20130911 The Zombies of Program, Project Office and Portfolio Management


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This presentation reflects my concern with the misuse and misunderstanding of the concepts around Program Managemen, Project Offices and Portfolio Management. We need to look out for these Zombies and eradicate them!

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  • After talking to some after last year….’were you talking about me’…..I decided to add this caveat only last night….after chatting with melvaActually, I realised that project management zombies are only half of the problem….the more dangerous ones will be discussed today
  • It’s great to see the PMI and OGC providing thought leadership in this space and provide direction and guidance on programme management. How many PMPs in the room? Right, how many PgMPs in the room? Any MSP Practitioners?
  • The diagram displays how theProgramme wrappers; Benefits Management, Change Management, Resource Management and Dependency Management overlays with theProgramme lifecycle.
  • Portfolio TriangleStrategySetting of strategic goalsDefine strategic drivers from strategic goals at an enterprise and divisional levelPortfolio OptimisationPortfolio Management determines what projects to undertake that best support the organisation’s strategyPortfolio Management is led by the business and determines what projects to undertake to fit with the organisations strategyIdentify, assess and prioritise all projects and portfolios against the strategic drivers and within budget, resource and capability constraints.Programme ManagementProgramme Management is sponsored by the business managing related projects and non-project work to achieve programme objectives Programme Management includesBenefits managementChange managementInterdependency managementMacro (project level)Micro (task/milestone level)Project DeliveryProject Management is the Project Managers managing projects to time, cost, quality, scopeFour CornerstonesOrganisationPMO/PgMO/EPO CharterPMO/PgMO/EPO MandateCommunication StrategyPeople/CapabilityComplete set of Competencies & Position DescriptionsProject/Programme/Portfolio Training CoursesComplete suite of themed workshops related to project/programme managementProcess/MethodologyProject/Programme/Portfolio Methodologies (Project methodology may have different classifications)Quick Reference GuideFramework documentationComprehensive guidance documentationToolsEntire suite of templates for projects and programmesProject Classification ToolProject tool such as MS Project Server 2010 solution, MS Excel, MS ProjectEPO/PMO/POShows the three levels of administration offices organisations can have, only one administration office would be requiredEnterprise Portfolio Office would manage the ‘what projects to undertake that best support the organisation’s strategy’ and would manage and provide support/guidance to all programmes and projectsProgramme Management Office would manage and provide support/guidance to all programmes and projectsProject Office would manage and provide support/guidance to all projects
  • Leading:Focus on choosing the Right ProjectsHigh Visibility to Leadership Team & High Visibility and support to the rest of the organisationCoach and LeadSupport PrioritisationPolicingFocusing on enforcing standardsHigh Visibility to Leadership Team, Low Visibility or support to rest of organisationPolicy focussed, less emphasis on practical directions and leadershipMonitoringLow Value to Exec Team. Provides progress on how projects are goingFocussed on timings, cost, quality and scopeTactical in natureSupportingLow or non-existent support from Exec teamStrong personality drivenEnterprise reach desiredInterestingly the targets for closure have been the first column, having support and buy in is key but value is an even greater protection. The value comes from engagement in the organisation and the reach that that brings.
