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PPM and PMO In The Current Market


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results of a 2011 study into the use of PPM solutions and PMO\'s.

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PPM and PMO In The Current Market

  1. 1. PPM and PMO in the current market In relation with Strategic Goals, IT Governance and lessons learned from implemented SolutionsSpring 2012Capgemini
  2. 2. Authors: Klaas Bruinsma Erwin Dunnink Yves Vervloesem Hendrik ZondagCapgemini Nederland B.V. Capgemini Belgium N.V./S.A.Papendorpse weg 100 Bessenveldstraat 19PO Box 2575 – 3500 GN Utrecht B-1831 DiegemPhone. +31 30 689 00 00 Phone: +32 2 708 1111© 2012 Capgemini. No part of this document may be modified, deleted or expanded by any process ormeans without prior written approval from Capgemini
  3. 3. Table of ContentsForeword........................................................................................................................ 31. Introduction ........................................................................................................... 42. PPM and Strategic Goals ...................................................................................... 53. Governance is Key in the PPM Organization ...................................................... 94. PPM Solutions (Processes, Methods and Tools) .............................................. 135. Our vision on the future of PPM and PMO ........................................................ 17 PPM and PMO in the current market 1
  4. 4. PPM and PMO in the current market 2
  5. 5. ForewordAt Capgemini, we have a passion for Project Portfolio Management (PPM) and ProjectManagement, and our thought leadership in this area is evidenced by the books, surveys andpapers that our consultants contributed to in the past few years. In these publications we aim toshare our insights and experiences gained in the field.The last couple of years, supporting functions like PMOs have become an increasingly importantelement in improving governance of the project-based organization. Therefore, this study is builton a survey that treats PPM processes and tools, as well as the role of PMOs in organizations.The authors (Klaas Bruinsma, Erwin Dunnink, Yves Vervloesem, and Hendrik Zondag) havedistilled the main findings from the survey and placed these in light of recent developments in thearea of PPM and PMOs.I would like to thank the respondents for their time and effort to share their experience.I hope that you enjoy reading this paper and especially that you can combine our thoughtleadership with yours, in order to help you grow even further.Lia de ZoetePrincipal Consultant PPM/PMO PPM and PMO in the current market 3
  6. 6. 1. IntroductionIn 2011 we sent out a questionnaire of 51 questions to learn more about how our customers andother contacts are dealing with their Project and Portfolio Management (PPM) including thesupport and governance around it enabled by the PMO’s, and received responses from 34 of ourcustomers and contacts, in a variety of organizations.Exhibit 1: Distribution of responses across industries Finance Public Industry Retail Non-Profit Consultancy & IT Research & DevelopmentBased on our integrated approach (exhibit 2) to Project Portfolio Management (PPM) and ProjectManagement Offices (PMO’s), the findings are clustered around the following four topics:■ PPM and Strategic Goals■ Governance is Key in the PPM Organization■ PPM Solutions (Processes, Methods and Tools)■ Our vision on the future of PPM and PMOIn our experience, the components in the figure below are key in bringing about improvement inproject-based organizations. And in order to bring or maintain this continuous and sustainableimprovement, all the areas (exhibit 2) need to be addressed in a pace that can be absorbed bythe organization. The bottom-line is that we see organizations getting grip on status and financialsof their investment portfolios through an integrated approach.Exhibit 2: Our integrated approach for improving Project-based organizations Strategy Strategic Mapping & KPI Dashboarding Benefits Mapping & Tracking Benefits Logic People Organization Competence profiles Project- versus line organization Personal development of PM’s Project Management organization PM training & Assessment Portfolio Office Coaching Project Management Office PM Awareness for sponsors Project Support Office Change way of working Assessments (Quick Scan, P3M3, OPM3) Project team collaboration Project Centre Processes Integrate new methods Management of issues, risk, changes Methods and Tools Project and Programme Management Project Portfolio Management Solutions processes Reporting Portfolio Management processes: Interfacing Transformation mapping Project archiving and lessons learned Road mapping Project Management Templates Capacity and Resource Management Portfolio constrains PPM and PMO in the current market 4
