Benefits. MIRACLE Benefits. I have no idea! What is going on in here? Konferencja "Bezpieczny Projekt" WARSZAWA 11 maja 2010 r.
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1 Programme Plan MIRACLE Benefits Benefits What is going on in here? I have no idea! 1 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 1
2 Fitting the pieces together How the APMG Product Set helps you manage change more effectively John Davidson 2 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 2
3 Some Real Scenarios An engineering organisation went 1 million over its 900,000 budget because the original design was too optimistic An energy company spent 2 years and 4 million developing an IT programme that was cancelled because the entire strategy changed 3 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 3
4 Some Real Scenarios A health authority had to become more efficient and realised by better managing its portfolio, it could cut their 150 projects down to 90, organised into 10 strategic priorities Having spent 6 months creating a lessons learned database for technical staff, a company found 1 year later it had not been used 4 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 4
5 The key issues for project management How do we ensure we do the right things? How do we ensure we do things right? How do we ensure that our projects and programmes are embedded in business as usual? How do we ensure that we get the benefits we require? How do we remain relevant to the leadership of the organisation? 5 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 5
6 We need to think differently Knowledge Management Management of Risk M_o_R Strategy 1. Strategic Imperatives 2. Corporate Vision and Goals 3. External Factors Run the Business Business Plan Change the Business Change Portfolio Portfolio Management P3O Organisational Change Management Actions Programme Programme Programme MSP PRINCE2 Project Project Project Project Project Project Project 6 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 6
7 Governing Principles Govern effectively Hold people to account Prioritise investment and align to strategy Safeguard value Invest in people and process Track progress through exception based management 7 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 7
8 Portfolio Management Strategy 1. Strategic Imperatives 2. Corporate Vision and Goals 3. External Factors Run the Business Change the Business Change Portfolio Portfolio Management P3O 8 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 8
9 Key Principles : Portfolio Focus on change Establish structures for programme/project selection Ensure alignment with strategic objectives/targets Allocate appropriate resources to programmes/ projects Ensure scrutiny & challenge Identify/manage dependencies between programmes & projects Resolve resourcing conflicts Assist identification of threats/opportunities & evaluation of aggregate risks 9 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 9
10 Key Principles : Portfolio Monitor progress & ensure successful delivery of programmes & projects Adopt value management Assess organizational capability/capacity/maturity Ensure portfolio balance to minimise disruption to BAU Achieve VFM savings & efficiency gains from programmes & project rationalisation Link benefits of change to the performance management structure Ensure investment in R&D activities for long-term organization survival 10 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 10
11 Programme Management Change Portfolio Portfolio Management P3O Programme Programme Programme MSP PRINCE2 Project Project Project Project Project Project Project 11 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 11
12 Programme Management Principles Flows Themes Remaining aligned with corporate strategy Leading change Envisioning & communicating a better future Focussing on benefits and threats Adding value Designing and delivering a coherent capability Learning from experience Policy, strategy, vision Identifying a programme Defining a programme Delivery Delivery Closing a programme Organisation Vision Leadership & Stakeholder Engagement Benefits Realisation Management Blueprint Design & Delivery Planning & Control Business Case Risk & Issue Management Quality Management 12 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 12
13 The Key Concepts Programme Brief & Vision Statement Drive design Blueprint Benefits Maps & Profiles Benefit Realisation Plan Validate Against Future State Current State Gap Introduces Time, Cost, Risk Extends and Refines Filled By Develops the Programme Brief Into.. Projects Dossier Programme Plan Not acceptable, try a different future state design Crown copyright 2007 reproduced under licence from the Office of Government Commerce Evolving Business Case Acceptable Not acceptable, Try different solutions Move Forward 13 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 13
14 Project Management Change Portfolio Programme Portfolio Management P3O MSP PRINCE2 Project Project Project 14 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 14
