HOW A PMO WAS BUILT in a Company where PMO was a dirty word. By Amy Martin, Head of Aon Hewitt s Enterprise Program Management Office May 5, 2016

Transcription

1 HOW A PMO WAS BUILT in a Company where PMO was a dirty word By Amy Martin, Head of Aon Hewitt s Enterprise Program Management Office May 5,

2 A Shared Vision through the discipline of project management Amy J. Martin HEAD OF AON HEWITT S ENTERPRISE PROGRAM MANAGEMENT OFFICE MBA and Master s degree in Human Resources Management PMI Global, writing the standards for Organization Project Management Past Chair, Executive Council for Project Management Institute, Chicagoland Chapter PMP certified since years dedicated to art and science of project management 2

3 Agenda THE IMPORTANCE OF DELIVERING PROJECTS WELL TO ENABLE ORGANIZATIONAL SUCCESS BEFORE PROJECT MANAGEMENT OFFICE A SHARED VISION BRIDGING THE GAPS KEY TAKEAWAYS 3

4 Project, Program and Portfolio Management Used to be Important Innovation PPPM Used to be Important $$ Program Management Should PPPM be a Core Capability 4

5 Project Management is a priority A survey by consulting giant McKinsey & Co. found that nearly 60 percent of senior executives said building a strong project management discipline is a top-three priority for their companies as they look to the future. ~ 5

6 What s Keeping CEOs Up at Night 6

7 Do Executives Value Project Management An Economist Intelligence report showed that 80 percent of global executives believed having project management as a core competency helped them remain competitive during the recession. i The State of the PMO 2010 reported that PMOs: Decreased failed projects by 31% 30% under budget Demonstrated a 21% improvement in productivity Delivered 19% of projects ahead of schedule Saved companies an average of US$567,000 per project i Closing the gap: The link between project management excellence and long-term success, Economist Intelligence Unit, October % of PMOs fail.. 7

8 PMOs Succeed (of Fail) based upon the perceptions of others Successful PMOs stay focused on a few things: Balance of expectations Staff excellence Building relationships Earning credibility Getting acceptance to the PMOs direction PMOs succeed by creating new perceptions, not by monitoring execution details There is no one, right model for an PMO. Effective PMOs are those that set achievable expectations and are a good match to their organizational culture Gartner The EPMO Head s First 100 Days, Published 18 December

9 Chaos before project management 9

10 PMOs Need to Loosen the Reins on Innovation Projects In an 8-year study of more than 1,600 project managers conducted by the Projectize Group. 68% of PMO stakeholders perceived their PMOs to be bureaucratic* 10

11 6 Common Real World Issues Unrealistic view of demand and capacity Much work slides in under the radar Data on true resource availability is spotty at best Resources are poached for other work Communication is lacking Problems are hidden until it s too late Ref: 2013 Planview Resource Management & Capacity Management Benchmark Study 11

12 PMOs Need to Be an Innovation Enable Ref: 2013 Planview Resource Management & Capacity Management Benchmark Study 12

13 Really.what are the benefits of a PMO? A PMO should provide a VALUE to the business Structure Drives consistency Steps to Establishing a PMO 1. Use facts and data to align sponsors For Project Manager Accountability 2. Determine the type of PMO structure why your organization needs a PMO 3. Build the right team Visibility Across the portfolio of projects 4. Develop and deploy project management standards 5. Identify roles, skills and train the staff On how projects are delivered Standards 6. Highlight successes to the business and look for ways to continuously improve 13

14 Bridging the gaps 14

15 Bridging the gaps On time project completion On budget project completion Full scope project completion Exceptional quality Transparent communication 15

16 Bridging the gaps Clear accountability Transparent status Proactive risk and issue management Improve communications to reduce bumps along the way Clear expectations for meetings and outcomes 16

17 Bridging the gaps External influences Internal financial constraints How employees work to become more efficient 17

18 Opportunities and challenges Three key opportunities: 1. Predictable results 2. Improve efficiencies and how we deliver 3. More engaging working experience/culture of excellence 18

19 Project Management Objectives Aligned to the Business Keep Clients First Grow with Intention Get Lean Create a Rewarding Work Environment Have a clear plan and deliver on it Provide full transparency on project health to stakeholders Deliver projects with full scope, on schedule and on budget Deliver profitable growth Institutionalize PM methodology and enhance associate utilization Reduce project cost and rework Empower employees to own the project Have everyone be part of the solution to better delivery 19

20 Results What did we achieve? Set of tools (pre-populated) allowing for expediting the project initiation and planning phase Consistent internal and external governance routines Documented process and procedures to enhance project manager skills and abilities (including on-boarding of new PMs) Projects went live on-time with full functionality Satisfaction increased Project teams delivered within 10% variance to budget Employee engagement increased Reduced project cost by an average of 30% and other business areas wanted this too!! 20

21 A Direct Link to financial performance 21

22 What s Next? How about an Enterprise PMO? Purpose: Establish organizational project management to drive better project outcomes across the business. 22

