How to Measure PMO IMPACT. Laura Barnard June 21, 2018

Transcription

1 Laura Barnard June 21, 2018

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

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 discipline. Who we are: PPM Professionals is a Professional Association of project portfolio managers working in multiple industries.

4 PPMP GOVERNANCE Steering Committee Denver Steering Committee Bay Area Dana Albright, Century Link Ross Boon, Bank of the West Thomas Rieck, Vail Resorts Drew Feraios, First Republic Bank Cindy Canino, IHS Markit Prashanth Naidu, ebay Mike Murray, Red Robin Nadeem Bawani, Kaiser Permanente Glenn Fox, Comcast Ashok Vuppala, Google Larry Dunn, Dish Karen Walton Gracenote Jay DeAndrea, Ball David Fairclough, Allscripts Cheryl Bass Silicon Valley Bank

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 Knowledge Base Library of Presentations, Videos, and Recordings View Discussions from you Peers Participate/Contribute Become a Guest Speaker Become Author/Blogger/Thought Leader Events Attend our Annual Events Stay in the Know of All PMO Events in your Area

6 OUR FEATURED SPEAKER TODAY 24 years of experience developing PM and change capability 15 years as a PMO leader and executive inside companies 5 years running PMO Strategies (consulting and training) 20 years coaching PMO and PM teams to Get. It. Done. Laura Barnard Founder & CEO PMO Strategies Founder and President, Project Management for Change Project Management Day of Service (PMDoS) PM4Change.org 16 years board service supporting industry transformation IMPACTbyLaura.com

7 POLL QUESTION #1 What is your functional role with the enterprise? 1. I lead the epmo 2. I lead the IT PMO 3. I lead a federated PMO 4. I lead a Program Office 5. I am a Program Manager

8 POLL QUESTION #2 Do you currently leverage metrics to show PMO impact? 1. Yes, and I feel confident we have all that we need 2. Yes, and I want to validate we have the right information 3. Yes, and I want to improve our measurement approach 4. No, and we need them 5. No, and they aren t necessary

9 IMPACT ENGINE PMO SERIES HOW TO MEASURE PMO IMPACT By Laura Barnard, PMP

10 WHAT YOU WILL DISCOVER The importance of measuring PMO IMPACT Why the use of KPIs and EVM falls short How to determine the must have metrics for your PMO How to develop your PMO IMPACT Measurement Plan

11 COMMON MISTAKES Underestimating the importance of PMO measurement Using project metrics to determine PMO value Measuring too much of the wrong stuff

12 POLL QUESTION #3 How do business leaders feel about the PMO? 1. They don t understand the PMO value 2. They clearly see the PMO value 3. They are somewhere in the middle

13 WHY MEASURE? Communicate PMO value to the organization Ensure transparency and accountability Create greater PMO focus and prioritization Gain valuable support and funding for the PMO Get credit for the IMPACT the PMO is creating Get. It. Done.

14 POLL QUESTION #4 Which area would be most helpful to you to explore? 1. What to measure 2. Choosing metrics 3. What not to measure 4. How to talk about the data 5. How to build a measurement plan

15 WHERE DO YOU START?

16 START WITH THE OUTCOME PMOs should drive IMPACT

17 THIS MEANS We must measure PMO IMPACT on the organization.

18 WHAT IS IMPACT? IT S NOT ABOUT PERFORMANCE. IT S NOT ABOUT PROGRESS. IT S ABOUT REALIZING OUTCOMES THAT ARE GREATER THAN THE INVESTMENT.

19 IMPACT IS ACHIEVING A HOLISTIC RETURN ON INVESTMENT (ROI) VALUE + BENEFITS - COST Value measurable output Benefits secondary outcomes Cost direct (input) and indirect (opportunity)

20 NO. 1 What to measure

21 All you have to do is measure something and people will respond. John Pratt

22 MEASURE WHAT MATTERS What services does the PMO provide? What organizational capabilities is the PMO developing? What areas of IMPACT are required by the organization? What business problems is the PMO intended to solve?

