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Organizational Project Management

SUKAD OPM System workshop

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http://learning.sukad.com/courses/organizational-project-management

Workshop ultimate objective

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Setting the scene

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“We know why projects fail; we know how to prevent their failure—so why do they still fail?”

Cobb’s Paradox, Martin Cobb of the Treasury Board of Canada Secretariat, 1995

Projects’ failure

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1.What do you think are the reasons for projects failures; try to identify the root causes)?

2.Can you group these reasons into a few categories?

Why projects fail?

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Current state of practice

PMO Research

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PMI® The multi-project PMO survey by Dr Brian Hobbs PhD, University of Quebec, 2007

No consensus on value of PMO

Perceptions of high/low value are based on different characteristics

Most PMO are stand-alone

PMO are short-lived

Mandate covers either most, or few projects

PMO houses few, or all project managers

Dr. Brian Hobbs Survey – 1

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Dr. Brian Hobbs Survey – 2

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Most PM have small staff; apart from project managers

PMO authority is mostly shared

Important functions are determined by the needs of the specific organizational context

Location of PMO has an impact on mandate

PMO performance depends on authority and organization's culture and PM maturity

1.What do you think are the reasons for PMO failures, challenges, or short lives?

2.Can you group these reasons into a couple of categories?

Why PMO fail or short lived?

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Current state of practice

Strategic aspects

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Enabling organizational change

Nearly half of strategic initiative failSuccessful organizations lead change through program/project managementEnabling sustainable change require• Standardized project and program management

practices• Engaged sponsors who actively rally senior

management• Managing people through change

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PMI Publication

Why good strategies fail - 1Senior executives recognize the importance of strategy implementation, but a majority admit their companies fall short (61%)Companies that poorly align with strategy also report weaker financial results“Implementation is more important than strategy formulation” … Prof. L. Hrebiniak

Emergent strategy might be more important than deliberative approach

PMI Publication

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Why good strategies fail - 2“Are we doing what we said we should be doing” … Jeff Austin - DuPont

Strategy is often fire-and-forget activity for the C-SuiteBack to implementation• Only 17% of study respondents say that in their

companies implementation is seen as strategic

• 56% considered implementation as operational task

PMI Publication

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Strategic initiative managementIn the current business environment• Ability to develop and implement new strategic

initiatives & change is becoming key differentiator• Role of the PMO must become more strategic and

it must develop its capabilities accordinglyFour imperatives (Boston Consulting Group)

• Focus on critical initiatives• Institute smart and simple processes• Foster talent and capabilities• Encourage a culture of change

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PMI Publication

PMI’s thought leadership seriesNumerous publications with top ‘agencies’ • Forrester, Boston Consulting Group, Economist

Key findings and recommendations• Project and program management critical for business

success and strategy implementation• Must focus on standardized systems; simple processes

and tailored to ‘a given context’• Must build the capabilities (talent management)• Embrace change and effective communication

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PMI Publication

Organizational Project

Management Maturity

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Introduction to OPM?What is OPM?

What does it include?

How is OPM related to, or different from a PMO?

How is OPM related to project management methodology?

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Why OPM maturityMaturity is linked to performance• Higher level of maturity better projects’

performance

Maturity is linked to standardized approach • Simple and tailored processes

OPM is to build and sustain the approachHigher maturity is indicator of continual improvement

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Project management maturity

Awareness

Excelling

Improving

Applying

Learning

Performance ImprovementCost

Spe

nt o

n Pr

ojec

t Man

agem

ent

1

2

3

4

5

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The Center for Business Practices

Think PMO Maturity = Project Management Maturity

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Gaps in PMO implementation

“Role of PMO must become more strategic and must develop its capabilities accordingly”

PMO are often • Not effective or not delivering optimal solutions,

• Not able to become the organization’s PM department

Still too much focus • On reporting or support; not leading or directing

• Often not building the necessary OPM system

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The PMO continuum

The sequence could change from one organization to another

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What is the solution?

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1.What do you think, do we need a PMO or OPM?

2.Should/could the OPM System be part of the PMO mandate or independent?

