Finding The PPM Sweet Spot

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1 Finding The PPM Sweet Spot How the Cloud and a Top Down Approach Can Help Drive Project Portfolio Value Featured Presenter: Daniel Stang Research Director Welcome! Thank you for joining us. A few things to note before we start: All attendee phone lines will be muted during the presentation. You can access audio via teleconference or your PC. You may submit questions using the Q&A panel on the right. Questions will be addressed at the end of the session. We will the slides and recording to all attendees within a few days. PDU details are included at the end of this deck.

2 Today s Presenters Daniel B. Stang is a Research Director in Gartner Research, covering project and portfolio management (PPM) applications. His expertise includes PPM process definition, adoption, and automation. Daniel is the lead analyst for Gartner's PPM software market research and analysis, the founder of Gartner's "PPM Market Universe" of PPM market analysis and research reports, and lead author on multiple PPM related MarketScope and Magic Quadrants, including the PPM Software Applications MarketScope, the Cloud Based PPM Services Magic Quadrant, and the Integrated IT Portfolio Analysis Magic Quadrant. Jay Hoskins is a Director of Solution Consulting at PowerSteering Software. He helps companies improve the value and return of their portfolios, programs, and other business investments through efficient and effective business processes, change management, and system automation. Jay has helped hundreds of leading organizations successfully implement enterprise wide Portfolio Management processes, Business PMOs, IT Governance, and New Product Development programs. Jay has been a portfolio management professional for over 10 years, and also has experience in managing enterprise deployments of ERP systems, project management, and software development methodologies.

3 Different PPM Environments Require Different PPM Products By 2014, more than 30% of organizations will experience a proliferation of software tools installed to support PPM processes and projects. Reasons organizations will not see tool proliferation: "We spent a lot of money on our singlesource business application vendor, and we can configure our investment to support PPM without buying best-of-breed software." "All of our PPM needs across all of our different departments follow identical PPM processes. We need only one tool to cover it all." "Our existing PPM system eliminated all spreadsheet use across our business managers and project managers. They will never use spreadsheets to communicate ever again." Reasons organizations will see tool proliferation: "Our IT PPM software system will not match the PPM needs of our product development group. We need a different product and configuration." "We want to manage products and programs, not just projects." "We need an independent PPM system supporting EPMO activities. Our current PPM system supports project and resource management in one specific department."

4 What Type of PPM Customer Are You? Execution-level PPM customer Project & resource managers, team members Project an project and resource management Tactical details of project execution Reporting services for progress, expenditures Project portfolio-level PPM customer Sponsors, management, PMO, project managers Investment related decision frameworks Planning Aggregate actuals collection Tracking, monitoring, accountability 4

5 Answering These Questions Can Help You Find PPM Software That Meets Your Needs Who? - Who is the target audience? - What roles do they play? What? - What types of projects are you trying to manage? - What level of PPM process do you need to automate? - Are you managing something other than projects (for example, services, products, programs or applications)? Why? - Portfolio-level PPM? - Project-execution-level PPM? - Both?

6 Balance Your Current Level of PPM Maturity Against the Scope of Your PPM Implementation PPM Processes PPM Apps Failure and Risk

7 The PPM Sweet Spot Three Steps Project Tracking Standardized Collection Resource Management Utilization Demand Supply

8 PPM System Deployment Strategy (Crawl, Walk, Run): Top Down & Bottom Up Narrow system scope "Just enough" visibility Established processes first Portion of work, not all of it Add to initial system scope Focus on more visibility Add new processes Increase volume tracked System supports enterprise Granular/enterprise visibility New processes, multiple areas Increase volume tracked

9 How Should You Deploy PPM? PPM Software Applications Cloud-Based PPM Services On-Premises Traditional Hosted Cloud- Hosted Cloud- Optimized Cloud- Native Software as a Service (SaaS) Control, Extend, Customize Configure, Adopt, Consume More Time to Value Less Time to Value More Financial Commitment & Risk Less Financial Commitment & Risk

10 Agenda Recipe for the PPM Sweet Spot Defining the problem Key themes for success Implementation scope Implementing the themes Problem solved Questions

