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Shelley GaddiePresidentProject CorpsOctober 12, 2006
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Organizing and Operating toDeliver Value
Portfolio Management andthe PMO
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The Strategic DeliverySystem
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StrategicManagement
ProjectPortfolio
Management
Initiate
Analyze
Design
Strategy
Goals
ObjectivesInternal
Assessment
ExternalAssessment
Initiatives
Approval
Prioritization
Lessons Learned
ProjectManagement
Business Case
Programs & Projects
Ongoing MetricsAnalysis
Build
Validate
Implement
SeniorSenior
LeadershipLeadership
ProjectProject
Portfolio GovernancePortfolio Governance
Project 1Project 1
Project 2Project 2
Project 3Project 3
Shifts for customer andmarket driven change.
Analysis against strategies,goals, objectives.
Prioritization, funding, andcapacity management.
Continuous processimprovement based upon
lessons learned.
Delivery as planned.
PMOPMO
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Initiate
Analyze
Design
Strategy
Goals
ObjectivesInternalAssessment
ExternalAssessment
Initiatives
Approval
Prioritization
Lessons Learned
Business Case
Programs & Projects
Ongoing Metrics
Analysis
Build
Validate
Implement
Project Metrics
Strategic ManagementIdentifies key initiatives, KPIs, and provides aframework for project prioritization.
Performance ManagementEstablishes accountability for financial
performance.Portfolio ManagementMonitors performance against strategic plan.
Incorporates continuous improvements.
Financial ManagementSupports project business case development.
Produces budgets and financial reports.
Tracks project and post-project performance.
Capacity ManagementEstablishes, manages and monitors capacity.
Project ManagementDelivers projects as planned.
Strategic&
PerformanceManagement
Portfolio,Financial
&Capacity
Management
ProjectManagement
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StrategicManagement
ProjectPortfolio
Management
Initiate
Analyze
Design
Strategy
Goals
ObjectivesInternal
Assessment
External
Assessment
Initiatives
Approval
Prioritization
Lessons Learned
ProjectManagement
Business Case
Programs & Projects
Ongoing MetricsAnalysis
Build
Validate
Implement
SeniorSenior
LeadershipLeadership
PMOPMO
Project 1Project 1
Project 2Project 2
Project 3Project 3
Shifts for customer andmarket driven change.
Analysis against strategies,goals, objectives.
Prioritization, funding, andcapacity management.
Continuous processimprovement based upon
lessons learned.
Delivery as planned.
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SeniorSenior
LeadershipLeadership
PMOPMO
Project 1Project 1
Project 2Project 2
Project 3Project 3
Shifts for customer andmarket driven change.
Analysis against strategies,goals, objectives.
Prioritization, funding, andcapacity management.
Continuous processimprovement based upon
lessons learned.
Delivery as planned.
Strategic Planning
Delineation of strategies and initiatives intoproject portfolio.
Performance ManagementOperational, e.g., balanced scorecard, and
individual performance measurement ofproject and post-project benefit realization.
Portfolio Management
Project portfolio governance, i.e.,
operations and reporting.
Financial Management
Integration of project portfolio financialmanagement, i.e., budgeting and reporting,into standard financial management
system.
Capacity ManagementMeasurement of capacity to fund anddeliver work and digest change.
Project ManagementStandards, training, and performance
monitoring.
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Two PMOs &Their Search for Value
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National BankDramatically Declining MarginsAggressive 2-Year Turnaround Plan
Eliminate RedundanciesCut CostsAdd Value
The Call to Action
Develop and execute a 1-yearturnaround plan to gain control ofthe enterprise project portfolioand demonstrate product andservice value.
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Global RetailerNew LeadershipAggressive 10-Year Expansion Plan
10% Annual Sales Growth4% Annual Store Growth8% Annual Customer Growth
The Call to Action
Develop a PMO business planthat delivers immediate and longterm value and directly supportsdelivery of the 10-Year ExpansionPlan.
