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PMO Assurance: getting value from management information: Jon Street and Jez Batt


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APM PMO SIG event: Assurance and its relationship with the PMO conference on 5th March 2014

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PMO Assurance: getting value from management information: Jon Street and Jez Batt

  1. 1. PMO Assurance Getting Value from Management Information Jon Street & Jez Batt
  2. 2. Introduction •Objectives for next 30 minutes: • A short story: how our PMOs provision of management information and analysis has provided assurance for a wide range of stakeholders including organisations Board of Directors • Challenge all of us on the value we currently get from our management information and what we could do to improve •Why is PMO assurance important to our clients •What is “assured” and who for 2
  3. 3. Contextual project support •The PSO role – understanding a project’s needs •Project controller •Consistency of approach (multiple areas with varying complexity and maturity) •Heartbeats and month-end 3
  4. 4. Programme assurance 3 key aspects: 1. Data assurance 2. Informing leadership through relevant MI 3. Enabling proactive action through analysis of MI • P3M specialist – promotes industry and P3M best practice • Programme Assurance P3M Specialist PMO Service Management & Consultancy PMO Service Management & Consultancy – to optimise service quality 4
  5. 5. Transforming “MI” to “BI” Business Intelligence (BI) Management Information (MI) 1. What Happened? Using the available data to present progress made 2. Why Did It Happen? Using the available data to understand progress made 3. What Is Likely To Happen? Using the available data to predict onward progress and success potential 4. What Should I Do About it? Using the available data to take proactive action to increase the likelihood of success 5
  6. 6. Example of finance assurance (1) Even with a simple financial table it’s not that easy to tell what is going on with this Programme’s financial position, or what we need to consider... Delegated FY Actual to Date Forecast POT Budget Outstanding Commitment Actual + Commitment Project A 6,100,000 1,267,988 8,350,875 1,388,220 2,656,208 Project B 2,400,000 342,921 2,951,422 26,765 369,686 Project C 4,800,000 2,134,773 4,800,000 2,665,227 4,800,000 Project D 2,150,000 0 2988238 14,308 14308 15,450,000 3,745,682 19,090,535 4,094,520 7,840,202 6
  7. 7. Example of finance assurance (2) By visualising the data analysis, and by adding key messages we quickly identify where and what action the programme should consider... • We should request additional budget delegation before funding runs out in January • However, we should review forecasts in light of under spend against original plans • The monthly burn rate for second half of the year requires more than a 400% increase • Committed funds are lower than forecast spend by October 25.00 19.10 19.09 20.00 15.45 15.00 10.00 7.84 5.00 all figures £m 0.00 Apr-13 May-13 Jun-13 Theme Plan Jul-13 Aug-13 Actual/Forecast Sep-13 Oct-13 Last Month Nov-13 Dec-13 Committed Jan-14 Feb-14 Mar-14 Delegation 7
  8. 8. Portfolio advantage •Consistent data repositories and maintenance through-out the stack Board review Steering group reports Programme planning data Project dashboards Project planning data •Allow for reporting to senior managers and directors •Board reviews Inter-project dependencies Supply Chain dashboards Supply chain workbooks Work authorisation and financial delegation 8
  9. 9. Board reviews Types of MI/BI at different organisational levels: •Board > MI/BI, coherence and alignment against organisation strategy, and personal interaction •Portfolio > MI/BI and coherence of portfolio •Programme > MI/BI (time, cost, resources) •Project > MI/BI (time, cost, resources) •Supplier > MI/BI (time, cost, resources) 9
  10. 10. Take-aways We are succeeding if we are providing...  Increased MI integrity and clarity of delivery progress  Increased ability to take the advanced action necessary to enhance delivery performance, through:  Early warnings  Identifying trends and patterns  Analysis based on what could happen, rather than what has happened...  Increased visibility and linking of finance - delivery - risk  Increased support for delivery management and control processes  Optimised application of, and continuous improvement of, P3M best practice and governance 10
  11. 11. Question for table discussion Consider where your project, programme and/or organisation fits on the “transforming MI to BI” slide What one or two things would you like your PMO to do differently to be help you get the greatest value from your MI? Business Intelligence (BI) Management Information (MI) 11