What happened to my $trategy final
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Sound strategic planning is fundamental to achieving business objectives. Execution of the strategy is difficult and the complexities created by out of sync and competing activities, processes, functional groups and systems across the organization create many obstacles on the road to success. Constant change, corporate politics, functional silos and many other factors affect progress toward business objectives.
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What happened to my $trategy final
- 3. WHY DO I CARE? Portfolio Management results in meaningful projects 3/20/2014 www.carolynreid.net 3
- 4. Portfolio Management supports achievement of strategy. 3/20/2014 www.carolynreid.net 4
- 5. The Big Picture 3/20/2014 www.carolynreid.net 5 What we should do to be successful Strategic Planning Maximized Value from Investments Portfolio Mgt. Resource Mgt. Project Mgt. Change Mgt. Efficiently Achieved Strategic Objectives Benefits Realization Operations Strategic Objectives Optimized Portfolio Strategic Realization User Activity Strategic Planning to Benefit Realization is a lifecycle process
- 7. How do you make decisions about spending? 3/20/2014 www.carolynreid.net 7
- 8. How does your business decide what to fund? 3/20/2014 www.carolynreid.net 8
- 9. What is Portfolio Management? • Identify, Select, Prioritize, govern and Monitor Projects – Provides objective and quantifiable criteria for selecting investments • Based on Alignment to Strategy • With the goal of maximizing ROI • Doing the right work Portfolio Management aligns Strategy to what gets done. 3/20/2014 www.carolynreid.net 9
- 10. Why do we need Portfolio Management? • Corporate Strategy is not being achieved • Failing Projects are not stopped • High Project Failure rate • The current Business Processes don’t keep up with the pace of the constantly changing market We need flexibility to keep up with constant change. 3/20/2014 www.carolynreid.net 10
- 11. Business Drivers For Portfolio Management An Organization has: • Many Ideas • Limited Resources • The need to maximize profit • Strategy This leads to the need to: • Compare investments against each other • Choose the portfolio of investments that provides maximum value The Optimized Portfolio: • Define value for the business • Derive Prioritization model from this • Establish disciplined Portfolio Mgt. 3/20/2014 www.carolynreid.net 11
- 12. You can’t do everything We can’t do everything because we have limited resources. 3/20/2014 www.carolynreid.net 12
- 13. The Solution: What do we need to do? Strategy Project Portfolio Prioritize Combine efforts Improve governance Improve PM process Resource Management PPM maximizes ROI & ties projects to strategy. 3/20/2014 www.carolynreid.net 13
- 14. 3/20/2014 www.carolynreid.net 14 The Portfolio Management Process
- 15. • DoD (Dept. of Defense) Directive 8115.01 mandates management of IT investments through integrated Portfolio Management • CPIC (Capital Planning and Investment Control) OMB (Office of Management and Budget) Exhibit 300 business case • GAO (Government Accountability Office) Recommendations Government and Military mandates for IT Portfolio Management 3/20/2014 www.carolynreid.net 15
- 16. Where is my going? Visibility into budget performance & project value supports better decisions. 3/20/2014 www.carolynreid.net 16 “The strategic environment is constantly changing, requiring more flexibility to provide the best mix of capabilities and resources to meet Strategic Review priorities.”
- 17. Portfolio Review Decisions Performance New Strategic Goals Review the portfolio for value, tie to strategy & performance 3/20/2014 www.carolynreid.net 17 Change is constant
- 18. Prioritize, Resource Management, Automate, Centralize, Synergies 3/20/2014 www.carolynreid.net 18
- 19. But is good Project Portfolio Management all we need to ensure we meet our Strategic Goals?