  • HANDOUT – Project TypesWe identify projects using a categorisation model of 4 different project types. These project types assist in identifying the correct project methodology and correct project manager role to deliver the project.The four project types are:Quest, Fog, Painting by numbers (Paint by number), MovieEach project type relates to how well processes are developed and what delivery tools are available.Paint By NumbersObjectives and methods are clear. Destination is known and there is high confidence in meeting destination. The normal project lifecycle, management products and practices should be applied, and scaled to the size of the project.Example projects: construction and engineering; projects similar to past projects; IT package and hardware installations.[Making a] MovieWell understood processes, and well developed delivery tools. Outcome is either difficult to measure or has a significant and uncontrollable external influence on whether it is considered successful. Project team needs to strongly consider a preliminary project or project stage to help clarify requirements before proceeding with the main project. Example projects: film production; prototype development; major reorganisation projects; policy projects.QuestHave clear objectives though the way to achieve the objective may not be known. Processes are not well understood, and tools may, or may not, be well developed. These projects require considerable research in the project initiation stages, so a picture can be built up of a means and approach required to achieve the final outcome. Often a prototype project needs to be done first, with the aim of developing the delivery approach for the main project.Example projects: business change; new product development (early stage R&D).FogNeither methods nor objectives are clear. Proceed with caution one step at a time. Step into the Fog, knowing that the road ahead will become clearer. Break the project down into many small work packages or phases. Focus on the next result and carefully move towards it.Example projects: pure research; emergent projects (those that follow significant policy development)
  • CBC have developed six classifications for delivering projects. (Four standard classification and two guidance classifications)These classifications are designed to provide the appropriate level of project management to the project dependent on a number of variables including: size, risk, type visibility, and budget. The standard classifications are:PRINCE2 DistilledPRINCE2 LitePRINCE2 MiniPRINCE2 AssignmentGuidance classifications are:PRINCE2 Fast PRINCE2 Must NB: guidance process to be used in conjunction with the other four classifications)
  • Organisational Requirement & Support firstThen peopleThen processThen the toolsetUse risk management as an example
  • Don’t wait. You are an advocate. Don’t be shy about this. ‘We’re not ready for portfolio management’ – wow. We’re not ready to achieve our objectives and ensure a return on inviestment either to our shareholders or to the broader stakeholders with SOEs, Crown Entities and Government Agencies. Really?
  • Do they breed where you work? Have you created a Zombie friendly zone at your place of work? If you report into a Zombie, is there a way you can escalate to a non-zombie?The most important weapon is to have a capability framework that identifies them early and eliminates them early, recruit properly,
  • 20130911 The Zombies of Program, Project Office and Portfolio Management

    1. 1. The Zombies of Programme & Portfolio Management ‘How lazy habits and bad attitudes in Programme and Portfolio Management continue to manifest themselves’ Presented by Youssef Mourra Director, Head of PPM PMINZ National Conference 2013 Auckland The Rendezvous Hotel, Auckland 11th September 2013 www.nonsuch.co Nonsuch Consulting
    2. 2. Me –Youssef Mourra • Managing Director and Head of PPM – Nonsuch Consulting • Over 20 years' experience in the world of project, programme and portfolio management (P3M). • Past experience with PIPC, Cognizant, Ernst & Young, Cap Gemini in Australia, France and the UK. Worked in Europe, Asia and America • For the past 10 years have been based in NZ (Wellington) and has gained experience with a number of clients both in the private and public sector. • Led hundreds of consulting engagements ranging from complex project and programme rescues, mobilisation of project offices, to implementation of project management information systems. • Recognised as a trusted advisor by a number of 'C' level executives and project offices throughout the APAC region. 2 © Nonsuch Consulting 2014
    3. 3. The Zombies of Project Management Boris Doris Morris Horace 3 © Nonsuch Consulting 2014
