Developing organisational capability in programme & project management. David Trevitt, IVI Senior Advisor 16 th October 2014

Transcription

1 Developing organisational capability in programme & project management David Trevitt, IVI Senior Advisor 16 th October 2014 Innovation Value Institute 2014

2 Developing organisational capability in programme & project management as part of bridging the strategic gap Topics covered today 1 Introduction to the Innovation Value Institute and the IVI consortium 2 The IT Capability Maturity Framework (IT-CMF) managing IT for business value 3 What is an IT capability and why it is important 4 Programme & Project management capability within IT-CMF 5 Value of IT-CMF and benefits of IT-CMF capability maturity assessments 6 Summary: IT-CMF in a nutshell Innovation Value Institute

3 Innovation Value Institute (IVI) is a global open-innovation consortium founded my Intel, BCG and Maynooth University Innovation Value Institute

4 IVI Mission To deliver practice-based research and thought leadership to transform how public and private sector organizations globally manage IT capability for value and innovation Research Education / Training Assessment / Benchmarking Maturing Enterprise IT Capability IT-CMF balances academic rigour with a practical industry-led approach, filling a crucial gap in IT management skills and education Innovation Value Institute

5 IT-CMF spans the IT capability of the organization Managing IT like a business Managing the IT budget Managing the IT capability Managing IT for business value AA BP BPM CFP DSM EIM IM ITG ODP RM Accounting and Allocation Business Planning Business Process Management Capacity Forecasting and Planning Demand and Supply Management Enterprise Information Management Innovation Management IT Leadership and Governance Organization Design and Planning Risk Management BGM BOP FF PPP Budget Management Budget Oversight and Performance Analysis Funding and Financing Portfolio Planning and Prioritization CAM EAM ISM KAM PAM PPM RAM RDE SD SRP Capability Assessment and Management Enterprise Architecture Management Information Security Management Knowledge Asset Management People Asset Management Program and Project Management Relationship Asset Management Research, Development and Engineering Solutions Delivery Service Provisioning BAR PM TCO Benefits Assessment and Realization Portfolio Management Total Cost of Ownership Each critical capability has five levels of maturity: SAI SICT Service Analytics and Intelligence Sustainable ICT SUM TIM Supplier Management Technical Infrastructure Management SP Strategic Planning UED User Experience Design SRC Sourcing UTM User Training Management Increasing maturity improves IT ability to deliver on key business priorities Innovation Value Institute

6 IT-CMF assessments measure and benchmark maturity levels across 4 Macro Capabilities Macro Capability Managing IT like a business Managing the IT budget Managing the IT capability Managing IT for business value High Optimising Value Centre Sustainable Economic Model Corporate Core Competency Optimised Value Maturity Advanced Intermediate Investment Centre Service Centre Expanded Funding Options Systemic Cost Reduction Strategic Business Partner Technology Expert Options and Portfolio Management ROI & Business Case Basic Cost Centre Predictable Performance Technology Supplier TCO Low Initial Unmanaged Innovation Value Institute

7 What is an IT Capability? Enterprise IT capability maturity is far more than IT process maturity IT-CMF defines enterprise IT capability as the systematic mobilization of IT resources in support of targeted outcomes IT-CMF holistically defines the management capabilities that an organization needs to mature to consistently deliver business value from its IT assets in support of business goals. IT-CMF defines a capability maturity curve that can be used to assess the gaps between current and target future enterprise IT capability holistically across 35 critical capabilities (CCs) and/or on any individual CC or cluster of CCs focused on an organizational issue. Enterprise IT Capability is an integration of People (roles) Processes Organizational structure Technology that provides IT Services in alignment with enterprise strategic intent and investment allocation Innovation Value Institute

8 Why is IT capability of the organization important? The gap between strategy and business value is organisational capability Business value and innovation enabled through IT Organizational capability to manage IT for business value IT Knowledge IT Process IT Resources IT People Technology IT capability is about executing stable and repeatable patterns of IT management activities that deliver business value in alignment with organisational strategy Innovation Value Institute

9 IT-CMF architecture how it works Business Value 4 Macrocapabilities 35 IT management capabilities (Critical Capabilities) 300+ Capability Building Blocks + individual maturity profiles 800+ maturity assessment questions 3,400+ recommended management practices (POMs) Innovation Value Institute

