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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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© 2010 Gartner, Inc. and/or its affiliates. All rights reserved.
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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
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.
                                                                                                            1
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
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!
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
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
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
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
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”
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!
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
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
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.
2011 Gartner PPM Market Universe: One
Tool Doesn’t Fit All
Practical PPM Leaders Deploy Tools That
Are Fit for Use Now

   Enterprise PPM suites     "Open Source"/Cloud PPM
                           ERP
      SaaS Entrants                 SharePoint
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
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.
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.
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                                    18
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  • 1. Gartner Webinar Be Prepared For the Future of Program and Portfolio Management Presenter: Audrey Apfel, Managing Vice President and Gartner Fellow Emeritus Upcoming Webinars: www.gartner.com/webinars Looking for On-Demand webinars? Check out our Replay Archives link on the left in www.gartner.com/webinars 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 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. 0
  • 2. Welcome! Thank you for joining us on today’s Gartner webinar. 10,800 60,000 Client Clients Enterprises 100,000 5,500 IT End-User Benchmarks Inquiries 70% of 2.7 Million Fortune 1000 IT End-User 80% of Searches Global 500 750 Analysts 55 Serving Clients Conferences in 85 Countries 10,000 4,000 Media CIOs Inquiries 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 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. 1
  • 3. 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 18
  • 20. Gartner Symposium/ITxpo: The world's most important gathering of CIOs and senior IT executives • Hundreds of analyst-led sessions, workshops, how-to clinics and more • Role-based tracks designed to address your key priorities and challenges • Immediately actionable take-aways—a clear action plan for the next 3, 6 and 12 months • Mastermind Interview Keynotes with industry leaders • ITxpo show floor with hundreds of top solution providers and exciting startups August 22 – 24 Cape Town, South Africa November 7 – 10 Barcelona, Spain October 3 – 5 Tokyo, Japan November 14 – 17 Gold Coast, Australia October 16 – 20 Orlando, FL November 21 – 23 Mumbai, India October 25 – 27 Sao Paulo, Brazil Visit gartner.com/symposium 19
  • 21. Simple steps for increasing the value of today’s webinar experience • Visit gartner.com/webinars • Today’s presentation will be available in 24 hours • See a Schedule of upcoming Gartner webinars (plus on-demand webinars) don’t forget to share these resources with your colleagues • Contact your Gartner account executive with any additional questions, comments or for a complimentary copy of today’s presentation