- 20. Strategic Planning and Management OperationsProject Management With stove piped processes, we are not effective & efficient Missing or malfunctioning Processes: • Resource Management • Organizational Change Management • Governance • Some process for selecting projects • Siloed Processes Have you seen organizations like this? Project Portfolio Management 3/20/2014 www.carolynreid.net 20
- 21. Realizing Strategy 3/20/2014 www.carolynreid.net 21 What we should do to be successful Strategic Planning Maximized Value from Investments Portfolio Mgt. Resource Mgt. Project Mgt. Change Mgt. Efficiently Achieved Strategic Objectives Benefits Realization Operations Strategic Objectives Optimized Portfolio Strategic Realization User Activity Strategic Planning to Benefit Realization is a lifecycle process
- 22. PMI Pulse of the Profession And other Research • Strategic Planning is an evolving process • Rigorous OCM • Robust Risk Management • Standardized processes in PM and PPM • Strategic focus on People, Process and Outcomes • User participation in the solution • Maturing Portfolio Management Practices • Agile Organization • Track Benefits realization past end of project to verify ROI • Sponsorship • Alignment to strategy • Continuous improvement MIT: Agile Org. Revenue growth 37% faster, 30% higher profit. 3/20/2014 www.carolynreid.net 22
- 24. What happens when Change Management is ignored? • UK Government (2010) – Electronic health record initiative cancelled ($18 billion invested) • FoxMeyer (worth $5 Billion) – 4th largest Pharma distributor in US 1993 – SAP & warehouse automation system, $35 Million – 1998 – filed for bankruptcy 3/20/2014 © Prosci, Inc. All rights reserved. Used with permission. www.change-management.com 24 Ignoring that people have to change can cause Project Failure. Prosci® Research: projects with effective OCM nearly 6 times more likely to succeed.
- 25. The Change Ready Culture OCM competency across organization Leaders have a passion for change & communicate the benefit Project Portfolio Management People understand the benefit of the changes Early Employee involvement in the solution Executive level values PM and OCM and Executive leads PMO Talent Management Knowledge Management Continuous Process Improvement Project Management is a core competency Building the Organization that Achieves the Corporate Strategy 3/20/2014 www.carolynreid.net 25
- 26. Strategic Realization 3/20/2014 www.carolynreid.net 26 What we should do to be successful Strategic Planning Maximized Value from Investments Portfolio Mgt. Resource Mgt. Project Mgt. Change Mgt. Efficiently Achieved Strategic Objectives Benefits Realization Operations Strategic Objectives Optimized Portfolio Strategic Realization User Activity Strategic Planning to Benefit Realization is a lifecycle process
- 27. Contact Info Thank you and I look forward to talking with you! Email: csreid1@cox.net Cell: 602-882-5292 Blog/ Website: www.carolynreid.net Link in with me on LinkedIn: http://www.linkedin.com/in/carolynreid My consulting partner VISTX: www.vistx.com Please join our local Arizona Change Management Group on LinkedIn 3/20/2014 www.carolynreid.net 27
- 28. Questions?
Editor's Notes
- Today is my birthday. Yep this is what I do on my birthday. So I would like to ask you a favor, please try to enjoy this discussion. I target for providing enjoyable discussions so that would just make my day! Did anyone see The Good Wife on Monday. Alicia is up in front of a big audience giving a talk and people start getting up and walking out. So again it is my biggest wish that I keep you happy enough not to want to get up and walk out. We can agree that the pace of change in business is accelerating. How do we keep up and how do we keep ahead of the competition? For a business to thrive, you need a very good strategy, targeted at beating the competition. When this strategy is achieved, the company profits. Very simple right. Not so simple. There is a lot that happens in between coming up with the brilliant strategy and actually achieving it to bringing in the profit. I think it is like a journey and tonight I am going to talk about this journey from strategy to benefit.
- Before I get started I wanted to show a picture of the guy I fashion my speaking engagements after. Many of you know who Mr Peanut is but you don’t know he is a great speaker and has a message. You probably don’t know this because 1. you don’t watch tv very much or I would expect that 2. you don’t watch commercials because you use dvr. I love my dvr. But when I travel for business, I notice that without the dvr, there a little bits of shows or sports in between commercials. MrPeanut talks about the power of the peanut. My analogy is that there is great power in the business cycle that gets us from strategic goals to achievement of the strategy.
