20130911 The Zombies of Program, Project Office and Portfolio Management
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Transcript of 20130911 The Zombies of Program, Project Office and Portfolio Management
The Zombies of Programme & Portfolio Management‘How lazy habits and bad attitudes in Programme and Portfolio Management continue to manifest themselves’
Presented byYoussef MourraDirector, Head of PPMNonsuch Consultingwww.nonsuch.co
PMINZ National Conference 2013AucklandThe Rendezvous Hotel, Auckland11th September 2013
2 © Nonsuch Consulting 2014
Me – Youssef Mourra
• Managing Director and Head of PPM – Nonsuch Consulting• Over 20 years' experience in the world of project, programme and
portfolio management (P3M).• Past experience with PIPC, Cognizant, Ernst & Young, Cap Gemini in
Australia, France and the UK. Worked in Europe, Asia and America• For the past 10 years have been based in NZ (Wellington) and has
gained experience with a number of clients both in the private and public sector.
• Led hundreds of consulting engagements ranging from complex project and programme rescues, mobilisation of project offices, to implementation of project management information systems.
• Recognised as a trusted advisor by a number of 'C' level executives and project offices throughout the APAC region.
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The Zombies of Project Management
Boris
Doris
Morris
Horace
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Meet BorisBenefits Management Zombie
• Benefits can’t be measured• It’s too hard• Cynical about the reasons
benefits are identified and cynical about how they are quantified
• Just get on with the project because it’s a great idea
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Meet HoraceSchedule Management Zombie
• Horace believes that you can control a project without a schedule.
• Too much emphasis is placed on schedules and ties Project Managers down
• He believes you should instinctively understand how your project is going and just focus on a few key dates
• What’s the point of a schedule if it keeps changing. Just an unnecessary distraction
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Meet MorrisAgile Zombie
• Morris believes that Agile is a project management process in itself
• He objects to any attempt to use the term ‘waterfall’ near it.
• He believes {in a particularly maniacal way} that any attempt to use a schedule or any planning controls of any sort is a threat to his Agile projects
• He believes PMBOK and PRINCE2 are outdated.
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Meet DorisChange Management Zombie
• Business or Organisational Change Management is a luxury that most projects can’t afford
• Delivering the project is paramount and the rest is just fluff.
• ‘If an organisation wants to make a change, then people should accept it and adopt it immediately. Why should an organisation invest in all of this touchy feely stuff?’
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…that was then. This is now…
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The events & characteristics depicted in this presentation are fictitious. Any similarity to any person living or brain dead is merely coincidental.
Yeah Right
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Introducing….the Zombies of Programme & Portfolio Management
Norris
Florence
Lawrence
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Meet NorrisProgramme Manager Zombie
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What Norris believes…• That a good Programme Manager is someone who
manages multiple projects• Programme Management is the natural progression in
the evolution of a Senior Project Manager• Programme Management is about aggregating the key
information and dates from each of the individual projects and reporting that up the line
• The focus of Programme Management is producing on producing a result, an output, and handing it over to the business. This makes the Programme Manager accountable and therefore top dog
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Why Norris must die!• Norris has got this all wrong
• The focus is on Benefits, Change, Dependency & Integration Management
• Best Programme Managers come from the business, they have deep SME experience. They are not glorified or even experienced Project Managers. There is no natural or automatic continuum from PA to PC to PM to Senior PM and then Programme Manager
• The focus of Time, Cost, Scope & Quality can be addressed by Project Managers & Programme Administrators, it’s not the focus of the Programme Manager
• The whole focus of a Programme Manager is on delivering a business benefit by pulling together the various projects and helping transform or deliver a major outcome which is supported by effective Business Change Management. They are responsible but the Programme Sponsor or Senior Responsible Owner maintains the accountability.
