The Disturbing Reality of Today's PMO

• The Disturbing Reality About Today’s PMO

COMPANY CONFIDENTIAL © 2013 KEYEDIN™ SOLUTIONS

The Disturbing Reality About Today’s PMO

Why You Need to Avoid the Consequences of an Ineffective PPM and PMO Strategy

The Disturbing Reality About Today’s PMO



The Goal

Bridge the Gap Between the PMO and the Rest of the Business



50% of project management offices close within 3 years (Association for Project Mgmt)

Since 2008, the correlated PMO implementation failure rate is over 50% (Gartner Project Manager 2014)

Only a third of all projects were successfully completed on time and on budget over the past year (Standish Group’s CHAOS report)

68% of stakeholders perceive their PMOs to be bureaucratic (2013 Gartner PPM Summit)

Only 40% of projects met schedule, budget and quality goals (IBM Change Management Survey of 1500 execs)

5 Shocking PMO/PPM Statistics

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Primary PPM Functions

Portfolio tracking (performance monitoring) 75%Portfolio governance and oversight68%Portfolio Planning including Resource Allocation66%Portfolio Selection and Prioritization65%Portfolio Management Process Management61%

Source: State of PPM Report 2013



Gartner PPM Maturity Model

Source: Gartner



Consequences of Not Implementing PPM

• Reluctant to kill projects• New projects added• No Focus

• Weak decision points• Poor “Go/kill/hold/fix

decisions

• No rigorous criteria• Selection based on

emotion, politics

• No strategic criteria for project selection

No Portfolio Management Means…

• To many projects• Resources Spread• Execution suffers

• To many low value projects

• Good projects starved

• Wrong projects are selected

• Projects lack strategic direction and alignment

Immediate Impact

• Increased time to market• Higher failure rates

• Too few top product winners

• Chaotic Launches

• Many failures

• Diluted effort• New products don’t

support strategy

End Result:Poor Performance



PMOs have been led astray by all sorts of conflicting organizational demands and

requirements. Quite often if someone doesn’t know where to put something, they dump it into the PMO which quickly morphs into an unwieldy mish

mash of roles and responsibilities with vague terms of reference, uncertain leadership and tense

relationships with the rest of IT.

Source: Itfromhere.com

An All Too Common Scenario…..



Barriers to Adoption• Internal politics & culture: PMOs have to satisfy multiple

stakeholders with differing goals

• Lack of executive sponsorship and top management

commitment to support the PMO

• Inability to agree on a common approach to managing

projects

• Shifting business/project priorities

• Disagreement on the pace of adoption

• Impact on existing processes & software systems

The Internal Challenges



PMOs Focus Too Narrowly• Only 1/3 of respondents support Agile, Scrum, or Lean practices

Lack Of Trust• 58% of respondents think they don’t get realistic info from their PM’s

PMOs Are Too Busy To Be Truly Strategic• 75 percent of surveyed PMOs do hands-on project management

An Analyst Perspective

Forrester Research Identified the Three Most Significant PMO Problems as:

Source: The PMO In An Agile World: Can’t We All Just Get Along?

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…project delivery within an enterprise environment involves the

multifaceted collaborations of the business’ ability to successfully

execute the key project components seamlessly and as a natural

extension of the business rather than as separate, alien and

conflicting entities.

Why Project Delivery Can Be Difficult

Source: PPM Master ClassKeyedIn Solutions



The Good News: Maturity is Growing

Source: PWC 3rd Annual Global Survey on Program and PM Practices



There is Still Much Room to Grow…

Companies who have implemented a PMO:

2% best in class

6% strategic

19% institutionalized

36% established

33% basic

5% informal

But While Maturity is Improving

Source: State of the PMO 2012

8%Only 8 percent of PMOs are Best-in-Class or Strategic!



The Bottom Line:

Characteristics of a Best-in-Class PMO1. Well-defined and achievable objectives

2. Delivers responsibility, governance and oversight

3. Viewed as supporting the business and IT strategy

4. Established methodologies and framework for project management

5. Able to measure and prove the realization of benefits (business value)

6. Outward focus on business needs, not inward focus on processes

7. Practices good relationship management, from executive sponsorship to project management



Time for Technology

You Need Great Technology to Enable PPM and PMO Improvement



Manage Execution

Manage Cost | Billing | Deliverables | Resources | Benefits

Strategy Focused Design

Res

ult

s &

Dat

a V

isib

ility

Go

al & P

roject C

larityExecutive Team

Drive Business Strategy | Achieve Corporate Goals

Project | Program Management Office

Project / Program Portfolio

Resource Plan Expense PlanProject / Program

MilestonesResults Mgmt

Project | Program Managers

Task-Based Planning

Change Management

Risk ManagementProgress

ManagementProgress Status

Reports

Resource Scheduling

Document Management

Issue Management

Create “To Do” Action Items

Management Reporting



Unique Value Proposition

Strategy-led approach

• Strategy-driven implementation• Quick win to prove benefits• Real-time management dashboard

Native SaaS technology

• Load-balancing• Navigation• Rapid application development

Easy adoption• Easy to use; self-service• Fast to live

Highly scalable• Small Business, Professional and

Enterprise Editions• Small projects to large project

programmes and portfolios



Summary

• PMO Failure Rate is High

• Project Execution is not Enough – you must prove the business value of the PMO

• Best-in-class PMOs are a small minority but are seen as strong assets to their organizations

• PPM software provides targeted improvements to the way your PMO operates and how you engage project stakeholders

• A comprehensive cloud-based solution from KeyedIn Solutions can offer both top-down strategy and bottom-up project execution.



Take a Free 15 Day Trial Today• Easy to adopt, easy to use

• Intuitive

• Minimise IT cost and deployment effort

• Delivery is backed by impressive Service Level Agreements

• Interfaces with ERP, CRM or financial/accounting software



Questions and Answers

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The Disturbing Reality of Today's PMO

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