the zombies of program, project office and portfolio management
DESCRIPTION
This presentation is about the misuse and misunderstanding of the concepts around Program Management, Project Offices and Portfolio Management. We need to look out for these Zombies and eradicate them!TRANSCRIPT
The Zombies of Programme & Portfolio Management
‘How lazy habits and bad attitudes in Programme and Portfolio Management continue to manifest themselves’
PMINZ National Conference 2013Auckland11th September 2013
Level 3, 38 Waring Taylor St, Wellington +64 4 913 6789
72 Paul Matthews Rd, Albany, Auckland +64 9 414 6543
www.lps.co.nz
Presented byYoussef MourraManaging Partner, ConsultingLexel Project Services
2 © Lexel Project Services 2013
Me – Youssef Mourra
• Managing Partner – Consulting, Lexel Project Services• Over 20 years' experience in the world of project, programme and portfolio
management (P3M).• Past experience with PIPC, Cognizant, Ernst & Young, Cap Gemini in Australia,
France and the UK. Worked in Europe, Asia and America• For the past 10 years have been based in NZ (Wellington) and has gained
experience with a number of clients both in the private and public sector. • Led hundreds of consulting engagements ranging from complex project and
programme rescues, mobilisation of project offices, to implementation of project management information systems.
• Recognised as a trusted advisor by a number of 'C' level executives and project offices throughout the APAC region.
3 © Lexel Project Services 2013
The Zombies of Project Management
Boris
Doris
Morris
Horace
4 © Lexel Project Services 2013
Meet BorisBenefits Management Zombie
• Benefits can’t be measured• It’s too hard• Cynical about the reasons
benefits are identified and cynical about how they are quantified
• Just get on with the project because it’s a great idea
5 © Lexel Project Services 2013
Meet HoraceSchedule Management Zombie
• Horace believes that you can control a project without a schedule.
• Too much emphasis is placed on schedules and ties Project Managers down
• He believes you should instinctively understand how your project is going and just focus on a few key dates
• What’s the point of a schedule if it keeps changing. Just an unnecessary distraction
6 © Lexel Project Services 2013
Meet MorrisAgile Zombie
• Morris believes that Agile is a project management process in itself
• He objects to any attempt to use the term ‘waterfall’ near it.
• He believes {in a particularly maniacal way} that any attempt to use a schedule or any planning controls of any sort is a threat to his Agile projects
• He believes PMBOK and PRINCE2 are outdated.
7 © Lexel Project Services 2013
Meet DorisChange Management Zombie
• Business or Organisational Change Management is a luxury that most projects can’t afford
• Delivering the project is paramount and the rest is just fluff.
• ‘If an organisation wants to make a change, then people should accept it and adopt it immediately. Why should an organisation invest in all of this touchy feely stuff?’
8 © Lexel Project Services 2013
…that was then. This is now…
9 © Lexel Project Services 2013
The events & characteristics depicted in this presentation are fictitious. Any similarity to any person living or brain dead is merely coincidental.
Yeah Right
10 © Lexel Project Services 2013
Introducing….the Zombies of Programme & Portfolio Management
Norris
Florence
Lawrence
11 © Lexel Project Services 2013
Meet NorrisProgramme Manager Zombie
12 © Lexel Project Services 2013
What Norris believes…• That a good Programme Manager is someone who manages multiple
projects• Programme Management is the natural progression in the evolution
of a Senior Project Manager• Programme Management is about aggregating the key information
and dates from each of the individual projects and reporting that up the line
• The focus of Programme Management is producing on producing a result, an output, and handing it over to the business. This makes the Programme Manager accountable and therefore top dog
13 © Lexel Project Services 2013
Why Norris must die!• Norris has got this all wrong
• The focus is on Benefits, Change, Dependency & Integration Management• Best Programme Managers come from the business, they have deep SME
experience. They are not glorified or even experienced Project Managers. There is no natural or automatic continuum from PA to PC to PM to Senior PM and then Programme Manager
• The focus of Time, Cost, Scope & Quality can be addressed by Project Managers & Programme Administrators, it’s not the focus of the Programme Manager
• The whole focus of a Programme Manager is on delivering a business benefit by pulling together the various projects and helping transform or deliver a major outcome which is supported by effective Business Change Management. They are responsible but the Programme Sponsor or Senior Responsible Owner maintains the accountability.
