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The PMO- From Shock and Awe to Winning Hearts and Minds


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Presentation by Eric Brown. Presented on 5-19 for InnoTech Dallas.

Published in: Technology, Business
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The PMO- From Shock and Awe to Winning Hearts and Minds

  1. 1. The PMO From Shock and Awe toWinning Hearts and Minds Eric J. Brown, EVP & CIO NCI Building Systems
  2. 2. Agenda• Setting the Stage• Shock and Awe• Shift Happens• Redraw the Battle Plan• Winning Hearts and Minds• End Game
  3. 3. Setting the Stage:NCI Building Systems
  4. 4. Setting the Stage: NCI Building Systems• Second largest consumer of steel in the US behind the Automotive Industry• Revenue of 2B• EBITDA of 200M• 43 Manufacturing Plants in US & Mexico• Produce over 1M tons of finished goods• All manufactures in India combined produce 650,000 tons
  5. 5. Shock and Awe: PMO…The Early Days at NCI• Industry stats: Only 28% of projects started ever reach their time / cost / quality targets* – 32% - Inadequate project management and improper use of PM tools – 20% - Lack of communication – 17% - Lack of understanding of scope• Knew from past experience – no PMO meant NCI would suffer same casualty rate• SOX – compliance required PMO guidance * Standish Group Chaos Report
  6. 6. Shock and Awe:Pre-PMO… NCI Fit the Stereotype
  7. 7. Shock and Awe: PMO…The Early Days PMI Methodology Requirements Gathering PMBOK ProcessesResource Management Scope Control
  8. 8. Shock and Awe: PMO Competency Strategic Alignment Business Maturity Stage Five: Center of Excellence Process Support Stage Four:  Direction and Advanced PMO influence for Stage Three: enterprise project Process Control  Focuses on Standard PMO management integratingProject Oversight business  Manage continuous Stage Two:  Improved PM objectives into the Basic PMO capabilities and improvement and PM environment cross-departmentStage One: maturityProject Office  Provides standard  Applies common collaboration to and repeatable PM  Introduce project practices to achieve strategic Independent project methodology for all reporting tools projects and business goals offices and project projects and collaboration business; a managers techniques “projectized”  Continues to build  Develops common organization relationships with Applies project tools for all projects  Interface between stakeholders,  Can be a separate customers and management the business, business unit techniques  Emphasizes the executives and vendors foundation of a project teams  State of the art No program level viable PM PM practices and  Oversight and authority environment  Full set of PMO tools control to other functions in use PMO units  Advanced staffing * The Complete Project Management Office Handbook
  9. 9. Shock and Awe:Getting Ahead of Your Supply Line If you are riding ahead of the herd, take a look back every now and then to make sure it’s still there - Will Rogers
  10. 10. Shift Happens:Great Depression….. Again?
  11. 11. Shift Happens: New Orders: Keep the Lights On• 60% Market drop in Non-Res Construction Starts• Revenue from 2B to under 1B• EBITDA from 200M to 16M• Shutdown 25% of our Manufacturing Plants• Reduced workforce by 50%
  12. 12. Shift Happens:Why Do I Need PMO?• Autonomous decisions being made• PMO adaptation and flexibility becomes key• A new mindset was introduced – Value proposition – Strategic alignment – Value-Driven ROI – Elimination of low value projects• Enterprise perspective of the PMO function is part of the answer
  13. 13. Redraw the Battle Plan:Think Different The significant problems we have cannot be solved at the same level of thinking with which we created them – Albert Einstein
  14. 14. Redraw the Battle Plan:Cut the Rations in Half, Double the Work• Evaluate financial impact• View projects from enterprise perspective• Assess risk• Avoid conventional text book project approach
  15. 15. Redraw the Battle Plan: Tools & TechniquesProject Request Form Business Value / ROI Project DashboardRisk Assessment Model Project Life Cycle PMOLC / SDLC High High High Medium Tier 1 Medium High Co High Low t ac mp p Im le Tier 2 xit Medium Medium y Low High Medium Low Tier 3 Low Medium Tier 4 Low Low Risk Level
  16. 16. Redraw the Battle Plan:Project Request Form
  17. 17. Redraw the Battle Plan: Executive Management• Getting executive management to the table• Look at it from their perspective• Understand what they’re going to ask• Find a way to make it work in your size company• Use a project dashboard that’s clear and concise
  18. 18. Redraw the Battle Plan:Project Dashboard
  19. 19. Redraw the Battle Plan: Risk Assessment • Project tier drives level of project management • Depth of• Impact and deliverables, complexity drive amount of testing, the risk level Internal Audit• Risk level results participation in Tier 1 – Tier 4 project
  20. 20. Redraw the Battle Plan: Financials – Cost Estimates• Determine if the project is capital or expense• Major cost categories: – Software / hardware – Consulting services – Employee labor – Expenses• Often overlooked cost categories: – Training – SOP 98 – Capital interest – Sales tax – Maintenance
  21. 21. Redraw the Battle Plan: Financials - Justification• Use the financial experts in your company• NPV, IRR, ROI, Payback period; what else do you need to know?• Every project now demands financial justification• Benefit categories from the project request now come into play
  22. 22. Redraw the Battle Plan: Benefit Realization & Metrics• Compare planned to actual costs• Show project completion statistics• Build metrics history and use for action
  23. 23. Winning Hearts and Minds: Building Alliances• Alliances can be the key to continued success• Working with IT, Accounting, Audit can have its rewards• Gaining understanding of each other’s objectives can help move everyone’s projects forward
  24. 24. Winning Hearts and Minds:FastTrack Model Deliver It Scope It Do It Request It • Streamlined approach • Agile response to the business • Uses the project request process • Reduces the quantity of deliverables • Timeline is generally 1-3 months • Goal: To deliver smaller, quick-win projects faster
  25. 25. Winning Hearts and Minds:Focus on Listening Understand the job your customer is trying to do. Don’t try and understand your customer – Clayton M. Christensen
  26. 26. Winning Hearts and Minds: Growing the Culture• Choose quick win projects to show success• Educate your peers• Understand the maverick / cowboy mentality and how to help• Wear multiple hats
  27. 27. End Game: Elevator Speech• Today’s economy demands higher performance and results• Get senior management involved• Tailor the approach to your company• Adopt a methodology…but plan to be flexible
  28. 28. QuestionsEric J. BrownEVP, CIO and Co-Author of:“The Effective CIO”, Taylor and Francis, January