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Project Manager 2014
Gartner Special Briefing for ENI University
“Why Should Anyone Be Led by a Project Manager?”




                                                                                                                                                                           Ben Millrood
                                                                                                                                                                           GVP
    29 April 2011                                                                                                                                                          Gartner Consulting
                                                                                                                                                                           +44 7540012779
                                                                                                                                                                           ben.millrood@gartner.com




GARTNER CONSULTING
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Topics We Will Consider

                                                   ■ Future Trends and ―Project Manager 2014‖
                                                   ■ Economic Conditions
                                                   ■ Tools and Processes
                                                   ■ New Technology
                                                   ■ Governance, Portfolio Management Multi-Sourcing and Vendor
                                                     Ecosystems
                                                   ■ Maturity Model and Performance Management
                                                   ■ Key Take-Aways




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Future Trends in Program/Project Management, Our Point of View




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Market Conditions and the Project Management Effect

 ■ Traditional project management (past 20 years) relies on isolating specific work,               Implications and Recommendations
   while holding all stable.
                                                                                                   ■   Project management is evolving
 ■ Due to the ―new normal‖ chancy economic condition, this mode is aggressively                        from a ―one size fits all‖ to a myriad
   becoming counterproductive, because future business environment will require                        of approaches designed to meet
   that change is always to be expected. As such:                                                      various internal needs.
      –     With fewer people doing more work, enterprises need to figure out what they can
            deliver in a timely way. For example, instead of aligning 10 projects which may take
                                                                                                   ■   Significant projects and programs
            a year to complete, it‘s better to focus on 3-4 that can be delivered quickly, and         will create business change.
            structure them into smaller pieces so that results can be demonstrated more                Business change requires a different
            frequently.                                                                                brand of leadership perhaps than the
                                                                                                       past and at the right times.
      –     People, not processes, drive success. Many enterprises have no plans to replace
            those who left during the economic downturn, so those who remain need to lead in       ■   Diversity of roles, tools and
            their role and work together with greater flexibility.                                     approaches will typify the next
      –     Governance and portfolio management will be focused first on lowering run costs            generation of project managers
            and driving high-impact business growth/transformational projects.                         (―2014‖).
      –     Projects and programs create business change, business change requires                 ■   PMOs and PMs will evolve as
            leadership at the right time…something that companies still struggle to comprehend.        ―facilitators‖ of strategic change to
      –     Disruptive technologies will force project managers to become more knowledgeable           support high impact business
            and fluid in areas such as Cloud (SaaS, PaaS, IasS), Unified Communications, AMI,          programs/projects. Others will be
            Smart Grid, etc.                                                                           marginalized into tweaking and
      –     Multi-Sourcing will require project managers to manage a multitude of service              optimizing existing processes or
            providers (internal and external) in a collaborative ecosystems system environment         dissolve completely.
            focused solely on project outcomes.



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Industry Relevance

 ■ The pace and scale of change in the Energy sector over the next five years will intensify—particularly in the
   European Union, given the economic situation. This to shape the needs of the ―2014 PM.‖
 ■ IT project management as a discipline won‘t change that much from industry sector to sector. Gartner expects
   to see more outsourcing of IT activities, so more management of external technology/IT resources and further
   consolidation of the Business-IT PM role.
 ■ Changing focus of projects in the Energy & Utility industry sector from internal development (past), procurement
   and deployment of COTS (present) to managing BPOs (or cloud or non-cloud BPO).
 ■ Governance and IS-Lite models is increasing, which means that the project manager role is going down
   comparing to the vendor/ecosystem management role that is gaining more prominence.
 ■ Gartner sees big changes in Energy IT portfolios particularly in the power management solutions and
   consequent potential large-scale projects (which most are chopping into smaller pieces). This would include
   Smart Grid and potentially Smart Meter.
 ■ There‘s also the uplift that many companies are applying to their commodity trading environments (integration,
   transaction pipeline streamlining, new regulatory requirements).
 ■ Upstream end there would also be digital oilfield and the related SCADA/OT/IT convergence.
 ■ The net conclusion is ‗new innovation‘ alongside the efficiencies of more conventional ‗cost optimisation‘. As
   Gartner‘s CIO Agenda says—‗reimagining IT‘.



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The Emergence of Enterprise Program Office (EPMO)

