The PMO as the fly-wheel for pragmatic programme management. Henny Portman Fortes 16 april 2015
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1 The PMO as the fly-wheel for pragmatic programme management Henny Portman Fortes 16 april 2015
2 Biography: Henny Portman Joined ING in 1981 Tiel Utrecht Verzekeringen: Developer/Analyst/Head System Development Consultancy ING Fatum Paramaribo, Suriname ING Investment Management Nederland: Head IT ING Investment Management Europe: PMO Head ING Insurance Central Europe: Regional PMO head ING Insurance STO: Global PMO Head I build hub and spoke PMO s in Europe and Asia Now: PMO Consultant for NN Group Partner Hedeman Consulting APMG certified MoP, MSP, PRINCE2, P3O trainer Blogger Author of PM articles and books
3 Issues? Do you recognize these?
4 A common lament is that the PMO is just a few process cops and paper pushers ing PMO s demands. self-centered Without analysis, recommendations or help 4
5 Agenda MSP as foundation for Programme Mgt MoP relation with Programme Mgt P3O relation with Programme Mgt PMO function according to DSDM Rigorous Programme Management Activist PMO (BCG & Gartner) Questions
6 Nr. Activiteit Voorlopig ontwerp 2 Definitief ontwerp 3 Bestek & tekeningen 4 Selectie & contractering 5 Werkvoorbereiding 6 Welstand 7 Bouwvergunning 8 Milieuvergunning 9 Beslispunt 10 Uitvoering 11 Oplevering MSP as a solid foundation for the programme? Sense of urgency Direction ambition MT Programme Owner Point Board X X X X X X X Benefits PrgM profile X X X X X X X BCM on the horizon Benefits map Project outputs, capabilities Business units Feasibility study, scenarios Projects dossier Delivering capabilities Implementing change + realising benefits Blueprint Programme Plan Business case 6
7 Where will portfolio management impact the programme? Business change Strategy Are we doing the right things? Business change Design Are we doing things the right way? Validation Portfolio management Verification Business change Value Are we getting the business benefits? Business change Delivery Are we getting things done well? 7
8 Where can the PMO impact the programme? CEO Management team Portfolio board Sub portfolio board Hub Portfolio Office (permanent) BCD/PD Organization Portfolio Office (permanent)) Hub Portfolio Office (permanent) CoE Center of Excellence Progr. board Project board Programme Office for a specific initiative (temporary) Project Office for a specific initiative (temporary) - Standards - Training - Know how
9 CoE will tailor process artifacts, rather than forcing round projects into square process holes!
10 DSDM PMO functions Portfolio management Benefits management Stakeholder management Resource management Risk management Quality management Standards for methods and tools Commercial management Knowledge management
11 Knowledge management PMO to share lessons learned facilitate organisational learning deliver (agile) coaches organize community of practice organize brown-bag/lunch-bite sessions provide fast-track project mobilisation maintain library with best practices
12 The CPMO introduced Rigorous Programme Management as an instrument to achieve transparency and executional certainty 13
13 RPM 5 conditions need to be met to achieve transparency and executional certainty 1. Define clear benefits: in what are we investing our money? 2. Think chain-wide: have we thought about everything and everyone? 3. Define clear Business Case: is our investment profitable? 4. Get commitment: do we have support from senior management? 5. Track and trace: are we able to measure and steer on our progress and benefits? RPM captures these conditions in: 1 2 Business Case 1-pager Roadmap Complete overview of description, link with strategy, approved financials and benefits, key stakeholders, milestones, interdependencies & risks Potentially accompanied by appendices to clarify context of initiative and link to BU / FU MTPs Overview with the key milestones critical to realize benefits Milestones and benefits in roadmap will be tracked 14
14 RPM Rigorous Programme Management expects other behaviour Commitment Business owner fully commits to objectives and creates the environment needed for the programme manager to be successful Programme / project manager commits to programme objectives Transparency Programme manager is not hired to please senior management Programme manager reports timely, unbiased and objective on all aspects of the programme Focus on benefits realisation Walk the talk Programme manager only succeeds when planned benefits are realized Programme manager must always be able to show the progress on benefits realization in order to achieve the programme objectives Project managers should always prepare a Benefits Review Plan Programme managers should challenge each other on the above behaviour Programme managers coach and support each other on this 15
15 RPM Monthly progress reporting is important to create transparency to senior management previous Current Planning Benefits Financials 16
16 RPM The Amber appetite: Do we feel confident to report on real project status? 17
17 Or 18
