TRIP REPORT Program & Portfolio Management

Transcription

1 8 11 November 2010 Cannes, France TRIP REPORT Program & Portfolio Management This year s Gartner Symposium/ITxpo was focused on the theme, Transitions, New Realities, Rules and Opportunities. This report offers an overview of what was on attendees minds and what they learned from Gartner analysts and one another. KEY TAKEAWAYs The attendees of the Program and Portfolio Management (PPM) track at Gartner Symposium/ITxpo were intensely focused on the need to deliver real-world results. This is not surprising, given the resource constraints most PPM professionals face following a worldwide recession and the uncertainty that continues to threaten many European economies. Resource management is a particularly critical concern in Europe, as it is elsewhere. An informal Gartner poll asked whether PPM track attendees faced problems managing resources, and the majority of the respondents said yes. Key concerns included: Projects: Enterprises have fewer people doing more work, and they need to fi gure out what they can deliver in a timely way. Instead of aligning 10 projects, which may take a year or more to complete, it s better to focus on three or four that can be delivered quickly and structure them into smaller pieces so that results can be demonstrated more frequently. People: People, not processes, drive success. Many enterprises have no plans to replace those who left during the economic downturn, so the employees who remain need to lead in their roles and work together with fl exibility toward common goals in an uncertain external climate. Marketplace: Volatility, as always, creates uncertainty. The attendees were very concerned about global competition, the very real possibility of some eurozone countries defaulting on their debts, the as-yetunclear impact of the U.S. Congress moving in a new direction, and debt fl oating in the European market. Approaches to work that enable organizations to make rapid and ongoing adjustments can be hard to reconcile with traditional PPM approaches. Conference Highlights The PPM track featured several compelling sessions, including the following: The Emerging Enterprise Program Management Office The enterprise program management offi ce (EPMO) an organization that moves beyond traditional IT portfolio management to align with mission-critical business objectives is one of the most important trends in PPM today. Many factors are driving this trend, one of the most signifi cant being the need to merge technology and business process projects under the same organization. A strategic EPMO bridges the gaps between tactics and strategy, and enables mission-critical communication to allow organic alignment of technology, people and processes with business requirements. Recommendations: Use the concepts of benefi ts realization as an ongoing discipline to ensure constant review of the gap between strategy and tactics, allowing corrections to take place quickly. Set up a focused and strategic EPMO that does not attempt to do everything, but specifi cally focuses on ensuring that planned projects and programs are actually driving the fulfi llment of established strategy. In the longer term, ensure that the enterprise can sustain mature PPM practices by establishing a project capability offi ce to institutionalize good execution, and a business process center of competency to provide effective end-to-end processes. 1

2 Zen PPM: A New Approach to Driving Results in a Complex World Many IT best practices rooted in scientific management theory for example, top-down attempts at control and attempts to over-optimize systems are becoming worst practices. A new approach is required, one that takes into account the need to handle complex adaptive systems (CASs) and the reality that executing projects and programs within today s environment is often a study in complexity. Recommendations: Begin by recognizing the new reality of operating in a CAS. Work to understand complex CASs, their characteristics, implications, tools and techniques and their limitations. When establishing how work (project, program or other) will be best accomplished, determine the nature of the system it is operating within - whether it is simple, complicated or complex, and how the work can be structured - and then choose the correct approach. The wrong choice will lead to failure. The Lean Project Management Office: From Prioritization to Process Improvement PMOs should focus on internalizing some of the principles of lean management. While PMOs often focus outward, on changing the enterprises they support, it is important to address internal efficiency as well. A lean PMO contributes value to portfolio management by avoiding high levels of inwardly directed support activities that deliver little or no value to customers and clients. Lean management targets waste and overproduction. In a PMO context, this means targeting unnecessary process steps, data that is collected and never used, and overengineered templates and review cycles. It is also important that PMO staff and other project staff are provided with motivation and rewards for identifying all types of waste in the system. This allows PMOs to present a complete picture of value. The traditional view of the PMO s effectiveness on the results of the projects, programs and portfolios under their purview should be coupled with the lean perspective on the efficiency with which they produce those results for a wellrounded view of the PMO. Recommendations Target the most damaging waste: overproduction, excessive delays, cost inefficiencies, too many signoffs or too much inventory in an internal PMO context. Move beyond project measurement metrics to look at process metrics, as well, so that improvement can be measured and focused on. Identify lean objectives for personnel. This is a key role for front-line personnel, who should be empowered to take direct action. Workshop Gartner s ITScore: An Assessment of Program and Portfolio Management Maturity For PPM organizations, figuring out where you are is the necessary first step toward getting where you need to go. The Gartner-developed ITScore maturity assessment methodology was the subject of an interactive workshop in Cannes. Participants from a broad range of enterprises and industries considered the five levels of PPM maturity across five core dimensions: people, practices and process, technology, financial management, and relationships. The levels are as follows: Reactive. In a reactive enterprise, there is a project hero, and people improvise solutions to problems, without established practices and processes. Financial management involves estimates and business cases. Technology is simple. Relationships are fragmented. Emerging. People are now addressing productivity, and PPM processes are in place. Risk management is more commonly understood. Technology involves collaboration, with dashboards aggregating data. Project cost projections are reliable. Relationships become less difficult as organizations optimize processes and needs. 2