10 The IT-CMF is based on five maturity levels to manage the value of IT High Maturity Low Optimizing Advanced Intermediate Basic Initial Seamless interoperability within and beyond the borders of the organization; widespread tool integration World-class demonstrated; significant optimization/improvement focus Predictable, flexible and unified end-to-end organizational approaches, enterprise-level tools institutionalized Standardized across core department (typically IT); consolidated tools enable reliable execution Defined approaches emerging in pockets; local tools offer intermittent support Clarity and regularity emerging in pockets Ad hoc, reflecting individual heroism rather than stable methods Disorganized and lacking clarity, deviations from norm not readily detectable IT-CMF offers a concise management roadmap to optimize business value from IT Innovation Value Institute

11 Example: Programme & Project Management (PPM) capability Innovation Value Institute

12 Overview of Programme and Project Management (PPM) IT-CMF Definition of PPM PPM aims at the consistent and optimised execution of programmes and projects to deliver business value. Programme: A set of interrelated projects, centrally managed to attain business objectives and benefits (e.g. establishing a Shared Service Centre). Project: A unique set of coordinated activities, with defined start and end points (end points can be time, cost, or performance targets), undertaken to meet specific objectives and attain the desired results (e.g. implementation of an ERP-System). PPM reports back to Portfolio Management. What s in scope for PPM Selection and adaption of Project Management standards to best fit the organisation Interfacing with key critical capabilities, e.g. Portfolio Management and Portfolio Planning and Prioritisation Definition and tracking of metrics to measure project success Release strategy to operations Tracking and updating business cases and benefit assessment and realisation plans Innovation Value Institute

13 Overview of Programme and Project Management (PPM) Innovation Value Institute

14 Portfolio Planning and Prioritisation, Portfolio Mgmt., and Programme and Project Management are MECE 1 PPP Portfolio Planning and Prioritisation PM Portfolio Management PPM Programme and Project Management New programme/ project proposals by IT and the business PPP Board Prioritised programmes and projects PM monitors ongoing programmes / projects Core Definition PPP: Portfolio Planning and Prioritization (PPP) is the capability to select (approve), cancel, and prioritize programmes/projects that are seeking organizational resources within an organization. PPP uses an agreed framework to optimize an organization's IT investments (ROI) in programmes /projects by ensuring that all programmes/projects are aligned with the organization's strategy. Core Definition PM: Portfolio Management (PM) is the capability that ensures there is an appropriate level of monitoring of the programmes and projects in the portfolio that have an IT component. PM implements the decisions made by Portfolio Planning and Prioritization (PPP) and that the programmes and projects within the portfolio are executed within their parameters. Core Definition PPM: Programme and Project Management (PPM) is the discipline of planning, organizing, managing and optimizing resources for programmes and projects in order to achieve the desired result (e.g. business value), to manage risks and issues, and to ensure all changes are properly handled. PPM reports back to PM. 1. MECE: Mutually exclusive and collectively exhaustive Innovation Value Institute

15 PPM categories and underlying capability building blocks (1 of 3) Category Framework Tools and Techniques Capability building block Standards and Methods Continuous improvement Tools and Techniques Performance and quality management Control and Evaluation Change and risk management Post programme / project learning Governance Competence Organisational structure, policy, standard, and process Involvement of stakeholders Definition of competence requirements Innovation Value Institute

16 Description of PPM categories and underlying capability building blocks (1 of 2) Cat. Capability building block Description Framework Standards and Methods Continuous improvement Consistent use of appropriate programme / project standards and methodologies to best fit the organisation s needs and objectives. The selected or developed framework, methodologies and standards are updated based on lessons learned, benchmarking, as well as the changing business and technology environment. Identify improvement opportunities from historical information. Tools and Techniques Tools and Techniques Some proven tools and techniques are used to facilitate a variety of programme / project management functions (e.g. risk and issue management, schedule management, budget management, document sharing and collaboration, root cause analysis, reserve analysis). Competence Definition of competence requirements Defined set of skills for various programme / project roles and training curricula including skills on people (leadership, stakeholder management, ), process (PPM and related business processes), function, technology and business. Innovation Value Institute

