Organizational Strategy Successful Projects PPM - An insider’s Overview Presented by: Saji Madapat, CPIM CSSMBB PMP OPM3 & PPM Team Member PMI/IIBA Professional Day

Presentation Outline Present Scenario Why PPM? What is in PPM for my organization? The Evolution – PMI Perspective SO What is a Portfolio? Organizational Context of Portfolio Management Cross-COMPANY Portfolio Management Process Relationships Project & Portfolio Attributes Implementation Approaches Roles/Responsibilities and Expectations What is in it for YOU? Q & A

Present Scenario

Why PPM?

What is in PPM for my organization?

The Evolution – PMI Perspective

SO What is a Portfolio?

Organizational Context of Portfolio Management

Cross-COMPANY Portfolio Management Process Relationships

Project & Portfolio Attributes

Implementation Approaches

Roles/Responsibilities and Expectations

What is in it for YOU?

Q & A

Present Scenario Annual IT application development statistics: $250 Billion on 175,000 Projects 31% will be cancelled 53% will cost 189% of original estimates. only 52% of required features and functions. Time overruns 82% $55 Billion dollars total project waste Source: The Standish Group CHAOS Report 2003

Annual IT application development statistics:

$250 Billion on 175,000 Projects

31% will be cancelled

53% will cost 189% of original estimates.

only 52% of required features and functions.

Time overruns 82%

$55 Billion dollars total project waste

PMI conducted 5 Global studies: involving 30,000+ practitioners including C level executives In their business environment: desired project results were seldom achieved project evaluation often not linked to business value despite selection criteria, & processes in place to align projects to strategy, projects still failed Why PPM?

PMI conducted 5 Global studies:

involving 30,000+ practitioners

including C level executives

In their business environment:

desired project results were seldom achieved

project evaluation often not linked to business value

despite selection criteria, & processes in place to align projects to strategy, projects still failed

Why PPM? Significant findings: only 25% achieved well-balanced project portfolios. 75% do not believe their organizations are delivering the projects necessary to achieve organizational strategies!

Significant findings:

only 25% achieved well-balanced project portfolios.

75% do not believe their organizations are delivering the projects necessary to achieve organizational strategies!

Organizational Strategy Successful Projects PPM Most Organizations have a Strategy Planning Process PPM Bridges the gap between Organizational Strategy & Successful Projects The PMBOK ® Guide enables you to successfully accomplish projects

Most Organizations have a Strategy Planning Process

PPM Bridges the gap between Organizational Strategy & Successful Projects

The PMBOK ® Guide enables you to successfully accomplish projects

Bridges - organizational strategy and projects. Credibility and visibility of PM profession . Understand organizational project management maturity . Analyze maturity of different parts of the organization PPM is a balancing act. Balancing resources against organizational needs - operations (on-going efforts to “keep the lights on), tactical and strategic needs. What is in PPM for my organization?

Bridges - organizational strategy and projects.

Credibility and visibility of PM profession .

Understand organizational project management maturity .

Analyze maturity of different parts of the organization

PPM is a balancing act. Balancing resources against organizational needs - operations (on-going efforts to “keep the lights on), tactical and strategic needs.

The Evolution – PMI Perspective 1983: Ethics, Standards and Accreditation (ESA) 1987: PMBOK ® Standards 2002: Project Manager Competency Development Framework (PMCD) 2003: OPM3 2006: The Standard for Portfolio Management & The Standard for Program Management Projects Organization People

1983: Ethics, Standards and Accreditation (ESA)

1987: PMBOK ® Standards

2002: Project Manager Competency Development Framework (PMCD)

2003: OPM3

2006: The Standard for Portfolio Management & The Standard for Program Management

SO What is a Portfolio? A portfolio is a collection of Projects and/or programs (even sub portfolio’s) and other work (ex. maintenance) that are grouped together to facilitate the effective management of that work to meet strategic business objectives.

Organizational Context of Portfolio Management

Optimize Scarce Resources Reduce Risk Benefit Aggregate Detailed Planning Insight & Synthesis Process Competencies Proj, Prog& Exec Project Team Management Strategic Tactical Leadership Business Performance Budget, Time, Specification Success Broad Minimum Change Business Narrow & Specific Scope Portfolio Project Attributes

The P’s Tactical Focus Strategic Focus Investment Centric Performance Centric Program Management Unity in diversity Project Management Focused. Getting things done Right Portfolio Management Cross Organizations. Getting Right things done PMO Crosses the IT boundary. Federated Model

Implementation Typology Process Improvement System Implementation “ To Be” “ As Is”

Traditional Implementation Process Improvement System Implementation TRADITIONAL PATH

Comprehensive Implementation Process Improvement System Implementation Comprehensive path

Compact Implementation Compact path Process Improvement System Implementation Comprehensive

Implementation Approaches Process Improvement System Implementation Comprehensive Technical path Compact

Current state of PMO’s Most PMO’s are: Laboriously Built Painfully Maintained Almost NEVER used

Most PMO’s are:

Laboriously Built

Painfully Maintained

Almost NEVER used

What is in it for YOU? “ The corporation as we know it, which is now 120 years old, Is not likely to Survive the next 25 years. Legally & Financially, Yes, But not Structurally & Economically.” -Peter Drucker, Business 2.0, August 2002

“ The corporation as we know it,

which is now 120 years old,

Is not likely to Survive the

next 25 years.

Legally & Financially, Yes,

But not Structurally & Economically.”

-Peter Drucker,

Business 2.0, August 2002

Any Questions? Carrot and sticks to : Saji Madapat [email_address]

Saji K. Madapat CPIM, CIPPM, PMP, CSSMBB http://www.linkedin.com/in/goodtogreat - [email_address] Mobile: 001-214-454-7254 As an Advisor- Project Portfolio Management Office, Saji is an integral part of the Project Portfolio Management Office initiative of $5.5B FedEx Freight for its IT & Business Projects. Earlier he had the techno-functional and project portfolio responsibility for Global Business Performance Systems (PPM & Hyperion BI) in 20 countries of Buckman Labs (a globally Most Admired Knowledge EntPPMrise -6 time MAKE award winner). He also worked with leading consulting firms including Bearing Point (KPMG), Ernst & Young (Cap Gemini), Arthur Anderson, BaaN (Vanenburg) Business System and CroweChizek on various high-profile PPM and Business Performance Management projects in the US. Saji is a graduate of Executive Global leadership Masters Program from PMI’s Leadership Institute. He served three terms as VP, Finance & nominated for President (2006) of the award-winning Project Management Institute (PMI) Memphis TN Chapter. Currently he is serving as a member of PMI Code of Ethics Implementation Advisory Committee (CIAC) and earlier as PMI ambassador (Component Mentor – 2006 & 2007) to its most crucial region - Asia. Saji Authored and presented over 30 papers at various Global Leadership Conferences. He is also active in PMI committees and global activities, which includes judge of PMI's 2004, 2005 & 2007 Project of the Year (POY) Award applications, mentoring initiatives and contribution to PMI’s strategic initiative on OPM3 (Organizational Project Management Maturity Model), PPMS (Program Portfolio Management Standards) and PMCD (Project Manager Competency) Standard Framework.