    4. 4. Meet Boris Benefits Management Zombie • Benefits can’t be measured • It’s too hard • Cynical about the reasons benefits are identified and cynical about how they are quantified • Just get on with the project because it’s a great idea 4 © Nonsuch Consulting 2014
    5. 5. Meet Horace Schedule Management Zombie • Horace believes that you can control a project without a schedule. • Too much emphasis is placed on schedules and ties Project Managers down • He believes you should instinctively understand how your project is going and just focus on a few key dates • What’s the point of a schedule if it keeps changing. Just an unnecessary distraction 5 © Nonsuch Consulting 2014
    6. 6. Meet Morris Agile Zombie • Morris believes that Agile is a project management process in itself • He objects to any attempt to use the term ‘waterfall’ near it. • He believes {in a particularly maniacal way} that any attempt to use a schedule or any planning controls of any sort is a threat to his Agile projects • He believes PMBOK and PRINCE2 are outdated. 6 © Nonsuch Consulting 2014
    7. 7. Meet Doris Change Management Zombie • Business or Organisational Change Management is a luxury that most projects can’t afford • Delivering the project is paramount and the rest is just fluff. • ‘If an organisation wants to make a change, then people should accept it and adopt it immediately. Why should an organisation invest in all of this touchy feely stuff?’ 7 © Nonsuch Consulting 2014
    8. 8. 8 © Nonsuch Consulting 2014 …that was then. This is now…
    9. 9. 9 The events & characteristics depicted in this presentation are fictitious. Any similarity to any person living or brain dead is merely coincidental. Yeah Right © Nonsuch Consulting 2014
    10. 10. Introducing….the Zombies of Programme & Portfolio Management Norris Florence Lawrence 10 © Nonsuch Consulting 2014
    11. 11. Meet Norris Programme Manager Zombie 11 © Nonsuch Consulting 2014
    12. 12. What Norris believes… • That a good Programme Manager is someone who manages multiple projects • Programme Management is the natural progression in the evolution of a Senior Project Manager • Programme Management is about aggregating the key information and dates from each of the individual projects and reporting that up the line • The focus of Programme Management is producing on producing a result, an output, and handing it over to the business. This makes the Programme Manager accountable and therefore top dog 12 © Nonsuch Consulting 2014
    13. 13. Why Norris must die! • Norris has got this all wrong • The focus is on Benefits, Change, Dependency & Integration Management • Best Programme Managers come from the business, they have deep SME experience. They are not glorified or even experienced Project Managers. There is no natural or automatic continuum from PA to PC to PM to Senior PM and then Programme Manager • The focus of Time, Cost, Scope & Quality can be addressed by Project Managers & Programme Administrators, it’s not the focus of the Programme Manager • The whole focus of a Programme Manager is on delivering a business benefit by pulling together the various projects and helping transform or deliver a major outcome which is supported by effective Business Change Management. They are responsible but the Programme Sponsor or Senior Responsible Owner maintains the accountability. 13 © Nonsuch Consulting 2014
    14. 14. Focus Areas 14 Program Management Benefits Management Change Deliver the Program Deliver the Capability Realising the Benefits Review and Prepare Establish Benefits Tracking Managing the Change Identify the Program Preparing for Change Benefits Realisation Close the Program Reinforcing the Change Benefits Identification Define the Program Benefits Quantification Managing the Tranches Management Unfreeze Transition Resource Management Dependency Management Define the resources State Move Refreeze Allocate, Monitor and Refine Release Lock changes in so they don’t revert back Products delivered and Transitioned to BAU Resource demand Resource utilisation Identify Macro Dependencies Manage and Monitor Macro/Micro Dependencies 14 © Nonsuch Consulting 2014
    15. 15. Programme Management Programme Manager Outputs/Products/Deliverables Project Manager A Unfreeze Move Refreeze Outcomes / Benefits Benefits Realisation (Business Intelligence) Project Manager B Benefits Identified and Quantified (Business Case & Strategy) Change Management Project Management Benefits Management Benefits Tracking (Benefits Reporting) 15 © Nonsuch Consulting 2014
    16. 16. Meet Lawrence Project Office Zombie 16 © Nonsuch Consulting 2014
