It's not surprising that an effective change management approach is an important predictor of long-term PPM & PMO success. Yet too many organizations shortchange the process, underestimate cultural resistance and settle for PPM software that is unable to support their business goals. View this excerpt of a live webinar by Jay Hoskins, PowerSteering Business PPM Consultant, and David Boghossian, Founder of PowerSteering Software, as they walk through how to achieve sustained change, ensure executive support and avoid internal politics that can impede success. David and Jay address these issues head on and share practical solutions that they've employed at dozens of global organizations including: -Achieving change management goals more rapidly -Gaining support from executive management, functional and project teams -Overcoming adoption challenges with a phased implementation plan -Choosing software that supports business users and adapts to changing needs

1. Driving PPM Adoption Through
Effective Change Management
Presenters:
 David Boghossian, Founder, PowerSteering Software
 Jay Hoskins, PowerSteering Business PPM Consultant
Welcome! Thank you for joining us.

2. Business PPM Customers
Corporate PMO New Product Development Process Improvement IT Governance

3. Agenda
 Introduction – Why Change Mgmt Matters
 Driving Adoption
 Ensuring Alignment
 Measuring and Sustaining Performance
 Key Takeaways
©2011, PowerSteering Software, Inc. All Rights Reserved. 3

4. The Case for Change Management
“80% of enterprises will fail to achieve the true value of ongoing portfolio
management, due primarily to approaches that failed to factor organizational
needs, values, culture and capabilities into the discipline's roll out and evolution.”
“Cultural and organizational barriers are typically the primary challenges in
PPM adoption…For companies to succeed, user buy in and consistent adoption are
key, which demands process and behavioral change.”
“(PPM) implementations are not for the faint of heart — the changes an organization
incurs by introducing new processes and tools can easily go awry if it doesn’t
fully commit to the implementation.”
©2011, PowerSteering Software, Inc. All Rights Reserved. 4

5. PPM Change Management Issues
 Adoption – Easy to use and simple
• Crawl, Walk, Run – Use easy, effective, and proven processes first
• Enterprise systems that follow adoption principles are enablers
 Alignment – Business driven
• If these two roles are not aligned it is a recipe for PPM failure:
PPM Deployment Manager… Business Leader…
Implement PMI standards, Be on time, To measurably improve business
Report Status outcomes that are aligned to our
strategy and goals
 Performance – Measure your results
• Top performers only have 10% unplanned work
• Top performers regularly meet revenue and savings targets
©2011, PowerSteering Software, Inc. All Rights Reserved. 5

6. Why Adoption is so Hard
Your priorities are not mine…
Project- Project Manager “Don’t bother me with status, I have a project to run!”
Centric
Team Member “I never know what to do next. And my priorities
constantly change.”
Program Manager “My roadmap is a shambles!”
Resource Manager “I have to make major adjustments every month to the
resource plan.”
Executive Sponsors / “You’re asking me to approve projects with no clear
Approvers
business case or priority.”
Portfolio Managers / “I keep asking for updates, but never see any results.”
Business Unit Managers
PMO “No one communicates the status to us.”
Results- CIO / Executive “I don’t know when to expect revenue and payback from
Centric Management
my new product launch and you’re asking for money?” 6

7. Avoid Complexity
©2011, PowerSteering Software, Inc. All Rights Reserved. 7

8. What It Means for PPM Tool Selection
Which would you rather drive everyday?
 Cheap and easy to get started  Costly & complex to deploy  Versatile
 Limited capability  Extensive training and maintenance  Cost effective
 Doesn’t scale  Requires an army to support  Easy to operate & maintain
 Quickly outgrown  Overkill for most situations  “Just Right” for daily users
©2011, PowerSteering Software, Inc. All Rights Reserved. 8

9. Phased Deployment for PPM Success
CRAWL WALK RUN
Demand capture (Project More sophisticated Detailed project cost
Requests) prioritization estimation
Simple Prioritization More sophisticated Project scheduling and
Project Governance financials and measurement detailed task
Simple budget, cost and More portfolios and management
benefit tracking dashboards, with more Time capture
Report Wizard/Visual sophisticated measures Full-blown Resource
Portal reporting More detailed financial Management
A few standard dashboards tracking Automated interfaces for
and portfolios Capacity Management detailed cost tracking
50% 30% 20%
©2010, PowerSteering Software, Inc. All Rights Reserved. 9

10. The Result: Increased Speed to Value
Speed-to-Value Theory
Differential
Effectiveness
The
Adoption
Gap
Reality
Crawl Walk Run
Project Portfolio Management Maturity Capability Levels
Project Portfolio Management Maturity Levels

11. Agenda
 Introduction – Why Change Mgmt Matters
 Driving Adoption
 Ensuring Alignment
 Measuring and Sustaining Performance
 Key Takeaways
©2011, PowerSteering Software, Inc. All Rights Reserved. 11

12. The “Visibility” Effect
 You can’t improve what you don’t measure
 With proper alignment and performance
measurement processes, you’ll automatically
improve just from the “Visibility” effect
©2011, PowerSteering Software, Inc. All Rights Reserved. 12

13. Performance Measurement
 Benchmark capabilities
 Tie projects to strategic objectives to
demonstrate business value
 Measure demand to optimize portfolio value
 Balance Spending
 Track Benefits Realization
©2011, PowerSteering Software, Inc. All Rights Reserved. 13

14. Benchmark Your Capabilities
Several key portfolio management capabilities were missing and will
significantly improve value delivery and productivity when deployed. These
are organized across four capability categories:
Capability Graph
Governance - No major gaps.
Optimize Demand:
– Prioritization
– Selection
– Roadmap
– Resource Capacity
Execute:
– Deliverable Management
– Project Health
Analyze:
– Benefits Realization
– Quality of Execution
– Roadmap
As-Is
©2011, PowerSteering Software, Inc. All Rights Reserved. 14

15. Tie Execution to Strategy
15

16. Balance Spending
16

17. Establish Targets, Track Results
©2011, PowerSteering Software, Inc. All Rights Reserved. 17

18. Track Benefits Realization
18

19. Takeaways
 Change management is a process not an event.
 Drive adoption by focusing on value and ease of use.
 Understand “What’s in it for me” for each role; use this to
inform your deployment plan and gain buy-in.
 Select a PPM tool that supports business user adoption,
value realization and ROI – easily and cost effectively.
 Establish PMO business goals that drive process and
performance metrics
 Benchmark and measure results. Communicate them often
to every role.
19
©2011, PowerSteering Software, Inc. All Rights Reserved.

20. Want More?
To continue the discussion…
Join the Business-Driven PPM Group
View the full presentation.
Jay Hoskins jhoskins@psteering.com
David Boghossian dboghossian@psteering.com
©2011, PowerSteering Software, Inc. All Rights Reserved. 20