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Is programme management delivering on its promise? Paul Rayner memorial webinar


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APM ProgM SIG webinar 26th March 2014.
Authors of the Gower Handbook of Programme Management were brought together to review developments since 2006.
Paul Rayner sadly died on 1st August 2011. Paul was a very highly respected expert in project and programme management, a popular speaker, spreading the word about programme management throughout the UK and Europe.
Delivering Value through Benefits – John Chapman
John says “At the time we wrote the original manuscript projects were focused on the technology, people and resources. There wasn’t much focus on benefits. Perhaps that was a reflection on project delivery.
Since then, organisational competencies in programme and project management had grown, there was increased ‘brain space’ to understand the impact of the change.
There is now a recognition that IT systems are enablers helping to solve business problems. Projects create deliverables, outputs or in PRINCE terms, products. Another analogy is baking a cake – we actually need to eat it if we are to derive the benefit.

People is difficult – Adrian Pyne
Adrian says “I am talking about the PEOPLE stuff. How people behave, as individuals or in groups, namely the culture and environment of the project.
Well yes there is a bit of Leadership, Stakeholder Management , Communications. Even lots on the project organisation, but that is not really about people, its more about what processes their roles are about.
There is also a great deal about teams out there, but not much specifically in the projects space. And that is the issue.
He advocates creating organisations fit for projects, through integrating and adapting its processes, tools and above all else, through its organisation culture - its people.

Evolution of Governance - Geof Leigh

Geof explained that Best practice guidance hasn’t changed substantially in the last 30 years. IT promised to revolutionise governance by providing a ‘silver bullet’ but it didn’t happen. Executives disconnected and projects and programmes were left to fend for themselves.
Ten years ago he explained the governance those performing governance seemed to be unclear about their role. They were often under self-imposed pressure from their strategies and business plans.
Geoff went on to characterise what good governance looks like today.

Has Portfolio Management come of age? Geoff Reiss
Geoff cited Gartner and Forrester Studies in 2001/3 surveys showed that only one in four programmes delivered a measurable benefit
In 2004/7 PWC surveys showed that those organisations who were using portfolio management believed they were getting better results!
Activity in this area has ramped up considerably. APM has created the Portfolio and Benefits Management SIGs a wide range of software tools for portfolio managers have emerged.
There are still a significant number of ‘pet projects’ that make it through as the brainchild of a powerful individual, PPM generally had matured and spread its influence.

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Is programme management delivering on its promise? Paul Rayner memorial webinar