 ■ One of the most important trends for PPM. Organizations must consider              Implications and Recommendations
   moving beyond traditional IT portfolio management to align with mission-
   critical business objectives.                                                      ■   Once again, use benefits realization
                                                                                          as an ongoing discipline to ensure
 ■ Key driver is the need to merge technology and business projects under the             project managers are focused on the
   same organization. EPMO bridges the gaps between tactics and strategies.               right projects and doing the right
   Furthermore, this permits mission-critical communication to allow organic              things during projects. Ensure
   alignment between technology, people, processes with business                          constant review between strategy
   requirements.                                                                          and tactics, enabling corrections to
 ■ EPMOs will adopt lean management. While PMOs often focus outward on                    take place quickly.
   changing the enterprises they support, it is important to address internal         ■   Consider setting up EPMO on a
   efficiency as well. Lean PMO contribute value to portfolio management by               strategic basis. The EPMO does not
   avoiding high levels of inwardly directed support activities that deliver little       attempt to do everything, but
   or no value to the business enterprise or project.                                     specifically focuses on ensuring the
 ■ EPMO Lean management targets unnecessary process steps, data that is                   project managers fulfilling program
   collected and never uses and over engineered templates and review cycles.              and project objectives and actually
   As such program and project managers should be rewarded for identifying                driving the fulfillment of established
   all types of waste in the system, thus increasing the value of EPMO.                   strategy.
                                                                                      ■   Inside EPMO, ensure that mature
                                                                                          PPM practices are established by
                                                                                          focusing in on project management
                                                                                          capability to institutionalize great
                                                                                          project management execution.




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Punch-line

 ■ New techniques in project and portfolio management is a growing need for most large
   organizations.
 ■ Investments need to be carefully selected in matching project managers to the right portfolio of
   projects and carefully aligned to value of business impact.
 ■ Most companies carefully have ―projectized‖ these investments, as such, we find a traditional
   structured project management and software tools and PMO structures are not delivering
   expected results.
 ■ Program/project managers and the C-level executives they may report into should be change
   agents employing a toolbox of approaches to fit particular work streams and different leadership
   profiles for each program/project area.
 ■ Project managers need to manage a diversity of software tools, deployment styles and maturity of
   use, because single-platform convergence will be difficult to achieve.
 ■ Project management value will not happen one project at a time, but in aggregate ability across
   projects and programs, consistent delivery of value and overall benefits realization.
 ■ Project managers should not confuse means (standards and processes) with ends (higher
   throughput, stakeholder satisfaction, shorter time to decision, etc.).


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Planning for Project Manager 2014




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Market Data For Strategy and Planning Assumptions

 ■ By 2014, companies will invest 30% less time and money in traditional
   IT project management than in 2011.
 ■ By 2014, more than 30% of organizations will experience a proliferation
   of software tools installed to support Project and Portfolio Management
   processes and projects.
 ■ By 2014, less than 20% of today‘s PMOs will become an enterprise
   unction centered on business change or strategy execution.
 ■ Since 2008, a high rate of PMO ―startup activity‖ has a correlated PMO
   implementation failure rate of more than 50%.
 ■ Gartner survey 153 organizations in 2010 with revenue of $500+ on their
   success and failure of the IT application development projects. Results
   showed that smaller project almost always had higher project delivery
   success rates than larger efforts.
 ■ 2010, project management effort on projects increased from 5% to 11%.
 ■ 2010, cost per function point increased from $38 to $56.
 ■ 2010, Defect removal increased from 4% to 6%.
 ■ 2010, use of agile increased from 9% to 15%. (Evidence traditional projects and waterfall development is
   decreasing…thus the 30% decline in traditional, expect increase in ―alternative.‖)


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Move from Traditional to Contemporary

 ■ Companies that adapt a linear, phase-by-phase project management will decline in
   favor of faster, more iterative and ―lighter‖ approaches that are results, not process
   driven. Making this shift is essential for companies like ENI, the current paradigm of
   structure project management will not meet the needs of both business and your
   personal success.
 ■ Projectized traditional project management relies on being able to manage work by
   designing a specific beginning and ending with associated deliverables before the
   project begins. Changes of requirements, scope, timing and budget are the bane of a
   well-run project. Linear ―freeze the plan and the requirements‖ approach is the defaults
   for almost all project work. This mode in the ―new normal‖ economic climate will
   potentially damage achieving real results.
 ■ Why? Current and future business environment for companies like ENI will have to deal
   with high levels of ongoing uncertainty, change needs to be expected, not eschewed.
   Given the velocity of change is increasing, linear program and project management
   methods will not keep pace.
 ■ Change needs to be expected, not avoided. As such, no matter how hard an
   organization tries to do upfront initiative planning and estimation, rarely does Gartner
   see organizations dramatically improve their project delivery success without shortening
   the length of project, simplifying or eliminating requirements, or deferring functionality to
   the future (which almost never gets delivered!).


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Move from Traditional to Contemporary

 ■ ENI, like other companies, may endure a period of confusion as a variety of
   approaches are tried. Success will mean return to focus on internal best practices
   and leadership. The mantra of ―we need great project management leaders‖ will
   rise. Companies like ENI will be mixing and matching internal and external people,
   practices, processes, tools to create a rapid environment.
 ■ Vendors will approach Fortune 500 companies with vertical and
   best-of-breed strategies or attempt to go broad and address many evolving styles
   of work. ENI will need to publish project management standards and provide a
   variety of certifications if they want to work with ecosystem vendors so that
   vendors maintain relevancy and value.
 ■ Many companies will continue to spend money on getting work done efficiently
   and effectively. Gartner predicts however, that the time of traditional project
   management being the answer to every problem has ended. Results, value ―in
   time‖ to meet rapidly moving opportunities are the only program/project
   management drivers that successful companies will recognize.
 ■ Organizations need to move from traditional to contemporary, leveraging iterative
   approaches. Project manager 2014 will be judged in terms of ―value in time‖ to
   meet rapid moving business demands and opportunities to make a significant
   impact.