17 Description of PPM categories and underlying capability building blocks (2 of 2) Cat. Control and Evaluation Governance Capability building block Performance and quality management Change and risk management Post programme / project learning Organisational structure, policy, standard, and process Involvement of stakeholders Description Planning, monitoring and reporting of performance and quality metrics to ensure effective PPM and management of expectations of stakeholders. Integration of project management information system and cost management system. Timely and effective assessment, communication and resolution of change and risk related to the programme / project. Ensure appropriate communication, review, and approval of issues, progress, change requests and risks related to the programme / project. Capture lessons learnt from programme / project execution and historical project info. Feed into continuous improvement. Availability and adoption of programme / project governance framework for decision making and managing progress; Identify and define structure of reporting lines, authorities, roles and responsibility both inside the programme / project and in the organisational setup surrounding the project. Establish and adopt roles and accountabilities, policies and standards and associated processes for programme / project governance. Use of appropriate channels to ensure the loop of communication comes full circle, i.e., planning, execution, assessment. Innovation Value Institute

18 Transitions that increase maturity in PPM deliver additional value Actions listed are derived from database of Practices Outcomes & Metrics (POMs) Maturity High Low Basic Intermediate Advanced Optimising Initial Action taken Regularly revisit selection of PPM methodologies/standards for optimisation and refreshment Introduce metrics that measure the project's benefits quantitatively against the stated objectives Ensure PPM processes, tools, systems are integrated end-to-end within the company and aligned between business and IT. Ensure project methodology fully integrates organisation wide risk management Focus quality metrics on defects prevention Tie job titles/levels to proficiency in role appropriate competencies Require business cases to be documented and quantified for each project Ensure use of consistent project methodology enterprise wide across all projects, covering the full project lifecycle Define clear deliverables for each project phase Define set of metrics to track progress Define selected PPM related trainings Value Methodologies and standards meet the current and future needs of the organisation Improvement process becomes value-based instead of driven by operational needs Comprehensive approach to managing programmes and projects Comprehensive view on all risks Systematic defects prevention instead of repair Organisational levels match defined and required competency profiles Appropriate allocation of resources and review of quantitative project success to increase competitiveness Project execution consistent between key milestones; facilitates reporting and management; strengthens confidence in project execution Status can be measured Basic means for controlling put in place to accelerate decision making processes Basic knowledge transfer is in place Innovation Value Institute

19 Ex. Benefits of higher Program & Project Management (PPM) capability maturity? A delayed launch lost revenue + more costs Number Customers / Market Share Lost Revenue Total Revenue = number x av. value of each customer Cost Delay Additional Costs Time Innovation Value Institute

20 The value of the IT Capability Maturity Framework The IT Capability Maturity Framework provides A holistic evaluation of IT organizational performance A set of business management best practices for organizational improvement It is designed to reduce complexity for CIOs and senior IT decision-makers by Systematically narrowing IT organizational capability gaps Optimising costs Managing IT for value and innovation IT-CMF facilitates enterprise-wide capability improvement and works with single-domain models and frameworks, such as ITIL IT-CMF focuses on the total-system problem Innovation Value Institute

21 IT-CMF deployment: Assessments are tailored to organizational requirements Assessment Objectives Executive assessment Rapid overview of current and target capability maturity across IT referenced with importance of the capability to the organization Single CC assessment CC Cluster assessment Benchmark In-depth understanding of capabilities and maturity in a single critical capability and the building blocks within it Assessment of related capabilities around a specific IT challenge, topic, or domain Assessment of capabilities on important IT challenges by industry, geography, organization size, and many other contexts Provides insight on capabilities and best practices of selected peers Innovation Value Institute

22 Ex. Executive Assessment outputs: quantitative survey findings Current Maturity Future Maturity Importance Maturity Gaps Cluster Priorities CC Priorities Innovation Value Institute

23 Ex. Executive Assessment outputs: qualitative interview findings & prioritization Strengths/Weaknesses Improvement Themes CCs within Themes Survey/Interview Overlaps Root Cause Analysis Prioritized Themes Innovation Value Institute