23 PMOS CREATE IMPACT Outcome IMPACT on Organization PMO Service Offering Transparency Know what s going on in the portfolio Reliability Return on Investment Predictability Accountability Better decision making Increased organization understanding and competency Can plan work and project alignment Can more fully allocate resources Projects lead to results expected Can build standard roadmaps for delivery Better triple constraint management Decreased costs and expenses Increased value and project outcomes Improved business management of assets Can predict outcomes and IMPACT Better triple constraint management Decreased costs and expenses Increased value of projects to organization Teams work toward common goals All hands on deck mindset Ownership is clear and aligned with strategy Strategic Alignment and PPM Metrics, Dashboards and Reporting Communications and Strategic Planning Program and Project Execution Standards and Best Practices Project Support and Coaching Program and Project Execution PPM Techniques Strategic Alignment with PPM Metrics, Dashboards and Reporting Program and Project Execution Metrics, Dashboards and Reporting PPM Techniques PPM Techniques Metrics, Dashboards and Reporting Project Support and Coaching

24 PMOS MEASURE IMPACT Outcome PMO Service Offering PMO Metrics Transparency Strategic Alignment and PPM Increased awareness of projects across organization Metrics, Dashboards and Reporting % of services and metrics delivered as planned Communications and strategic planning Awareness of strategic alignment of project Reliability Program and Project Execution % of projects that met IMPACT goals Standards and Best Practices % faster time to market than prior period Project Support Time elapsed from project idea to approval Return on Investment Predictability Program and Project Execution PPM Techniques Strategic Alignment with PPM Metrics, Dashboards and Reporting Program and Project Execution Metrics, Dashboards and Reporting PPM Techniques Time elapsed from project approval to completion Rate of throughput for high priority projects % of high priority projects vs. portfolio Year over year ROI for project portfolio % of projects that meet or exceed IMPACT targets % of estimated project costs to actual costs % of estimated duration to actual duration % of risks identified and managed to low/high impact Accountability PPM Techniques Metrics, Dashboards and Reporting Project Support % of time to market cycles improvement % of project compliance to methodology % of high priority projects meeting targets

25 NO. 2 Choosing the right metrics

26 What gets measured gets managed even when it's pointless to measure and manage it, and even if it harms the purpose of the organization to do so. V.F. Ridgway

27 BE CHOOSEY ABOUT METRICS Use a core set of IMPACT-ful metrics Performance does not guarantee success, IMPACT does Key Performance Indicators (KPIs) & Earned Value Management(EVM) only measure performance and progress Determine which metrics will show the needle is moving Find predictive metrics to drive proactive management Look at PMO business case/plan to determine services, goals

28 NO. 3 What not to measure

29 Not everything that counts can be counted, and not everything that can be counted counts. William Bruce Cameron

30 AVOID METRICS MANIA Ask leadership what matters most Pick one or two key metrics for each area Revisit chosen metrics regularly to determine effectiveness There is no one size fits all approach to measurement Can t measure everything if we want to get anything done!

31 NO. 4 How to talk about metrics

32 TELL THE STORY Results unmeasured often go unnoticed Communicate commitments, targets and outcomes Use IMPACT language to talk about PMO Tie metrics directly to the WHY of your PMO Do NOT talk in acronyms or use insider language

33 NO. 5 How to build a measurement plan

34 REPORT IMPACT Develop an IMPACT measurement plan (30/90) Keep reporting straightforward and simple Don t include a ton of historical data Use trend data and images to make the points

35 MEASUREMENT PLAN What will the PMO do? Services and capabilities defined in terms of benefit How will the PMO do it? Helps to identify how you will know it s happening When will the PMO do it? Helps you determine timeline for measurement How will we measure IMPACT? Determine specific and finite measurements