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Tools Impact

                                               Tools
 ■ Vision of a single software platform for PPM will not be
   achieved during the next three years. 30% of organizations
   multiple tools will be installed to meet seemingly unique
   needs. These tools will often be deployed even though
   functionality clashes with, or redundant to, or could be
   expanded from software already in your environment.
   Decision should meet short or mid -term need.
   Requirements. Focus on quickest path to establish
   immediate value.
                                                                                  Implications and Recommendations
 ■ Tools focus will be to better enable visibility, planning,
   analysis and holistic decision making. This is driving                    ■ Evaluate PPM software and tools based on speed and
   organizational trends toward EPMO. This will support portfolio              diversity of environments. This may mean standard difficult
   and optimization of project management and resource                         to maintain.
   planning/management. Today‘s tools are seen as inflexible,
                                                                             ■ Vendors will not react well to best-of-breed options and a
   complicated and too granular.
                                                                               range of emerging solutions for different deployment styles.
 ■ Layering effect of program and portfolio tools on existing
                                                                             ■ Focus on leaders first, than tools. Leaders need to have a
   implementations can take longer than a user is willing to wait.
                                                                               strategy on how to manage a diversity of tools and
 ■ New breed of SaaS PMO vendors will emerge, which could                      deployment styles. This will force focus on a
   be great solution for short term needs.                                     well-integrated toolset that provides converged reporting,
                                                                               views and analytics.




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PPM Magic Quadrant
                                                                        challengers                       leaders




                                                   ability to execute                              Planview
                                                                                               Compuware      CA
                                                                             Planisware         Oracle      HP
                                                                             SAP                       Microsoft

                                                                                               Sciforma    Instantis
                                                                                                         PowerSteering
                                                                   EPM Live                            Daptiv
                                                                 Tenrox                                      AtTask
                                                                                                       Innotas
                                                   Genius Inside      EPK Group                       Serena Software
                                                 Atlantic Global        Augeo Software
                                                                       Automation Centre                     BMC Software
                                                  VCSonline             Clarizen
                                                   Project.net              Cardinis Solutions
                                                                       Project InVision
                                                  Project Objects       One2team
                                                                   Onepoint Software
                                                                        niche players                visionaries

                                                                              completeness of vision
                                                                                                                            Source: Gartner Research, June 2010

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Role of the PMO…Should You Decide to Take The Journey

                                                PMO                                Implications and Recommendations
 ■ 30% to 50% per year failure rate is due to distinctive                    ■ PMO leaders must focus on demonstrated progress and
   mismatch between organization expectations of PMO (such                     value. This does not happen one project at a time but in the
   as reliable results, value based prioritization and delivery of             aggregate across multiple reject.
   change through projects).                                                 ■ PMO leaders should not confuse means (process, standards)
 ■ Overemphasis of PMO on process, compliance and                              with the ends (higher throughput, stakeholder satisfaction,
   standardization.                                                            shorter time to decision, etc.).
 ■ EPMO is future. Realistically three futures for PMOs— evolve              ■ PMO need to define opportunities at an aggregate level and
   into EPMO and become strategic, maintain current model and                  show up with the right ―end‖ metrics to indicate these
   achieve success or dissolve.                                                improvements.
 ■ New PMOs guided as much by soft skills and people                         ■ ―Just enough‖ approaches should be the rule on processes
   leadership. Process and external advice is table stakes and                 and administration to meet business goals.
   purely foundational.
 ■ External vendors will focus there advice on skills transfer and
   on engagement models and communication plans which will
   ensure their customers have successful project engagement
   ends.
 ■ Most successful PMOs are in PPM maturity model starting at
   level 3.




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Maturity Models




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Gartner PPM Maturity Model
 Focus on Why and What, Before How?
                                                                                                      Developing—                           Defined—                              Managed—                             Optimized—
                             Non-existent—                      Initial—Reactive                       Emerging                         Initial Integration                        Increasing                           Enterprise
     Levels                    Ad hoc (0)                               (1)                           Discipline (2)                             (3)                              Efficiency (4)                      Orientation (5)
                               Strategy unclear or           Overall vision, goals and            Clear business strategy,          Clear and articulated Strategy         Clear and articulated strategy      Clear and articulated strategy
                                unknown.                       direction for business, shared        known and understood. IT           by Pole shared and                      shared and understood at             shared and understood across
                                                               at Executive level but no IT          Project direction shared by        understood at Executive level.          Executive level.                     the organization.
   People/                     No workforce
                                                               project direction.                    Pole at Executive level.
                                management.                                                                                            Appropriate staffing by Pole.          Appropriate staffing on a           Shared staffing and
Competencies/                                                 Appropriate staffing by Pole         Appropriate staffing by Pole       Group staffing on priority              Group basis at the whole             specializations.
                                                               for critical/priority projects with   for critical/priority              projects/programs with high             enterprise level.
 Organization                                                  high risk efforts or when crisis.     project/programs with high         risk efforts or crisis. Shared
                                                                                                     risk efforts or crisis.            services.