  7. 7. 2. PPM and Strategic GoalsProject Portfolio Management (PPM) and Project Management Offices (PMO) contain thedisciplines of strategic alignment, prioritization and governance of initiatives, projects andprograms. Within this definition, governance encompasses the structures, accountabilities,policies, standards, processes and control mechanisms that are the basis for decision-making.They help to answer the key strategic questions Are we doing the right things?, Are we doingthem the right way? and ‘Are we realizing the benefits?’.Project and programs are set up related to a variety of strategic goals. The survey shows that‘Cost Reduction’ is the most common objective, followed by ‘Quality Improvement’ and ‘Quality &Governance’. ‘Growth’ is not today’s most important objective, our respondents claim.Exhibit 3: Programs/Projects are carried out with the following strategic goals 1. Cost Reduction 54 2. Quality Improvement 46 3. Quality & Governance 46 4. Projects external customers as a service 42 5. Compliance Legacy 38 6. Growth 25 0 25 50 75Project and program governance is needed to provide a decision-making framework that islogical, robust and repeatable to govern an organization’s capital investments. In this way,strategic goals remain the guiding lines.Respondents indicate that Project Portfolio Governance works best in the areas of ‘Planning’ and‘Progress Monitoring and Control’. For risk management the survey shows that there is still alarge area of improvement. Too often risk & issue management has a detailed project-basedview. With regard to risk management, the solutions used could improve by offering an integratedapproach to risks and issues for the investments that are part of the portfolio. This may explainthe increasing interest for methods like Management of Risk (MoR ™). PPM and PMO in the current market 5
  8. 8. Exhibit 4: Governance of Project Portfolio works well in these areas 100% 75% 50% 25% N/A 0% Disagree Planning Organization Progress (Monitoring & Change management Risk management Business Case Management Quality Management Agree Control)Portfolios are mainly defined per business line (62%) and not in the first place per strategic goal(23%).Exhibit 5: Criteria around which portfolios are created Business Line (62%) Supplier (0%) Funder (0%) Product Line (8% ) Strategic goal (23%) Other (8%)Management of these portfolios is seen on all levels from corporate (31%), divisional (23%), todepartment (15%) level. This requires different levels of analysis of partially the same data.Exhibit 6: Levels of Portfolio Management Corporate (31%) Division (23%) Department (15%) Other (31%)If we look at the criteria around which portfolios are created it seems contradictory that the surveyshowed that strategic goals are the guiding lines for balancing portfolios. This is however not acontradiction: business lines (product lines in some organizations) contain and translate corporatestrategic goals into their portfolios, and these strategic drivers are then used to align portfolios on. PPM and PMO in the current market 6
  9. 9. To balance the portfolio, the main criteria on which projects are prioritized are ‘Strategicalignment’ and ‘Resource Utilization’.Exhibit 7: Basis for balancing portfolios 100% 75% 50% 25% Disagree Agree 0% Resource Utilization Time-to-Market Optimize risk Short and long term We Dont prioritize and Strategic Alignment Budget effects optimizeTwo-thirds of respondents acknowledge rebalancing portfolios is an essential part of truly‘managing’ portfolios. Still more than half of the respondents indicate that their organizations’portfolios are not well-balanced. For most, the Portfolio balance and content is reviewed severaltimes per year and most portfolios (67%) are re-balanced up to 3 times a year. Over 50% thinksthat their portfolio is not balanced well enough. The frequency of re-balancing however (multipletimes per year) indicates that portfolio management becomes decoupled from an annual budgetcycle (once per year). The importance of re-balancing portfolios seems acknowledged, and alsothe importance as an input for the budget cycle.One explanation for this high number of sub-optimally balanced portfolios is that more than half ofrespondents answered that projects, once underway, are not killed. Even when their businesscase is no longer valid, or projects with a higher priority need to be absorbed in the portfolio.Exhibit 8: Respondents that actually stop Projects (and Programs) 50 25 0 Strongly Agree Agree (25%) Disagree (42%) Strongly disagree (17%) (17%)Further improvement can be found in re-evaluating running projects when re-balancing theportfolio (so not contemplating future projects only). PPM and PMO in the current market 7
