for example, modeling and portfolio triggers).Technology Project: A single PPM repository of reporting data is available for the enterprise in order to support a project-capable organization. Program: Technology supports programs, with the ability to enable underlying projects as well. Portfolio: Technology supports portfolio modeling.
Characteristics of Level 4 – Effective IntegrationFinancial Management Project: Project budgets are meaningful, and such techniques as monthly estimates to complete are beginning to be common. Program: Programs operate in much the same manner as operating divisions having the right to adjust their funding between projects without exceeding their stated budgets. Portfolio: The portfolio is modeled and appropriately optimized, factoring in risk. Benefit realization is tracked. Greater reliability in the portfolio is driven by greater reliability in its underlying projects, programs and supporting processes.Relationships Project: The organization has adopted a project-centered view that supports enterprise-wide teams, promoting collaboration and sharing. No more "us vs. them." Program: Program management is an enabler to enterprise-wide teams. Portfolio: Synergy develops between the portfolio and the stakeholders involved with its management as it becomes a tool for success, as opposed to a system to go around.
Characteristics of Level 5 – Effective InnovationPeople Project: Project managers exist throughout the organization, and project management is considered a core capability designed to support allowing individuals to manage projects in their particular area of competency. Self-selection and self-direction are encouraged as enabling behaviors. Periodic training is expected. Program: Programs are considered the primary way to execute strategy and make changes, and program management experience is considered a key element of career development on the way to senior management positions. Innovation and out-of-the-box thinking are encouraged in the program management role. Portfolio: Portfolio managers exist within the organization and support optimal results. Portfolio managers support innovation and ideation, and play a key role in ensuring that all projects and programs are presented in a manner such that they can be fairly evaluated and prioritized.PPM Practices and Project: Practical, low-overhead approaches to project management have been adoptedProcesses toward project management to make it accessible to the entire company. Program: Common program management processes and methods evolve in a cycle of continuous improvement, with rapid dissemination of these processes and methods throughout the program management community. While best practices are applied to familiar programs, adaptive approaches exist for less structured programs, with program managers knowing which to apply and when. More-sophisticated analytical approaches (such as agent-based modeling and simulation) are available and applied when appropriate. Portfolio: Portfolios exist for all project work throughout the enterprise, harmonized by a consistent enterprise approach to portfolio management. The EPMO oversees strategy execution. One or more innovation or discovery portfolios exist, replete with supporting processes for innovation, ideation, investment management and dissemination. Sophisticated practices, such as simulation and agent-based modeling, are used when appropriate.
Characteristics of Level 5 – Effective InnovationTechnology Project: Technology supports a robust knowledge management system, and resource management is enabled for ALL project resources. Collaboration technologies support communities that may allow external input. Agent-based modeling, simulation and predictive technologies are available to projects. Program: Ideation, open innovation platforms, agent-based modeling and simulation technologies are available to programs. Portfolio: Open innovation platforms contribute to the portfolio. Ideation technology exists. Predictive markets provide insight into portfolio decisions. Agent-based modeling and simulation technologies are applied at the portfolio level.Financial Management Project: Full life cycle costs and benefits are tracked with feedback to improve financial management. Creative financial management methods exist to support creative projects where estimated costs, schedule and benefits are a poor determinant of success. Program: Full life cycle costs and benefits are tracked with feedback to improve financial management. Programs have dedicated financial management staff. Creative financial management methods exist to support creative programs where estimated costs, schedules and benefits are a poor determinant of success. Portfolio: Portfolio resources are consciously allocated to innovation and exploration. Portfolio liquidity is high, with the ability to shift resources, investment allocations and strategies to respond to market conditions or opportunities.
Characteristics of Level 5 – Effective InnovationRelationships Project: Social responsibility aspects are considered, along with the impact to the organization itself. Superb communication skills are considered a core competency of project managers. Team diversity is managed to deliver optimal results. Project communities are common. Program: Social responsibility aspects are considered, along with the impact to the organization itself. Superb communication skills are considered a core competency of program managers. Team diversity is managed to deliver optimal results. Program communities are common. Portfolio: Social responsibility aspects are considered, along with the impact to the organization itself. Dynamic tension of explore/exploit is accepted. Social network analysis is openly applied to portfolio optimization.