                               No process.                   Process only for                     Processes for programs            Processes for Project and              Processes for Capacity              Processes for portfolio
                                                               critical/priority projects            management                         Program Portfolio                       Planning and Business                management extended to
                                                               management.                                                              Management, Application                 tracking.                            Business.
 Processes                                                                                                                              Portfolio Management,
                                                                                                                                        Enterprise Architecture,
                                                                                                                                        Demand Management.


                               No tool.                      Individual tools.                    Shared tools then                 Centralized Group tools.               Shared Group tools.                 Single integrated system.
                                                                                                     collaborative tools on
 Technology                                                                                          projects/programs and by
                                                                                                     Pole.

                               Individual.                   High-level budget and budget         Annual focus by silo.             3–5 years focus on a Group             Mandated enterprisewide             Strongly mandated
                                                               estimate for projects.                                                   basis.                                  financial management based           enterprisewide.
                                                                                                                                                                                on a portfolio model and
 Financial                     High-level budgeting.                                               Project cost and labor hours      Balance between Silo and
                                                                                                                                                                                analytics.
                                                                                                                                                                                                                    Programs have their own
                                                                                                     captured, Business cases,          Central.                                                                     financial resources.
Management                                                                                           ROI, IRR.                         Initiatives and benefits linked        Predictable ROI.
                                                                                                                                        to strategy in the portfolio with      Risk mitigation.
                                                                                                                                        arbitrations.

                               None.                         Inefficient decision making on       More efficient decision making  Decisions are driven by                  Decisions are driven top down,  Decisions are made quickly
                                                               projects due to lack of               for high risk efforts or in case constrained resources or                  based on a clearly articulated   and dynamically in alignment
                                                               information.                          of crisis.                       compliance issues.                        strategy and guiding principles. with strategy.
                                                              Project committees.                  Program committees.               Portfolio committees.                  Group and IT governances are  Group, Business and IT
                                                                                                    Governance is about fixing the  Annual alignment of IT                    well integrated but not on a   governance integrated into
Governance/                                                                                          business/IT relationship.        investments on Business                   regular basis.                 on-demand decision making.
                                                                                                                                      objectives (during the budget            Vendors, Internal and External  Social responsibility aspects
 Reporting                                                                                                                            process).                                 Shared services centers and      are considered.
                                                                                                                                                                                competency centers. Programs
                                                                                                                                                                                and projects managed on a
 Engagement: EngagementAlias                                                                                                                                                    behavior basis and rewarded
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Maturity Model Benchmark Example




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PPM Maturity Trends

 ■ Most IT organizations have not integrated
   their processes to ensure better alignment
   with demand side of PPM (prioritization and
   valuing investment opportunities) with the                                                                                                       Level 4
                                                                                                                                                                  Level 5
                                                                                                                                                                 Optimizing

   supply side (a comprehensive view of                                                                                               Level 3
                                                                                                                                      Defined
                                                                                                                                                   Managed
                                                                                                                                                   Increasing
                                                                                                                                                                 Enterprise
                                                                                                                                                                 Orientation

   resources, money and time available to                                                                                Level 2
                                                                                                                        Developing
                                                                                                                                        Initial
                                                                                                                                     Integration
                                                                                                                                                    Efficiency


                                                                                                             Level 1
   execute the projects resulting from these                                                    Level 0       Initial
                                                                                                                        Emerging
                                                                                                                        Discipline
                                                                                               Nonexistent
   invests).                                                                                     Ad Hoc
                                                                                                             Reactive


                                                                         Dimensions

 ■ Clients are still in the early stages of PPM                          ■ People
                                                                         ■ PPM Processes
   maturity. Typically between Level 1 and                               ■   Financial Mgmt.
                                                                         ■   Technology
   Level 2 in the Gartner Maturity Model.                                ■   Relationships


 ■ Clients are still struggling with the basics of
                                                                                                              Progression Toward Increasing Maturity


   implementing good process, and leadership
   necessary before good automation through
   tools can occur.




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Final Thoughts




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Final Thoughts

 ■ Need for management of project-based work will change. Start changing now. Develop a
   thoughtful and logical plan to get to 2014 which creates ―dynamic tension‖ and stretches your
   capabilities, but does not break your company.
 ■ Economic conditions will create need for ―a series of small success projects‖ which promote agile
   and flexible IT working with business. This dynamic will be reflected in the evolving or new
   governance and portfolio management structures.
 ■ Process and tools are not as important as results and accountability.
 ■ Don‘t start a PMO unless is focuses on demonstrable results and business value, vs. process and
   administrative burden.
 ■ The PMO software marketplace is still emerging. Don‘t confuse software with a solution. Use tools
   on a project-by-project basis, avoid standardization for now.
 ■ Project manager 2014 ultimately will be judged and maybe bonused on business value result
   against the delivery business objective….vs. not knowing tools, processes and a project plan.