- Portfolio Management takes the strategic goals and interprets into what gets done to achieve the goals.I am a big fan of Portfolio Management and there is a story behind this. Iwent to work at a small division of a large company. We made custom equipment for its chip manufacturing facilities. 1.The internal client would decide that a manual process should be automated with robotic equipment that we built. 2 The client would determine how much they would pay for this and when they needed it. Which usually meant they wanted it yesterday and for very little money. Sounds like a disaster but wait, there is more.3 So we had engineers with blank pieces of paper. This equipment had not been built before. Some of the projects were not feasible but we didn’t get to do feasibility studies, the assumption was that anything could be done. In the first 2 weeks I was thereI realized that one of the projects was not going anywhere because basically the engineer was not getting anything on that blank piece of paper. He was really stumped. We felt doomed and were frustrated! We knew that some of these projects should not be done. I knew that we needed to actually have a way to decide what projects we should do. I like Project portfolio management so much that I used to teach a PMI course 4 pdu course on PPM and I volunteered to be on the PMI Portfolio Management Standard development team.
- Then one glorious night, I was at a Phoenix PMI meeting and someone mentioned a job opening for a consultant in the Project management Software industry. This was actually a turning point in my career! I got that job. The PM application industry was starting to talk about solutions for Project Portfolio Management. It seemed brilliant to me. We could change the world! I workedwith clients to develop a prioritization model to get more strategic about selecting projects. We developed automated project portfolio management solutions, centralizing project data across the entire portfolio.I got to work on development of the application as well as the marketing and sales plan and built pilots for potential clients. It was exciting and I felt that portfolio management was an easy sell.
- The strategy is determined at the executive level and then needs to be interpreted into what gets done. This view clearly shows that weaknesses in Strategic Planning, Resource Management, Organizational Change Management, Portfolio Management, Project Management or Operations will result in problems in the other areas as there are information feeds and dependencies between these functions and this is a lifecycle. In addition, the processes in each of these major areas must be efficient and must provide quality information to the other areas. PMO: the processes in blue should actually be elements of the PMO.
- Think back to when you were 6 and how you thought about things. What mattered to you and how you made decisions. If you are having trouble remembering that far back just think about the last time you acted like you were 6. So here is the scenario. You are in a parking lot and you spot a $10 bill laying on the ground. And no one is around so you can’t find the owner of the $10 bill. You have just hit the jackpot. Within seconds you are picturing the investments you will make with this windfall. Do you have that mental picture?
- My husband looked at this slide and told me I would be laughed out of here if I said, the big box of crayons was on the top of my wish list. He said his list would be candy. The other day I realized I could ask an 8 year this question as he insisted he could remember what he would have wanted 2 years ago. Guess what he said – the crayons. It is about the fact that the big box had 96 crayons and the built in sharpener and my parents would only spring for the box of 24 crayons. For my husband it would have been candy. The toy car here is what my son loved when he was that age. But I also put the car there because as grownups the sports car or really cool new thing we want would come to mind if we were to suddenly get a bunch of money, right? What about something more practical like paying off the mortgage. Think about all that stuff you learned about wants and needs. Most of the time we convince ourselves that wants and needs are the same thing. As individuals do we always make the best decisions? There are many things we aren’t even aware of that influence our decisions. We make a lot of decisions from the gut. We make decisions all the time on the fly, quickly. Most people consider quick decision making to be a good trait but maybe careful decision making is a better trait in some circumstances. Show of hands, anyone out there never made a bad decision? A common problem is when the CEO decided something is great so we all go along with the investment even when we didn’t get all the facts from subject matter experts.