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Level 5 Optimized
Level 1 Performed
Level 4 QuantitativelyManaged
Level 3 Defined
Level 2 Managed
Capability Maturity ModelIntegration (CMMI) is a processimprovement approach that
provides organizations with theessential elements of effectiveprocesses. It can be used toguide process improvementacross a project, a division, oran entire organization.
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Level 5 - OptimizationContinuous Improvement Based uponCurrent Business Objectives
Level 4 Quantitatively Managed
Lifecycle Quantitative and Qualitative MetricsPredictable Performance
Level 3 DefinedStandard and Consistently Applied across EnterpriseProcesses Proactively Managed and Improved
Level 2 ManagedPlanned with Visibility to Status and Deliverables
Repeatable within Project, Group or Function
Level 1 Performed
Dependent on IndividualsAd Hoc with Unpredictable Results
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PerformedProject management processes are ad hoc.
Project results are unpredictable.Project success is dependent on heroics of individuals and teams.
ManagedRepeatable processes are practiced on a project level.
Project management process discipline is maintained through times of stress.Visibility to project status and delivery of work products at defined intervals.
Focus on Methodology & Processes
Driver: Project Delivery Predictability
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DefinedProject management processes are defined, understood, and consistently applied from an
organizational perspective.Project management processes are proactively managed and improved.
ManagedRepeatable processes are practiced on a project level.Project management process discipline is maintained through times of stress.Visibility to project status and delivery of work products at defined intervals.
Focus on Tools
Driver: On-time/On-budget Performance
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Quantitatively ManagedProject performance and product quality are quantitatively measured.
A repository of project and portfolio performance measures exists to support fact based decisionmaking.
DefinedProject management processes are defined, understood, and consistently applied from an organizationalperspective.Project management processes are proactively managed and improved.
Focus on PMO
Driver: Project Management Excellence
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OptimizationProject delivery, governance, and project portfolio performance continually improve through
quantitative measures and analysis based upon current business objectives.
Quantitatively ManagedProject performance and product quality are quantitatively measured.A repository of project and portfolio performance measures exists to support fact based decision making.
Focus on Governance
Driver: Strategic Value
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Level 1 Methodology & Processes
Level 5 - Optimization
Level 4 Governance
Level 3 PMO
Level 2 Tools
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The PM Value Framework
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Level 2
Internal
Tactical
Strategic
External
Level 1
Level 4Level 3
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Centralized
Knowledge
&
Metrics
Methodology&
Processes
Tools
Governance
Internal
Tactical
Strategic
External
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PMO
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Tactical & Internal:
Standard project lifecycle andmanagement processes.
Tactical & External:Internal and external project scope,
schedule, budget and resourcemanagement supported by standardcommunications and reporting processes.
Strategic & Internal:Enterprise project reporting, monitoring,analysis and internal and externalbenchmarking and closed loopimprovement processes.
Strategic & External:Enterprise project portfolio quantitativeand qualitative analysis and closed loopbenefits realization processes.
MethodologyMethodology
&&
ProcessesProcesses
Strategic
Tactical
ExternalInternal
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ToolsTools
Strategic
Tactical
ExternalInternal
Tactical & Internal:Project schedule and managementtools and systems.
Tactical & External:
Scope, schedule, budget, resourcemanagement, communication andreporting tools and systems.
Strategic & Internal:Project portfolio management andoversight tools and systems.
Strategic & External:Portfolio performance measurement,benefits realization, andaccountability tools and systems.
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CentralizedCentralized
KnowledgeKnowledge
BaseBase
&&
MetricsMetrics
Strategic
Tactical
ExternalInternal
Tactical & Internal:Project management knowledgecenter, performance standards andmetrics.
Tactical & External:Communication for enterprise usewith centralized customer feedbackand lessons learned improvementand communications.
Strategic & Internal:Project portfolio managementknowledge center, performancestandards and metrics.
Strategic & External:Project portfolio performancestandards and metrics based uponbusiness plan and forecast.
Centralized Knowledge Base &
Metrics
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GovernanceGovernance
Strategic
Tactical
ExternalInternal
Tactical & Internal:Project deliverable and milestonebased governance.
Tactical & External:
Project governancecommunications, and reporting.
Strategic & Internal:Project portfolio governance.