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Focus Areas
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Program Management
Dependency Management
Resource Management
Define the resources
Allocate, Monitor and Refine Release
Change Management
Unfreeze Transition State
Lock changes in so they don’t revert back
Managing the Change
Preparing for Change
Reinforcing the Change
Benefits Management
Benefits Identification
Benefits Quantification
Benefits Tracking
Benefits Realisation
Identify the Program
Define the Program
Close the Program
Deliver the Program
Deliver the Capability
Realising the Benefits
Managing the
Tranches
Review and Prepare
Establish
Products delivered and Transitioned to BAU
Identify Macro Dependencies
Manage and Monitor Macro/Micro Dependencies
Move Refreeze
Resource demand Resource utilisation
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Unfreeze Move Refreeze
Programme Manager
Outputs/Products/Deliverables
Benefits Realisation(Business Intelligence)
Benefits Identified and Quantified(Business Case & Strategy)
Change Management Project Management
Outcomes / Benefits
Benefits Management
Benefits Tracking(Benefits Reporting)
Project Manager A
Programme Management
Project Manager B
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Meet LawrenceProject Office Zombie
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What Lawrence believes…• There is no difference between a Project Management Office, a
Programme Management Office and an Enterprise Portfolio Office• Project Offices are about enforcing policies, standards and
methodologies• The primary purpose of a Project Office is to conduct audits
(preferably random) to catch practitioners out• Project Offices are there to identify those who are not ticking the
boxes and following every step of the methodology and to call this out
• All projects are the same and every step of the methodology needs to be followed, there is no room for flexibility
• The first step to achieving greater PPM maturity is to install a Project Portfolio Management toolset
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Why Lawrence must die!• Each of these offices has a specific role
• Project Management Office is a temporary office set up to provide support to a temporary organisation – a project.
• Programme Management Office is a temporary office configured to provide support to a defined programme of work and can exist for a number of years, the duration of the programme
• Enterprise Portfolio Office is a permanent office sponsored and supported by the Executive to provide key decision support material to help the Executive ensure the organisation’s portfolio remains aligned to the agreed organisation’s strategy.
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Project Offices
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Enterprise Portfolio Office
Programme Management
Office
Project Office
Doing the ‘right’ projects
Doing the projects right
StrategyPortfolio
Management
Programme Management
Project Management
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PMOs rated by Support vs. Reach
Execu
tive S
up
port
&
Bu
y-i
n
Low High
Low
HighX
ED
Y
A
C
?
B
Enterprise Visibility & Reach
You?
‘Policing’
‘Monitoring’‘Supporting’
Z
‘Leading’
V
W
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Eddie Obeng’s Project Types
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Project objectives clear
Project objectives not clear
Project management, processes, corporate knowledge and tools
well developed
Project management, processes, corporate knowledge and tools
not well developed
Fog
MoviePaint by Number
s
Quest
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Project Flexibility
22
DistilledDistilled is for large, complex engagements, typically strategic projects
Mini Mini is for small, simple engagements, typically tactical projects
LiteLite is for medium, detailed engagements, can be tactical or strategic projects
Fast Fast is for engagements that need to be ‘fast tracked’ through to delivery
MustMust is guidelines to use in conjunction with one of the above methodologies for engagements that need to be implemented to meet compliance
AssignmentAssignment is for ‘Business as Usual’ repeatable engagements, with one key deliverable
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PPM Toolsets
23
Enterprise Portfolio Office
Programme Management
Office
Project Office
Choosing the ‘right’ projects
Doing the ‘right’ projects right
Strategy
Organisational Requirement & Support
2. People / Capability3. Process / Frameworks4. Toolsets/Systems
Governance &
ControlInfo
rmat
ion
& V
isib
ility
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Meet FlorencePortfolio Management Zombie
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What Florence believes…• Their organisation will never be mature enough to
understand portfolio management• It’s not their job to promote Portfolio Management to
the Executive, it’s up to the Executive to ask for it• Consolidating as much information as possible on the
projects and programmes in their company, without breaking into a sweat and avoiding probing into the ‘sacred cow’ projects, constitutes portfolio management
• The issues that a company faces related to project delivery has nothing to do with selecting the right projects mix
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Why Florence must die!• What is a Portfolio?
• PMI:“A portfolio is a collection of projects and programs and
other work grouped to facilitate the effective management of that work to meet strategic business
objectives. The components of a portfolio are quantifiable – they can be measured, ranked and
prioritised”
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Strategic Driver 1
Strategic Driver 1
Organisation Vision/MissionOrganisation Vision/Mission
Vision, Strategy & Strategic Drivers
27
StrategyStrategy
Strategic Driver 2
Strategic Driver 2
Strategic Driver 3
Strategic Driver 3
Strategic Driver 4…Strategic Driver 4…
Prioritised PortfolioPrioritised Portfolio
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Do you hold the Royal Flush of Portfolios?
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• What are the odds of a Royal Flush in Poker?
• It shouldn’t be about odds in business
The royal flush is a case of the straight flush. It can be formed 4 ways (one for each suit), giving it a probability of 0.000154% and odds of 649,739 : 1.