  10. 10. Exhibit 9: Biggest challenges to establish a well functioning Portfolio Management 1. Required Competence 2. Decision making power 3. Mandate and Ownership 4. Aggregation and availability of right data 5. Internal Politics and power struggles 6. Clear process and procedures 7. Guidelines and methods/models 8. Too many interdependencies between projects 9. Too many programs programs and projects 0 25 50 75 100The multiple challenges above suggest that true Portfolio Management is still hampered,especially by a lack of mandate, decision making power and in the first place by the requiredcompetences for managing portfolios.On the other hand we notice in our engagements that portfolio management and governancepractices have increased significantly. In a study of 2008, a number of challenges for IT portfoliomanagement were defined1. How well are some of these challenges currently addressed,according to this survey?Exhibit 10: Challenges for IT Portfolio Management Study of 2008 This SurveyMake IT portfolio selection a continuous With 67% updating 1-3 times a year, this challengeprocess with frequent update cycles seems to be addressedConsider financial but also non-financial With strong focus on strategic alignment andcriteria e.g. impact on strategy, resource utilization this indicates a shift away fromattractiveness, or probability of success only using financial criteria.Aim for a more systematic approach and ‘Mandate and Ownership’ as well as ‘Internal Politicsaccept the dominating factor of IT project and power struggles ‘still appear as clear challenges.selection is still gut feeling and political New Portfolio Management standards andinfluence frameworks address this challenge (by setting up e.g. Portfolio Offices, and by making management buy-in a condition for portfolio management)All together we see that the governance of Project Portfolio Management still has room forimprovement. It is noted as well that a process running well is not a given. Facilitating governanceby setting up specific organizational structures (like PMOs) or supporting Project PortfolioManagement (PPM) solutions can help.In the introduction, we also mentioned Organization as a key component in improving projectbased organizations. Let us take a look at how PMOs, as part of the organization, can improvePPM practices. 1 Empirical Study into the State of Practice and Challenges in IT Project Portfolio Management’ [2008 -Egon Gleisberg, Hendrik Zondag, Michel R.V. Chaudron] PPM and PMO in the current market 8
  11. 11. 3. Governance is Key in the PPM OrganizationIn the last couple of years, companies improved their Project and Portfolio Management bydefining and improving the processes within the PPM domain, especially concerning the resourceand capacity management and the project and portfolio management. Organizations alsoimplemented Project delivery methodologies like PRINCE2 and PPM Tools.All respondents in the survey have adopted a formal project method, and only 15% indicated thatprojects are not always managed according to this –formal by definition- method.Exhibit 11: Projects are managed according a formal project methodology 75 50 25 0 Strongly Agree Agree (62%) Disagree (15%) Strongly disagree (23%) (0%)Having these PPM processes, methodologies and tools in place enables a company in gettingmore grip on managing investments. Reaching a higher level of maturity can be achieved whenthe organization around these PPM processes, methods and tools is set up correctly as well.A PMO Office contributes to the right governance by:■ Checking that the agreed methodologies and processes are followed;■ Supporting the correct usage of tools;■ Providing the means for control (as well on project level as on a higher managerial level).In this way, a well functioning PMO can establish a standardized way of gathering projectintelligence and facilitate the right governance within the project and portfolio management of anorganization.From our survey we learn that over 75% of the organizations have a support organization inplace. The majority of these organizations (54%) have a support organization set up per BusinessLine, 8% have a centralized PMO set up and 15% have it set up according the Hub and Spokemodel where there is a centralized PMO with multiple smaller support offices located in differentparts of the business.Exhibit 12: Organizational forms of PMOs Hub and Spoke Model (15%) Decentralised PMOs per BL (54%) One centralized PMO (8%) N/A (23%) PPM and PMO in the current market 9
