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The Disturbing Reality of Today's PMO
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How to avoid the consequences of an ineffective PPM/PMO Strategy
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The Disturbing Reality of Today's PMO
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The Disturbing Reality About Today’s PMO COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS The Disturbing Reality About Today’s PMO Why You Need to Avoid the Consequences of an Ineffective PPM and PMO Strategy The Disturbing Reality About Today’s PMO
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The Disturbing Reality About Today’s PMO COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS The Goal Bridge the Gap Between the PMO and the Rest of the Business
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The Disturbing Reality About Today’s PMO COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS 50% of project management offices close within 3 years (Association for Project Mgmt) Since 2008, the correlated PMO implementation failure rate is over 50% (Gartner Project Manager 2014) Only a third of all projects were successfully completed on time and on budget over the past year (Standish Group’s CHAOS report) 68% of stakeholders perceive their PMOs to be bureaucratic (2013 Gartner PPM Summit) Only 40% of projects met schedule, budget and quality goals (IBM Change Management Survey of 1500 execs) 5 Shocking PMO/PPM Statistics 1 2 3 4 5
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The Disturbing Reality About Today’s PMO COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS Primary PPM Functions Portfolio tracking (performance monitoring) 75% Portfolio governance and oversight 68% Portfolio Planning including Resource Allocation 66% Portfolio Selection and Prioritization 65% Portfolio Management Process Management 61% Source: State of PPM Report 2013
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The Disturbing Reality About Today’s PMO COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS Gartner PPM Maturity Model Source: Gartner
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The Disturbing Reality About Today’s PMO COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS Consequences of Not Implementing PPM • Reluctant to kill projects • New projects added • No Focus • Weak decision points • Poor “Go/kill/hold/fix decisions • No rigorous criteria • Selection based on emotion, politics • No strategic criteria for project selection No Portfolio Management Means… • To many projects • Resources Spread • Execution suffers • To many low value projects • Good projects starved • Wrong projects are selected • Projects lack strategic direction and alignment Immediate Impact • Increased time to market • Higher failure rates • Too few top product winners • Chaotic Launches • Many failures • Diluted effort • New products don’t support strategy End Result: Poor Performance
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The Disturbing Reality About Today’s PMO COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS PMOs have been led astray by all sorts of conflicting organizational demands and requirements. Quite often if someone doesn’t know where to put something, they dump it into the PMO which quickly morphs into an unwieldy mish mash of roles and responsibilities with vague terms of reference, uncertain leadership and tense relationships with the rest of IT. Source: Itfromhere.com An All Too Common Scenario…..
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The Disturbing Reality About Today’s PMO COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS Barriers to Adoption • Internal politics & culture: PMOs have to satisfy multiple stakeholders with differing goals • Lack of executive sponsorship and top management commitment to support the PMO • Inability to agree on a common approach to managing projects • Shifting business/project priorities • Disagreement on the pace of adoption • Impact on existing processes & software systems The Internal Challenges
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The Disturbing Reality About Today’s PMO COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS PMOs Focus Too Narrowly • Only 1/3 of respondents support Agile, Scrum, or Lean practices Lack Of Trust • 58% of respondents think they don’t get realistic info from their PM’s PMOs Are Too Busy To Be Truly Strategic • 75 percent of surveyed PMOs do hands-on project management An Analyst Perspective Forrester Research Identified the Three Most Significant PMO Problems as: Source: The PMO In An Agile World: Can’t We All Just Get Along? 1 2 3
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The Disturbing Reality About Today’s PMO COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS …project delivery within an enterprise environment involves the multifaceted collaborations of the business’ ability to successfully execute the key project components seamlessly and as a natural extension of the business rather than as separate, alien and conflicting entities. Why Project Delivery Can Be Difficult Source: PPM Master Class KeyedIn Solutions
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The Disturbing Reality About Today’s PMO COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS The Good News: Maturity is Growing Source: PWC 3rd Annual Global Survey on Program and PM Practices
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The Disturbing Reality About Today’s PMO COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS There is Still Much Room to Grow… Companies who have implemented a PMO: 2% best in class 6% strategic 19% institutionalized 36% established 33% basic 5% informal But While Maturity is Improving Source: State of the PMO 2012 8% Only 8 percent of PMOs are Best-in- Class or Strategic!
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The Disturbing Reality About Today’s PMO COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS The Bottom Line: Characteristics of a Best-in-Class PMO 1. Well-defined and achievable objectives 2. Delivers responsibility, governance and oversight 3. Viewed as supporting the business and IT strategy 4. Established methodologies and framework for project management 5. Able to measure and prove the realization of benefits (business value) 6. Outward focus on business needs, not inward focus on processes 7. Practices good relationship management, from executive sponsorship to project management
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The Disturbing Reality About Today’s PMO COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS Time for Technology You Need Great Technology to Enable PPM and PMO Improvement
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The Disturbing Reality About Today’s PMO COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS Manage Execution Manage Cost | Billing | Deliverables | Resources | Benefits Strategy Focused Design Results&DataVisibility Goal&ProjectClarity Executive Team Drive Business Strategy | Achieve Corporate Goals Project | Program Management Office Project / Program Portfolio Resource Plan Expense Plan Project / Program Milestones Results Mgmt Project | Program Managers Task-Based Planning Change Management Risk Management Progress Management Progress Status Reports Resource Scheduling Document Management Issue Management Create “To Do” Action Items Management Reporting
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The Disturbing Reality About Today’s PMO COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS Unique Value Proposition Strategy-led approach • Strategy-driven implementation • Quick win to prove benefits • Real-time management dashboard Native SaaS technology • Load-balancing • Navigation • Rapid application development Easy adoption • Easy to use; self-service • Fast to live Highly scalable • Small Business, Professional and Enterprise Editions • Small projects to large project programmes and portfolios
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The Disturbing Reality About Today’s PMO COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS Summary • PMO Failure Rate is High • Project Execution is not Enough – you must prove the business value of the PMO • Best-in-class PMOs are a small minority but are seen as strong assets to their organizations • PPM software provides targeted improvements to the way your PMO operates and how you engage project stakeholders • A comprehensive cloud-based solution from KeyedIn Solutions can offer both top-down strategy and bottom-up project execution.
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The Disturbing Reality About Today’s PMO COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS Take a Free 15 Day Trial Today • Easy to adopt, easy to use • Intuitive • Minimise IT cost and deployment effort • Delivery is backed by impressive Service Level Agreements • Interfaces with ERP, CRM or financial/accounting software
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The Disturbing Reality About Today’s PMO COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS Questions and Answers Thank You Email: ondemand@keyedin.com Web: www.keyedin.com/keyedinprojects Twitter: @keyedinprojects
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