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COMPLIANCE MAINTENANCE TACTICAL
The projects we MUST do because of reasons related to Government legislation or existing regulations. We have little choice and we need to get on with understanding the options for how we approach these projects
The projects we SHOULD do because of reasons related to maintaining existing systems and business processes. If we under-invest for too long, we run the risk of breaking our existing operations and systems
The projects we COULD do because of reasons related to changes in the competitive, technological or global environments. We may not always want to respond to each change, but we need to consider them in our planning
29
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The projects we COULD do because of reasons related to new ideas and innovations driven from our customer, staff and expert base. We need to investigate, approve, reject or invest in these innovations
The projects we WOULD do because of reasons related to the setting and achieving of the strategic plan and vision. What are the projects that best help us achieve our stated vision and contribute most to the strategic drivers?
INNOVATION
STRATEGIC
30
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INNOVATION
STRATEGIC
TACTICAL
MAINTENANCE
COMPLIANCE VISION
Gate 3Gate 2Gate 1
Filtered out initiatives
Filtered out initiatives
Filtered out initiatives
• Project Proposals• Execution• Handover to BAU
• Detailed Business Case
• Prioritisation
• Initial Business Case• Option & Impact
Analysis• Prioritisation
Project Categories
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Analysing the Portfolio
V
Project Cost
Str
ate
gic
Valu
e
Y
B
T
$0k $150k $300k $500k$450k
0%
2.5
%5
%7
.5%
10
%
C
G
J L
M
U
W
X KI
N
S D
E
F
Q
P
Z
O
H
A
R?? Colour = Risk
RatingSize = BenefitsShading = Change Management
LEGEND
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The Ten Steps to Portfolio Optimisation
33
Current State
PORTFOLIO OPTIMISATION ACHIEVED
1
2
4
3
6
5
7
8
9
10
Define & Agree Strategic Drivers Define & Agree
Strategic Drivers
Get Executive Support
Get Executive Support
Prioritise & Weight Strategic
Drivers
Prioritise & Weight Strategic
Drivers
Adopt Portfolio
Management Framework
Adopt Portfolio
Management Framework
Implement Portfolio
Governanace
Implement Portfolio
Governanace
Prepare Portfolio
Environment
Prepare Portfolio
Environment
Define & AgreeProject AttributesDefine & Agree
Project Attributes
Perform Portfolio Stocktake
Perform Portfolio Stocktake
Assess, Prioritise, Analyse, & Select
Portfolio
Assess, Prioritise, Analyse, & Select
Portfolio
Track Progress,
Track Benefits
Track Progress,
Track Benefits
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Benefits of getting it RIGHT
• Potential savings of 20% of portfolio value in Year 1
• 30% improvement in time to market for revenue-generating initiatives
• 5% reduction in overall costs
• 59% reduction in project failures
• 78% reduction in redundant projects
• 37% decrease in cost per project
• 35% increase in number of projects under management
Why do Portfolio Management?
50%Value
Achieved
50%Value Lost
100%
66%
0%75% 100%
Eff
ecti
ve S
ele
cti
on
– ‘
Doin
g t
he R
igh
t Th
ing
s’
Iden
tify
ing
Pote
nti
al
Bu
sin
ess V
alu
e
Effective Execution – ‘Doing Things Right ’Realising Business Value
Primary Source: : IDC, September 2008
PortfolioManagemen
t
Pro
ject
Mgt
• Avoid the deadly combination of poor selection and ineffective execution
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Look out for them… beware and be aware of their influence
Norris
Florence
Lawrence
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What else can we do?
• We need to be vigilant• We need to adopt and use these right practices• We need to promote these practices and show
our workplaces how these will make a huge contribution to overall project & programme success
• The Zombies?• Don’t hire them. Make sure you fire them.• Tell everyone about them and where they are.• Name them. Shame them.
37 © Nonsuch Consulting 2014
Like to Know More?• We offer a short 1-hour workshop on each of the Zombies highlighted last
year and today. We will show you how straightforward, valuable and powerful each of these project, programme and portfolio management principles are
• We’ll show you how to apply these in your work environment
• Project Office Consulting & Services including Project Office on Demand (POD)• Project Design & Mobilisation• Project/Programme Office Services• Portfolio Prioritisation & Optimisation• Project & Programme Management Capability Development• Project & Programme Health-checks & Audits• Post-Implementation Benefit Reviews• Project & Programme Rescues• P3M Capability Development & Training• Microsoft Project Training & Consulting
38 © Nonsuch Consulting 2014
Thanks
• Thanks to you all for your attention and attendance today
• Thanks to Microsoft NZ for their sponsorship today• Thanks to the PMI and all sponsors for organising
and helping make this event happen.
• Like what you heard?• Follow me on Twitter on @youssefmourra• Contact me on [email protected] or 021 423 620
for more information.