The Business Driven PMO Andy Jordan. Presented by Andy Jordan June 11 th 2015 PMO Conference, London...
17
The Business Driven PMO Andy Jordan
Transcript of The Business Driven PMO Andy Jordan. Presented by Andy Jordan June 11 th 2015 PMO Conference, London...
The Business Driven PMO
Andy Jordan
Presented by Andy Jordan
June 11th 2015PMO Conference, London
The Business Driven PMO
The role of the PMO in driving success through portfolio execution
PMOs and Portfolios◦ What is a Portfolio?
◦ The Portfolio Lifecycle
PMO Relationships◦ Portfolio Hub
◦ Relationships – Up and Out
◦ Driving Strategy Execution
Strategic Project Execution◦ Principles
◦ The Sub-Portfolio Manager
◦ Evolving Project Management
Making it Happen
Agenda
What is a Portfolio?
Portfolio
Program A
Project 1
Project 2
Program B
Project 3
Project 4
Project 5
Program C
Project 6
Project 7
Conso
lidate
d Info
rmati
on
Stra
tegic M
anagem
entX
Vehicle for delivering strategic priorities Aligned with goals and objectives May be multiple portfolios
◦ Departmental
◦ Business function
◦ Product
◦ Regional
◦ Etc.
A portfolio is the management framework for effective project execution
And shouldn’t that be what a PMO does?
What is a Portfolio?
The Portfolio Lifecycle
Idea Business Case Selection Execution Benefits Realisation
Project
P o r t f o l i o Portfolio begins with the seeds of an idea and lives
through the harvesting of the benefits
Successful portfolios need nurturing at all stages of development
The implication is that the PMO spans all portfolio elements and all portfolio departments
The Portfolio Lifecycle
Idea
• Encouragement• Capture• Tracking• Collaboration• Preliminary
Screening• Prioritisation• Enhancement
Business Case
• Standardisation• Objectivity• Consistency• Completeness• Focus• Presentation
Selection
• Capability• Capacity• Modeling• Constraint
Projections• Throttling• Scheduling• Reserves
Execution
• Results Focus• Portfolio
Perspective• PM Support• Stakeholder
Support• Resource
Management• Throttling• Change
Management
Benefits Realisation
• Objectivity• Accountability• Sustainability• Management
Costs• Consistency
Is That the Reality in Most Organizations?
Before the project
Viewed as a departmental responsibility
Ideas compartmentalized
Business cases inconsistent
Proposals champion departmental priorities over organizational
Politics plays a major role in selection
After the project
Returns to operational silo
Little to no benefits tracking
No accountability
Does that maximize the ability to achieve the organizational goals?
Slide 8
The PMO as Portfolio Hub
PMOExecutives (Strategy)
Departments
(Application)
Projects (Execution)
Central Services (Support,
Alignment)
Com
munica
tion
Inte
gra
tion
Colla
bora
tion
Ad
justm
ent
PMO Relationships
PMO
Executives & Functional Leaders
Broader Stakeholders
Entire Organisation
PMO must focus relationships ‘up and out’ to the organisation
at large, not ‘down and in’ to project execution functions
This may result in PMO handing off project functions to a PM Centre of Excellence
type function
PMO Drives Strategy Execution
Enterprise wide facilitator of idea capture and enhancement
Independent subject matter expert in planning and selection
Benefits focused alignment driver during project execution
Validator of outcomes and manager of deltas Driver of change / adjustments in response to
variances
Strategic Project Execution
STRAT
EGY
If the PMO doesn’t provide a strategic portfolio framework then projects will make deliverable focused decisions that ignore the organizational goals
Projects cannot be managed as self contained entities – they are part of the organizational ecosystem
Effective project management means understanding how the project fits within that ecosystem
Execution – Context = Failure
Deliverables are only relevant to the extent that they deliver business results
A project can only be successful if it delivers its planned benefits
Change decisions are often driven by the project’s alignment rather than anything internal to the project
Project management is a sub-discipline of portfolio management
Priorities and expectations are dynamic and must be managed as such
Principles of Strategic Execution
The Sub-Portfolio ManagerBenefits not Deliverables
Business Acumen not Triple Constraint
Part of Ecosystem not Standalone Initiative
Strategic Execution not Tactical Delivery
Sub-Portfolio Management
No one cares about the ‘what’ if the ‘why’ isn’t
achieved
Judgment beats blind delivery
every single timeSuccess can only occur in
partnership with the rest of the
portfolio
Big picture thinking drives results, short
term focus drives mistakes
Evolving Project Management
Business AcumenIndustry & Organization UnderstandingBenefits FocusPortfolio IntegrationStrategy Driven ChangeLeadershipCollaboration
Deliverables FocusConstraint Driven DecisionsSelf Containment / IndependenceProject Driven ChangeManagement
More
Less
Clear, business focused mandate with ‘real’ support
Realistic roadmap across all strategic elements (planning through benefits)
Integration with all areas – Finance, HR (recruitment), Projects, Operations
Cyclical implementation approach with validation of benefits at each phase
Consistency!
Making it Happen
