Governing project, programme, portfolio performance and ROI

Transcription

1 PMGlobal Symposium Canberra 6 May 2014 Governing project, programme, portfolio performance and ROI harold.petersen@uxcconsulting.com.au

2 How much of the investments in IT projects are wasted? A recent study conducted by The Standish Group found that only 39 percent of all IT projects succeeded while the remainder (61 percent) were either challenged or failed. Source: 2013 CHAOS Manifesto, published by the Standish Group International. According to a 2012 McKinsey/Oxford study Large IT Projects (Initiatives with budgets of over $15 million dollars) run 45% over budget, are 7% behind schedule and deliver 56% less functionality than predicted. 2

3 Causes of project failure include 3

4 Project Management and Project Governance Silos 4

5 Align, control and optimise your portfolio of initiatives, its resources, deliverables outcomes and benefits? 5

6 Agenda What is a PMO and what is P3O? PMO implementation and governance Case study Conclusion 6

7 Agenda What is a PMO and what is P3O? PMO implementation and governance Case study Conclusion 7

8 What is a PMO? 8

9 P3O P3 Portfolio Management Programme Management Project Management O Offices P3O is a registered trade mark of AXELOS Limited. Quoted text source is P3O. Copyright AXELOS Limited Material is reproduced under license from AXELOS. 9

10 Example portfolio Business Unit Client Project Project Type Financia l Status Proj Status Risk Status Customer Sold Project Revenue Sold Project Gross Margin Sold Gross Margin % Forecast to Complete Revenue Forecast to Complete Gross Margin A F P1 Fixed $5,000 $1,000 20% $6,000 $500 B G P2 Fixed $6,000 $1,000 17% $9,000 $1,000 C H P3 Fixed $7,000 $1,000 14% $9,000 $2,000 D I P4 Fixed $8,000 $1,000 13% $9,000 $1,000 E J P5 T&M $9,000 $1,000 11% $9,000 $1,000 10

11 Example: ITIL/ITSM Implementation Programme and Projects Programme Management Structural Alignment Organisational/Cultural Change SD/Incident Management Event Management Problem Management Strategy Operations Transition Change Management Request Fulfillment Release and Deployment Management Service Asset and Configuration Management Knowledge Management Service Catalogue Management Service Level Management Design Availability Management Capacity Management Tools Implementation & Alignment Time 11

12 Example High Level P3O Model Organisation Portfolio Office (permanent) Centre of Excellence Hub Portfolio / Programme Office (permanent) Copyright AXELOS Limited Reproduced under license from AXELOS. Programme Office (temporary) Hub Portfolio / Programme Office (permanent) Project Office (temporary) Standards Skills/training/ coaching Assurance Knowledge Mgmt 12

13 Portfolio, Programme, Project Governance Copyright AXELOS Limited Reproduced under license from AXELOS.

14 Some measures of an effective P3O o o o Overall programme and project success rates in relation to capital cost, duration, operating cost and benefits realisation for each portfolio Improved portfolio balance in terms of overall risk, programme and project lifecycles, strategic alignment and investment type Enhanced contribution to strategic objectives. o Reduction in programmes and projects started for the wrong reasons number of projects stopped o o o o Predictability of delivery % increase in number of programmes and projects delivering to time and scope Predictability of cost % decrease in cost overruns on programmes and projects Reduction in overall resource costs to deliver portfolio Skill level assessments and job satisfaction scores 14

15 Agenda What is a PMO and what is P3O? PMO implementation and governance Case study Conclusion 15

16 P30 Blueprint Design and Implementation 16

17 P3O target blueprint and underpinning implementation deliverables Intended Benefits Target P3O 1. P3O People & Organisation Components 2. P3O Process Components 3. P3O Support Tools 4. P3O Governance 17

18 Agenda What is a PMO and what is P3O? PMO implementation and governance Case study Conclusion 18

19 Some quotes: I exceeded budget: no questions were asked Real issues are usually not put on the table until late There is no reliable data to feed portfolio controls Poor planning is at the core of the issues Reluctance to manage expectations and challenge the boss Some really good Project Managers We tried portfolio prioritisation and tossed it There s a difference between what we thought we were buying and what we actually got Operations are under the hammer Projects appear on our doorstep Over ambitious or under resourced The PMO is important to us 19

20 PMO mapping onto P3O model Organisation Portfolio Office (permanent) PMO 1 Centre of Excellence Hub Portfolio / Hub Portfolio / Programme Programme Office (Operations) BU Portfolios Office PMO 2 (permanent) Copyright AXELOS Limited Reproduced under license from AXELOS. Programme Office (temporary) (permanent) (Operations) PMO 2 Project Office (temporary) N/A (Informal) Standards Skills/training Assurance Knowledge Mgmt 20

21 Resource Management Organisational Governance Portfolio Management Management Control Benefits Management Financial Management Target Maturity Stakeholder Management Risk Management 21

22 Project Management PRINCE2 Themes Target Maturity Progress Plans Business Case Project Organisation Risk Management Change Quality 22