    17. 17. What Lawrence believes… • There is no difference between a Project Management Office, a Programme Management Office and an Enterprise Portfolio Office • Project Offices are about enforcing policies, standards and methodologies • The primary purpose of a Project Office is to conduct audits (preferably random) to catch practitioners out • Project Offices are there to identify those who are not ticking the boxes and following every step of the methodology and to call this out • All projects are the same and every step of the methodology needs to be followed, there is no room for flexibility • The first step to achieving greater PPM maturity is to install a Project Portfolio Management toolset 17 © Nonsuch Consulting 2014
    18. 18. Why Lawrence must die! • Each of these offices has a specific role • Project Management Office is a temporary office set up to provide support to a temporary organisation – a project. • Programme Management Office is a temporary office configured to provide support to a defined programme of work and can exist for a number of years, the duration of the programme • Enterprise Portfolio Office is a permanent office sponsored and supported by the Executive to provide key decision support material to help the Executive ensure the organisation’s portfolio remains aligned to the agreed organisation’s strategy. 18 © Nonsuch Consulting 2014
    19. 19. Project Offices 19 Enterprise Portfolio Office Programme Management Office Project Office Doing the ‘right’ projects Doing the projects right Strategy Portfolio Management Programme Management Project Management 19 © Nonsuch Consulting 2014
    20. 20. PMOs rated by Support vs. Reach High Executive Support & Buy-in X E ‘Policing’ W ‘Monitoring’ D ? Y A C B Z V Enterprise Visibility & Reach You? ‘Leading’ ‘Supporting’ Low High Low 20 © Nonsuch Consulting 2014
    21. 21. Eddie Obeng’s Project Types 21 Project management, processes, corporate knowledge and tools Project objectives clear Project objectives not clear not well developed Fog Movie Quest Paint by Numbers Project management, processes, corporate knowledge and tools well developed 21 © Nonsuch Consulting 2014
    22. 22. Project Flexibility 22 Distilled Distilled is for large, complex engagements, typically strategic projects Lite Lite is for medium, detailed engagements, can be tactical or strategic projects Mini Mini is for small, simple engagements, typically tactical projects Assignment Assignment is for ‘Business as Usual’ repeatable engagements, with one key deliverable Fast Fast is for engagements that need to be ‘fast tracked’ through to delivery Must Must is guidelines to use in conjunction with one of the above methodologies for engagements that need to be implemented to meet compliance 22 © Nonsuch Consulting 2014
    23. 23. PPM Toolsets 23 Enterprise Portfolio Office Programme Management Office Project Office Choosing the ‘right’ projects Doing the ‘right’ projects right Strategy Organisational Requirement & Support 2. People / Capability 3. Process / Frameworks 4. Toolsets/Systems 23 © Nonsuch Consulting 2014
    24. 24. Meet Florence Portfolio Management Zombie 24 © Nonsuch Consulting 2014
    25. 25. What Florence believes… • Their organisation will never be mature enough to understand portfolio management • It’s not their job to promote Portfolio Management to the Executive, it’s up to the Executive to ask for it • Consolidating as much information as possible on the projects and programmes in their company, without breaking into a sweat and avoiding probing into the ‘sacred cow’ projects, constitutes portfolio management • The issues that a company faces related to project delivery has nothing to do with selecting the right projects mix 25 © Nonsuch Consulting 2014
    26. 26. Why Florence must die! • What is a Portfolio? • PMI: “A portfolio is a collection of projects and programs and other work grouped to facilitate the effective management of that work to meet strategic business objectives. The components of a portfolio are quantifiable – they can be measured, ranked and prioritised” 26 © Nonsuch Consulting 2014
    27. 27. Vision, Strategy & Strategic Drivers Strategic Driver 1 Organisation Vision/Mission 27 Strategy Strategic Driver 2 Strategic Driver 3 Strategic Driver 4… Prioritised Portfolio 27 © Nonsuch Consulting 2014
    28. 28. Do you hold the Royal Flush of Portfolios? 28 • What are the odds of a Royal Flush in Poker? • It shouldn’t be about odds in business The royal flush is a case of the straight flush. It can be formed 4 ways (one for each suit), giving it a probability of 0.000154% and odds of 649,739 : 1. 28 © Nonsuch Consulting 2014
