Making project management indispensable for business results.®

Strategic Initiative Management: The PMO ImperativePresented to PMI Croatia, PMI Forum 2015Dr. Al Zeitoun, PhD, PMP2015 PMI Board of Directors

12 November 2015

PMO Thought Leadership Series: Strategic Initiative Management

Forrester: Strategic PMOs Play a Vital Role in Driving Business Outcomes

Key Findings

1. They have a seat at the executive table

2. They are a vital part of the strategic planning team

3. They embrace core competencies

4. They use consistent objectives across industries and regions

Identity Crisis

The Five PMO Frameworks

1. Organizational Unit PMO/Business Unit PMO/ Divisional PMO/Departmental PMO

2. Enterprise/Organization-wide/Strategic/ Corporate/Portfolio/Global PMO

3. Project Support/Services/Controls Office or PMO

4. Center of Excellence/Center of Competency

5. Project-Specific PMO/Project Office/ Program Office

Organizational Unit PMO/Business Unit PMO/Divisional PMO/ Departmental PMO

% Who Have This PMO In Their Organization: 54%

Primary Functions Performed

Project/Program Delivery Management: 46%

Standards, Methodologies, Processes: 15%

Portfolio Management Prioritization: 15%

Source: Pulse of the Profession®: PMO Frameworks

Example: PMO to Standardize Product Development

Over 40 years experience

More than 13,000 employees worldwide

25 locations in 15 countries

Enterprise/Organization-wide Strategic/Corporate/Portfolio/Global PMO

% Who Have This PMO In Their Organization: 39%

Primary Functions Performed

Project/Program Delivery Management: 30%

Standards, Methodologies, Processes: 25%

Portfolio Management Prioritization: 20%

Source: Pulse of the Profession®: PMO Frameworks

65% more likely than other PMO types to routinely confirm strategic priorities, and to be involved with the alignment of projects to strategic objectives.

Example: EPMOs Enable an Integrated Approach

I came to see, in my time at IBM, that culture isn’t just one aspect of the game – it is thegame. In the end, an organization is nothing more than a collective capacity of its people to create value.

Louis Gerstner, former CEO of IBM,Who Says Elephants Can’t Dance

Comgás PMO

8,000 km of pipeline

Over 1 million customers in 77 cities

– 978,000 households

– 12,000 commercial & industrial customers

25% of Brazil’s GDP comes from the Comgás concession area

30% of Brazil’s total gas sales

Project Support/Services/Controls Office or PMO

% Who Have This PMO In Their Organization: 44%

Primary Functions Performed

Project/Program Delivery Management: 44%

Standards, Methodologies, Processes: 19%

Portfolio Management Prioritization: 12%

Just 37% routinely provide strategic alignment and just 33%confirm strategic priorities

Example: Canada Health Infoway

An independent, federally-funded, not-for-profit organization tasked with accelerating the development of electronic health records

Center of Excellence/Center of Competency

% Who Have This PMO In Their Organization: 35%

Primary Functions Performed

Project/Program Delivery Management: 41%

Standards, Methodologies, Processes: 24%

Portfolio Management Prioritization: 14%

Examples: PMOs Enable Standardization

Enterprise-wide PMO

• Powers IBM’s project-based transformation

• Corporate programs at individual, organization and enterprise levels

• Responsible for strategic policy

Enterprise-wide PMO

• Office of the Chief Engineer

• Responsible for policies, standards, handbooks, future technologies, oversight, expertise teams, knowledge share

• Responsible for strategic policy

Project-Specific PMO/Project Office/Program Office

% Who Have This PMO In Their Organization: 31%

Primary Functions Performed

Project/Program Delivery Management: 46%

Standards, Methodologies, Processes: 16%

Portfolio Management Prioritization: 11%

PMO Alignment Impacts Strategy Implementation

Source: Pulse of the Profession® In-Depth Report: The Impact of PMOs on Strategy Implementation

Nearly half of project-specific PMOs indicate they have realized their full potential in contributing business value to the organization

Just 33% of those responding to our survey stated that theirPMO realized its full potential in contributing business value to the organization.

0%

20%

40%

60%

80%77%

65%62%

58%57%

42%43%

35%

EPMO

Other PMO Type

Organizations that elevate the PMO to a strategic decision-making level are far more likely to be high performers

What High Performers Do

High Performing PMO Roadmap

Create an Organizational Culture of Project Management

Successful PMOs don’t just execute strategy. They take part in its formulation.

Failure

43% of PMO leaders say the key to increasing effectiveness includes a better understanding of project management organization-wide

30% cited a lack of awareness of the benefits of a PMO to the organization

PMI’s Pulse of the Profession® In-Depth Report: The Impact of PMOs on Strategy Implementation

Engaging Senior Leaders

1. Focus on critical initiatives

2. Institute smart and simple processes

3. Foster talent and capabilities

4. Encourage a culture of change

BCG (Boston Consulting Group). Strategic Initiative Management: The PMO Imperative

Continually Evaluate PMO Performance

High Performers

Routinely provide performance reporting and performance

management

– Assessment of key metrics, KPIs, compliance and financial

performance

Are more likely to routinely look for ways to incorporate

process development and improvement

Continually Evaluate PMO Performance

High Performers Routinely provide performance

reporting and performance management– Assessment of key metrics, KPIs,

compliance and financial

Routinely look for ways to incorporate process development and improvement

Evaluate Your C-Suite Communications to Incorporate Strategic Organizational Shifts and Lessons Learned

Continual assessments enable the transfer of valuable knowledge gained with each strategic implementation

Large-scale change is hard and can lose momentum

Summing Up: High Performing PMOs

Are perceived as integral to strategy implementation

Have financial support and skilled employees

Have a high-level of decision-making authority

Have influence at the C-suite level