- In a business again, people are making decisions – they aren’t always right and often emotion and biases are involved. We all know that things can get in the way of us making good decisions. These pictures symbolize some of the ways decisions are made about funding projects. For instance, a sales guy just showed me this real cool application that will practically do my job – its like pixie dust. So now rolling that out is my new pet project. I get up at our funding meeting and provide a great business case. But my forecasting is a bit too optimistic because we have a tendency to provide overly optimistic expected project results when we are selling our ideas to get funding.However, the executives need to make the funding decision now (probably too hasty) so this looks good, go for it. Sometimes people make big decisions without considering alternatives that might be better. This happens when the process is that ideas are presented, projects authorized or not, meeting adjourned.Or maybe we give budget to the person who screams loudest. Some built in biases we have – this person’s last idea was very good so the new idea must be good also. Maybe not.Didn’t want PPM I tried implementing Portfolio management in an organization where Functional directors were given their previous budget plus a slight increase every year. They didn’t have to define what projects they would implement with the money. I was going to build a method for prioritizing and granting budget across the portfolio based on value from each project. They really didn’t like this as they might get less money and there would be more visibility into what they were doing. They sabotaged to get it stalled until after they had the budgeting for that year completed.Iridium: Iridium was the idea of a Motorola executive’s wife. She was on vacation in the Bahama’s and having trouble getting a call back to the states. For the Iridiumproject, there was 11 years between the concept and going to production. By the time the project was ready to be built and launched, cellular was on the rise. But because of what is called sunk cost fallacy, the decision makers were highly committed to going forward. They were biased and should have put more effort into discussing the options. How do they make budget decisions in your organization? Do they require a sound business case? Show of hands?
- Portfolio Management is all about making better decisions. To level set on the definition of PfM. This definition uses some wording directly from the PMI Portfolio Management standard. I was honored to be on the team that produced the first PMI Portfolio Management standard. It was a lot of fun and gained perspectives from around the world.It is a structured method for identifying, selecting, prioritizing, governing and monitoring projects based on their alignment to corporate strategy. As in the classic portfolio theory, the goal of PfM is to maximize the return on your investments. As PMI and the portfolio management industry put it, Portfolio management ensures we are doing the right thing. While Project management ensures we are doing things right!
- Why would you need project portfolio management? I am thinking you are all going to go into your office tomorrow and talk about how you need portfolio management. But how would you sell it to your leaders? What is the business case for Portfolio management. What would alert you that your organization could use portfolio management?If your strategic goals are not achieved, did the goals get interpreted into what really needs to be done to achieve the strategy?Do you know that you have projects targeted at achieving the strategy? Is the executive level communicating with the rest of the organization and monitoring that work aligns to strategy?How Portfolio Management helps improve project success: ensures the portfolio is the right size based on your resources. Monitors performance and will stop failing projects if needed. If failing projects are not being stopped, your organization needs to review the health of the projects and answer the questions – is this failing project still very important to our strategy so that we need to fix the problems or do we still need this. While people don’t like to cancel projects – we have already spent time money and effort on this. However, failing projects are costly and can even put businesses out of business. With the market constantly changing are we keeping up, making strategic changes to keep up with competition. Portfolio management brings the agility to react to changing opportunities in the market. When you change strategic goals you also must adjust the what is getting done in the organization. With the view across the portfolio, you can determine what changes are required to fulfill new strategy.
- Bottom line for the business is that we need to plan our strategy, achieve our goals and maximize our profit. We likely have many ideas on what needs to be done but limited resources.So we need to be choosy about what we fund in order to achieve our goal of maximizing profit. Some of these great ideas for investment will bring more return than others so it makes sense to develop a way to objectively evaluate and prioritize the investments. We look at how the business defines value, how they would make the decisions on what projects should be done. From this we determine how to prioritize.