  12. 12. The maturity of a support organization can be determined based on the tasks & responsibilities ofthe PMO, how well PPM is covered by processes, methodologies and tools and if the organizationis set up with clear governance structure to get the best out of these processes and tools.Exhibit 13: Main responsibilities of a PMO Project Management Program Management Portfolio Management Office Office Office 1. Administering 1. Giving support 1. Giving support the project, program, portfolio2. Administering the 2. Administering 2. Staffing project, program, the project, projects portfolio program, portfolio 3. Supplying 3. Supplying 3. Advising top standards for tools standards for management for projects tools for projects 4. Maintaining 4. Managing the 4. Staffing projects processes and portfolio, program, methods project 5. Maintaining 5. Staffing processes and projects 5. Giving support methods 6. Advising top 6. Supplying 6. IT-Projects and management standards for tools business projects for projects 7. Managing the 7. Competence 7. Maintaining portfolio, program, Development processes and project methods 8. Advising top 8. IT-Projects and 8. Competence management business projects Development 9. Managing the 9. Competence portfolio, 9. IT-Projects and Development program, project business projects 0 25 50 75 0 25 50 75 0 25 50 75The survey shows that the main responsibility of the project and program support offices lieswithin giving support and administering the projects and programs as well as supplying standardsfor tools. The portfolio office main responsibility besides administrating the portfolio is to staffprojects and advise top management. PPM and PMO in the current market 10
  13. 13. Exhibit 14: Areas in which the governance of project portfolios works well 100% 75% 50% 25% N/A 0% Disagree Planning Organization Progress (Monitoring & Change management Risk management Business Case Management Quality Management Agree Control)Having the processes and tooling in place should enable the right governance within theorganization. According to the survey we see that governance of the project portfolio works wellfor ‘Change Management’, ‘Planning’ and ‘Progress (Monitoring and Control)’.Exhibit 15: Areas in which the governance of programs works well 100% 75% 50% 25% N/A 0% Disagree Planning Monitoring & Control Organization Blueprint Communication & Stakeholder Mngt Management of Dependencies Benefit management change management issue management risk management Financial Management Business Case Management Quality Management Resource Management AgreeGovernance of programs works well for ‘Management of Dependencies’, ‘Monitoring & Control’,‘Business Case Management’ and ‘Communication & Stakeholder Management’.The survey however show that the governance of ‘risk management’ is not working well for bothprograms and the project portfolio. An area to which a support office (PMO) can clearly contribute. PPM and PMO in the current market 11
  14. 14. Companies seem to acknowledge the added value of a good functioning PMO becauserespondents indicate that organizations with temporary PMOs consider setting up a permanentPMO.Exhibit 16: Plan to extend/improve PMO Services within the next 2 years 6 Months 12 months 2 years 1. Supplying tools 1. Maintaining 1. Competence for projects processes and Development methods 2. Maintaining 2. Operational processes and 2. Administering the Projects methods project portfolio 3. Managing the 3. Managing the 3. Staffing projects portfolio, program, portfolio, program, project project 4. Administering the 4. Giving Support 4. Giving Support project portfolio 5. IT-Projects and 5. Supplying tools Business projects 5. Staffing projects for projects 6. Managing the 6. Operational 6. Administering the portfolio, program, Projects project portfolio project 7. Operational 7. Supplying tools 7. Advising top Projects for projects Management 8. Competence 8. IT-Projects and 8. Giving Support Development Business projects 9. Maintaining 9. Competence 9. Advising top processes and Development Management methods 10. Advising top 10. IT-Projects and 10. Staffing projects Management Business projects 0 25 50 0 25 50 0 25 50Respondents indicate they expect that within the next six months PMO Services will focus onsupplying tools for projects and maintaining processes and methods. Within the next year therewill be more focus on portfolio management and giving support. On the longer run (2 years)PMOs will start focusing on competence development within the organization.These increasing responsibilities of support offices require that the project portfolio processes aretruly embedded and have matured. PPM and PMO in the current market 12
