Creating a Market Facing PMO at Hilti

Transcription

1 Creating a Market Facing PMO at Hilti Daniel J. Wade August 27,

2 Housekeeping Items Everyone will be muted throughout the entire presentation You are welcome to ask questions at any time using the chat and/or Q&A feature We will have a brief Q&A session at the end of the presentation to make sure that we answer your questions 2

3 PPMP Mission Statement Mission: Our mission is to foster our individual member s learning through the sharing of knowledge, best practices, experiences, lessons learned and by engaging with industry experts and thought leaders. Purpose: Our goals are to enhance the professional capabilities and skills of our individual members and to bring value to the overall project portfolio management industry. Who we are: PPM Professionals is a Professional Association of project portfolio management working in multiple industries. 3

4 PPMP Governance Steering Committee Bay Area Ross Boon, Bank of the West Drew Feraios, First Republic Bank Prashanth Naidu, Hitachi Data Systems Todd Hobert, VMware Nadeem Bawani, Kaiser Permanente Ashok Vuppala, Google Steering Committee Denver Dana Albright, CenturyLink Thomas Rieck, Vail Resorts Grant Merrill, Level 3 Communications Cindy Canino, IHS 4

5 PPMP Benefits Networking Leveraging and sharing with your peers In-person and Online Chapter Meetings Assistance in Developing a Chapter in Your City Becoming a Steering Committee Member Events Attend our Annual Events Stay in the Know of All PMO Events in your Area Knowledge Base Library of Presentations, Videos, and Recordings View Discussions from you Peers Participate/Contribute Become a Guest Speaker Become Author/Blogger/Thought Leader 5

6 Online Poll What is your role in the organization? Head of epmo Head of IT PMO Program Manager Head of Product PMO Architecture/Governance Describe your PMO s customer facing orientation Internal customers only Internal and external customer External customer facing Describe you PMO Program Architecture Centralized Decentralized/Federated Individual Programs 6

7 Agenda Introduction to PPMP Our featured speaker Hilti at a glance Industry driving change Creating a market facing PMO Global and local structures Project Management Tools Case Studies Business Achievements Interactive Q&A 7

8 Our featured speaker today: Daniel J. Wade Sr. Manager Project Management Office (PMO) Hilti, Inc. Head of Hilti North America s Project Management Office University of Oklahoma Alumni BS Mechanical Engineering 8 years experience in Engineering, Sales Management & Marketing Previously managed a sales team as part of our expanding Civil & Energy Market Organization Experience in product research & development as well as marketing tactics to influence direct sales As of January 2014, sole PMO Member, now managing a team of 22 that encompass everything from engineering design to execution 8

9 Hilti s Project Management Office Creating a market facing PMO with aligned business targets in pursuit of a new profit center. 9

10 Hilti at a glance Founded in 1941 in Schaan, Principality of Liechtenstein One of the global leading companies in providing products, systems & services to building and construction professionals Products & services targeted at delivering real efficiency for customers through continuous innovation Located in more than 120 countries on six continents More than 22,000 employees Direct sales model Privately held through our Share Holder, Mr. Michael Hilti 2014 turnover: 4.5 BCHF PMO VIDEO

11 Industry driving change 'Modular construction is a term used to describe the use of factory-produced preengineered building units that are delivered to site and assembled as large volumetric components or as substantial elements of a building. Implications Labor shortages apparent Higher cost of skilled workers 3D enhancements Companies are forced to completely rethink their approach to products, services and software Decision Point In 2013, a strategic initiative was approved that would allow for a significant investment in Global PMOs to address these industry challenges 11

12 Creating a Market Facing PMO Products Services Software Modular support systems are comprised of a series of girders, channels, connectors and brackets Innovative components bolts together quickly and offer adjustability and flexibility for your applications Structural design calculations Professional Engineering available Value added services such as cutting, kitting and pre-assembly PROFIS Installation PROFIS Anchor AutoCAD, REVIT, etc. for design & drawings The Hilti PMO is set up to align products, service and software in order to integrate ourselves into our customers workflow 12

13 Creating a Market Facing PMO Engineer Estimate Execute The Hilti PMO is a mirrored imaged of how our customers are built this allows us to align with them directly and seize new opportunities 13

14 Creating a Market Facing PMO PROJECT TRANSACTIONAL Structural and design engineers that mirror our current customer requirements Educate Specified Products supported by Technical Experts Flexible and fast a team to offer products/ services that no one can repeat Execute Innovative products: Off the shelf, boxed items ready for use Engineer Estimate Execute Supply chain experts in place to work direct with the end user and exceed expectations Throughout the lifecycle, we re setup to professionalize our approach and work directly with customers to win 14

