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P3O - The Value Adding PMO - from Strategy to Projects

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P3O - The Value Adding PMO - from Strategy to Projects

  1. 1. P3OThe Value Adding PMOfrom Strategy to Projects
  2. 2. Strategy executionInternalProjectsRevisedMissionNew Goals &ObjectivesPortfolio of StrategicChoicesStrategyImplementationProject SelectionExternalProject ManagementProgram ManagementPorfolio ManagementStrategic Management
  3. 3. Portfolio Management
  4. 4. “ … a co-ordinated collection of strategicprocesses and decisions that together enable themost effective balance of organizational Changeand Business As Usual.“Portfolio Management is …• Are you doing the right things ?• Are you doing them the right way ?• Are you getting them done well ?• Are you getting the benefits ?• How will the benefits be delivered ?
  5. 5. Portfolio DefinitionPortfolio DeliveryEnergizedChangeCultureSeniorManagementCommitmentGovernanceAlignmentStrategyAlignmentPortfolioOfficeEnergyThe Portfolio Management Model
  6. 6. The 2 Portfolio Management CyclesDoing the right things Doing things rightPortfolio Definition Portfolio Delivery
  7. 7. Why Portfolio Management ?WHY ?Prioritizes Programs andProjects based on acommon set of objectivecriteriaLinks Program andProject selection tostrategic metricsBuilds discipline inProgram and ProjectselectionBalances Risk over allPrograms and ProjectsJustifies killing Programsand Projects that are notstrategically alignedImproves communicationand supports agreement onStrategic GoalsAllocates resources toPrograms and Projectsthat align with strategyProvides executive oversightof all the change initiatives
  8. 8. “ … a temporary, flexible organisation designedto coordinate, direct and oversee the implementation ofa set of related projects and activities so as to deliveroutcomes and benefits related to strategic objectives.”A Program is …
  9. 9. A Program is about creating Capabilities & Benefits
  10. 10. …a picture of a better future…A program needs a VISION…
  11. 11. … Leadership and Stakeholder Engagement …
  12. 12. PEOPLEOrganisation, Roles,Leadership &Stakeholder Engagement
  13. 13. Program ManagementConsolidated Program Benefits = Organization BENEFITSProject A Project B Project C Project D Project ZProjectBenefitAProjectBenefitBProjectBenefitCProjectBenefitDProjectBenefitZPhase 1 Phase 2 Phase 3… and Benefits Management
  14. 14. Why Program Management ?WHY ?Offers clear responsibilitiesfor Business ChangeHas a framework thatfocuses on BusinessChange ObjectivesEffectively managesthe Business Case toachieve the VisionLinks strategiesand projectsManages andcontrols costsFormalises theprocess toidentify, manage, realise and measureBenefitsCoordinates andcontrols the complexrange of activitiesImprovesunderstandingof overall riskUses scarce resourceseffectively
  15. 15. “… a temporary organization that is created for thepurpose of delivering one or more business productsaccording to an agreed Business Case.”A Project is …
  16. 16. The importance of Project ManagementProjectManagerTimeCost ScopeCommuni-cationRisksOrganizationEscalationReportingSkillsFollow-upInitiateQualityProductRolesStartingupBudget PlanBusinessCaseProjectBoardResponsibilitiesStagesChangeIssuesTestingDeadlinesCloseCOMPLEX + ALL IS INTERCONNECTED
  17. 17. Projects : Current challengesCurrentChallengesInaccurate scope definitionLack of visibility onresource demandand availabilityInability to reviewprojects againstchanging prioritiesNo or irregularhealth checksNo detailed projectplansLack of adequateproject procurementand contractmanagementNot enough buy-infrom key-playersPoor or nodocumentation norrecord managementLow or no RiskManagement andQuality AssuranceInability to deliver ontime, on budget and atquality
  18. 18. How many projects do you have ?
  19. 19. Project Management and Program Managementare rather stand-alone disciplines‘A P3OEnables timely decision-making by Senior ManagementEnsures investment is spent on things that matterAnswers the need for better-quality informationMeets the needs of Program and Project Delivery teamsOptimizes the use of scarce resourcesEstablishes and Assures Consistency in Methods’
  20. 20. ‘P30 brings things together and makes thepuzzle completeby bringing in the enterprise notion.’
  21. 21. P3O stands forPortfolioProgram OfficesProject}P3O Inter-relates with Portfolio, Programs and Projects
  22. 22. A P3O is …… a decision-enabling / delivery-support model forall business change within an organization.”It is a model to bridge the temporary change initiativeswith the permanent „business as usual‟ organization.A P3O has 3 possible functions:Portfolio Office (PfO): supports Strategic Decision-makingCentre of Excellence (CoE): central source of ExpertiseDelivery support (DSU): supports Results and Benefits delivery
  23. 23. P3O : from Strategy to ProjectsInternalProjectsRevisedMissionNew Goals &ObjectivesPortfolio of StrategicChoicesStrategyImplementationProject SelectionExternalProject ManagementProgram ManagementPorfolio ManagementStrategic ManagementP3O
  24. 24. Why a P3O?WHY ?Supports Senior Managementdecision-makingEnsures Consistentproject delivery, less‘reinventing the wheel’Continuous improvementculture and progressreviews towards completionEnables the removal oflow-value projectsEnsures programs &projects are aligned tocorporate mission, goalsand objectivesCreates an objectivemethodology toidentify, rank, prioritizeand select new projectsOptimizes management andup-skilling of resourcesMore accurate estimates basedon history and lessons learnedDevelops a ‘bigger picture view’ andbetter understanding of all changesEnsures a healthy balanceof projects with differentcost, schedule, complexityand risk profilesWell-managed projectscopes, less cost overruns, moreprojects delivered on time atquality
  25. 25. The importance of AlignmentDoing theRight ThingsDoing ThingsRightExploit whatwe didAlign Execute MeasureFormal Approach to Manage Strategic Initiatives
  26. 26. A P3O offers Support & ControlP3OSupport Control- Master Program & Project Schedule- Overview on all Organizational Change- Fast-track Program & Project Start-up- Integrated Progress Reporting- PM standards, methodology, processes- Project Consulting & Mentoring- PM coaching / training / certification- Formal Issue Tracking & Reporting- PM tools and tools support- Project Audits- Business Case & Follow-up- Strategic Alignment Reviews- Program & Project Approval process- Program & Project Prioritization- Program & Project Management- Contract Management- Resource Management- Cost and Schedule Control
  27. 27. P3O : Critical Success Factors- Train, Train, Train- Have Dedicated P3O Staff- C-Level Commitment to all levels- Focus on Benefits Realization- Consistent Messages at all levels- Simultaneous Communication at all levels- Prioritize and manage project Initiatives- Communicate, Communicate, Communicate,- Experienced leader to prevent pitfalls- Link priorities to the current objectives- Develop a Framework to manage the process
  28. 28. Tony VynckierP3OThe Value Adding PMOfrom Strategy to Projects