  15. 15. 4. PPM Solutions (Processes, Methods and Tools)In this section, we focus on automated solutions called Project Portfolio Management applications(tools) including the methods and processes around it.Most participant in the survey use some form of PPM solutions to help support the project relatedprocesses in their organization. And they use a wide variety of solutions. Some have chosen for afull blown PPM solution, others manage their processes with home-grown solutions. Theimportant resemblance is that a common way to register and track projects, programmes andportfolios in an organization is key. A PPM solution offers this support.The following figure shows the solutions in use among the respondents in this survey.Exhibit 17: PPM Solutions/tools in use Home Grown Principal Toolbox 6% Clarity 10% 32% Other PPM Tool 10% EPM None 13% 26% MS Project 3%Next to “real” PPM solutions, spreadsheets play an important role in controlling and managing theproject-related processes. This is common in almost all organizations. The main reason for this isthat everyone has spreadsheet software installed on their personal computer, and because of theenormous flexibility it offers. There are however also some pitfalls, particularly from anorganizational point of view, the main one being that there is no single source of truth.Over the past years, 74% of the participants have chosen to implement a PPM solution to boostsupport for the PPM processes. Still it is recognized by 77% of the respondents that the role ofthe project manager is a more important factor in project success than processes and solutions. Itunderscores the title of this section that PPM solutions can only support.Several studies have made clear that it is not easy for organizations to really gain the benefits ofPPM applications. Also this survey shows that only a very limited portion of the availablefunctionality is actually used. Next to this it is recognized that developing the key project portfoliomanagement necessities are a prerequisite for a proper use of the application. An approach werecognize and which is also clearly visible in the results of this survey. When asked whichprocesses are supported in their organizations respondents indicated the following: PPM and PMO in the current market 13
  16. 16. Exhibit 18: PPM Management areas that are supported by IT Tooling 100% 75% 50% 25% N/A 0% Disagree Program / Project Management Project Control Portfolio Management Resource Management Knowledge Management Project Cost Agree ManagementWe also learn that the main PPM processes covered by tooling are ‘Program / ProjectManagement’, ‘Resource Management’ and ‘Knowledge Management’. Surprisingly respondentsindicate tooling is hardly used for actual ‘Portfolio Management’, while this is a PPM process thatcan benefit from an appropriate use of tooling (although there is more than just a mathematicalcharacter to it, e.g. politics).This is significantly lower than the outcomes of a previous survey conducted by Capgemini in 2007 2around PPM Solutions and IT Governance . At that time 44% of the respondents in that surveyindicated they used some form of tooling to support portfolio management. The same trend was notedin the area of ‘Resource Management’.Another interesting angle is the question whether the objectives stated before implementation of aPPM solution are actually reached. Most respondents at least partially reached the mostimportant goals set beforehand, being getting more grip on ‘Planning and Control’ and improved‘Standardization’ of the PPM processes. The figures are however not very promising. Not evenhalf of the respondents feel they have at least partially reached the goals for ‘Coordination &Communication’ and for ‘Transparency’.Exhibit 19: Objectives for implementing a PPM Solution 1. Planning & Control 2. Standardization 3. Coordination and Communication 4. Transparency 5. Time to Market 6. Knowledge Management 7. Cost reduction 8. Quality Control 0 25 50 75 2 PPM Solutions for IT Governance – The User Perspective [2007-08 – Tjie-Jau Man, Erwin Dunnink] PPM and PMO in the current market 14
  17. 17. Exhibit 20: Overview of how well the objectives of the 4 most important goals for a PPMsolution have been reached after implementation Planning & Control Standardization 50 50 25 25 0 0 Not reached Hardly Reached Well Fully Not reached Hardly Reached Well Fully at all reached half way reached reached at all reached half way reached reached Coordination & Communication Transparency 50 50 25 25 0 0 Not reached Hardly Reached Well Fully Not reached Hardly Reached Well Fully at all reached half way reached reached at all reached half way reached reachedWhen comparing the figures to the results of the survey of 2007, the most important differences isthe area of what has been achieved. In 2007 we published the following graph:Exhibit 21: Objectives of the Tool, versus achieved (Survey 2007) Planning&Control Transparency Standardisation Coordination&Communication Cost reduction Time-to-market Other Quality Control 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % respondents selecting this objective % achieved after software implementationNext to some minor differences in what respondent see as the most important goals, the scoresfor “achieve after software implementation” are lower now in 2012.These differences might be explained by something we already recognized in 2007. When askedfor the satisfaction with the PPM solution versus any other home-grown solutions (often based onExcel) we reported that about 25% was very satisfied with their PPM solution whereas almost40% was very satisfied with their home-grown solution. The last couple of years organizations PPM and PMO in the current market 15