- Several years ago I was hired into a healthcare PMO as Director of Portfolio Management to implement Portfolio Management and improve on PMO processes and systems. The company acquired and managed hospitals. Continuous mergers and acquisitions resulted in stove-piped, independent businesses with no incentive to work toward common goals.Problems: 1. not achieving strategy and 2. high project failure rate, critical strategic projects were stalled or failing. This resulted in inefficiencies and hospitals putting their urgencies above the corporate priorities. Division between IT and Business. Over allocated resources. They used a project methodology that worked well for large projects but was inefficient for small projects.Root cause was the process for selection of projects. Anyone could suggest a project and it went into the queue. It would be resourced at the next resource management meeting which consisted of the resource manager asking the various functions about their resource availability for the project. The resource assignment information was in many different individual spread sheets. For strategic planning, once a year they developed strategy and determined which proposed projects were related to their strategy. They were budgeted accordingly but throughout the following year funds were redirected to other projects at random. The solution: Project Portfolio Management, including resource management. and improvement of tools and processes for Project Management along with lifecycle process – tying into portfolio management.
- These were the goals for this transformation project. Witha portfolio management tool, they could see across the portfolio of projects to combine efforts where different hospitals were looking to do the same thing.We built a new process which I willshow on the next slide. Implemented a Project Portfolio Management application. We built a prioritization model by prioritizing the strategic goals then weighting each accordingly in the scoring algorithm. In the portfolio management tool, we set up questions to be answered about each project and the answers would determine the project value score. Example of question: how much does the project contribute to strategic goal x? none, some, significant contribution. We had questions to determine if the project related to regulatory or compliance mandates. There were questions to determine level of risk brought into the scoring model. And most clients add categories such as is the keep the lights on or transformation, does this improve profit or cost avoidance and so on. After the projects were prioritized, the portfolio was formed based on available budget. Then we looked at people resource availability in the resource management tool to build the master portfolio plan. They also needed governance in place to cut down on managers and leaders constantly moving people around like chess pieces. We built a PM Lite process to be used for smaller less complex processes. Benefits: Improved decision making based on objective criteria. improved project success rate as the portfolio was now the right size to fit both budget and people resources. Automated resource management. Improved project management process. So they now knew what should be done through prioritization and they knew what could be done through insight into Resource capacity to demand.
- This is the high level process that I brought to the client. The first phase is identification of the idea. What do we need to do. This might be the executive level saying we need a certain project to fulfill a certain strategic goal. A business case is built which includes answering specific questions in order to result in a Business Value Score – we will be talking about the scoring model next. Then the Investments are compared looking at the scores, costs, risks and available budget. And because projects already in execution are in the mix, project performance is fed into the portfolio review to make decisions about any project performance issues. While we have IT governance as one of the business areas, these activities are often called portfolio steering committees or just governance over all types of projects.The Portfolio Management constantly monitors portfolio performance and decisions are made on an ongoing basis concerning portfolio performance and new needs based on new strategy.
- What does the government and Department of Defense think about Portfolio mgt? How did I find myself building a Project Portfolio Management consulting practice in Washington DC?The government and DoD are fans of Portfolio ManagementThe office of management and budget requires government agencies to complete business cases called OMB exhibit 300s in order to get budget for capital projects. OMB develop s and implements uniform and consistent information resources management policies; standards, and guidelines. IDoDmandates that IT investments be managed through IT portfolios utilizing project portfolio management processes. GAO is the government accountability office which provides analysis and recommendation of agencies and often provides recommendations to improve project and portfolio management practices in the agencies.
