Everything will be alright: How Triglav Group transformed projects into business value

3
PMO Team
Andrej Knap
Vice President for IT, Back Office
and Projects, PMP
M. Sc. in Economics
Damir Kos
Project Director, PMP, CFE
MBA, FELU – Faculty of Economics,
University of Ljubljana,
B. Sc. in Economics
Zoran Korenjak
Project Director, PMP, NLP Master
BHS Practitioner - BBSHE
B. Sc. In Economics
Darja Resnik
Project Manager
Informatics Engineer
Tine Vižintin
Project Director, PMP
B. Sc. in Electrical Engineering
Jaka Borštnar
Director of Project Portfolio and Change
Management Department, PMP
MBA, IEDC Bled School of
Management,
M. Sc. in Computer and Information
Science,
M. Sc. in Economics
Mateja Koželj
Project Manager
B. Sc. in Economics

4
The story of Triglav
The journey
• Personal experience of our journey
• Project Implementation cookbook
• The art of Project Portfolio Governance
Takeaways
Our presentation covers

8
Triglav Group is an insurance company with over
118 years of tradition and experience
Business / strategic activities
founded
1900
companie
s39
revenue
€ 1 B
net
profit
€ 85
M
market
share
20 %
rating
A
employees
5000+

9
PMO as an engine for strategy implementation
To be world-class in project
and change management
vision
mission
Delivering high value and
satisfaction to the stakeholders
key activities
• Portfolio, project and
change management
• Strategy implementation
• Representative in PM
culture - education,
coaching, mentoring
• Idea and innovation
management
• Methodology development
positioni
ngDirectly under the
management board
establish
ed
2008
size
7
budget
10 M
project
value
300.000
certified
pm5
education
225

10
PMO evolution leverages an increase in business results
2008 2013 2014 2015 2016 2017 2018
Administrative
role
Triglav on
the edge
PMO as a
strategic partner
Reshaping
of the PMO
Change and risk
management
Idea and innovation
integration
BUSINESSVALUECREATION
Methodology
upgrade

11
The journey
•
•
Takeaways

12
Reshaping of the PMO was needed and selection of the
right people was crucial
• Identifying skilled, experienced and motivated employees as potential project
managers and project team members
• Implementation of standards based on the PMBOK® Guide
• Implementation of a business case selection methodology
• Supervision of projects not managed by PMO members
• Tracking the business value realization

13
Successful completion of demanding projects was
crucial to achieve the strategic objectives
Projects completed by PMO members Outcomes
IT-BUILD-NON-LIFEinformation
system(theredesignofthecoresystem)
(NON-LIFEinsuranceaccountsfor70%ofincome)
Management, processes, organization,
and technology
Client satisfaction
Employees and culture
Datawarehouse
system
Internal
portal
HRMS
Clientrelationship
management
o Integrated client monitoring
o Addressing clients in a more personalized
manner
o Uniform and comprehensive risk-taking
o Unification and automation of processes
o Paperless business
o Predictive models
o Career tracking and employee development
o Improved corporate communication
o Transformation of the organizational culture

14
Positive measurable impact on the business
Decline is a result of e-
documents, renewal of insurance
policies, automation of processes,
and the internet as a sales
channel. In year 2018, operating
costs rise because of
higher collected premium.
The gross written premium
increase of 13% over the last
three years resulting from
process automation and better
client handling.
Improvement of the loss ratio
by 12% during the last
three years despite all-natural
disasters, such as floods, hail,
and storms. Last year's results
are also the consequence of
the extension of current
business.
13% 12% 15%

15
Business is being transformed into more digital
An increase of almost 180% in online sales due to
the presence of online insurance products and the
automation of underwriting processes.
An increase of 20 %
in paperless business
with clients.
Digitalization has an
impact on a number
of employees.
However, despite
new acquisitions our
productivity is
growing.
19%5%forfollowing
digital
transform ation
30 KPIs

16
Innovations have become a part of Triglav‘s
transformation
By using the mobile
application Triglav
„Drive“, you are
entitled to an
additional discount if
you drive safely.
Collaboration with
start-ups in order to
improve business
operations.
Clients can test
their driving abilities
on the Triglav drive
simulator.
Triglav is organizing
hackathons in order
to get new
innovative ideas.