  18. 18. started to move away from the idea that the PPM solution should support all their PPM processesand invested more in point solutions, if needed based on Excel.Exhibit 22: 50% % of respondents 40% 30% 20% 10% 0% Very dissatisfied Very satisfied PPM solution Other toolsOf course there always remain aspects to be improved. When asked on which areas therespondents envision to invest the next 12 -18 months regarding PPM solutions the scores aremore or less evenly spread:Exhibit 23: Functional areas to invest in Portfolio Management Program / Project Management 60 60 40 40 20 20 0 0 Improve or (Switch to) No plans for Improve or (Switch to) No plans for extend current New tool improvement extend current New tool improvement tool tool Resource Management Project Cost Management 60 60 40 40 20 20 0 0 Improve or (Switch to) No plans for Improve or (Switch to) No plans for extend current New tool improvement extend current New tool improvement tool tool Project Control Knowledge Management 60 60 40 40 20 20 0 0 Improve or (Switch to) No plans for Improve or (Switch to) No plans for extend current New tool improvement extend current New tool improvement tool toolLooking at these figures the respondents want to invest in a further enhancement of the supportby the solutions. Some by extending an existing solution, others by implementing a newapplication. These initiatives will further improve the support of PPM processes. PPM and PMO in the current market 16
  19. 19. 5. Our vision on the future of PPM and PMONow that we have an idea on how most organizations work today, let us assess the directions inwhich organizations could evolve in terms of PPM and PMO over the next two years.When looking at the processes to be supported the respondents indicated the following:Exhibit 24: Plan to extend/improve PPM Processes within the next 2 years 6 Months 12 months 2 years 1. Resource Allocation 1. Time & Expense 1. Financial Project Management Management Management 2. Project Execution 2. Customer and 2. Program Delivery Management Partner Management management 3. Program Delivery 3. Idea & Portfolio 3. Idea & Portfolio Management Management Management 4. Service Delivery 4. Financial Project 4. Project Execution Management Management Management 5. Financial Project 5. Resource 5. Service Delivery Management Allocation Management Management 6. Project 6. Time & Expense 6. Time & Expense Execution Management Management Management 7. Resource 7. Customer and 7. Service Delivery AllocationPartner management Management Management 8. Idea & Portfolio 8. Program Delivery 8. Customer and Management Management Partner management 0 25 50 0 25 50 0 25 50Based on the results from the survey as well as our experience we note a number of interestingtrends in the organizations we serve:■ On the Organization side: a demand from the business to participate more actively in PPM, both as an information provider to IT (what are the business strategies and requirements) as well as an IT-information user (what is the status of the projects that I’m funding IT for). We could call this “Corporate” Project Portfolio Management, moving away from IT PPM, thereby further strengthening the focus on value delivered through projects, and further aligning Business with IT, a trend started in the mid-2000s. This will also cause support offices (portfolio offices) to continue to grow, as traditionally IT has been slightly more mature in PPM. We see PMOs moving from a temporary project level to a continuous support entity for portfolios of projects, on a higher level in the organization. Understanding the project pipeline is key in true project portfolio management. This necessitates a sufficiently frequent updating of individual project information, like current schedule, value, planned cost, and strategic alignment. PMOs, empowered by senior management, continue to drive further professionalization of the PPM organization, which includes the quest for more reliable and timely project information quality. Enhancing this project information quality enables more dynamic Project Portfolio Management.■ On the Process side: an increased demand for executing projects in an agile mode. As more and more product or software-developing organizations adopt an agile approach to PPM and PMO in the current market 17