14 © Lexel Project Services 2013
Focus Areas
14
Program Management
Dependency Management
Resource Management
Define the resources
Allocate, Monitor and Refine Release
Change Management
Unfreeze Transition State
Lock changes in so they don’t revert back
Managing the Change
Preparing for Change
Reinforcing the Change
Benefits Management
Benefits Identification
Benefits Quantification
Benefits Tracking
Benefits Realisation
Identify the Program
Define the Program
Close the Program
Deliver the Program
Deliver the Capability
Realising the Benefits
Managing the
Tranches
Review and Prepare
Establish
Products delivered and Transitioned to BAU
Identify Macro Dependencies
Manage and Monitor Macro/Micro Dependencies
Move Refreeze
Resource demand Resource utilisation
15 © Lexel Project Services 2013
Unfreeze Move Refreeze
Programme Manager
Outputs/Products/Deliverables
Benefits Realisation(Business Intelligence)
Benefits Identified and Quantified(Business Case & Strategy)
Change Management Project Management
Outcomes / Benefits
Benefits Management
Benefits Tracking(Benefits Reporting)
Project Manager A
Programme Management
Project Manager B
16 © Lexel Project Services 2013
Meet LawrenceProject Office Zombie
17 © Lexel Project Services 2013
What Lawrence believes…• There is no difference between a Project Management Office, a
Programme Management Office and an Enterprise Portfolio Office• Project Offices are about enforcing policies, standards and methodologies• The primary purpose of a Project Office is to conduct audits (preferably
random) to catch practitioners out• Project Offices are there to identify those who are not ticking the boxes
and following every step of the methodology and to call this out• All projects are the same and every step of the methodology needs to be
followed, there is no room for flexibility• The first step to achieving greater PPM maturity is to install a Project
Portfolio Management toolset
18 © Lexel Project Services 2013
Why Lawrence must die!• Each of these offices has a specific role
• Project Management Office is a temporary office set up to provide support to a temporary organisation – a project.
• Programme Management Office is a temporary office configured to provide support to a defined programme of work and can exist for a number of years, the duration of the programme
• Enterprise Portfolio Office is a permanent office sponsored and supported by the Executive to provide key decision support material to help the Executive ensure the organisation’s portfolio remains aligned to the agreed organisation’s strategy.
19 © Lexel Project Services 2013
Project Offices
19
Enterprise Portfolio Office
Programme Management Office
Project Office
Doing the ‘right’ projects
Doing the projects right
StrategyPortfolio
Management
Programme Management
Project Management
20 © Lexel Project Services 2013
PMOs rated by Support vs. Reach
Ex
ecu
tive
Su
pp
ort
&
Bu
y-i
n
Low High
Low
HighX
ED
Y
A
C
?
B
Enterprise Visibility & Reach
You?
‘Policing’
‘Monitoring’‘Supporting’Z
‘Leading’
V
W
21 © Lexel Project Services 2013
Eddie Obeng’s Project Types
21
Project objectives clear
Project objectives not clear
Project management, processes, corporate knowledge and tools
well developed
Project management, processes, corporate knowledge and tools
not well developed
Fog
Movie
Paint by
Numbers
Quest
22 © Lexel Project Services 2013
Project Flexibility
22
Distilled Distilled is for large, complex engagements, typically strategic projects
Mini Mini is for small, simple engagements, typically tactical projects
Lite Lite is for medium, detailed engagements, can be tactical or strategic projects
Fast Fast is for engagements that need to be ‘fast tracked’ through to delivery
Must Must is guidelines to use in conjunction with one of the above methodologies for engagements that need to be implemented to meet compliance
Assignment Assignment is for ‘Business as Usual’ repeatable engagements, with one key deliverable
23 © Lexel Project Services 2013
PPM Toolsets
23
Enterprise Portfolio Office
Programme Management Office
Project Office
Choosing the ‘right’ projects
Doing the ‘right’ projects right
Strategy
Organisational Requirement & Support
2. People / Capability 3. Process / Frameworks 4. Toolsets/SystemsG
overnance & C
ontrolInfo
rmat
ion
& V
isib
ility
24 © Lexel Project Services 2013
Meet FlorencePortfolio Management Zombie
25 © Lexel Project Services 2013
What Florence believes…• Their organisation will never be mature enough to understand
portfolio management• It’s not their job to promote Portfolio Management to the Executive,
it’s up to the Executive to ask for it• Consolidating as much information as possible on the projects and
programmes in their company, without breaking into a sweat and avoiding probing into the ‘sacred cow’ projects, constitutes portfolio management
• The issues that a company faces related to project delivery has nothing to do with selecting the right projects mix
26 © Lexel Project Services 2013
Why Florence must die!• What is a Portfolio?