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Garter. Project Manager 2014

  • 1. Project Manager 2014 Gartner Special Briefing for ENI University “Why Should Anyone Be Led by a Project Manager?” Ben Millrood GVP 29 April 2011 Gartner Consulting +44 7540012779 ben.millrood@gartner.com GARTNER CONSULTING Engagement: EngagementAlias Version #1 This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorised 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. © 2011 Gartner, Inc. and/or its affiliates. All rights reserved.
  • 2. Topics We Will Consider ■ Future Trends and ―Project Manager 2014‖ ■ Economic Conditions ■ Tools and Processes ■ New Technology ■ Governance, Portfolio Management Multi-Sourcing and Vendor Ecosystems ■ Maturity Model and Performance Management ■ Key Take-Aways Engagement: EngagementAlias © 2011 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 1
  • 3. Future Trends in Program/Project Management, Our Point of View Engagement: EngagementAlias © 2011 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 2
  • 4. Market Conditions and the Project Management Effect ■ Traditional project management (past 20 years) relies on isolating specific work, Implications and Recommendations while holding all stable. ■ Project management is evolving ■ Due to the ―new normal‖ chancy economic condition, this mode is aggressively from a ―one size fits all‖ to a myriad becoming counterproductive, because future business environment will require of approaches designed to meet that change is always to be expected. As such: various internal needs. – With fewer people doing more work, enterprises need to figure out what they can deliver in a timely way. For example, instead of aligning 10 projects which may take ■ Significant projects and programs a year to complete, it‘s better to focus on 3-4 that can be delivered quickly, and will create business change. structure them into smaller pieces so that results can be demonstrated more Business change requires a different frequently. brand of leadership perhaps than the past and at the right times. – People, not processes, drive success. Many enterprises have no plans to replace those who left during the economic downturn, so those who remain need to lead in ■ Diversity of roles, tools and their role and work together with greater flexibility. approaches will typify the next – Governance and portfolio management will be focused first on lowering run costs generation of project managers and driving high-impact business growth/transformational projects. (―2014‖). – Projects and programs create business change, business change requires ■ PMOs and PMs will evolve as leadership at the right time…something that companies still struggle to comprehend. ―facilitators‖ of strategic change to – Disruptive technologies will force project managers to become more knowledgeable support high impact business and fluid in areas such as Cloud (SaaS, PaaS, IasS), Unified Communications, AMI, programs/projects. Others will be Smart Grid, etc. marginalized into tweaking and – Multi-Sourcing will require project managers to manage a multitude of service optimizing existing processes or providers (internal and external) in a collaborative ecosystems system environment dissolve completely. focused solely on project outcomes. Engagement: EngagementAlias © 2011 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 3
  • 5. Industry Relevance ■ The pace and scale of change in the Energy sector over the next five years will intensify—particularly in the European Union, given the economic situation. This to shape the needs of the ―2014 PM.‖ ■ IT project management as a discipline won‘t change that much from industry sector to sector. Gartner expects to see more outsourcing of IT activities, so more management of external technology/IT resources and further consolidation of the Business-IT PM role. ■ Changing focus of projects in the Energy & Utility industry sector from internal development (past), procurement and deployment of COTS (present) to managing BPOs (or cloud or non-cloud BPO). ■ Governance and IS-Lite models is increasing, which means that the project manager role is going down comparing to the vendor/ecosystem management role that is gaining more prominence. ■ Gartner sees big changes in Energy IT portfolios particularly in the power management solutions and consequent potential large-scale projects (which most are chopping into smaller pieces). This would include Smart Grid and potentially Smart Meter. ■ There‘s also the uplift that many companies are applying to their commodity trading environments (integration, transaction pipeline streamlining, new regulatory requirements). ■ Upstream end there would also be digital oilfield and the related SCADA/OT/IT convergence. ■ The net conclusion is ‗new innovation‘ alongside the efficiencies of more conventional ‗cost optimisation‘. As Gartner‘s CIO Agenda says—‗reimagining IT‘. Engagement: EngagementAlias © 2011 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 4
  • 6. The Emergence of Enterprise Program Office (EPMO) ■ One of the most important trends for PPM. Organizations must consider Implications and Recommendations moving beyond traditional IT portfolio management to align with mission- critical business objectives. ■ Once again, use benefits realization as an ongoing discipline to ensure ■ Key driver is the need to merge technology and business projects under the project managers are focused on the same organization. EPMO bridges the gaps between tactics and strategies. right projects and doing the right Furthermore, this permits mission-critical communication to allow organic things during projects. Ensure alignment between technology, people, processes with business constant review between strategy requirements. and tactics, enabling corrections to ■ EPMOs will adopt lean management. While PMOs often focus outward on take place quickly. changing the enterprises they support, it is important to address internal ■ Consider setting up EPMO on a efficiency as well. Lean PMO contribute value to portfolio management by strategic basis. The EPMO does not avoiding high levels of inwardly directed support activities that deliver little attempt to do everything, but or no value to the business enterprise or project. specifically focuses on ensuring the ■ EPMO Lean management targets unnecessary process steps, data that is project managers fulfilling program collected and never uses and over engineered templates and review cycles. and project objectives and actually As such program and project managers should be rewarded for identifying driving the fulfillment of established all types of waste in the system, thus increasing the value of EPMO. strategy. ■ Inside EPMO, ensure that mature PPM practices are established by focusing in on project management capability to institutionalize great project management execution. Engagement: EngagementAlias © 2011 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 5