24 Benefits of IT-CMF Assessments IT-CMF assessments enable IT management to to find opportunities that enhance business value Leverage areas of good practice Measure improvement Assess current state of IT maturity Identify target IT maturity state using a consistent, repeatable, industry standard framework for IT business value and agree it with the business aimed at achieving target level of maturity and not just best practice Develop targeted improvement programme Agree focus of effort & investment based on value agreed between IT and the business Innovation Value Institute

25 Summary: IT-CMF in a nutshell Key IT-CMF artefacts & assessment types Macro Capabilities Critical Capabilities (CC) ITG IT Leadership & Governance CC AA BP BPM CFP EIM Capability Categories DSM IM ITG ODP RM Leadership Governance SICT SAI SICT SRC SP BGM BOP FF PPP EAM TIM PAM KAM RAM RDE SD SRP UTM Capability Building Blocks (CBB) Value Orientation Business Interaction Communication IT Vision Style, Culture & Team Building Decision Bodies & Escalation Decision Making Process Reporting & Oversight Deep Dive (CC Level) Assessment UED PPM SUM CAM BAR PM TCO Executive Assessment PPM SD Cluster BAR Assessment Industry Benchmark ITG SP BAR IM ODP EIM High Maturity Curve Low Practices Survey Tool Assessment Questions Maturity Designated Answers P.O.M.s Outcomes Optimising Advanced Intermediate Basic Initial Metrics Next Maturity Steps Innovation Value Institute

26 Developing organisational capability in programme & project management David Trevitt, IVI Senior Advisor 16 th October 2014 Innovation Value Institute 2014

27 Back-up slides Innovation Value Institute

28 Executive Assessment outputs: recommendations Innovation Value Institute

29 Common Project Failures Poor scope definition, e.g. No quality criteria Scope creep (poor change control) Lack of clear leadership and good governance Unrealistic expectations of key stake-holders Lack enough of the right resources (time, people, finance, technology) Risks are not managed Innovation Value Institute

30 Common Programme Failures Insufficient board level support get sign-off Unrealistic expectations of organisational capability and capacity Insufficient focus on benefits No real blueprint of future capability Poorly defined / communicated vision Insufficient engagement of stake-holders Organisation fails to change its culture Source: Managing Successful Programmes, OGC Innovation Value Institute

31 IT-CMF is an overarching IT Management Framework Supports and enhances use of ~30 broadly-used IT standards, models, and frameworks 1 Service & application management, provisioning and sourcing ITIL, ISO 20000, IT Service CMM, ISPL, escm-sp v2, ASL Quality management ISO 9000, TicktIT, TQM, Six Sigma Program & project management & reporting PRINCE2, PMBoK, MSP, IT Balanced Scorecard Governance, security and risk management COBIT 4.1, ISO 27001/17799, MoR, AS 8015 Enterprise architecture and software lifecycle management ISO 12207, NASCIO EAMM, TOGAF Business process management and support MOF, BiSL, etom Investment management Val IT, Gartner TCO Human resource management People CMM Governance and Management of Enterprise IT ISO 38500, COBIT 5 1 Frameworks allocated to categories according to most dominant content, some also overlap with other categories Innovation Value Institute

32 IT-CMF: an end-to-end IT management method CXO/CIO Senior IT Management Value Focus Balanced Scorecard Target audience Matures the ability to execute stable and repeatable patterns of IT management Technical IT Expert / Task Execution Low PMBOK PRINCE2 IT Capabilities Represented Existing approaches lack the breath necessary and/or appropriate level of representation for senior IT management decision-making ITIL Innovation Value Institute 2014 is a registered trade mark of AXELOS Limited. The Swirl logo is a trade mark of AXELOS Limited 32 High

33 Key benefits of IT-CMF Development Integrated Assessment Leverages the collective intelligence of international consortium of public and private sector collaborators IT-CMF integrates existing frameworks/ standards into a meta-level architecture to provide an integrated & holistic framework IT-CMF allows measurement of improvement against a baseline using standard assessment tools Benchmarking IT-CMF provides benchmarking against peers Recommend IT-CMF provides prioritization & improvement recommendations for 35 critical capability areas VALUE FOCUS TO MANAGING IT Innovation Value Institute