3 Initial Integration. Teams are disciplined, with career paths defined, and social responsibility and supply chain issues are considered. Technology supports a robust knowledge management system. Finance projects account for full life-cycle costs and benefits, and cross-functional groups are easily formed. Effective Integration. A network of leaders is emerging, and technology supports portfolio modeling. Financial management takes risk into account and tracks the realization of benefits. Integrated teams have replaced an us versus them approach. Effective Innovation. PPM leaders are in place throughout the enterprise, and portfolios are active for all project work. Technology supports robust knowledge management systems for all projects, and financial management includes feedback that contributes to improvements. It is important to recognize that the goal of the ITScore process is not to attempt a lock-step progression from one level to the next. It is, instead, to enable PPM professionals and other stakeholders to look at where they are now and determine the most-suitable level for their organization in the future. Keynotes Welcome address, opening remarks and Gartner analyst opening keynote On the first day of Symposium, an ensemble of leading Gartner analysts took the audience through the impact of the industry dynamics that shaped this year s theme: Transitions: New Realities, Rules and Opportunities. We learned about the three new realities of our age: 1) the power of unprecedented choice; 2) a wild, open world as evidenced by the growing influence of social media and context-aware computing; and 3) a shift in mind-set from seeking outputs to ensuring outcomes. We were then taken through the three new rules of this new era: 1) smart control, which will replace the complete control that IT has historically had of its environments; 2) intelligent business, which will replace traditional business intelligence; and 3) IT dynamism, the migration of IT projects from being built to last toward IT projects that are built to change. Finally, we heard about two new opportunities: 1) the fusion of multiple existing and emerging technologies to create new business value; and 2) the wide-open opportunity to lead the initiatives underpinning the new opportunities will it be IT? Business line executives? Functional executives? There s no clear answer. Gartner Research Senior Vice President Peter Sondergaard also took the audience through the four broad trends that Gartner believes will alter IT and drive economic change: cloud computing, social computing, context-aware computing and Pattern-Based Strategy. What People Asked About Participants in the workshops and sessions came from a variety of roles, enterprises, industry verticals and regions. Discussions following the sessions produced a variety of questions and answers, including the following: In a PMO, how is the project director different from the project sponsor? The project director and the project sponsor have distinct roles The director is a type of project manager who sees the project through, whereas the project sponsor makes the business case for the project. When the CEO talks to investors and financial analysts, he talks in terms of productivity gains. How does that reflect the people part of the process, and how can we persuade him to appreciate our work? People really are crucial and in today s uncertain climate, you re going to find them more important. For the last 10 to 15 years, we ve been trying to take people out of the PPM equation. In this context, the CEO should be given information on the gains of the organization at an aggregate level, over time. This is never measured by a single metric, so additional information may be needed. Productivity measurements should be balanced with the quality and outcomes of the work done. PPM is an area that should be able to claim more work within the same constraints (productivity), or better work within the same constraints (outcome effectiveness). The CEO should be given information that shows both sides. Ideally, PPM professionals of all kinds should be adding to the productivity and effectiveness of the enterprise as a whole. 3

