Strategic Program Management in a Disruptive World

Transcription

1 AN EXL WHITE PAPER Strategic Program Management in a Disruptive World Written by: Rohan Regis Vice President lookdeeper@exlservice.com

2 Transformation is now taking place across the entire value chain of a company, from new customer experiences in the front office to designing and developing global operating models in the back office. Businesses today are breaking barriers, rapidly digitizing and evolving to take advantage of new opportunities to engage with customers. While digital is driving most of the transformation agenda, most C-suite executives acknowledge their companies are not adequately prepared for this disruption. According to a 2015 global survey by MIT Sloan Management Review, 90% of managers and executives anticipated a great or moderate extent of digital disruption in their industries, but only 44% were satisfied with the preparations made by their organizations. 1 With transformation now high on the agenda for all CXOs, there is no shortage of initiatives that kick off in an organization each year. It is therefore critical to align each initiative to an organization s strategies and goals. The question is how many of these initiatives are truly enterprise wide. Strategic program management is a term that has been around since However it is only recently where project management has truly become strategic. The journey can be summarized as moving from project execution, project planning, project management office, and alignment to strategy and agility, the last two being where program management is getting management attention and focused on as a differentiator. For example, consider an insurance company launching a new product in a digital world. There are a number of teams that will need to work together in a collective and cohesive manner to bring together all the new approaches. These include design thinking to ensure the best customer experience, data analytics EXLservice.com 2

3 and market segmentation to ensure that the product offering is targeted to the right buyers and operations and claims service This paper looks at the need and role of the strategic project management office in driving transformation. design to ensure that the moment of truth for the customer is delivered to the desired standards. Executives today want a team that can deliver results over and over again. As investments in digital initiatives are usually sizeable, they need a group that can drive initiatives in an agile manner in the best interest of the company. In a survey of organizations that have a PMO, half reported having a strategic project management office that aligns projects to their strategy. Among these organizations with strategic project management offices, statistics showed 38% more projects meeting original goals and business intent and 33% fewer projects deemed failures. Why does the traditional model not work? Traditional project management offices typically get involved in a project during the implementation phase, which is limited to one or two specific departments or business functions. However, the impact of enterprise-wide projects is far reaching. The traditional PMO s limitations currently struggle to support this disruption due to the required level of communication, stakeholder management, cross-functional interactions and the need to be agile in decision making. What s the New Approach? More organizations have transformed or are transforming their traditional PMO into a strategic enterprise-wide approach. A strategic project management office (SPMO) works closely with the decisionmaking leadership. It contrasts from the traditional PMO, as an SPMO is responsible for strategically aligning the business vision and objectives to projects initiated at the department level. An SPMO has the ability to make prompt strategic course corrections in a complex environment. EXLservice.com 3

4 The SPMO engages senior executives in making complex choices and implementing strategic initiatives across the enterprise. It is also involved in portfolio planning with greater transparency and consistency in its approach. Furthermore, SPMOs establish best practices and standards from an organization-wide view. The figure below depicts the various organizational roles in the successful implementation of strategic projects Escalation (up the chain for resolution) Strategy (established and passed down the chain) SPMO PROGRAM MANAGEMENT OFFICE PROJECT MANAGEMENT OFFICE n Drive Transformation Capabilities n Leadership Buy-In n Investment Decisions n Capacity Management n Strategic Alignment n Benefits Tracking n Issue Resolution n Risks Mitigation n Manage Scope n Drive Schedule Adherence n Manage Costs and highlights the senior leadership engagement from the SPMO. EXLservice.com 4

5 The Role of an SPMO Driving market-leading results requires a strategic selection of projects that align with overall business goals. SPMO representatives can put practices in place that support accelerated growth and improve bottom line results through deliberate project selection and delivery. The figure below represents the role of an SPMO in driving strategic change and how they are pivotal to an on-going review of alignment to objectives. n Rigorous Milestone Tracking n Realignment of Initiatives n Capacity Management (Demand and Resource) n Risk and Issue Management Benefits Tracking and Management Delivery and Execution Alignment of Objectives Define Enterprise Strategy SPMO Implementation Roadmap n Clearly Defined Strategic Vision for the Organization n Identification of Initiatives Identified Initiatives Strategic Alignment of n Transformation Capabilities n Leadership Buy-In on Internal Initiatives n Investment Decision Making n Demand Management n Meaningful Milestones and Objectives for Strategic Initiatives n Defined Metrics Linked to Strategic Initiatives EXLservice.com 5