15 Project Management Principles Themes Processes Continued business justification Learn from experience Defined roles and responsibilities Manage by stages Manage by exception Focus on products Tailor to suit the project environment Business case - why? Organisation - who? Quality - what? Plans -when, how much, how? Risk -what if? Change - what's the impact? Progress -where are we, where are we going? Starting up a project Directing a project Initiating a project Controlling a stage Managing product delivery Managing a stage boundary Closing a project 15 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 15
16 PRINCE2 PROJECT ENVIRONMENT Crown Copyright Reproduced under Licence from OGC. Direct the Project Manage the Stages Deliver the Products Change Progress Business Case PRINCE2 PROCESSES Organization Quality Risk Plans PRINCE2 THEMES PRINCE2 PRINCIPLES 16 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 16
17 Risk Management Management of Risk M_o_R Strategy 1. Strategic Imperatives 2. Corporate Vision and Goals 3. External Factors Run the Business Business Plan Change the Business Change Portfolio Portfolio Management P3O Actions Programme Programme Programme MSP PRINCE2 Project Project Project Project Project Project Project 17 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 17
18 Why? Deliver services better in a more challenging environment Reduce time spent problem solving Increase adaptability Increase focus on doing the right things, better Set strategy better Plan their activities better Mitigate issues by predicting them and putting in place measures earlier Use decreasing resources more efficiently Reduce waste Manage change effectively Improve innovation Provide better value for money Crown Copyright Reproduced under Licence from OGC. 18 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 18
19 From these Perspectives : Strategic, Programmes, Operations Risk Principles Organisational context Stakeholder involvement Organisational objectives M_o_R approach Reporting Roles & responsibilities Support structure Early warning indicators Review cycle Overcoming barriers Supportive culture Continual improvement M_o_R Embedded Through The M_o_R Approach Risk Management Policy Risk Management Process Guide Risk Management Strategies Risk Registers Issue Logs M_o_R Process Implemented Through 19 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 19
20 Change Management Management of Risk M_o_R Strategy 1. Strategic Imperatives 2. Corporate Vision and Goals 3. External Factors Run the Business Business Plan Change the Business Change Portfolio Portfolio Management P3O Organisational Change Management Actions Programme Programme Programme MSP PRINCE2 Project Project Project Project Project Project Project 20 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 20
21 Organisational Change Management No matter how good your project or programme is, it will not be embedded in Business As Usual without good change management Change management occurs at three levels Individual Team Organisation Requires strong leadership from the top and the middle 21 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 21
22 Change Process Organisation Team Implemented at these levels Individual 22 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 22
23 Knowledge Management Knowledge Management Management of Risk M_o_R Strategy 1. Strategic Imperatives 2. Corporate Vision and Goals 3. External Factors Run the Business Business Plan Change the Business Change Portfolio Portfolio Management P3O Organisational Change Management Actions Programme Programme Programme MSP PRINCE2 Project Project Project Project Project Project Project 23 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 23
24 Knowledge Management Financial Capital Net Assets + P&L + Cashflow Intellectual Capital Measures of capability development Human Capital How we generate new capabilities Skills Creativity Innovation Productivity Structural Capital How we embed our capabilities in our processes and systems Management systems Patents and methods Infrastructure Databases & Information Reliability Contracts Market Capital How we demonstrate our capabilities to shareholders and other stakeholders Reputation Brand Credit rating Stakeholder relationships Competitive intelligence Creating, measuring and managing value through developing, embedding and demonstrating capabilities is knowledge asset management 24 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 24
25 Company Market Capitalisation (M) Example Net Assets (M) Financial Capital % GE $457,588 $47, % Microsoft $301,119 $46, % Intel $201,483 $37, % Cisco $193,155 $29, % AOL Time Warner $184,796 $11, % IBM $182,456 $20, % Oracle $122,890 $4,916 4% Nokia $100,052 $8, % Shell $220,110 $127, % You?????????? 25 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 25
26 Putting it all together Projects Outputs Outputs Change Benefits Benefits Embedding Meet Strategy Meet Strategy Knowledge Asset Measurement Knowledge Asset Management Knowledge Asset VALUE 26 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 26
27 Key Principles Framework Measurement Line of sight to strategy Ownership Embedding Engagement Education Realisation 27 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 27
28 Summary Programme Plan PSO Benefits Benefits This is complex! But we have good support Thank You 28 W A R S Z A W A R Z E S Z Ó W W R O C Ł A W 28
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