23 What is an EPMO? Aon Hewitt s Enterprise Project Management Office sets the strategic direction for how the business will leverage a standard project management framework, embedded in our Operating System, to drive organizational strategy and operational excellence. Industry statistics* on project success: Accordingly, 69% of project failures are due to lack and/or improper implementation of project management methodology *JPMG survey of 282 organizations 23

24 Assembled Business Leaders as Key Stakeholders Reviewed design and concepts in an effort to gain leadership awareness and buy-in. Attendees included: Chief Operating Office P&L Leaders from each area of the business 24

25 Project Management Maturity Model Levels PMMM Validated Current State 5 Implementation Focus 2012 Goal Bus 1 Bus 2 Bus 3 Bus 4 Bus 5 Bud 6 Bus 7 Business Area Project Management Maturity Levels: Level 1: Chaotic - No evidence of documented processes or best practices Level 2: Active - Documented processes carried out, but not formalized (ad hoc, with unpredictable results, and dependent on heroics) Level 3: Efficient - Consistent discipline started (repeatable processes supported by materials and templates, but only in use in pockets ) Level 4: Responsive - Ubiquitous and measured (processes are applied consistently in the majority of situations and managed proactively) Level 5: Business-Driven - Provides data and information to drive business decisions (used as the standard throughout the organization, provides metrics for continuous improvement) 25

26 Mission Statement.Deliver with Excellence Align with corporate strategy and objectives Drive a consistent project management framework across the business leveraging the Project Management Body of Knowledge (PMBoK) Train and assess colleagues Leverage project management best practices Focus on continuous improvement build for the future Improve measurements 26

27 EPMO Aligned Objectives to Strategy Shape the Market and Grow Utilization of program management within the business Drive a consistent project management methodology across the business Establish the business as a world-class project management organization Leverage and enhance project management best practices Design Client Solutions Deliver our projects with full transparency and greater accessibility Scale project management to meet stakeholder needs Show stakeholders how we will deliver Leverage lessons learned demonstrating continuous Improvement Deliver with Quality Focus on continuous improvement Exceed expectations (know what they are) Measure the health and quality of projects Promote accountability for all colleagues 27

28 Change Management Approach Discover Develop Deliver Review Get the facts Set direction Execute plans Evaluate Identify early resisters Leverage ambassadors Soar for the tipping point of change 28

29 Key Drivers to a Successful EPMO The EPMO focused on business outcomes vs. tools/templates/policies leadership support to the highest degree drives consistent processes on project management works with the business to facilitate and execute projects project management framework application is flexible holds the local PMOs accountable for following standards drive the use of metrics to make better decisions provides a portfolio view of the business s projects, resource needs and evaluates the level of project management maturity 29 29

30 Key Takeaways to Setting Up a PMO 1. First step in establishing a PMO is to create a vision 2. Get executive sponsorship 3. Consider the culture - identify your organizations needs/challenges, structure and appetite for change 4. Determine your Organizational Maturity 5. Determine the best type of management office that suits these business needs Project Management Office Program Management Office Portfolio Management Office 6. Identify the best PMO model (Centralized, Decentralized or hybrid) 7. Establish a Measurement Plan (short term and long term view) 8. Get business leader s buy-in 9. Develop a PMO Rollout Plan 10.Share success stories 30

31 Operations keeps the lights on, strategy provides a light at the end of the tunnel, but project management is the train engine that moves the organization forward. ~ Joy Gumz 31

32 Questions There is only one way to avoid criticism: do nothing, say nothing, and be nothing. - Aristotle 2010 Project Management Institute, Inc. All rights reserved. PMI, the PMI logo, "PMP", the PMP logos, "PMBOK", "Project Management Journal", "PM Network", and the PMI Today logo are registered marks of Project Management Institute, Inc. For a comprehensive list of PMI marks, contact the PMI Legal Department. 32

33 PMO Set-Up Technique I. Top three problems to be solved by the PMO I. II. III. II. Vision I. The vision of the PMO is to III. Mission I. The mission of the PMO is IV. Goals and Objectives I. Goal 1 I. Objectives II. Goal 2 I. Objectives III. Goal 3 I. Objectives 33

34 3 Year Plan Example Path to support the mission statement Guarantee project success! Definition Project Management framework created Methodology created (balancing the art and the science) Project Manager expectations defined Control Account Manager expectations defined Stabilization/Integration Standardizing artifacts, methodology, tools and artifacts Providing a framework to incorporate key learnings 100% compliance Expanding to include exception artifacts and integrating business routines/value proposition Differentiating against competitors Optimization Project Management is the way we do our work Shift from project to program management Scalable and portable to incorporate broader programs 34

35 Recommended Reads The McGraw-Hill 36-Hour Course Project Management by Helen S. Cooke and Karen Tate The Project Management Office Advantage by Lia Tjahjana, Paul Dwyer and Mohsin Habib Strategic Project Portfolio Management, Enabling a Productive Organization by Simon Moore 35