3.What should be the components and elements of an OPM System?

OPM (Per PMI)

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New PMI Publications – 2014

Implementing Organizational Project

ManagementA Practice Guide

Copyrights to PMI, the Project Management Institute, Inc.

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From the guide

“More organizations are starting to recognize that project management means more than having good project managers”

Translation: • Training and certifications are not enough

• Focus on individual development is not enough

What is missing?

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From the guide

“Project management, in terms of simply focusing on scope, time, and budget, is not sufficient for managing the scale and rate of change that is norm in most organizations”

Translation• Learning how to manage a single project; i.e.

individual qualifications are not enough

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Continuing with the guide

Research indicates that many organizations have difficulty sustaining the value of any implementation OPM implementation is often long-term endeavorLong-term view helps to gain leadership confidence and stakeholder buy-inThis support SUKAD extended approach

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The SUKAD 7Es™

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The origin of the concept

The Engines of Project

Management

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Processes

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The Core –Fundamental

Elements

The Differentiating

Elements

The Differentiating

Elements

The Strategic Element

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The vital points to noteThe strategic aspect is critical for any OPM or organizational systemThe fundamental elements are a must for any organization wanting to manage projects • They provide the core elements and processes

However, to elevate performance we need the differentiating elementsEach element have numerous components

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OPM System

‘The Initiative’

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1.How would you implement the OPM System?

2.What would be the approach, content, other information?

OPM System Exercise

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Initial decisions

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Internal effort or consultant?

Best to do it slowly with internal resources; if the expertise is in placeJointly with an external advisory services; most development by internal resources with external resources as advisorsUse consultants for development in coordination with internal resourcesTotally external; outsource

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Project or program approach?Project approach will result in Big Bang effect • Which might not be the best approach for an

organizational change initiative

A program approach will result in multiple projects and multiple roll out• Eliminating big bang and enhancing acceptance• The program approach is the more agile!• This approach could be accelerated or delivered

over an extended period of time

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Accelerated/extended approachThis is for a program approach

An accelerated approach results in projects being done in sequence with no breaks between them

The extended approach results in • Giving each projects output 1 to 3 months for pilot

implementation

• Before we roll out the next set of components.

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Program approach

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Decisions and path forwardOnce a decision is made one can decide on how to proceed:• If a project then, finalize all requirements and

establish the project management plan

• If a program, Need to identify the high level program requirements

and program management plan

The detailed plans will be with the individual projects

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The initiative as a program

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A program is a series of projects

Implementing OPM System Program

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Vision and expectationsExplore for expectations• Difficult due to their implicit nature

Need to understand the organization vision• What is the strategic direction?

• What do they want to achieve?

• Are their objectives and goals short, mid or long term?

• Are they willing to make the difficult decisions?

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Investigating current statusFor new organization, or one without any formal system in place, must start from scratchFor organizations with something in place; will need to assess the current statusIn general organizations have practices, which might not be documented• So maybe a first step is to document the ongoing

practices and processesOrganizational Project Management | The SUKAD Way™ 46

Gaps and recommendationsWith the first two steps done, the team would be able to analyze the situation, and Identify the gaps

Next, list the recommendations

Once management and team agree on the scope (recommendations), time to agree on the approach

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Establish benchmarkIt is important in any organizational change initiative, to establish the benchmark; past and current projects’ performance

Define the various metrics to

• Measure current performance,

• Which the team can revisit in the future, and

• Measure improvement and success

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Program management planDecide on number of projects and their high level breakdownDefine the required expertise and estimate number of resources / effort requiredDevelop RAM for the various organizationsEstablish the timeline - budget - qualityProgram risk managementProgram MarCom is vital for success

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Components & standardization

It is likely to have multiple people involved in OPM System implementationStandardize the components• Decide on the content of each component

package

• Design the outline and structure for each component package

• Define style and format for all items

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SUKAD Business Divisions

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SUKAD Knowledge Sharing Sites

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SUKAD OPM System workshop

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http://learning.sukad.com/courses/organizational-project-management

Thank you!

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