23 Project Management PRINCE2 Processes Target Maturity Directing a Project Closing a Project Starting Up a Project Initiating a Project Controlling a Stage Managing Stage Boundaries Managing Product Delivery 23

24 Pivotal Question A sense of running to stand still P3O issues recognised Ambition, workload and resource challenges get priority How to break that cycle? 24

25 P3O - Target Model Organisation Portfolio Office (permanent) Strategic PMO Centre of Excellence Hub Portfolio / Programme BU Portfolios Office (permanent) Copyright AXELOS Limited Reproduced under license from AXELOS. 25 Programme Office (temporary) Hub Portfolio / Programme Operations Office PMO (permanent) Operations PMO Project Office (temporary) Project Boards COE Standards Skills/training Assurance Knowledge Mgmt 25

26 Assess current state Align, control and optimise your portfolio of initiatives, its resources, deliverablesroadmap outcomes and benefits Implementation? Tool selection and alignment Training & Planning Design & Build general templates Go live Build detailed High templates Level and tools Standards Go live Detailed standards Monitoring & Coaching PRINCE2 training One or two workshops Training and Specific awarenesstraining and awareness packs to decide: packs Technical Specification SCRUM training - PMO Process model templates Training and awareness Handover - PMO standards Training andand awarenesssessions and CSI Plan and agree templates PMO sessions Specific project models and improvement - Adoption of examples Go live declaration project assessment Go live declaration recommendations Aligned toolsestablish and start anchoring Establish and start anchoring new standards 26 6 new standards

27 PMO Governance Report Q4 / Financial KPI target Q4 Q1 Q2 Q3 a. Projects/programs completed on time and budget 100% 80% b. Projects/programs commenced/initiated within agreed 90% 100% timeframes c. PMO run within budget 100% 99% 2. Customer a. Project closed with products in line with acceptance criteria and 100% 80% all products signed off b. Stakeholder Satisfaction Rating (phase 2) 10 out of out of Internal Business Process a. Compliance with handbook processes 90% 98% b. Projects prioritised and classified within portfolio according to 90% 100% PMO classification procedures c. Average process maturity 6 to 12 monthly (estimate) d. PMO process review meetings and continuous improvement actions progressed every month 4. Learning and Growth a. Project Manager satisfaction with process/es, training in the processes and Involvement in the improvement process 6 monthly b. % of staff achieving agreed formal certifications or completing specified training in line with annual training plan c. Relevant use of documented lessons learnt and templates in new projects 100% 100% 60% 100% 60% 75% 27

28 Portfolio Management Dashboard # Projects at each stage: Not Started 3 Gate 1 2 Gate 2 2 Gate 3 1 Gate 4 2 Gate 5 # Projects at each status: Red 1 Amber 2 Green 7 Project Portfolio Investment Statistics Total # Projects 10 Total $ Portfolio 6,345,000 Total Benefit of Portfolio 4,105,000 By Division Division A Total # Projects 4 Total $ Portfolio 3,000,000 Total Benefit of Portfolio 2,620,000 # of Projects Large Medium Small Project Size Amber Green Red Projects by Category By Division Division B Total # Projects 4 Total $ Portfolio 3,250,000 Total Benefit of Portfolio 1,450,000 By Division Division C Total # Projects 2 Total $ Portfolio 95,000 Total Benefit of Portfolio 35, Div A Div B Div C Acquisition Revenue Growth Customer Experience Cost Reduction Compliance Compliance Cost Reduction Customer Experience Revenue Growth Acquisition Overall Project Name Project Sponsor/ Project Manager Approved Budget $ Priority Category Business Unit 1 Project 1 Executive A 2,000,000 1 Commercial Amber 1/01/2013 1/09/2013 Manager A Strategic Project 2 Executive A 125,000 2 Commercial BAU Green Manager B Project 3 Executive B 50,000 1 Commercial BAU Green Manager D Business Unit 2 Project 4 Manager E Green Manager F Project 5 Manager G Green Manager H Project 6 Manager I Green Manager J Corporate Programme 1 Project Green 0 Project Green 0 Project 9 0 Category Green 0 Business Unit 3 Project Cost Reduction Green 0 Project Compliance Green 0 Etc 0 Green Schedule Budget Risks and Issues Benefits Project Start Date Current Stage Gate Next Stage Gate e Next Gate Due Date Forecast Project End Date Project Manager Comments Month

29 Project Health Check <Project> <customer> Version X, date <author>

30 Agenda What is a PMO and what is P3O? PMO implementation and governance Case study Conclusion 30

31 Govern and continually improve People, Process and tool aspects of P3O best practices PPM vision & target Accreditation Training Awareness/Overview Master Class / Skills training Health Checks, Governance CSI P3M3/PMO Assessments Project/Program Health Checks Design and Plan a P3O Transform the PMO/P3O Initiate Programmes Training 31

32 Thank You! Governing project, programme, portfolio performance and ROI