11 What the PMO Wants PMI compliance Project Management Time reporting Status reporting What Business Leaders Want Competitive advantage Do more for less Innovation and alignment Better decision making 11

12 PPM Implementation Hurdles Close to Project / Far From Results Project Manager Don t bother me with status, I have a project to run Team Member Program Manager I never know what to do next and am constantly interrupted with changing priorities My program roadmap is constantly in jeopardy Resource Manager Executive Sponsors / Approvers Portfolio Managers / Business Unit Managers I have to do major adjustments every month to the resource plan Your asking me to approve stuff with no clear business case or priority I keep asking for improvements but never see any results PMO No one is communicating status with us Far From Project / Close To Results CEO / CIO / Executives / Management I can t see how your project benefits the P&L but your asking for more money?

13 Avoid Complexity

14 Sweet Spot Keys to Success Adoption Easy to use and simple Crawl, Walk, Run Use easy, effective, and proven processes first Enterprise systems that follow adoption principles are enablers Alignment Business driven Business Leader (Do this) Improve competitiveness in our markets PPM Deployment Manager (not this) Visibility, Project Status, PMI standards, Be on time, Report Status, Time tracking Performance Measure your results Top performers only have 10% unplanned work Top performers regularly meet revenue and savings targets

15 Critical Capabilities Strategy Management Ability to model, quantify, and measure business strategy Demand Management The ability to define work in terms of business strategy Prioritization Ability to score and select demand based on business value and strategy goals Governance Board Ability for stakeholders to create business strategy, and execute portfolio decisions based on that strategy Quality of Execution Ability to measure the quality of executing the currently defined PMO process and strategy execution System of Record A single source of truth (like PowerSteering! ) to manage the portfolio and relevant information Collaboration The ability for everyone to have visibility and transparency in order to easily participate in the governance process. Milestone/Deliverable Management The ability to ensure that key milestones are met and visible Benefits Realization The ability to measure the results or impact of the portfolio on the business strategy.

16 The Result: Increased Speed to Value Crawl Walk Run Project Project Portfolio Portfolio Management Management Maturity Maturity Capability Levels Levels

17 Governance No major gaps. Optimize Demand: Prioritization Selection Roadmap Resource Capacity Execute: Deliverable Management Project Health Analyze: Benefits Realization Quality of Execution Roadmap Benchmark your Capabilities Several key portfolio management capabilities were missing and will significantly improve value delivery and productivity when deployed. These are organized across four capability categories: As-Is

18 Implementing the Themes Adoption Alignment Performance

19 Integrated PPM Capabilities

20 Why is Ease of Use Important? The top 3 responses all had to do with ease of use, the just-right level of functionality and being simple and appropriate for each person. Satisfaction is all about adoption and value delivery, not features

21 Easy for the Team Members

22 Easy for Project Managers

23 Easy for Portfolio Managers

24 Easy for Resource Managers

25 Easy for Business Leaders

26 Align PMO to the Business

27 Sweet Spot PMO results Close to Project / Far From Results Far From Project / Close To Results Project Manager Team Member Program Manager Resource Manager Executive Sponsors / Approvers Portfolio Managers / Business Unit Managers PMO CEO / CIO / Executives / Management Projects status manages itself and my reporting time is reduced by 75% My work dashboard is clear, easy to use, and the project managers leave me alone to get more work done The program roadmap now has clear objectives and we are delivering results more predictably The resource plan has stabilized with more focus on the right work and much less unplanned work It s clear the budget is going to important work with business impact My portfolio review meetings have been cut in half and we make better project decisions I seldom have to bother the managers with status reports and the executives get the right reports at the right time automatically We are spending less and getting better service levels than our peers

28 Questions? Please submit your questions via the Q&A panel. For Further Reading: Gartner s Magic Quadrant for Cloud Based Project and Portfolio Management Services: BasedPPM.html PowerSteering s Business Driven PPM Blog: PDU information: Obtain 1 PDU by registering your participation in PMI s Continuing Certification Requirements System (https://ccrs.pmi.org/search.aspx) Provider ID#: 2579 Provider Name: PowerSteering Software Course ID: Program Name: Finding The PPM "Sweet Spot" How the Cloud and a Top Down Approach Can Help Drive Project Portfolio Value

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