  • 7. Punch-line ■ New techniques in project and portfolio management is a growing need for most large organizations. ■ Investments need to be carefully selected in matching project managers to the right portfolio of projects and carefully aligned to value of business impact. ■ Most companies carefully have ―projectized‖ these investments, as such, we find a traditional structured project management and software tools and PMO structures are not delivering expected results. ■ Program/project managers and the C-level executives they may report into should be change agents employing a toolbox of approaches to fit particular work streams and different leadership profiles for each program/project area. ■ Project managers need to manage a diversity of software tools, deployment styles and maturity of use, because single-platform convergence will be difficult to achieve. ■ Project management value will not happen one project at a time, but in aggregate ability across projects and programs, consistent delivery of value and overall benefits realization. ■ Project managers should not confuse means (standards and processes) with ends (higher throughput, stakeholder satisfaction, shorter time to decision, etc.). Engagement: EngagementAlias © 2011 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 6
  • 8. Planning for Project Manager 2014 Engagement: EngagementAlias © 2011 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 7
  • 9. Market Data For Strategy and Planning Assumptions ■ By 2014, companies will invest 30% less time and money in traditional IT project management than in 2011. ■ By 2014, more than 30% of organizations will experience a proliferation of software tools installed to support Project and Portfolio Management processes and projects. ■ By 2014, less than 20% of today‘s PMOs will become an enterprise unction centered on business change or strategy execution. ■ Since 2008, a high rate of PMO ―startup activity‖ has a correlated PMO implementation failure rate of more than 50%. ■ Gartner survey 153 organizations in 2010 with revenue of $500+ on their success and failure of the IT application development projects. Results showed that smaller project almost always had higher project delivery success rates than larger efforts. ■ 2010, project management effort on projects increased from 5% to 11%. ■ 2010, cost per function point increased from $38 to $56. ■ 2010, Defect removal increased from 4% to 6%. ■ 2010, use of agile increased from 9% to 15%. (Evidence traditional projects and waterfall development is decreasing…thus the 30% decline in traditional, expect increase in ―alternative.‖) Engagement: EngagementAlias © 2011 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 8
  • 10. Move from Traditional to Contemporary ■ Companies that adapt a linear, phase-by-phase project management will decline in favor of faster, more iterative and ―lighter‖ approaches that are results, not process driven. Making this shift is essential for companies like ENI, the current paradigm of structure project management will not meet the needs of both business and your personal success. ■ Projectized traditional project management relies on being able to manage work by designing a specific beginning and ending with associated deliverables before the project begins. Changes of requirements, scope, timing and budget are the bane of a well-run project. Linear ―freeze the plan and the requirements‖ approach is the defaults for almost all project work. This mode in the ―new normal‖ economic climate will potentially damage achieving real results. ■ Why? Current and future business environment for companies like ENI will have to deal with high levels of ongoing uncertainty, change needs to be expected, not eschewed. Given the velocity of change is increasing, linear program and project management methods will not keep pace. ■ Change needs to be expected, not avoided. As such, no matter how hard an organization tries to do upfront initiative planning and estimation, rarely does Gartner see organizations dramatically improve their project delivery success without shortening the length of project, simplifying or eliminating requirements, or deferring functionality to the future (which almost never gets delivered!). Engagement: EngagementAlias © 2011 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 9
  • 11. Move from Traditional to Contemporary ■ ENI, like other companies, may endure a period of confusion as a variety of approaches are tried. Success will mean return to focus on internal best practices and leadership. The mantra of ―we need great project management leaders‖ will rise. Companies like ENI will be mixing and matching internal and external people, practices, processes, tools to create a rapid environment. ■ Vendors will approach Fortune 500 companies with vertical and best-of-breed strategies or attempt to go broad and address many evolving styles of work. ENI will need to publish project management standards and provide a variety of certifications if they want to work with ecosystem vendors so that vendors maintain relevancy and value. ■ Many companies will continue to spend money on getting work done efficiently and effectively. Gartner predicts however, that the time of traditional project management being the answer to every problem has ended. Results, value ―in time‖ to meet rapidly moving opportunities are the only program/project management drivers that successful companies will recognize. ■ Organizations need to move from traditional to contemporary, leveraging iterative approaches. Project manager 2014 will be judged in terms of ―value in time‖ to meet rapid moving business demands and opportunities to make a significant impact. Engagement: EngagementAlias © 2011 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 10