36 METRICS EXAMPLE: STRATEGIC ALIGNMENT Question What will the PMO do? How will the PMO do it? When will the PMO do it? How will we measure IMPACT? Answer Create greater strategic alignment of projects to organizational priorities, increasing focus on most important priorities Provide PPM framework and resources to govern portfolio First quarter: PPM framework development Second quarter: PPM education Third quarter: Implement PPM in X business area Fourth quarter: Implement PPM in Y business area % of investment decisions influenced by PMO guidance % of projects aligned with organizational priorities % of projects aligned with PPM classification model # of projects with business cases and IMPACT metrics % of projects achieving defined IMPACT (ROI)

37 METRICS EXAMPLE: PM FRAMEWORK Question What will the PMO do? How will the PMO do it? When will the PMO do it? Answer Increase project performance and throughput ensuring greater IMPACT realization Provide a lean best practices framework for projects First quarter: PM playbook and templates development Second quarter: Education programs begin Third quarter: Pilot business area Fourth quarter: Review learnings and improve framework % of PM playbook developed compared to planned % of templates developed compared to planned % of teams adhering to playbook Ratio of projects following framework and IMPACT achieved Building the PMO services: # of services built over time How will we measure IMPACT?

38 METRICS EXAMPLE: PM COMPETENCIES Question What will the PMO do? How will the PMO do it? When will the PMO do it? How will we measure IMPACT? Answer Increase project performance, IMPACT realization and collaboration through PM competency development Implement a PM competency development framework First quarter: PM competency framework Second quarter: Training program Third quarter: Coaching program Fourth quarter: Peer mentoring program # of PM framework components built per timeline % of PM staff trained in X capabilities % of PM staff assigned to a coach # of PM coaches trained and ready for assignment

39 BUILDING A MEASUREMENT PLAN

40 BUILDING A MEASUREMENT PLAN Outcome IMPACT on Organization Capability Objective Baseline, Current, Expected

41 MEASURING PROGRESS Benefit Commitment Measurement Expected Actual Status Strategic Alignment Reliability Return on Investment Provide PPM framework and resources to govern portfolio Provide a lean best practices framework for projects Implement a PM competency development framework % of projects aligned with organizational priority % of projects leveraging PM framework at base level 25% 50% 40% 10% % of PM staff trained in X capabilities 50% 40%

42 MEASURING IMPACT Benefit Value Cost IMPACT Status Strategic Alignment $1M in revenue realized for high-priority projects $100,000 in support provided to manage portfolio $900,000 IMPACT Reliability $300,000 in cost savings for process efficiencies $250,000 in support and tools provided to increase reliability $50,000 IMPACT Return on Investment $2M in expected return on project portfolio $300,000 in support costs for project planning and execution $1.7M IMPACT

43 NO. 6 Measure the cost of inaction

44 MEASURE INACTION Baseline data can be a powerful tool Lack of information can tell an equally powerful story Make the challenges of the current state clear Tie measurements directly to pain points identified Tie shifts directly to capabilities the PMO will deliver

45 Align metrics to services and goals Measure performance and IMPACT Be choosey about what you measure Don t try to measure everything Use metrics to tell the story of PMO IMPACT Make reporting simple and easy to follow Reevaluate regularly, but allow time to stick

46 Project management is NOT the end game. Project management is simply the process we use to drive business results and the PMO is the engine that generates that IMPACT for an organization. IMPACTbyLaura.com IMPACT Engine PMO

47 LET S CONNECT Free Tune Up Course with access to PMO Metrics Planner and other resources Join my network: LinkedIn, Twitter, Facebook Care@IMPACTbyLaura.com

48 UPCOMING EVENTS July 24, :30pm 7:30pm Exclusive Denver In-Person Networking Event Your PPM Tools Matter! Cheryl Bass, EPMO Manager of Tools & Processes at Silicon Valley Bank, is our featured facilitator for this exclusive event Tavern Tech Center Aspen Lounge 5336 DTC Blvd. Denver CO 80111

49 Thank You! Webinar Recording: You can find the recording of this webinar event, a copy of the presentation & a list of upcoming events here WINNER! Project Portfolio Management Professionals Project Portfolio Management Professionals