  1. 1. Is programme management delivering on its promise: ten years on? Paul Rayner Memorial Webinar 26th March 2014
  2. 2. Meet the Authors … Contributors Title John Chapman Delivering value through Benefits Adrian Pyne People is difficult … Geof Leigh Evolution of Governance Geoff Reiss Has portfolio management come of age? Merv Wyeth Chair, Programme Management SIG
  3. 3. Handbook of ProgM  Authoritative guidance, advice and templates  Detailed description of entire ProgM management process together with supporting infrastructure  ProgM Maturity Model  Benchmarking tool covering ten key processes
  4. 4. Quick Poll 1
  5. 5. Paul Rayner  Contributed a great deal as founder member of the Gower Handbook of Programme Management author team  He always sought to evolve programme management  Keen cyclist  Sadly died on 1st August 2011
  6. 6. Delivering Value through Benefits John will provide commentary on the levels of maturity in benefits management that he experiences now as opposed to when the Handbook was written John Chapman Programme Director Touchstone Energy
  7. 7. Quick Poll 2
  8. 8. Does your organisation actively track actual programme benefits against expected benefits? Quick Poll 3
  9. 9. Projects were focused on:  The technology  The people resources  The software solutions  The time-line for delivery  There was little focus on the benefits to be delivered
  10. 10. The Handbook emphasised (1)  Benefits come from system usage, not installing the system  Projects create deliverables aka outputs  (We bake the cake, not eat it!)
  11. 11. The Handbook emphasised (2)  Programmes should create capabilities that enable benefits to be delivered. e.g. educate managers on what to do with information, not just give them data on the desktop  Benefit management processes ensure that capabilities are then realised into benefits (don’t just build helicopters, use them)
  12. 12. Benefits Management Schematic
  13. 13. Benefits Management  The Programme Business Case – There has to be a distinction between Hard and Soft Benefits – Focusing only on Hard Benefits  Can limit the scope of delivery  Many organisations are not driven by financial imperatives
  14. 14. The wider Context  Kaplan and Norton in their balanced scorecard recognise four perspectives
  15. 15. So, what has changed?  Organisational competencies in programme and project delivery have grown  As individuals have worked on projects they are able to find ‘brain space’ to think about what the change means to them  There is recognition that IT systems are enablers to help solve business problems; not the answer to the problem
  16. 16. So, what else has changed?  Directors and Managers now think in terms of: – Financial Benefits: Revenue & Cost – Non-Financial Benefits: Decision Making, Risk reduction, Employee Motivation…
  17. 17. Anything else?  Individuals ask when will they get the benefits: – Pre-go live – Go live – After 6 months – After 1 year …
  18. 18. Benefits Management Literature  Reference material and assistance  APM Benefits Management Specific Interest Group  A search on Amazon shows many books available
  19. 19. People is Difficult ... Projects depend on how people behave, but our profession is obsessed with Process and Technology. The PEOPLE stuff is difficult. In this session on : Leadership, culture and stakeholders, Adrian will examine why this is, with strategies for dealing with this Cinderella subject. Adrian has more than 25 years in Change & project / programme /portfolio management and capability development. Adrian has chaired APM’s ProgM SIG, is a co-author, a frequent speaker and visiting lecturer, is RPP certified and an RPP Assessor.
  20. 20. The Dark Ages - history  Evolution and optimism  30 years of continuous incremental development of standards  And yet success rates are perhaps incrementally better Do the other Do that Do this  Best Practice is still dominated by PROCESS  TECHNOLOGY should have helped and yet … What is missing, or left to try?
  21. 21. The Dark Ages – the barriers  Manufacturing vs. projects: wastage  Failing to Mature  Maturity not sustained  Misunderstanding  Mistakes and Mistiming The best performing organisations have an X factor
  22. 22. The Poor Relation
  23. 23. The Poor Relation  The biggest barrier is … people  Fear of Change  No organisation culture for change  Leaders do not “get” change – nor projects  Change competes with Business As Usual Process Tools
  24. 24. A Ray of Hope  Growing recognition – APM’s focus on Leadership, Professionalism & Ethics – Ryan Air customer service change – NAO reports citing behaviour as major factor in major failures – Kotter’s report on Kodak bankruptcy  A road not yet travelled – lack of agile thinking in APM – People aspects still fragmented
  25. 25. A Beacon of Hope  BAA: Intelligent Client for Heathrow re-development  Global technology company: client-supplier collaboration  Major Projects Leadership Academy  Blogging on behavioural factors  Massive interest in behavioural events And the next 10 years?
  26. 26. Evolution of Governance Best practice guidance hasn’t changed substantially in the last 30 years. IT promised to revolutionise governance but it didn’t happen. It is now getting better. So what is different? People, culture and senior management have finally realised that they must play an active role to make change successful. Geof will explore this theme from his personal experience. Geof has been involved with managing change since the early 1970’s with experience in government, IT, insurance, the media and banking. He is an author of MSP and the new P3M3.