6 How the SPMO can Help Drive Digital Transformation Projects Digital transformation projects require input from the entire business; it is vital Opportunity Assessment for RPA Traditional PMO Strategic PMO n Strategic goal alignment n Prioratizatioin of RPA opportunities across the business they get support from senior leaders for success. Digital transformation is about adapting the business culture and the way Build Business Case for RPA Initiative n Validation of ROI n Manage stakeholders alignment and approvals n Analysis of options (providers, technologies etc.) it operates to work with new technology, rather than making the technology stack fit. This diagram compares the role and involvement of a traditional PMO with an SPMO in implementing robotics process automation. Detailed Planning Governance and Communication n Develop detailed project plan n Scope adherence n Cost management n Risk & issue management n Vendor management n Capacity management (resource and demand) n Alignment of milestone and plans to strategy n Coordination and collaboration management n Maximizing ROI and benefits realization n Change management Clearly, the level of engagement and value across the two project organizations is Proof of Concept n Adherence to defined milestones n Project status reporting n Document management n Scope management n Stakeholder management different both at the conceptualization and implementation phases. Implementation of RPA Initiative n Product evaluation and release management n Benefit tracking n Recommendations and realignment of milestones EXLservice.com 6

7 Setting Up an SPMO Framework PMOs aren t one-size-fits-all concepts. They must be determined based on company size, strategic goals, departmental needs and many other factors for identifying the kind of PMO right for the organization. Organizations should select and prioritize projects based on defined criteria which align with their strategic goals like the size of a project, impact across organization and criticality to customer. SPMOs will be responsible to provide meaningful, decision-driving insights with clear realization of impacts through measurable KPIs or other metrics. Planning for Success Successful project management requires a renewed focus on governance and aligning initiatives to strategic corporate objectives. Implementing a SPMO in a rapidly changing business world is not a one-size-fits-all proposition. Each business will require a customized set of tools, processes, methodologies and the right leadership structure to ensure a high probability of success. In a current business environment characterized by persistent disruptions, escalating complexities and frequent strategic changes, introducing an SPMO will help enable the right level of engagement with senior stakeholders. Key Areas where EXL can Assist: EXL Consulting has extensive experience and credibility in supporting organizations through the life cycle of setting up a strategic project management office and driving strategic change. EXLservice.com 7

8 Defne Enterprise Strategy Strategic Alignment of Identifed Initiatives Implementation Roadmap n Provide support or assistance in defining strategies n Identification of initiatives n Business case generation n Detailed project planning Conclusion In the digital workplace, project management requires a renewed focus on governance and aligning initiatives to strategic corporate objectives. When considering vendors to assist with a digital transformation project, consider their experience and credibility in setting up a strategic project management office and driving strategic change. Management Delivery and Execution n Prioritized and managed initiatives n EXLs project tools and templates End Note home/ /en/pmi Pulse-Profession-Project-Success-Rates Benefts Tracking and Alignment to Objectives n Benefits tracking EXLservice.com 8

9 EXL (NASDAQ: EXLS) is a leading operations management and analytics company that designs and enables agile, customer-centric operating models to help clients improve their revenue growth and profitability. Our delivery model provides market-leading business outcomes using EXL s proprietary Business EXLerator Framework, cutting-edge analytics, digital transformation and domain expertise. At EXL, we look deeper to help companies improve global operations, enhance data-driven insights, increase customer satisfaction, and manage risk and compliance. EXL serves the insurance, healthcare, banking and financial services, utilities, travel, transportation and logistics industries. Headquartered in New York, New York, EXL has more than 26,000 professionals in locations throughout the United States, Europe, Asia (primarily India and Philippines), South America, Australia and South Africa ExlService Holdings, Inc. All Rights Reserved. For more information, see us: lookdeeper@exlservice.com On the web: EXLservice.com GLOBAL HEADQUARTERS 280 Park Avenue, 38th Floor, New York, NY T: F: United States United Kingdom Czech Republic Romania Bulgaria India Philippines Colombia South Africa