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Gartner Webinar
Be Prepared For the Future of Program and
Portfolio Management
Presenter:
Audrey Apfel, Managing Vice President and
Gartner Fellow Emeritus
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authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied,
distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.
© 2010 Gartner, Inc. and/or its affiliates. All rights reserved.
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What's Hot and What's Not
Specialized Future of Project Mainstream
Management
Compliance PMO Evolution Results
Complex/
Fit for Use
Overwhelming Software Tools Now
Tools

4.
Prediction
1. How does the management of project-based
work need to change?
By 2014, organizations will invest 30% less
time and money in traditional IT project
management than in 2010.
- Project management moves away from “one size fits
all”
- Growing understanding that project management
doesn’t always work
- Governance moves closer to the source
- “Everything” is really not a project!

5.
Project Management in Transition —
What Kind of Work Is It Really?
Time to Value
Long
Iterative
Traditional Project
Approaches;
Mgmt.; Directive
Adaptive
Program Mgmt.
Program Mgmt.
Certainty of Low
PM High
Requirements 2011+
Repeatable
"Change
Projects/
Operations"
Managed Work
Short

6.
Project Management in Transition —
What System Is It Operating In?
System Cause/Effect Approach
Simple Obvious Categorize
Requires
Complicated Analysis or Analyze
Expert
Complex In Retrospect Probe

7.
Program Management In Transition, Too
Identifier
Bottoms Up Significant Interdependencies Discovered
Policy Gov't. — No planned end date
Change High level org. change required
Outcome-Driven Clear scope, complicated effort
Transformational Change of DNA; high internal and external risk

8.
Project Management in Transition – Where
Should Governance Live?
PPM Today: The World of
• Utilizes structured meetings "Change Operations":
• Pushes up decision making •Management by exception
• Unit of interest is the project •Pushes down decision making
•Unit of interest is the process
Project Process
Gates Meetings Rules Decisions Activities
Ongoing
Reviews Exception Reviews
Activities

9.
Prediction
What are organizations focusing on to
successfully evolve the PMO?
By 2014, less than 20% of today's PMOs will
become an enterprise function centered on
business change or strategy execution.
Those that evolve to this level will get there by:
- Becoming directly accountable for program or portfolio
level results
- Making the process fit the work, making the approach
fit the culture
- Focusing on internal PMO process improvement, not
just on fixing “them”

10.
PMO Accountability
What accountability What accountability
looks like: doesn't look like:
•Value metrics trend portfolio •Ensuring compliance to process
performance over time as an end result
•Direct execution of strategic •Documenting the train wreck
programs •Burdening the organization with
•Executive satisfaction: administration without line of sight
- Information management to results of those efforts
- Decision support •Focusing solely on user adoption
of an expensive PPM software tool
- Change management
•Allowing the organization to move
faster!

11.
Stuck Level 2s and Lazy Level 3s
Maturity Level 5 Strategy Execution Office
Project Capability
Enterprise
Program Office(s)
Office
Program
Maturity Level 4 Enterprise Management
Project Management Office
Portfolio Management
Office
Central PMO
Maturity Level 3
Project Management
Office(s)
Maturity Level 2 Program
Work
Project Support Office
Maturity Level 1 Community of Practice

12.
Continuous Improvement Begins at
Home: A Lean PMO Targets Waste
Waste Business Example IT PPM Example
Producing stuff before Excess projects, extra
Overproducing
there's a valid order features
Lengthened cycle time, Poor prioritization,
Too much waiting
reduces agility too risk-averse
Too much Unnecessary transportation
Excess sign-offs, handoffs
conveyance of material between sites
Processes longer or more Relearning,
Overprocessing
complex than necessary non-value-adding steps
Source: Adapted from "Implementing Lean Software Development: From Concept to Cash,"
by M. and T. Poppendieck, Pearson Education, 2007

13.
Prediction
How is the market for PPM software applications
evolving, and how should users choose
appropriate solutions?
By 2014, more than 30% of organizations will
experience a proliferation of software tools
installed to support PPM processes and
projects.
- Specific buyers in the organizations are focusing on
getting value as they define it, and getting it now.
- Single platform consolidation across silos and users,
and completely replacing manual approaches are
largely myths.

14.
2011 Gartner PPM Market Universe: One
Tool Doesn’t Fit All

15.
Practical PPM Leaders Deploy Tools That
Are Fit for Use Now
Enterprise PPM suites "Open Source"/Cloud PPM
ERP
SaaS Entrants SharePoint

16.
Getting It Right For You
Tool vs. Model What's Underneath?
The "Right" Demo It Takes Two
Process Readiness Enabling Your Work
You Always Have
Multiple models and ways to
Options
integrate
Training & Consulting
We're Talking About Change

17.
Action Plan for PPM Leadership
Monday Morning:
- Determine your PPM maturity so you know what is possible.
- Do something lean — Streamline a process, eliminate a sign-off,
cancel a meeting, retire a report.
Next 90 Days:
- Determine the next steps for PPM software in the organization,
focusing on the shortest path to value and retaining flexibility.
- Recharter the PMO — Communicate value and accountability.
Next 12 Months:
- Reassess the organization's assumptions about what constitutes a
"project." Triage work should include change operations, iterative
approaches, critical programs and complex efforts.

18.
Related Gartner Research
Predicts 2011: PPM Goes From Managing Projects To
Managing Change Audrey Apfel (G00208607)
Adopting Product Planning and Release Management
for M&E Work: A Critical Step in Better Project
Resource Management Donna Fitzgerald (G00169466)
Magic Quadrant for IT Project and Portfolio
Management Daniel Stang (G00200907)
Projects Today, 'Change Operations' Tomorrow
Audrey Apfel (G00158273)
ITScore Overview for Program and Portfolio
Management Lars Mieritz, Donna Fitzgerald
(G00205501)
For more information, stop by Gartner Solution Central or e-mail us at solutioncentral@gartner.com.

19.
Gartner Events
Experience live analyst expertise plus much more at a Gartner event.
Events for Portfolio & Program Management Professionals
PPM & IT Governance Summit
June 14 – 15, London, U.K.
June 20 – 22, San Diego, CA
Visit gartner.com/us/events
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October 25 – 27 Sao Paulo, Brazil
Visit gartner.com/symposium
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