17
The PMO is the heart in project portfolio management
Strategic and PMO objectives are aligned

18
The PMO objectives are supporting Triglav‘s mission
through the strategic guidelines
• Center of excellence for
project and change
management
• Ongoing continues the
improvement process
• A strategic partner with
focus on delivering business
value
• The idea accelerator from
idea to business
cases/innovation
PMOOBJECTIVES
Long-term stable and profitable
operations and greater value of
Triglav Group
STRATEGIC
GUIDELINES
• Ensuring the innovation
process with emphasis on
the result measurement
• The driver of the idea
collection process
• Co-creation of project and
change management career
path for potential PM
• An enabler of culture shift to
digital-customer oriented
Developing even more
cooperative and agile
organization and culture
Client focus and development of
related services

19
The PMO as a center of excellence represents the central
professional service for project and change management
Managing project portfolios, managing projects, and change managementEXECUTIVE
Supervising the implementation of projects and changesCONTROLLING
Financial evaluation of projects, evaluation of projects in all their phases in terms
of business, and risk criteria
ANALYTICAL
Providing knowledge from project and change management, sharing knowledge
inside and outside of the organization, education, mentoring, and leadership
PROFESSIONAL
Standardization of project and change management procedures, documents
and the introduction of good practices
METHODOLOGICAL
Support for project managers who are not from the PMO with templates, tools,
and techniques
ADMINISTRATIVE

20
The pool of ideas and the selection of the right business
cases create value for Triglav
• The idea ecosystem is
established to get the
pool of ideas (Design
Thinking, 4 disciplines of
Execution)
• The perspectives ideas
from the business and
innovation perspective
is accelerated to the
state of business case
• The capex is allocated
to the most promising
business cases and
innovations

21
The PMO as an enabler of the cultural shift
• Sharing the growth mindset with the emphasis on giving employees the meaning for
change
• Transformation of leadership practices through our knowledge, mindset, commitment, and
decisions based on facts
• Incorporating knowledge about project and change management in order to improve overall
company performance (Project Management Academy, mentoring, coaching)
• Focus on organizational readiness for change with influencing stakeholders

22
The PMO is strategic partner with the focus on
delivering the business value
• The PMO is a member of Triglav‘s strategic group, president of project selection
committee, member of Project portfolio committee, and member of the CEO
committee
• PMO prioritization of the projects and resources is aligned with strategic plan. It is
harmonized between the executive leaders
• Translating strategic goals through effective project execution into day-to-day
operations and monitoring the benefits
• Collaborating with executives (C-suits) in the phase of collecting business cases to
help and prevent overlapping
• The added value of the PMO is to exceed the limits of the silos and focus it on
strategic goal realization

23
The journey
•
•
Takeaways

24
Standardized project life-cycle and organization as
the base for tracking business benefits
Standardized project life-cycle
for all projects based on
PMBOK@ Guide.
• Early stakeholder engagement for long-term support
• The sponsor is always a member of the board
Various combinations of waterfall,
iterative and agile methodologies are
supported, e.g. Scrum and Kanban.
BEST PRACTICES:
1 2 3 4
PMO members are mentors on all
projects to support the project manager.
• Selecting and negotiating with vendors to optimize resource planning
• Combination of methodologies based on project nature and scope
1
• Constantly tracking end-customer feedback and deciding based on facts
• Leadership methods and team harmonization
2
3
Focus on transition from project
work to operations with the aim to
achieve the sustainability of project
deliverables
4
5
5 Tracking business benefits one
and five years after the completion
€€

25
Program and project portfolio management for
achieving common benefits
Standardized
methodology for
achieving common
benefit with a set of
projects.
1 2 3
4
BEST PRACTICES:
1
• Each project manager is responsible for contribution of the project
• Harmonizing of projects execution (resources allocations, setting priorities)
2
3
Holistic Change Management approach4
A single business case for project or program
Maximizing benefits to achieve organizational strategies, objectives, and customer satisfaction

26
1
The PMO as the change management agent
ACMP’s Standard for Change Management©
Prosci ADKAR®
Exact planning of the transition from current state to future state
Integrated change
management for complex
projects or programs. 2
3 4 5
BEST PRACTICES:
1
2
3
4
5
Assessment of culture, processes, and technological readiness for change
Identification stakeholders that support the change
Full operational support and problem solving during the transition
Informing and training stakeholders before the transition

27
Enterprise standardization of project management
brings positive synergy effects

28
The journey
•
•
Takeaways

29
Fully digitalized end-to-end project portfolio
management process
The implementation of a new project management tool brought many improvements:
• Resource management made easier and more transparent for optimal resource allocation
• All steps in the project/program management life-cycle are fully supported by the PM tool
including all document generation (ex. Project management plan)
• Valuable aid for capital expenditures planning
• Saving time for project managers with automatic document generation
idea
management
project
management
resource
management
requiremen
ts
planning
financial
management
portfolio
management
cost &
time
management
dashboard,
reporting
document
generation

30
Project risk management is a part of the comprehensive
system of Triglav Group's risk management
Contingency
reserve
Project portfolio management system
Triglav Group's risk management system
Lessons
learned
Monitoring of
risks
Top three risks:
• Delay due to lack of resources
• Slow decision making
• Inadequately implemented idea,
rejection by users
Projects
Risk
evaluation
Project management risk
report is a part of
the general yearly report of
the chief risk officer
Managerial
reserve