4 We re accustomed to making some decisions and recommendations about IT and allowing the business to help users realize the benefits. The problem with this approach is that if the business doesn t fully address the challenge of holistic benefits realization, the IT project fails. PMOs need to expand to include an integrated focus on change that results from processes and projects. People in PMOs need to learn business and soft skills for example, relationship building so that everyone involved is invested in the program and it can gain adoption. PPM is people-driven, not process-driven. How do you build these teams? Use top-down support, identify and nurture natural leaders, and use incentives to increase morale. Train your team members in ways that will help them build their careers, and build a team in which members know they can trust each other. Share goals, and be patient. How can you strengthen relationships among the various team members, and among teams? Use company events to build a network allow team members to meet people from other areas who are PPM process influencers. Establish a forum for discussion and resolution of common risks and issues. Use both formal and informal channels. Isn t process important for the foundational structure? Yes, but getting the right people into the project is critical. Relationship managers are really process managers they have to build business cases and implement processes to get the end results, or there will be no takers. Is the level of technology adoption low in PPM? Yes, PPM is behind here, partly because it uses many tools that don t easily roll up. Generally, new PPM technology is not required in specific projects, and users tend to want fairly low-risk, simple tools. How important is it to measure results? Be prepared to measure results and show how you re solving or have fixed specific problems. Failure to do this could cause the PMO to be disbanded. Things to Watch For Change is now a constant, and the PPM professional must adapt by enhancing his or her business and leadership skills. The ability to execute is a business skill, and anyone who is managing must have that skill set. The specialization layer is thinner than most people realize, and business skills help successful execution of a project or program. PPM professionals must especially watch for the following key shifts: The need for the management of project-based work to change. The intersection of new business and technology trends mandates a massive overhaul of how we perform project-based work in an organization. Today, the norm is a rigid, risk-averse system that uses a lot of time and people to decide and act on new work activities. Enterprises need a system that allows decisions to be made on the fly, by those who are closest to the source of the issue. For enterprises trying to grow in expanding markets, or simply to survive in tough ones, time is of the essence. Process and tools are not as important as results and accountability. Approximately 50% of PMOs fail because they focus too much on processes and tools and too little on value. PMOs must manage without overmanaging, and they need to both track and show results. The evolving market for PMO software solutions. Don t let people confuse the software with the solution. Often, organizations underestimate change management and the rate of user adoption. Also, lack of management buy-in can create problems. GARTNER Program & Portfolio Management COMMUNITY analysts Donna Fitzgerald Research Director Focus Area Business of IT Matt Light Research VP Focus Area PPM and PMO Lars Mieritz Research VP Focus Area Business of IT Ian Puddy Sr Managing Partner Focus Area Sourcing 4

5 ITXPO SPONSORS FOR THE Program & Portfolio Management SYMPOSIUM COMMUNITY 4S AT&T Global Network Services Autonomy BT CA Technologies ComDys EMC Orange Business Services Planview Tieto 2011 ITxpo Sponsors Airwatch Architecting the Enterprise ArcSight Autonomy Boole Server BT Computer Associates UK Ltd Cordys Fabasoft Fadata AD Interactive Intelligence Interoute Communications ISYS Search Software itsystems AG OPNET Orange Business Services Perceptive Software Planview PNM Soft Portwise Qualiware Red Hat GMbH Sitecore Softex SonicWall SQS Software Quality Teamquest Thinprint AG Vidyo Wipro Symposium/ITxpo 2011 The World s Most Important Gathering of CIOs and Senior IT Executives It s not too early to start planning for next year. We hope to see you again 7 10 November 2011, in Cannes, France. Keep up with the latest news, alumni benefits and registration details as they are unveiled for this exciting event by visiting gartner.com/eu/symposium. Upcoming Program & Portfolio Management Role Event Gartner PPM & IT Governance Summit June 2011, London europe.gartner.com/ppm As a Symposium/ITxpo attendee, you qualify for our exclusive offer to register at the discounted rate of 1,895 that s 300 off the standard registration fee. To receive this special offer, register with priority code: SYMPD. You can also pass a special offer along to colleagues: they can save 300 on the standard registration fee when they register with priority code: SYMRAC. To take advantage of these special offers, visit europe.gartner.com/ppm or call Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates. For more information, info@gartner.com or visit gartner.com. 5