15 Local structure PMs, IBDs, BDs, RMs, AMs Internal Team Management Steering Committee Material Mgmt. Logistics Operations Manager Legal, Credit, Finance Global Supply Collaboration Fulfillment & Execution PMO Manager Engineering Team Local Supply Collaboration Sourcing & Quality Bid & Proposal Cutting, Kitting, Assembly Services 3 rd Party Engineering Services Engineered Specials External Partner Management 3 rd Party Design Support for Peak Demands Approved Manufacturers In a large matrix organization we are the crucial element streamlining the internal and external parties involved 15

16 Global structure HQ PMO PMO PMO PMO PMO PMO Target Markets Total Solution WH HQ = Global Headquarters PMO = Project Management Office Each PMO acts within a framework but has the flexibility and right to dynamically exercise activities specific to the Market Organization 16

17 Global portfolio rollup PMOs aligned with local business targets, when combined bring great potential North America Latin America META Dallas, Dallas, Texas Texas Focus Focus Energy Energy & Heavy & Heavy Commercial construction Covers Covers United United States States and and Canada Canada Rio Rio de de Janeiro, Brazil Brazil Dubai, Dubai, UAE UAE Focus Focus Offshore Oil Oil & & Focus Focus Energy Energy Gas Gas construction construction Covers select select Accounts Covers Covers Middle Middle East, East, in Brazil in Brazil only only Turkey Turkey and Africa and Africa Regions Regions A1 Region E2 Region Eastern Europe Hong Kong, China Focus Energy construction Covers 14 Asian countries Paris, France Focus Energy construction Covers entirety of France and surrounding countries dependent on Accounts Together we ve identified massive potential with PMOs in Target Markets Moscow, Moscow, Russia Russia Focus Focus Energy Energy construction construction Covers Covers entirety entirety of of Russia Russia with focus with focus on 3 on 3 major major cities cities 17

18 Project management tools/processes Single point of contact/entry Document storage & control Accountability (dates/persons) Transparency +2,000 teammates Kickoff & alignment meetings via Skype for Business (formally Lync) 2016 Evaluating a unified Project Portfolio Mgmt. Tool Simple but effective, our tools work across PMOs and allow us direct contact to teammates and customers 18

19 Case Study #1 El Dorado Substation Client Benefits Realization Customer Situation Fast track construction timeline High labor rates driving decisions Access issues due to underground PMO Solution Designed with value added services in mind Integrated ourselves into constr. schedule PMO approach and solution led to significant benefits to the client Labor & Time Study kusd % % weeks 0 labor cost time 0 customer planned actual 19

20 Case Study #2 American Electric Power Standardizing Methodology & Process Customer Situation Utility customer focused in 12 states Government regulations and updated Standards requires changes to work PMO Solution Designed a universal solution for 4 types of Standards Local product development introduced Improved purchasing process, now considered the way to work with Hilti 20

21 Change Management Internal Benefits Realization Executive Alignment Executive Board level alignment Included as Top Priority with 2020 strategic direction Clear understanding of qualitative and quantitative expectations Biggest supporters of change adoption reside in Management Team (Local and Global) Supported with Consultant involvement Organizational Readiness Start up mentality Going against the grain of decades of performance New approach requires extensive training and education to internal teammates PMO has freedom to exercise within and outside of standard practices A key Stepchanger winning this business requires a completely new approach and setup 21

22 Business Achievements 2014 YE Projects 343 Net Sales $12 M Customers 125 Repeat Customers Ave. $ Increase Financial Review Created Project Profit/Loss statement to match existing Hilti structure Showing a Contribution back to the organization in $250k 2015 YTD July Projects 390 Net Sales $13 M Customers 185 Repeat Customers Ave. $ Increase 38/ $250k Productivity Review Increasing efficiency internally and externally Daily addition to # of touch points Customer facing media coming to increase Market Reach and ensure scalability The market facing PMO approach has us more integrated with our customers and has shown an immediate financial & productivity impact 22

23 Thank You! Contact information: Work Hilti s Project Management Office Creating a market facing PMO with aligned business targets in pursuit of a new profit center. Daniel J. Wade Sr. Manager Project Management Office (PMO) Hilti, Inc. 23

24 Thank You! WINNER! Webinar Recording: Access the webinar recording, a copy of the presentation & a list of upcoming events here Project Portfolio Management Professionals Project Portfolio Management Professionals 24