  • 12. Tools Impact Tools ■ Vision of a single software platform for PPM will not be achieved during the next three years. 30% of organizations multiple tools will be installed to meet seemingly unique needs. These tools will often be deployed even though functionality clashes with, or redundant to, or could be expanded from software already in your environment. Decision should meet short or mid -term need. Requirements. Focus on quickest path to establish immediate value. Implications and Recommendations ■ Tools focus will be to better enable visibility, planning, analysis and holistic decision making. This is driving ■ Evaluate PPM software and tools based on speed and organizational trends toward EPMO. This will support portfolio diversity of environments. This may mean standard difficult and optimization of project management and resource to maintain. planning/management. Today‘s tools are seen as inflexible, ■ Vendors will not react well to best-of-breed options and a complicated and too granular. range of emerging solutions for different deployment styles. ■ Layering effect of program and portfolio tools on existing ■ Focus on leaders first, than tools. Leaders need to have a implementations can take longer than a user is willing to wait. strategy on how to manage a diversity of tools and ■ New breed of SaaS PMO vendors will emerge, which could deployment styles. This will force focus on a be great solution for short term needs. well-integrated toolset that provides converged reporting, views and analytics. Engagement: EngagementAlias © 2011 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 11
  • 13. PPM Magic Quadrant challengers leaders ability to execute Planview Compuware CA Planisware Oracle HP SAP Microsoft Sciforma Instantis PowerSteering EPM Live Daptiv Tenrox AtTask Innotas Genius Inside EPK Group Serena Software Atlantic Global Augeo Software Automation Centre BMC Software VCSonline Clarizen Project.net Cardinis Solutions Project InVision Project Objects One2team Onepoint Software niche players visionaries completeness of vision Source: Gartner Research, June 2010 Engagement: EngagementAlias © 2011 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 12
  • 14. Role of the PMO…Should You Decide to Take The Journey PMO Implications and Recommendations ■ 30% to 50% per year failure rate is due to distinctive ■ PMO leaders must focus on demonstrated progress and mismatch between organization expectations of PMO (such value. This does not happen one project at a time but in the as reliable results, value based prioritization and delivery of aggregate across multiple reject. change through projects). ■ PMO leaders should not confuse means (process, standards) ■ Overemphasis of PMO on process, compliance and with the ends (higher throughput, stakeholder satisfaction, standardization. shorter time to decision, etc.). ■ EPMO is future. Realistically three futures for PMOs— evolve ■ PMO need to define opportunities at an aggregate level and into EPMO and become strategic, maintain current model and show up with the right ―end‖ metrics to indicate these achieve success or dissolve. improvements. ■ New PMOs guided as much by soft skills and people ■ ―Just enough‖ approaches should be the rule on processes leadership. Process and external advice is table stakes and and administration to meet business goals. purely foundational. ■ External vendors will focus there advice on skills transfer and on engagement models and communication plans which will ensure their customers have successful project engagement ends. ■ Most successful PMOs are in PPM maturity model starting at level 3. Engagement: EngagementAlias © 2011 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 13
  • 15. Maturity Models Engagement: EngagementAlias © 2011 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 14
  • 16. Gartner PPM Maturity Model Focus on Why and What, Before How? Developing— Defined— Managed— Optimized— Non-existent— Initial—Reactive Emerging Initial Integration Increasing Enterprise Levels Ad hoc (0) (1) Discipline (2) (3) Efficiency (4) Orientation (5)  Strategy unclear or  Overall vision, goals and  Clear business strategy,  Clear and articulated Strategy  Clear and articulated strategy  Clear and articulated strategy unknown. direction for business, shared known and understood. IT by Pole shared and shared and understood at shared and understood across at Executive level but no IT Project direction shared by understood at Executive level. Executive level. the organization. People/  No workforce project direction. Pole at Executive level. management.  Appropriate staffing by Pole.  Appropriate staffing on a  Shared staffing and Competencies/  Appropriate staffing by Pole  Appropriate staffing by Pole Group staffing on priority Group basis at the whole specializations. for critical/priority projects with for critical/priority projects/programs with high enterprise level. Organization high risk efforts or when crisis. project/programs with high risk efforts or crisis. Shared risk efforts or crisis. services.  No process.  Process only for  Processes for programs  Processes for Project and  Processes for Capacity  Processes for portfolio critical/priority projects management Program Portfolio Planning and Business management extended to management. Management, Application tracking. Business. Processes Portfolio Management, Enterprise Architecture, Demand Management.  No tool.  Individual tools.  Shared tools then  Centralized Group tools.  Shared Group tools.  Single integrated system. collaborative tools on Technology projects/programs and by Pole.  Individual.  High-level budget and budget  Annual focus by silo.  3–5 years focus on a Group  Mandated enterprisewide  Strongly mandated estimate for projects. basis. financial management based enterprisewide. on a portfolio model and Financial  High-level budgeting.  Project cost and labor hours  Balance between Silo and analytics.  Programs have their own captured, Business cases, Central. financial resources. Management ROI, IRR.  Initiatives and benefits linked  Predictable ROI. to strategy in the portfolio with  Risk mitigation. arbitrations.  None.  Inefficient decision making on  More efficient decision making  Decisions are driven by  Decisions are driven top down,  Decisions are made quickly projects due to lack of for high risk efforts or in case constrained resources or based on a clearly articulated and dynamically in alignment information. of crisis. compliance issues. strategy and guiding principles. with strategy.  Project committees.  Program committees.  Portfolio committees.  Group and IT governances are  Group, Business and IT  Governance is about fixing the  Annual alignment of IT well integrated but not on a governance integrated into Governance/ business/IT relationship. investments on Business regular basis. on-demand decision making. objectives (during the budget  Vendors, Internal and External  Social responsibility aspects Reporting process). Shared services centers and are considered. competency centers. Programs and projects managed on a Engagement: EngagementAlias behavior basis and rewarded © 2011 Gartner, Inc. and/or its affiliates. All rights reserved. on improvements. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 15
