it pmo governance

IT PMO GOVERNANCE

Presentation

By

Thomas Silvestri

June 14, 2016

The Silvestri Group – Shape Shifting the Future

Digital Age of IT Investments

PMO GOVERNANCE OVERVIEW

Today's modern IT PMO governance are superior delivery experts in project driven delivery, technology powered, business centric, and BI enabled. IT leaders must embrace constant pressures, changes, and innovation. The capital investment portfolio and primary decisions criteria for which programs and projects are funded remains a mystery for most IT departments lack of visibility to the decision-making processes of their corporate boards and CEO's.


“Annually 25% of total IT investment capital leakage approximately a net loss of $125M on $1B CAPEX invested.” ~CIO Magazine 2016

PMO GOVERNANCE SUMMARY IT Governance and program management industry reports provide me information on the status of the project itself, however if I wanted to know how a project was really going in financial terms, I had to get out and speak to the stakeholders, budget analysts, and related administrators within the organization. Top-down messages that are too general or full of "enterprise-speak" leave much open to interpretation and do not enable those in the organization who will need the PMO support the change management to take specific action on IT investments in the digital era.

Digital Business Hierarchy

• Integration Services

• Digital Ecosystem

• Bimodal IT

• Postmodern application strategies

• Internet of Things

• Sustainable competitive advantage

• Volatile business relationships


PMO GOVERNANCE STRATEGY On average, over 20% of projects will fail as businesses are unable to sense and respond to the project risks and challenges for superior implementation causing a massive capital leakage across all industries. The tracking of performance and accountability provides a means for IT governance process and policy control, with no financial functions capturing the activity-based costing expenditures that account for the millions of dollars wasted on failed projects annually.

Strategic Accountability

• Unhappy project team

• Lack of executive sponsorship

• Dissatisfied or disengaged PM’s/Leads

• Lack of collaboration

• Lack of communication

• Disorganized meetings


PMO GOVERNANCE ALIGNMENT

• Cost of PPM increase at a faster rate than the project benefits can be realized including the NPV and total TCO.

• Senior management does not participate in leadership and support roles due to the continued lack of success rates and project deliverables, thus eroding the relationship in the business cultural dynamics.

• Lack of predictability and oversight of the project portfolio, capital requirements, change in operations priorities, and relative factors of outside-in pressures.

• 30% delivery success rates for IT governance and project portfolio with a 70% failure rate to deliver their expected business benefits and outcomes.


PMO DIGITAL BUSINESS CASES Integration Services - Reshaping your integration strategy toward a bimodal and self-service "pervasive integration" approach is required to achieve sustainable advantage in the frantically evolving and increasingly digital business world. Follow our five integration best practices to successfully tackle this challenge.

Digital Ecosystem — a "nonintegrated digital business" is an oxymoron. Digitalization does give organizations an opportunity to establish personalized and responsive relationships by enabling "right-time" integration with their constituents via social media, business networks, mobile applications and APIs.

Bimodal IT — To support the digital era's rapid pace of change, organizations of every size, in every geography and in every industry are increasingly looking at a two-speed (bimodal) IT strategies where slowly evolving, "run the business" IT systems (Mode 1) need to coexist and interoperate with fast-changing and innovative "transform the business" initiatives (Mode 2).


PMO DIGITAL FRAMEWORKS


PMO DIGITAL BUSINESS CASES Postmodern application strategies — often, organizations look at cloud as the primary source of innovation in business applications and technology platforms — while trying to reduce their IT operation costs. However, cloud services must be integrated with established, usually on-premises, system-of-record applications in the context of postmodern application strategies.

Internet of Things — The Internet of Things (IoT) can enable unprecedented degrees of efficiency and business model innovation. However, it also requires organizations to integrate the new world of "smart things" and the data they produce with back-end business processes, data and analytical environments.

Sustainable competitive advantage — Modern technologies (such as social, mobile, analytics, cloud and the IoT) are easily accessible to any organization, but also to its competitors. They can therefore give organizations short-term, first-mover benefits; but, alone, cannot help to build a sustainable competitive advantage. Organizations can, however, maintain differentiation through original, smart and fast integration of such technologies (see Note 1).


PMO DIGITAL CITIZENS Business users' adoption of these platforms to address this class of "personal" integration needs is giving rise to the phenomenon of "citizen integrators" (see "Embrace the Citizen Integrator Approach to Improve Business Users' Productivity and Agility”). You cannot ignore this phenomenon; it's going to happen whether you approve it or not. You have to manage it, because you don't want individual business users to pursue DIY integration in a spontaneous, unregulated fashion. Ungoverned DIY integration would potentially expose your organization to the same risks that stem from unmanaged adaptive integration — only an order of magnitude higher.


PMO DIGITAL CITIZEN FRAMEWORKS


PMO KEY CHALLENGES

Influence: This is where failure starts - IT leaders assume everyone understands the objectives of the business transformation, and fail to develop a common vision that unifies everyone's understanding and drives the business direction. Communication: Conflicting messages about what is changing splinter the audience and, ultimately, will derail a transformation effort. Actionable Intelligence: Top-down messages that are too general or full of "enterprise-speak" leave much open to interpretation and do not enable those in the organization who will need to support the change to take specific action. Change Management and Training: Organizational change activities are often an afterthought and commonly associated with training.

IT PMO Implementation


PMO KEY FINDINGS

Make the re-envisioning of your PMO digital transformation strategy a top priority, because a holistic, pervasive and "high touch" bimodal integration approach is an entry ticket to the digital era and the PMO Governance maturity model. Encourage and enable global systems and platform investments and governance by driving transformational support and guardrails for all encompassing spectrum of users. The systematic and adaptive modeling through a "facilitation team" that complements business and IT management to build centralized PMO organizations. Develop new innovation models for internal and external application development (AD) project leaders into a design-for-interoperability approach by pushing an decision-making business driven API-first style supported by appropriate technology.


Final Conclusions

The Silvestri Group

SHAPE SHIFTING THE FUTURE. BEYOND TRANSFORMATION TO SUPERIOR DELIVERY.

Unlock your potential, challenge your established universe of thoughts to achieve new paradigms of thinking for global business superiority.

Partner with agile, adaptive, forward value capabilities to co-create platforms of success with stakeholders and key global partners.

Thomas Silvestri Managing Director

773.597.5754 www.thomassilvestri.com

[email protected]


http://www.thomassilvestri.com/

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it pmo governance

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