- I worked with the US Air Force on a very large long term strategic project. This encompassed project budget management, portfolio management, project portfolio performance, across the Air Force. We started on a project to improve visibility into what was happening with the Project budget. There was budget information in standalone legacy systems where it was extremely hard to get the data out. Project data was kept in individual Excel spreadsheets. Goals and activities: Allow Air Force to be more agile through enhanced data capture and on-the-fly adjustments, provide analytics for decision making, Wanted to provide objective criteria for racking and stacking which is the air force term for prioritization.Centralize data and improve budget review. USAF leaders developed scoring model based on mission, strategic goals, capabilities and compliance to determine the value of each project. Issues to be resolved: data integrity, manual processes, redundant systems and processesOCM issues for this project: standardization across a huge organization is difficult (everyone thinks they are unique). Good communication was needed to gain user acceptance. Needed buy in and sponsorship at the top level. Planning was difficult as we were building solutions for different areas of the air force and everyone wanted their implementation first. Results and benefits: Provided ability to easily view budget info from data brought in from other systems. Progressed from manual systems for extracting data and getting it all into powerpoints for budget review to using the new tool live with data that was accurate and up to date. Progressed from arguments on data integrity to discussions of investment value. Objective criteria for prioritization, tying investment to strategy. streamlined, shortened processes, replaced legacy systems with the new centralized budget information, reported live out of the tool for the budget meetings, showing impact of funding decisions. Display investment justification to optimize decisions pertaining to allocation, streamlined, automated and improved processes, took down stove piped processes replacing with lifecycle process, Provided improved information for decision making,
- This maze that you see is a lumosity game. You are trying to get your little guy to finish before the other guy. But in the game I think usually about midway through the process, they reverse the meaning of the arrows the left arrow now takes you in a different direction so you have to quickly figure out what is the new pattern. I usually get my guy going around in circles. But the point is the direction you are going can change as the market changes. Portfolio mgt allows you to respond to continual change.Depending on the rate of change in your industry, you need to have portfolio reviews on a regular basis. Once a year is not enough especially since you plan once a year, waiting until the following year, you are likely to find that you did not achieve your goals. You also may need ad hoc reviews when new major projects come in or something major occurs in the market, requiring new strategy. You will be looking at performance - how is the project doing? Has strategy changed? Which would mean we may need to rethink some projects or add some. You will have new projects coming in – how do they stack up?
- I am sure you are wondering about the pictures on this slide. Cute isn’t. My daughter was looking at my presentation and she gave advice of course. She said don’t bore the people and you must show them your audience that you practiced the presentation on. Here they are and you can see that they are hanging on my every word. Meet Sammy and Lainey. Many people believe that you can’t look at a weiner dog without smiling – or laughing. So we may have a great portfolio management which is in tune with our strategic planning with good decisions about what needs to be done but is that enough? What else touches on Portfolio management and getting the right things done?
- This is my way of illustrating the situation at many companies. Over time, functional groups have become silos. They are rewarded for doing only their job well. So that handoffs to other groups are not handled efficiently and there can be duplication of effort. Some processes may be missing such as Resource Mgt, OCM and true governance over Project Management. Maybe there is no real PMO or no real Project Management Process. I worked with a client where they didn’t have a project management process as they left it up to the PMs to do their work any way they wanted to. I was working as the Change Leader on a very large project to implement an automation tool across functions from bringing in an opportunity in to realizing profit. Before the project started all the functions involved in this lifecycle process were manual stove piped systems – this was going to be a huge change for them. It was a struggle because even with a flawed process, they were in their comfort zone with the way they had always done this.
- Back to my big picture of strategic realizatio. : This is the journey – or lifecycle from strategic objectives to benefits realization or as I call it Strategic Realization. As you know in a holistic system, if any part is weak, it takes away from the whole. For strategic planning: Are the objectives clear and being communicated to the organization? Are they being interpreted into the right things to do to achieve the strategy. The leaders can’t just hand these off and say make it happen.Portfolio management needs to keep in communication with the leaders to ensure they are understanding the strategy correctly and also being informed when strategy changes. If the portfolio doesn’t have the right things in it to bring about the strategic goals, it doesn’t matter how good the project management organization is as they will be doing the wrong things. There needs to be a good Project Management process in place and training to keep the project managers improving to continuously improve the PM maturity. If there is not a good Project management system and process in place, we lose efficiency – which means money. If you have good project management but no organizational change management, the project may not succeed. If you don’t pay attention to what people do after go live, they may go back to using Excel and not use the new tool or process. Success comes from ensuring continual feedback between those formulating strategy and those implementing strategy. So there should be good communication between leaders and the PMO which includes portfolio management as well as project and change management.