    29. 29. COMPLIANCE MAINTENANCE TACTICAL The projects we MUST do because of reasons related to Government legislation or existing regulations. We have little choice and we need to get on with understanding the options for how we approach these projects The projects we SHOULD do because of reasons related to maintaining existing systems and business processes. If we under-invest for too long, we run the risk of breaking our existing operations and systems The projects we COULD do because of reasons related to changes in the competitive, technological or global environments. We may not always want to respond to each change, but we need to consider them in our planning 29 29 © Nonsuch Consulting 2014
    30. 30. STRATEGIC INNOVATION The projects we COULD do because of reasons related to new ideas and innovations driven from our customer, staff and expert base. We need to investigate, approve, reject or invest in these innovations The projects we WOULD do because of reasons related to the setting and achieving of the strategic plan and vision. What are the projects that best help us achieve our stated vision and contribute most to the strategic drivers? 30 30 © Nonsuch Consulting 2014
    31. 31. Project Categories • Project Proposals INNOVATION MAINTENANCE STRATEGIC Gate 1 Gate 2 Gate 3 • Initial Business Case • Option & Impact Analysis • Prioritisation TACTICAL • Execution • Handover to BAU • Detailed Business Case • Prioritisation COMPLIANCE VISION Filtered out initiatives Filtered out initiatives Filtered out initiatives 31 31 © Nonsuch Consulting 2014
    32. 32. ? Colour = Risk LEGEND Rating Size = Benefits Shading = Change Management 32 Analysing the Portfolio Q  P O R Z ?  A S D V C M I N X K J L G U W E F H $0k $150k $300k $450k $500k Project Cost Strategic Value Y B T 0% 2.5% 5% 7.5% 10% 32 © Nonsuch Consulting 2014
    33. 33. The Ten Steps to Portfolio Optimisation 33 Define & Agree Strategic Drivers Get Executive Support Current State PORTFOLIO OPTIMISATION ACHIEVED 5 1 Weight Strategic 6 Implement Portfolio Governanace 2 Prioritise & 4 3 Adopt Portfolio Management Framework 7 9 8 10 Drivers Prepare Portfolio Environment Track Progress, Track Benefits Assess, Prioritise, Analyse, & Select Portfolio Perform Portfolio Define & Agree Project Attributes Stocktake 33 © Nonsuch Consulting 2014
    34. 34. • Avoid the deadly combination of poor selection and ineffective execution Benefits of getting it RIGHT • Potential savings of 20% of portfolio value in Year 1 • 30% improvement in time to market for revenue-generating initiatives •5% reduction in overall costs • 59% reduction in project failures • 78% reduction in redundant projects • 37% decrease in cost per project • 35% increase in number of projects under management Why do Portfolio Management? Portfolio Management 50% Value Achieved 50% Value Lost 100% 66% 0% Project Mgt 75% 100% Effective Selection – ‘Doing the Right Things’ Identifying Potential Business Value Effective Execution – ‘Doing Things Right ’ Realising Business Value Primary Source: : IDC, September 2008 34 © Nonsuch Consulting 2014
    35. 35. Look out for them… beware and be aware of their influence Norris Florence Lawrence 35 © Nonsuch Consulting 2014
    36. 36. What else can we do? • We need to be vigilant • We need to adopt and use these right practices • We need to promote these practices and show our workplaces how these will make a huge contribution to overall project & programme success • The Zombies? • Don’t hire them. Make sure you fire them. • Tell everyone about them and where they are. • Name them. Shame them. 36 © Nonsuch Consulting 2014
    37. 37. Like to Know More? • We offer a short 1-hour workshop on each of the Zombies highlighted last year and today. We will show you how straightforward, valuable and powerful each of these project, programme and portfolio management principles are • We’ll show you how to apply these in your work environment • Project Office Consulting & Services including Project Office on Demand (POD) • Project Design & Mobilisation • Project/Programme Office Services • Portfolio Prioritisation & Optimisation • Project & Programme Management Capability Development • Project & Programme Health-checks & Audits • Post-Implementation Benefit Reviews • Project & Programme Rescues • P3M Capability Development & Training • Microsoft Project Training & Consulting 37 © Nonsuch Consulting 2014
    38. 38. Thanks • Thanks to you all for your attention and attendance today • Thanks to Microsoft NZ for their sponsorship today • Thanks to the PMI and all sponsors for organising and helping make this event happen. • Like what you heard? • Follow me on Twitter on @youssefmourra • Contact me on youssef@nonsuch.co or 021 423 620 for more information. 38 © Nonsuch Consulting 2014