  27. 27. In the beginning  Started in the mid 1970’s  Coordinating a £100m p.a. capital regeneration portfolio  Lots of data but limited computing power  You would only put something in place if you were sure it would actually be used  Even then you had to keep it simple and obvious It worked, governance was simple but effective
  28. 28. What happened next!  We got lots of computers  We got best practice  IT people started driving business change  Executives disconnected  Projects and programmes were left to fend for themselves A typical quote, “we’ve appointed good project managers and given them the tools. If it doesn’t work it’s their fault, sack them!”
  29. 29. Governance 10 years ago  Board of Directors became Executive Teams and then Leadership Teams but with little proper leadership  Initiatives were ad hoc; briefs thrown over the wall  Mission impossible - wrong things done the wrong way!  Rushed and patched together to try to meet ‘deadlines’  Loads of money wasted  More best practice and yet more powerful PPM software! As one experienced user of best practice once said to me, “you have got to bring your brain along as well!”
  30. 30. What has changed?  Companies Act 2006 and the financial crash, directors have had to up their game  Times are tougher, be smarter or disappear, its no longer practical to throw money at it when it all goes wrong  Many of the ‘easier’ projects have been done, IT is everywhere. There is now more difficult more uncertain change to manage  P3M3 benchmarking is widely used, organisations know what good looks like, and want to be seen to be better than their competitors  Leaders are starting to understand what leadership really is  Sponsors are realising there is more to the role than getting their latest bright idea started. P3M governance best practice guidance hasn’t changed radically over the last 10 years - so what is making it work better now?
  31. 31. The story line (1) Executives in their ivory towers, who knew stuff, went out into the ‘factory’ but … they were rarely there Briefs were despatched to already overworked programme and project managers
  32. 32. The story line (2) Some smart Execs realised things were not good over the wall … so they started to look at what was going on in the ‘factory’
  33. 33. The story line (3) These smart Execs having looked on the other side of the wall started to think … maybe there is more I should be doing in the ‘factory’
  34. 34. The story line (4) Today the really smart Execs are in the ‘factory’ understanding, guiding and supporting when needed They know that good governance is much more than just making decisions
  35. 35. . . . and today?  Sponsors are beginning to understand that they have be involved throughout the change cycle  There are proper change teams; sponsor, deliverer and customer are all working together  Governance is becoming more than making decisions; directing, supporting, sharing the pain and the gain  Reporting is smart, one page, governance requires real understanding.
  36. 36. My conclusion  Best practice guidance  Tools  Good information  Are all important for good governance  But … only people behaving in the right way can make it work well!
  37. 37. Has Portfolio Management come of age? Geoff will discuss the developments in portfolio management but expresses concern that a significant percentage of new projects are approved due to the support of a senior manager rather than the real value of the initiative. Geoff Reiss is an Honorary Fellow of the APM & Honorary President of ProgM. He has a master’s degree in project management and sat on the review panels of most versions of the UK government’s publication on this topic: Managing Successful Programs.
  38. 38.  Portfolio management is the selection, prioritisation and control of an organisation’s projects and programmes in line with its strategic objectives. APM BoK 6  The centralized management of one or more portfolios, which includes identifying, prioritizing, authorizing, managing, and controlling projects, programs, and other related work, to achieve specific strategic business objectives and capacity to deliver. PMBOK 4th Edition Definitions
  39. 39. Quick Poll 4
  40. 40. Gartner & Forrester Studies 2001/2003 Do Programmes Deliver Benefits? Do companies measure benefits? yes Do some no deliver benefit 25% deliver no benefit 75% Forrester: Stressing that “[Programme] Prioritisation tops the list of CIO’s challenges”
  41. 41. ProgM / APM Survey (Summer 2009)
  42. 42. PwC Survey (1)  Do organisations use Portfolio Management?  Those that do use it are using it more fully, and getting better results
  43. 43. PwC Survey (2) Key Finding Organisations that adopt portfolio management can experience greater satisfaction in their project performance
  44. 44. Activity has Increased  Case Study (Project Magazine, Feb 14) pp.30-32  Portfolio SIG  Portfolio tools marketplace
  45. 45. On the other hand:  Significant number of organisations do not recognise Portfolio Management  Many ‘Pet’ Projects  Senior support for an idea is sometimes more important that its viability?
  46. 46. Conclusion In the last 10 years …  Significant Increase in use of Portfolio Management  More Tools and Processes have emerged  Better use of the techniques is being made  However … there is room for improvement
  47. 47. Quick Poll 5
  48. 48. Thank you for attending Q & A