PPM Maturity and Dimensions Level 5 Optimizing Level 4 Managed Enterprise Orientation Level 3 Increasing and Defined Efficiency Beyond Initial • Network of • Pervasive Level 2 Integration PPM Leaders Specialized PPM Leaders Developing •Center of • PMM Leader Excellence, Cap •Enterprise PMO Emerging Beyond IT acity Planning Level 1 Discipline •Shared Initial Resource Pools •Workflow Tools •Real Time • PMO in Place Pipeline Reactive •Projects •Business User Management •Managed Approved on Tool Adoption Level 0 • Staffing for Programs and Portfolio Basis •Integration Nonexistent Priority Projects Resources •Portfolio Tools forDimensions •EA Involved Modeling and Reporting Ad Hoc •Process for •Project Optimization Collaboration Priority Projects Processes in •Portfolio Tools, Analysis People Place Dashboards • First Available •Risk Factored •Project Sched- •Full Program PPM •No Process uling Tools •Cost/Labor •Cost Capture •Benefit Lifecycle Processes Capture and Forecast Realization Financial •XL •Budget Tracked Management Estimates •Projects Benefit •Benefits Related Technology Estimates to Portfolio •Broader Impact •No Analysis of •Relationship Cost/Benefit/ •IT/Business Strategy Mgr. = Considered Financial Risk Collaborate •Risk Review Consultants (social, supply Management through Business •Relationship chain) •Ad Hoc Analyst PM •Relationship Mgr. Trusted Communication Updates Mgr. EmergeRelationships
Applying To Your OrganizationObjectively assess maturity of current PPMpracticesDetermine maturity level required to meet futureneedsTailor a strategy that first focuses on areas thatmost need improvementConsider strengths and weaknesses in theroadmap and development plan Agree on Plan for Current State Identify Gaps Target State Improvement
Evolving The Level of MaturityPlan to do incremental phasesBenchmark targeted area of improvement, andmeasure– Measure values for key stakeholders • Project managers • Department Managers • Executives • Support organizations
Sample PhasesPhase 1: Implement basic project managementincluding initiation, planning, resourceallocation, control, execution, and project closurePhase 2 Add project risk management to thebasic project management functionality; basicprogram management of projects and services bygrouping projects and services into programs forprogress reporting; and portfolio managementprocesses and capabilities for both projects andservices
Sample PhasesPhase 3: Add project cost management, projectprocurement management and project qualitymanagement; program risk analysis; andprogram resource managementPhase 4: Add services portfolio planning;business relationship management; servicesfinance management; program costmanagement; program procurements andprogram quality management
Success FactorsThought Leadership: Create a roadmap andvision for the implementation ofprocesses, organizational change and PPMsoftware, an explanation of why we’re doingthis, who it will benefit, and the desired ROI.Constantly communicate this roadmap, benefitsand progress at all levels of the organization
Success FactorsClearly define the requirements, and createan actionable scope: Scope should bemanageable and achievable within 90 days.– Scope creep will derail your efforts as teams lose sight of the payoff– Frequent successes fuel positive PR for all internal audiences and maintain sponsorship
Success FactorsStaff the effort properly: Three roles/teamsshould be present:– Implementation Team: Defines and implements processes and puts supporting standards, material and PPM software into place. This team will carry out each phase, then hand off to the stabilization team and on- boarding teams and move to the next phase.– Stabilization Team: Takes over from the implementation team to ensure that any process, people or technology issues in the phase are addressed and have no impact on the implementation team undertaking the next phase.
Success FactorsStaff the effort properly: Three roles/teamsshould be present:– On-Boarding Team: Trains all end users in the new processes, standards, supporting material and software being deployed within that phase. Again, this is undertaken as a separate exercise so that it does not divert the implementation project resources away from the next phase. Effective on-boarding will ensure that the process improvements and changes will be used throughout the organization, and raise the level of maturity. As one phase builds on the next, this team helps to ensure that the maturity level is raised across the entire process.