Driving PPM Adoption Through Effective Change Management

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1 Driving PPM Adoption Through Effective Change Management Presenters: David Boghossian, Founder, PowerSteering Software Jay Hoskins, PowerSteering Business PPM Consultant Welcome! Thank you for joining us. A few things to note before we get started: All attendee phone lines will be muted during the presentation. You may submit questions using the Q&A panel in the bottom right. Questions will be addressed at the end of the session. We will the slides and recording to all attendees within a few days.

2 Business PPM Customers Corporate PMO New Product Development Process Improvement IT Governance

3 Agenda Introduction Why Change Mgmt Matters Driving Adoption Ensuring Alignment Measuring and Sustaining Performance Key Takeaways 3

4 The Case for Change Management 80% of enterprises will fail to achieve the true value of ongoing portfolio management, due primarily to approaches that failed to factor organizational needs, values, culture and capabilities into the discipline's roll out and evolution. Cultural and organizational barriers are typically the primary challenges in PPM adoption For companies to succeed, user buy in and consistent adoption are key, which demands process and behavioral change. (PPM) implementations are not for the faint of heart the changes an organization incurs by introducing new processes and tools can easily go awry if it doesn t fully commit to the implementation. 4

5 PPM Change Management Issues 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 If these two roles are not aligned it is a recipe for PPM failure: PPM Deployment Manager Implement PMI standards, Be on time, Report Status Business Leader To measurably improve business outcomes that are aligned to our strategy and goals Performance Measure your results Top performers only have 10% unplanned work Top performers regularly meet revenue and savings targets 5

6 Agenda Introduction Why Change Mgmt Matters Driving Adoption Ensuring Alignment Measuring and Sustaining Performance Key Takeaways 6

7 3 Facets of Adoption Organizational Roles Ease of Use Capability Deployment 7

8 Why Adoption is so Hard Your priorities are not mine Project- Centric Project Manager Don t bother me with status, I have a project to run! Team Member I never know what to do next. And my priorities constantly change. Program Manager My roadmap is a shambles! Resource Manager I have to make major adjustments every month to the resource plan. Executive Sponsors / Approvers You re asking me to approve projects with no clear business case or priority. Portfolio Managers / Business Unit Managers I keep asking for updates, but never see any results. PMO No one communicates the status to us. Results- Centric CIO / Executive Management I don t know when to expect revenue and payback from my new product launch and you re asking for money? 8

9 Communicate What s In It for Me? Executives Focus on the Big Picture & always have an eye on results Key PPM attribute: improve decision making & financial returns Managers Need to manage staff effectively & demonstrate value creation to leadership Key PPM attribute: manage by exception, ability to easily aggregate and validate data for reporting Team Members Like tools that make their job easier, resent those that only create busy work that doesn t benefit them Key PPM attribute: Make it easy to determine What do I need to do next & how do I do it? 9

10 Why is Ease of Use Important? Satisfaction equates to ease of use, adoption and value delivery not features. 10

11 Avoid Complexity 11

12 What It Means for PPM Tool Selection Which would you rather drive everyday? Cheap and easy to get started Limited capability Doesn t scale Quickly outgrown Costly & complex to deploy Extensive training and maintenance Requires an army to support Overkill for most situations Versatile Cost effective Easy to operate & maintain Just Right for daily users 12

13 Phased Deployment for PPM Success CRAWL WALK RUN Demand capture (Project Requests) Simple Prioritization Project Governance Simple budget, cost and benefit tracking Report Wizard/Visual Portal reporting A few standard dashboards and portfolios More sophisticated prioritization More sophisticated financials and measurement More portfolios and dashboards, with more sophisticated measures More detailed financial tracking Capacity Management Detailed project cost estimation Project scheduling and detailed task management Time capture Full blown Resource Management Automated interfaces for detailed cost tracking 50% 30% 2010, PowerSteering Software, Inc. All Rights Reserved. 13

14 The Result: Increased Speed to Value Speed-to-Value Differential Theory Effectiveness The Adoption Gap Reality Crawl Walk Run Project Project Portfolio Portfolio Management Management Maturity Maturity Capability Levels Levels

15 Agenda Introduction Why Change Mgmt Matters Driving Adoption Ensuring Alignment Measuring and Sustaining Performance Key Takeaways 15

16 Establish the PPM goals What problems or pain points need solving Are your goals business related What does success look like How will you measure it What are your targets 16

17 Alignment Through Objective Setting Involve key stakeholders in creating a set of mutually agreed upon objectives Take the veil off of the black box make measurement transparent so validity is acknowledged, not arbitrary Address short term needs of business to build commitment for the long term 17

18 Creating Lasting Change Agree on change management plan Establish communication plan Role out based upon culture Publicize the early wins but acknowledge & correct missteps it s about continuous improvement. Address immediate needs while planning for long term vision Balance carrots & sticks 18

19 Carrot Approaches Set reachable targets For example a 10% improvement in user satisfaction with the portfolio management process or 90% adoption rate Provide a seat at the governance table for portfolio managers Include project managers in portfolio review for your most strategic projects 19

20 Stick Approaches Projects or departments don t get authorization to spend unless PPM and business alignment goals are met & satisfy a minimum criteria. Re evaluate funding at every phase Set Project and BU budgets based on measurable results 20

21 Agenda Introduction Why Change Mgmt Matters Driving Adoption Ensuring Alignment Measuring and Sustaining Performance Key Takeaways 21

22 The Visibility Effect You can t improve what you don t measure With proper alignment and performance measurement processes, you ll automatically improve just from the Visibility effect 22

23 Benchmark capabilities Tie projects to strategic objectives to demonstrate business value Measure demand to optimize portfolio value Balance Spending Track Benefits Realization Performance Measurement 23

24 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: Capability Graph As-Is 24

25 Tie Execution to Strategy 25

26 Measure Demand 26

27 Balance Spending 27

28 Establish Targets, Track Results 28

29 Track Benefits Realization 29

30 Agenda Introduction Why Change Mgmt Matters Driving Adoption Ensuring Alignment Measuring and Sustaining Performance Key Takeaways 30

31 Takeaways Change management is a process not an event. Drive adoption by focusing on value and ease of use. Understand What s in it for me for each role; use this to inform your deployment plan and gain buy in. Select a PPM tool that supports business user adoption, value realization and ROI easily and cost effectively. Establish PMO business goals that drive process and performance metrics Benchmark and measure results. Communicate them often to every role. 31

32 Questions??? To continue the discussion Join the Business Driven PPM Group Jay Hoskins David Boghossian 32

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