Strategic & External:Project portfolio lifecycleperformance governance.
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Value equalsenterprise wide
improvement basedupon internal and
externalbenchmarking.
Value equals
simplicity, ease ofapplication,
scalability and validbusiness cases.
Value equalsshared information
for improvedmanagement,efficiency and
increased control.
Value equalsalignment with
current businessgoals and closed
loop benefitrealization.
Internal
Tactical
Strategic
External
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The PM ValueFramework Applied
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Mission
Strategic:
Demonstrate bottom line
valueRealign and reorganize
Drive the 2-year turnaround
Control the project portfolio
Tactical:Demonstrate customersatisfaction
Scale products and services
Eliminate multiple PMOs
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Defined
Performed Managed
Quantitatively
Managed
MethodologyMethodology&&
ProcessesProcesses
Defined
Performed Managed
Quantitatively
Managed
PMOPMO
Defined
Performed Managed
Quantitatively
Managed
GovernanceGovernance
Defined
Performed Managed
Quantitatively
Managed
ToolsTools
Tactical
Internal External
Strategic PMO
Dabbling and spread too thin.
Work and value not visible.
Methodology & Processes
Usability and scalability issues.
No authority or accountability.
ToolsLimited practical applicability.
Reporting at the expense ofinformation.
GovernanceProject level only.
Inconsistent
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Defined
Performed Managed
Quantitatively
Managed
MethodologyMethodology&&
ProcessesProcesses
Defined
Performed Managed
Quantitatively
Managed
PMOPMO
Defined
Performed Managed
Quantitatively
Managed
GovernanceGovernance
Defined
Performed Managed
Quantitatively
Managed
ToolsTools
Tactical
Internal External
Strategic PMO
Report to member of ELTShift to strategic role and redefinebreadth of products and services.Close departmental PMOs, reorganizeand improve skills.
Methodology & ProcessesSimplify and scale.Clarify roles, responsibilities andaccountability.
ToolsIdentify, redesign and integrate existingsystems.
Redesign reporting systems.
GovernanceEstablish an integrated enterprisegovernance system and supportingprocesses.
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Mission
Strategic
Organize and operate forhighest value
Benchmark for best practices
Organize for high performance
Tactical:
Drive the delivery of currentinitiatives
24 ongoing
16 new
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Defined
Performed Managed
Quantitatively
Managed
MethodologyMethodology&&
ProcessesProcesses
Defined
Performed Managed
Quantitatively
ManagedCentralizedCentralized
Knowledge BaseKnowledge Base
&&
MetricsMetrics
Defined
Performed Managed
Quantitatively
Managed
GovernanceGovernance
Defined
Performed Managed
Quantitatively
Managed
ToolsTools
Tactical
Internal External
Strategic PMO
Strategic value defined:Role and responsibilities.Products and services.
A comprehensive matrixed staffingplan.
Methodology & ProcessesSimple and scalable.Built to deliver, report, measure andgovern through post-project life.Leverage and integrate the six keyPM value processes.
Tools
More than a PPM system - Acomplex integrated system of toolssupporting the six key PM valueprocesses.
Governance
Driven by governance of thebusiness plan.
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Project management is one discipline amongmany required to deliver strategic value.
A philosophical and operational partnership withfinance is key.
Project management must anchor in theenterprise business plan.
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Project management must operate and executeat both the tactical and strategic level.
Project management must embrace and lead thecharge for post project benefit measurement andaccountability.
Project management must assess and delivervalue based upon our organization s selfidentified delivery and performance weaknesses.
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Defined
Performed Managed
Quantitatively
Managed
MethodologyMethodology&&
ProcessesProcesses
Defined
Performed Managed
Quantitatively
ManagedCentralizedCentralized
Knowledge BaseKnowledge Base
&&
MetricsMetrics
Defined
Performed Managed
Quantitatively
Managed
GovernanceGovernance
Defined
Performed Managed
Quantitatively
Managed
ToolsTools
Tactical
Internal External
Strategic
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Portfolio Management & ThePMO
Questions & Answers
Shelley GaddiePresidentProject CorpsOctober 12, 2006
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