The First 90 Days of PMO LeadershipAugust 2015

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Agenda

•Introduction

•Buckeye Partners, L.P.

•Enterprise PMO

• Getting Started

•Running In-Place

•PMO Leadership Top 10

•Conclusion

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IntroductionBuckeye Partners, L.P.

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Buckeye Partners, L.P.

•Publicly-traded master limited partnership (NYSE: BPL) that provides mid-stream energy logistics services.

•Owns and operates one of the nation’s largest independent petroleum products common carrier pipeline networks providing refiners, wholesalers, marketers, airlines, railroads and other commercial end-users with dependable, all-weather transportation of refined petroleum products

•Provides terminalling, storage and refined product distribution services. The Partnership owns more than 100 refined petroleum products terminals with an aggregate storage capacity of over 64 million barrels

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Enterprise PMO Organization

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Director, Enterprise PMOConnie Inman

Project Scheduler

John McCarthySr. EngineerBrian Borra

Project Support

John Montalvo

SpecialistAdam Gadra

Tools SupportButler Group

Department PMO(s)

IT PMO

Engineering PM Services

Sr. Vice President, Engineering, Compliance & Services

Joseph SaugerChief Executive Officer (CEO)

Clark Smith

Maintenance Capital Project Budget

Total 2013 Total 2014 Total 2015 Average

Annual Budget Approved $69,405,140 $78,438,100 $100,508,202 $82,783,814

Annual Actuals $71,600,000 $79,943,916 $101,661,082 $84,401,666

Total % Budget Spent 103% 102% 101% 102%

*2015 Actuals are forecasted amounts

Buckeye Enterprise PMO Overview

•MISSION STATEMENT•The Enterprise PMO provides value to stakeholders in the form of standardized tools, training, and processes to support continuous improvement in project execution and delivery

•FUNCTIONAL GOALS•Work with the Leadership Team, program owners, districts in the administration of the Project Board Portfolio•Provide a channel of communication and visibility to the Senior Leadership Team on the status of the total Project Portfolio and Program performance•Cultivate Cross departmental collaboration to strengthen communications and process efficiencies

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Getting StartedEvaluate, Identify, Prioritize, & Plan

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Start Evaluating

•Take Stock of the ground rules and tools for the current state PMO•Current Roles & Responsibilities•Current Tools & Processes•Current Policies & Governance Metrics•Current Fit Within the Organization•Current Perceptions & Expectations of the PMO

•Evaluate the Health of the PMO•Employee Performance•Tools & Process Strength & Impact•Policy Effectiveness, Metrics Performance, and Impact of Non-Compliance•Authority of the PMO•Reputation and Relationship Gaps

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Identify Initiatives

• Define Future State Vision•Alignment to Business Goals•Alignment to Executive Needs•PMO Mission•Career Goals

•Map the Vision•Organizational Structure & Role Responsibilities•Resource Assignments•Process Improvements•Technology: Purchase, Upgrade, or Replace

•Move From Vision to Action•Brainstorm Options•Identify Actions & Initiatives

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Build the Plan

• Prioritize the Initiatives•Organizational, Foundational, Strategic•Code Blue, Red Alerts, Yellow Horizons, Go Greens & White Lights

•Create the Roadmap•Recurring Commitments•Quick Wins•CY Major Initiatives•Functional Organization & Resource Management Plan

•PMO as a Project•Durations, Dates, and Dependencies•Risk Management Plan•Communication Plan•Obtain Sponsor Approval

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Running In PlaceQuick Wins, Marketing, and Metrics

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Process Improvement

• Code Blue•Do it, Assign it, or Contract it but Get it Done•Track it and Report Progress Continually

•Red Alert•Know the Breaking Point that Moves it to Code Blue•Know What’s Good Enough to Move it to Yellow Horizon

•Yellow Horizons•Monitor Regularly•Keep from Moving to Red Alert•What Moves it to Going Green

•Go Green•Solid Green or Lime?•Don’t Neglect

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Marketing Your Efforts

•Determine the Message•Marketing Versus Executing•Different Message per Audience•It’s All in the Timing•Team Buy-in to the Message

•Marketing Plan•Identify Communication Activities and Avenues•Align Events to PMO Roadmap•Determine the Budget•Build the Brand•Sponsor Approval

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Measure What Matters

• Determine What to Measure•Focus on PMO Effectiveness •Baseline Before Governance Compliance

• Tell the Story – From Rags to Riches•Current State•Progress on the Road to Future State•Milestones to be Celebrated•Build Commitment / Motivate through Recognition

• Sample Metrics

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PMO Leadership Top 10Proving Yourself as THE Leader in the First 90 Days

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PMO Leadership Top Ten

1. Zig Zigglar, “People Don’t Care How Much You Know Until They Know How Much You Care”

a) Seek opportunities to listenb) 360 degree interviewsc) Survey in person and online

2. Winston Churchill, “Those That Fail to Learn From History are Doomed to Repeat it”

a) Learn what decisions were made and why

b) How long ago were the decisions made and what has changed since then

c) Don’t presume - ask

3. W. Edwards Deming, “It is not enough to do your best; you must know what to do, and then do your best”a) Build the Roadmapb) Get the team’s buy in and then

the Sponsor’sc) Focus on the doing the right

things first4. Unknown Author, “If the plan

doesn’t work change the plan not the goal”a) Make sure the goal is well definedb) Know the warning signs of when

things are not going rightc) Don’t take it personal – keep

yourself and others focused

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PMO Leadership Top Ten5. Henry Ford, “Don’t find fault, find

a remedy”a) Assume ownership and

accountabilityb) When issues arise ask three

questions: (1) why did it happen; (2) what are the options to resolve it now; (3) how do we prevent it from happening again

6. Tim Fargo, “Arrogance is the camouflage of insecurity”

a) Assume you do NOT have all the answers – seek council

b) Invite others to own the solutions with you

c) Make the best decision you can with the information you have

7. Unknown Author, “Practice the philosophy of continuous improvement – get a little bit better every single day”a) Evolution not revolution, change

should be gradualb) Focus on the adoption of change

not just the changec) Build in transfer of ownership

8. Peter Drucker, “The most important thing in communication is to hear what is being said”a) Learn to read non-verbal

communication queuesb) Questions sell, statements tell –

ask questions that either disprove or prove-out your theories

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PMO Leadership Top Ten

9. Plan Do Check Acta) Plan it out and communicate

the planb) Lead by example – don’t ask of

others what you are unwilling to do yourself

c) Trust but verify – reward the positive

d) Ask the questions – what did we do that worked, what didn’t work, what was missing, what should be removed

e) Ready Aim then Shoot

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10. Laura Numeroff, “If you Give a Mouse a Cookie” a) Don’t allow the deviation to

become the processb) Why is a deviation necessaryc) If people are going around

the process, change the process – don’t add a process to fix a broken process

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Conclusion

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First 90 Days & Beyond

•Evaluate, plan, execute, continually improve

•Fix in-place, measure the delta from the starting point, communicate the wins

•The roadmap is not just for the first 90 days

•Determine what the PMO will be when it grows up and build the brand

•Communication is key - help the PMO team, sponsors, and senior management know the current status, what’s yet to come, and what’s been accomplished all along the way

•Celebrate, Communicate, and Continually Improve

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Questions?

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