31
Measurable and unmeasurable results of our journey
Tracking project KPI success
factors: on time, on budget,
meeting original goals,
satisfaction of stakeholders
Tracking key business factors
(premium, loss ratio,
employment, productivity, NPS)
Project selection with defined
financial KPI's (NPV, ROI, IRR,
PP - company's ROE is key)
Tracking digitalization and
optimization of processes
Project selection with future
company's benefits
Grow mindset culture – ambassadors
of changing organization's culture
through leadership and academy
Selection of innovations –
allocated budget
Through lessons learned and post-
mortem analysis defining future actions
MEASURABLEBENEFITSUNMEASURABLE
BENEFITS
Risk and change management improvement

32
• Benefit realization framework ensures us to
monitor and govern benefit across the
project life cycle
• Results from innovation projects are also
measured
• Post mortem analysis and lessons learned
are the base of the project and change
management continuous improvement
• Focus on transition from project work to
operations with the aim to achieve the
sustainability of project deliverables
Tracking the business benefits after the project
completion based on metrics system
EBITDA
Business case outcome
CUSTOMER
SATISFACTION
Business case outcome
Revenue
OPEX
NPS
Benefit realization is measured one
and five years after project
completion

33
CAPEX is defined for strategic period with rolling
planning
• Capital expenditures plan is approved for
strategic period and is updated yearly in
the beginning of each year based on
strategy initiative, new business cases,
products and new innovations.
• Reserve is defined for unexpected risks,
business cases, and innovations.
• Operation cost plan is approved at the
beginning of the year according to the
needs. The costs are divided in salaries
(consists of the fixed and variable part - it
is based on achieved objectives).

34
Triglav Group efficiency in the execution of
projects is continuously improving
Pulse of the Profession 2018: Success in Disruptive Times, 10th Global Project Management Survey, Link: https://www.pmi.org/-/media/pmi/documents/public/pdf/learning/thought-leadership/pulse/pulse-of-
the-profession-2018.pdf
• Past improvement actions:
• Vendor selection before
confirming project management
plan
• Precise risk identification
• New resource management
• Defining less goals which
are clearly defined
• Future improvement actions:
• Shorter projects, 6 to 12 months
• Defining measurable and
concrete goals

35
Evolution of the PMO through continuous process
improvement
• Inputs analysis,
grouping, and selection
• Defining initiative for a
change
• Selecting initiatives
based on benefit
estimation
Project, change, and risk management
methodology
Lessons learned and post-mortem
analysis
Employee initiatives
Triglav's strategy and objectives
Business and technological
trends
Stakeholder satisfaction
survey
Committee efficiency assessment
Assessment of initiatives
implemented last year
Updating project and change
management methodology
Project portfolio Committee
improvements
Project selection committee
improvements
Updated Project
Management Academy
Implementation of relevant
international best practices
Changes in organization and
processes
Development of professionalism and
expertise through experiences and new
business and technology trends
INPUTS
IMPROVEMENTS

36
The journey
Takeaways

37
Switch of the PMO role in the future
 Assessment of stakeholder
satisfaction and improvement of
PMO services
 Establishing the idea of the
ecosystem to invoke ideas of
employees, vendors, and clients
 Managing transformational
projects of the company (culture
shift, digitalization)
 Representing a role model for
leadership, cooperation ,and
execution
 Implementing leadership
methods with intention to
improve employee and business
performance
 Transformation of innovations
into quality services with
business outcomes
 Sharing knowledge, experience,
and best practices through
mentoring and the Project
Management Academy
 Annual revision of corporate
methodology, policy, and project
templates
 Development of professionalism
and expertise through
experiences and new business
and technology trends
CONTINUOUS
IMPROVEMENT
CENTER OF
EXCELENCE
BUSSINES VALUE
MAXIMIZATION

38
PMO‘s contribution and influence through the eyes
of the company
The reflection in the company confirms our
view and a valuable contribution.

39
PMO's actions and influence outside company
Vendors satisfaction also counts
Sharing knowledge with the external society:
Speakers at national and international conferences
Workshops and sharing knowledge on the events outside the company

40
Our recipe for a successful PMO
 Positioning the PMO on the executive level responsible directly to board members is a
precondition for an independent professional service
 Structured corporate project management methodology based on recognized standards can
be used in a flexible and dynamic way
 Trusting and effective working relationships are built with addressing challenges,
sharing experiences, and acknowledging achievements in the daily communication
 Stakeholder involvement throughout the whole project life-cycle is necessary for
successful project execution
 PMO can build trust and gain relevance with representing the value of project management
based on the exact data, outcomes, and the impact on business
 A standardized business case selection methodology is the key to maximize the bussies value
 Business outcomes-oriented planning and executing with constant results tracking

Contact Information
Jaka Borštnar, Director of Project Portfolio and Change Management Department
E-mail: jaka.borstnar@triglav.si

Everything will be alright: How Triglav Group transformed projects into business value

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Everything will be alright: How Triglav Group transformed projects into business value