  20. 20. development, it should also leave the liberty to these self-organizing teams to choose how they plan and track. This means the organization as a whole will have to provide operating environments in which continuously help to remove the impediments that hinder teams executing their project (using a Scrum framework, but also the more classic waterfall frameworks). Furthermore, currently the planned benefit (value) that projects will deliver is often not properly measured or followed through. However, in an environment of continuous improvement and of frequent re-ordering of priority, management of value during the execution phase will increase in importance.■ On the Tools/Solutions side: a demand for BYO (Bring Your Own) Devices. An increasing number of employees in every organizations have purchased their own ICT device such as a personal netbook, smartphone, tablet, etcetera, because this device fits their needs better than the devices offered by their own organization. Although this may seems trivial in the area of PPM, we note the first PPM Solution vendors offering access to (part of) their solution through tablet, smartphone, and so on. This trend supports (and is supported by) another ‘continuing’ trend: SaaS or zero-client applications, and apps that support very personal productivity needs, so that personal devices can still ‘contribute to’ enterprise-level management information. With regard to communication: a demand for Collaborative Communication and Document Sharing, replacing e-mail and attachments. In the coming years, as total change budgets are expected to remain rather flat, it is key to optimize which initiatives to fund and which to discard. Within departmental portfolios, we see rebalancing of funds between projects. However, in order to optimize even further, departmental portfolios will increasingly be an integral part of the organizational (corporate) portfolio. This means a multi-level, integrated portfolio management, and will therefore also necessitate proper departmental and corporate portfolio management, in addition to a solution that supports these management activities.The above, in our opinion, will have the following impacts on PPM/PMO processes and tools:■ Organizations will continue to focus on implementing PPM tool support as “vanilla” as possible. This means they are willing to adapt their processes to a certain extent to the standard possibilities which a tool offers. Processes supported include pure planning and tracking purposes both in a very detailed and a very high-level manner, so that Scrum teams can still participate in the tooling ecosystem. Data ‘related’ to the PPM processes, like HR, Finance, and so on, will be managed only in the respective tools that support those functions (HR applications, Finance & Accounting systems, and so on). Organizations will move away from an approach in which the PPM solution is highly customized to be able to deal with this data. Organizations will rather ‘integrate’ the data collected in the PPM tool with data collected in non-PPM tools by means of business intelligence (BI) solutions. With the reporting out of these BI solutions, useful ‘integrated views’ can be produced.■ Secondly we expect to see more PPM processes (and tools) that deal with Project and Service Portfolio Management. After all, resources (infrastructure, financial, and human) are allocated to both projects and services, so they need to be managed as one ecosystem.■ Finally, organizations looking at “the cost of PPM” realize that PPM and PMOs have become a necessary investment, which is returning not only qualitative benefits, but also quantitative. They also realize they can further improve or rationalize the organization (e.g. find synergies, centralize), people competences (e.g., coach on data quality, and proper use of process and tooling), the tooling (e.g. keep the tooling useful, use only what you need), and processes (straight-through processing of project-based information with less manual intervention, and ‘good enough’ processes). These investments in improvement, while reducing overall cost, will even increase the benefits, as the capability increases to actually manage project portfolios, and not just ‘look at’ project portfolios. PPM and PMO in the current market 18
  21. 21. Final ConclusionIn line with our surveys and research of the past, this survey again indicates that PMOs and PPMSolutions are important, although not the most important part in improving the project-basedorganization.A holistic, balanced approach to a step-by-step but simultaneous improvement of People /Organization / Process / Tools (all in support of the Business Strategy) is still the most likely toyield positive results in project-based organizations. PPM and PMO in the current market 19