  • 17. Maturity Model Benchmark Example Engagement: EngagementAlias © 2011 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 16
  • 18. PPM Maturity Trends ■ Most IT organizations have not integrated their processes to ensure better alignment with demand side of PPM (prioritization and valuing investment opportunities) with the Level 4 Level 5 Optimizing supply side (a comprehensive view of Level 3 Defined Managed Increasing Enterprise Orientation resources, money and time available to Level 2 Developing Initial Integration Efficiency Level 1 execute the projects resulting from these Level 0 Initial Emerging Discipline Nonexistent invests). Ad Hoc Reactive Dimensions ■ Clients are still in the early stages of PPM ■ People ■ PPM Processes maturity. Typically between Level 1 and ■ Financial Mgmt. ■ Technology Level 2 in the Gartner Maturity Model. ■ Relationships ■ Clients are still struggling with the basics of Progression Toward Increasing Maturity implementing good process, and leadership necessary before good automation through tools can occur. Engagement: EngagementAlias © 2011 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 17
  • 19. Final Thoughts Engagement: EngagementAlias © 2011 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 18
  • 20. Final Thoughts ■ Need for management of project-based work will change. Start changing now. Develop a thoughtful and logical plan to get to 2014 which creates ―dynamic tension‖ and stretches your capabilities, but does not break your company. ■ Economic conditions will create need for ―a series of small success projects‖ which promote agile and flexible IT working with business. This dynamic will be reflected in the evolving or new governance and portfolio management structures. ■ Process and tools are not as important as results and accountability. ■ Don‘t start a PMO unless is focuses on demonstrable results and business value, vs. process and administrative burden. ■ The PMO software marketplace is still emerging. Don‘t confuse software with a solution. Use tools on a project-by-project basis, avoid standardization for now. ■ Project manager 2014 ultimately will be judged and maybe bonused on business value result against the delivery business objective….vs. not knowing tools, processes and a project plan. Engagement: EngagementAlias © 2011 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 19
  • 21. Gartner Engagement: EngagementAlias © 2011 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 20
  • 22. The power of Gartner combines Consulting & Benchmarking, Research, Executive Programs and Events The Gartner Advantage Consulting & Benchmarking Research  IT Management Consulting &  World leader in technology research Benchmarking Solutions and analysis on the global IT industry  Delivers high-impact IT projects  10,000+ organizations rely on Gartner for technology insights  Focused Practices  4,000+ employees  30% of revenue from Consulting  Coverage with 1,200 Research  World‘s largest repository of real Analysts and Consultants world IT metrics and benchmarking data  Global reach—in 80 countries  5,500 benchmarks annually  170,000 IT metrics with data Executive Programs updated continually  78 percent of the Global 500 are  Helps clients measure, understand members –3,700 members and manage performance Events  High-level peer networking and  Basis for fact-based analysis information sharing  Worldwide events that bring executives together to learn, compare experiences  Annual CIO agenda developed and solve problems from the responses of 1,500 CIOs in 30 countries, and then  31,000+ people at 45 events in 2009 customized per client Engagement: EngagementAlias © 2011 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 21
  • 23. Gartner Consulting brings the understanding, capabilities and experience to help you realize tangible results The Gartner Consulting Advantage Understanding We know the issues you face. Gartner Consulting Advantage ■ 80% of the Fortune 500 use Gartner for their key technology initiatives ■ Deliverables based on unique sources of ■ We deliver business value in over 1,500 high-impact initiatives a year information, backed by Gartner Research and unmatched benchmarking data ■ Every year, we deliver over 5,500 IT cost and performance benchmarks ■ Accelerated results due to leverage of Capabilities unique research and information We have the data, tools and capabilities to help. ■ Fact-based analysis and recommendations ■ Gartner solutions address the specific needs of each industry ■ Support uniquely focused on management of ■ All of our solutions are based on Gartner's extensive Research IT ■ Every solution makes use of our performance benchmarking data ■ Documented track record of tangible results ■ We employ seasoned consultants, with an average of 15 years ■ Customized support with industry expertise experience ■ Deep knowledge delivered by our specialists Experience in your specific area We help you deliver tangible results. ■ Experienced practitioners that have solved ■ Our clients spend 38% less than their peers for the same workload similar problems many times before ■ In 2008, our contract optimization services saved our clients over $400M ■ Objective and independent support with no ■ Our consulting engagements help clients improve performance... and interest in any vendor or technology reduce risk Engagement: EngagementAlias © 2011 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 22