- Pulse: Research and survey from PMI on what works for better businesses. Every year PMI conducts a survey they call Pulse of the profession. Global survey of PM practitioners. Also looks at third party data. Feedback & insight from over 2500 project managers, leaders & practitioners. Backed up by research from APQC, Standish Chaos report on PM, Gartner, Forrester, McKinsey…MIT study suggests agile firms grow revenue 37 % faster and generate 30 % high profits that non agile In 2012 the report talked about agile companies , allowing quick response to fast changing markets.Agile org benefits: improved efficiency, improved customer sat., more profitable business results, faster completion of projects. Greater agility leads to better performance and improved competitive advantageRigorous Change Mgt, Robust Risk Mgt, Increased use of standardized project, prog, portfolio processes.In 2013 and 2014, the report talks about the high performing organization.Maturing portfolio mgt practices , Improving organizational agility to allow flexibility and quick responseTrack benefits realization past end of project to verify ROIstrategic focus on people, processes and outcomes.To minimize risk: 1. focus on talent dev. 2. support standardization 3. ensure alignment with org strategy.APQCAmerican Productivity & quality center they do surveys, & have knowledge management database APQC: best practices report for PM –findings from best practice PM orgs. 1. Alignment to strategy, 2. support for PM at top of org., 3. supports continuous PM improvement 4. Org structure supports PMO 5. exec mgt prioritizes projects, 6. PM is core competency and a strategic imperative. 8. exec leads PM,
- Wanted to talk about reasons for success as opposed to reasons for project failure. I think back on my most successful projects and realize that one thing they had in common was that I believed in the benefit to come from the project. I believed we could succeed and I imparted that to the project team.Motorola story and Honeywell story.Success tied to drive, motivated well functioning team. Ownership vs victim, we could turn things around and had great incentive to do that. With Honeywell – extremely good sponsorship – this was the top project. All resources that we needed. Very detailed planning. Motivation – repeat multi million dollar business, turn our reputation in the company around. Good teamwork. Daily stand up meeting – what can I as the PM do for you today?
- These also had bad decisions as FoxmeyerSystem less capable - Processing only 10,000 orders vs, 420,000 per day previously. FoxMeyer 4th large Pharma in 1993, implement SAP and warehouse automation without paying attention to the people issues. People were going to lose their jobs. They sabotaged the project to cause project failure so that Fox Meyer was declaring bankruptcy in 1998. UK Electronic health record project did not take clinician needs into account. Treated the project as a technology project. It was a one size fits all solution when in reality there were customers with very different needs.This was a heavy handed top down approach which didn’t suit the needs of the ultimate customers which all did not have one size fits all requirements.18 billion into the project and they cancelled stating that the solutions should be at the local level.
- JDA story: knee jerk reaction from the CEO – maybe OCM will change things. Brought us in to implement PMO and OCM but delegated sponsorship – to us! Based on the culture, people were pretty sure the CEO didn’t really even know what OCM was. One executive told me why would we need to do this – we pay them.
- What do we do with this? Look at the areas where information is being shared. Can the strategic goals be interpreted into what gets done? Is it good information? Is there good and continuous communication? Are the processes efficient? Are processes missing? Where do you need automation, streamlining, elimination of redundancies? Are tools in place to link processes. Look at current state, future state and determine gaps. When you determine what needs to be done to get to future state, this leads you to a strategic portfolio of projects that are valuable to bring about great improvement across the organization and help ensure achievement of strategy. Look at the current processes – are they good. Efficient, successful. Is the communication and information exchange occuring? Are some procesess missing.
- I put this in about the Arizona change management group in case anyone is interested in joining. We started this last year and have our local meeting coming up in April. I would love to have you join and network with us about OCM and related processes.