Strategic Initiative Management: The PMO Imperative Presented to PMI Croatia, PMI Forum 2015

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1 Making project management indispensable for business results. Strategic Initiative Management: The PMO Imperative Presented to PMI Croatia, PMI Forum 2015 Dr. Al Zeitoun, PhD, PMP 2015 PMI Board of Directors 12 November 2015

2 PMO Thought Leadership Series: Strategic Initiative Management

3 Forrester: Strategic PMOs Play a Vital Role in Driving Business Outcomes Key Findings 1. They have a seat at the executive table 2. They are a vital part of the strategic planning team 3. They embrace core competencies 4. They use consistent objectives across industries and regions

5 Identity Crisis

6 The Five PMO Frameworks 1. Organizational Unit PMO/Business Unit PMO/ Divisional PMO/Departmental PMO 2. Enterprise/Organization-wide/Strategic/ Corporate/Portfolio/Global PMO 3. Project Support/Services/Controls Office or PMO 4. Center of Excellence/Center of Competency 5. Project-Specific PMO/Project Office/ Program Office

7 Organizational Unit PMO/Business Unit PMO/Divisional PMO/ Departmental PMO % Who Have This PMO In Their Organization: 54% Primary Functions Performed Project/Program Delivery Management: 46% Standards, Methodologies, Processes: 15% Portfolio Management Prioritization: 15% Source: Pulse of the Profession : PMO Frameworks

8 Example: PMO to Standardize Product Development Over 40 years experience More than 13,000 employees worldwide 25 locations in 15 countries

9 Enterprise/Organization-wide Strategic/Corporate/Portfolio/Global PMO % Who Have This PMO In Their Organization: 39% Primary Functions Performed Project/Program Delivery Management: 30% Standards, Methodologies, Processes: 25% Portfolio Management Prioritization: 20% 65% more likely than other PMO types to routinely confirm strategic priorities, and to be involved with the alignment of projects to strategic objectives. Source: Pulse of the Profession : PMO Frameworks

10 Example: EPMOs Enable an Integrated Approach I came to see, in my time at IBM, that culture isn t just one aspect of the game it is the game. In the end, an organization is nothing more than a collective capacity of its people to create value. Louis Gerstner, former CEO of IBM, Who Says Elephants Can t Dance

11 Comgás PMO 8,000 km of pipeline Over 1 million customers in 77 cities 978,000 households 12,000 commercial & industrial customers 25% of Brazil s GDP comes from the Comgás concession area 30% of Brazil s total gas sales

12 Project Support/Services/Controls Office or PMO % Who Have This PMO In Their Organization: 44% Primary Functions Performed Project/Program Delivery Management: 44% Standards, Methodologies, Processes: 19% Portfolio Management Prioritization: 12% Just 37% routinely provide strategic alignment and just 33% confirm strategic priorities

13 Example: Canada Health Infoway An independent, federally-funded, not-for-profit organization tasked with accelerating the development of electronic health records

14 Center of Excellence/Center of Competency % Who Have This PMO In Their Organization: 35% Primary Functions Performed Project/Program Delivery Management: 41% Standards, Methodologies, Processes: 24% Portfolio Management Prioritization: 14%

for strategic policy Enterprise-wide PMO Office of the Chief Engineer Responsible for policies,

15 Examples: PMOs Enable Standardization Enterprise-wide PMO Powers IBM s project-based transformation Corporate programs at individual, organization and enterprise levels Responsible for strategic policy Enterprise-wide PMO Office of the Chief Engineer Responsible for policies, standards, handbooks, future technologies, oversight, expertise teams, knowledge share Responsible for strategic policy

16 Project-Specific PMO/Project Office/Program Office % Who Have This PMO In Their Organization: 31% Primary Functions Performed Project/Program Delivery Management: 46% Standards, Methodologies, Processes: 16% Portfolio Management Prioritization: 11%

17 PMO Alignment Impacts Strategy Implementation Nearly half of project-specific PMOs indicate they have realized their full potential in contributing business value to the organization Just 33% of those responding to our survey stated that their PMO realized its full potential in contributing business value to the organization. Source: Pulse of the Profession In-Depth Report: The Impact of PMOs on Strategy Implementation

18 What High Performers Do 80% 60% 40% 20% 77% 57% 65% 42% 62% 43% 58% EPMO Other PMO Type 35% 0% Organizations that elevate the PMO to a strategic decisionmaking level are far more likely to be high performers

19 High Performing PMO Roadmap

20 Create an Organizational Culture of Project Management Successful PMOs don t just execute strategy. They take part in its formulation.

21 Failure 43% of PMO leaders say the key to increasing effectiveness includes a better understanding of project management organization-wide 30% cited a lack of awareness of the benefits of a PMO to the organization PMI s Pulse of the Profession In-Depth Report: The Impact of PMOs on Strategy Implementation

22 Engaging Senior Leaders 1. Focus on critical initiatives 2. Institute smart and simple processes 3. Foster talent and capabilities 4. Encourage a culture of change BCG (Boston Consulting Group). Strategic Initiative Management: The PMO Imperative

Continually Evaluate PMO Performance High Performers Routinely provide performance reporting and performance management Assessment of key

23 Continually Evaluate PMO Performance High Performers Routinely provide performance reporting and performance management Assessment of key metrics, KPIs, compliance and financial performance Are more likely to routinely look for ways to incorporate process development and improvement

24 Continually Evaluate PMO Performance High Performers Routinely provide performance reporting and performance management Assessment of key metrics, KPIs, compliance and financial Routinely look for ways to incorporate process development and improvement

Continual assessments enable the transfer of

25 Evaluate Your C-Suite Communications to Incorporate Strategic Organizational Shifts and Lessons Learned Continual assessments enable the transfer of valuable knowledge gained with each strategic implementation

26 Large-scale change is hard and can lose momentum

27 Summing Up: High Performing PMOs Are perceived as integral to strategy implementation Have financial support and skilled employees Have a high-level of decision-making authority Have influence at the C-suite level

Program Management Office (PMO)

Program Management Office (PMO) White Paper CHRISTOPHER TORREGOSA Senior Manager November 2018 CONTACT For further information about Coker Group and how we can be of assistance, call 800-345-5829 x137