18 RPM The one-pager describes the key features of an initiative Clearly describe what the initiative entails and what the drivers are behind the benefits, revenues or cost reductions Show estimated impact (based on delta vs. actuals 2014) and how investments are funded Ask BU / FU controller to specify which part of impact is included in MTP List key stakeholders for the initiative: Project manager Business executive Project controller BU / FU controller Asset Owner Clearly describe which departments, BUs and value chain components are impacted and explain the impact List key milestones (based on roadmap) List all key risks and interdependencies that can influence the timelines and impact realization plus possible mitigating actions 19
19 RPM Example: Benefits map New way of working Roll out Laptops Adapted workplaces and floors People relocated to flex-factor 0.6 People actually work from home (Also Tuesdays / Thursdays) Reduced m2 Reduced #Building Employees satisfaction by more freedom Reduced Cost Teamtraining available usage of tooling Higher productivity Attractive Employer Roll out of collaboration tools (e.g. Lync, big screens) People work anytime anyplace Risk of lack of coherence in team Enabler Change Benefit Dis-Benefit GOAL 20
20 RPM The roadmap of New way of working links milestones to actual benefit realization Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Project planning milestones not relevant for Roadmap Change program or project deliverables Project plan Critical milestones All employees have laptop Adapted workplaces in building A Lync implemented What are key milestones within the program(s) that are critical to realize the planned impact? Roadmap scope Organizational changes Key changes People work 30% outside building People moved to floor with flex factor 0.6 People are 10% more productive What organizational changes will enable the business to realize the planned impact? Impact realization Revenu impact FTE / other cost impact Lease contract terminated Top 5 rating of attractive Emplovers FM RfA submitted To Works Council When is which impact realized? (e.g. RfA effectuated) Advice from Works Council expected RfA effective Project planning Key project milestones Impact-bearing milestones Confidence milestones 21
21 I am a camera with its shutter open, quite passive, recording, not thinking. Christopher Isherwood 22
22 The activist is not the man who says the river is dirty. The activist is the man who cleans up the river. Ross Perot
23 BCG s view on passive versus activist PMO Content Passive PMO Structure output of teams Consolidate expertise of integration teams Moderate team meetings Activist PMO Challenge content & targets delivered by teams Bring in out-side in topic expertise Participate in meetings as active member 24 Consolidate Challenge Process Oversee overall change process Track progress and benefits Communicate organizational and cultural change Actively design overall change process Challenge benefits and progress Assist org-design and manage cultural change Facilitate Drive
24 BCG s view on passive versus activist PMO Content Process Passive PMO Structure output of teams Consolidate expertise of integration teams Moderate team meetings Activist PMO Challenge content & targets delivered by teams Bring in out-side in topic expertise "Activist" PMOs typically realize ~25% Participate in meetings as active member higher benefits and ensure a more Consolidate coordinated execution Challenge of the Oversee overall change process Actively design overall change transformation agenda process Track progress and benefits Communicate organizational and cultural change Challenge benefits and progress Assist org-design and manage cultural change 25 Facilitate Drive
25 Gartner s view on passive versus activist PMO Passive PMO Lack and avoids measurable objectives Requests project updates Plentiful reporting, scant ideas or help Offers scheduled training sessions Waits for approved projects to assign PMs Library of templates from standards, textbooks Shies away from conflict, politics Mantra of Standards and consistency Activist PMO Metrics for self-improvement, shared goals Probes for risk, asks tough questions Data-driven recommendations for decisions Project setup with PMs, on-the-job training Promotes PMO as source of the best PMs Customize good project artefacts and shares Works organization politics up, down and across Mantra, A foolish consistency is the hobgoblin of small minds - Emerson
26 Gartner s view on passive versus activist PMO Passive PMO Lack and avoids measurable objectives Requests project updates Plentiful reporting, scant ideas or help Offers scheduled training sessions Waits for approved projects to assign PMs Library of templates from standards, textbooks Shies away from conflict, politics Mantra of Standards and consistency Activist PMO Metrics for self-improvement, shared goals Probes for risk, asks tough questions Data-driven recommendations for decisions Project setup with PMs, on-the-job training Promotes PMO as source of the best PMs Customize good project artefacts and shares Works organization politics up, down and across Mantra, A foolish consistency is the hobgoblin of small minds - Emerson 27
27 Questions? 28
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