• PMI:“A portfolio is a collection of projects and programs and other work
grouped to facilitate the effective management of that work to meet strategic business objectives. The components of a portfolio are
quantifiable – they can be measured, ranked and prioritised”
27 © Lexel Project Services 2013
Strategic Driver 1
Strategic Driver 1
Organisation Vision/MissionOrganisation Vision/Mission
Vision, Strategy & Strategic Drivers
27
StrategyStrategy
Strategic Driver 2
Strategic Driver 2
Strategic Driver 3
Strategic Driver 3
Strategic Driver 4…Strategic Driver 4…
Prioritised PortfolioPrioritised Portfolio
28 © Lexel Project Services 2013
Do you hold the Royal Flush of Portfolios?
28
• What are the odds of a Royal Flush in Poker?
• It shouldn’t be about odds in business
The royal flush is a case of the straight flush. It can be formed 4 ways (one for each suit), giving it a probability of 0.000154% and odds of 649,739 : 1.
29 © Lexel Project Services 2013
COMPLIANCE MAINTENANCE TACTICAL
The projects we MUST do because of reasons related to Government legislation or existing regulations. We have little choice and we need to get on with understanding the options for how we approach these projects
The projects we SHOULD do because of reasons related to maintaining existing systems and business processes. If we under-invest for too long, we run the risk of breaking our existing operations and systems
The projects we COULD do because of reasons related to changes in the competitive, technological or global environments. We may not always want to respond to each change, but we need to consider them in our planning
29
30 © Lexel Project Services 2013
The projects we COULD do because of reasons related to new ideas and innovations driven from our customer, staff and expert base. We need to investigate, approve, reject or invest in these innovations
The projects we WOULD do because of reasons related to the setting and achieving of the strategic plan and vision. What are the projects that best help us achieve our stated vision and contribute most to the strategic drivers?
INNOVATIONSTRATEGIC
30
3131 © Lexel Project Services 2013
INNOVATION
STRATEGIC
TACTICAL
MAINTENANCE
COMPLIANCE VISION
Gate 3Gate 2Gate 1
Filtered out initiatives
Filtered out initiatives
Filtered out initiatives
• Project Proposals• Execution• Handover to BAU
• Detailed Business Case
• Prioritisation
• Initial Business Case• Option & Impact
Analysis• Prioritisation
Project Categories
32 © Lexel Project Services 201332
Analysing the Portfolio
V
Project Cost
Str
ate
gic
Va
lue
Y
B
T
$0k $150k $300k $500k$450k
0%
2.5
%5
%7
.5%
10
%
C
G
J L
M
U
W
X KI
N
S D
E
F
Q
P
Z
O
H
A
R?? Colour = Risk
RatingSize = BenefitsShading = Change Management
LEGEND
33 © Lexel Project Services 2013
The Ten Steps to Portfolio Optimisation
33
Current State
PORTFOLIO OPTIMISATION ACHIEVED
1
2
4
3
6
5
7
8
9
10
Define & Agree Strategic Drivers Define & Agree
Strategic Drivers
Get Executive Support
Get Executive Support
Prioritise & Weight Strategic
Drivers
Prioritise & Weight Strategic
Drivers
Adopt Portfolio
Management Framework
Adopt Portfolio
Management Framework
Implement Portfolio
Governanace
Implement Portfolio
Governanace
Prepare Portfolio
Environment
Prepare Portfolio
Environment
Define & AgreeProject AttributesDefine & Agree
Project Attributes
Perform Portfolio Stocktake
Perform Portfolio Stocktake
Assess, Prioritise, Analyse, & Select
Portfolio
Assess, Prioritise, Analyse, & Select
Portfolio
Track Progress,
Track Benefits
Track Progress,
Track Benefits
34 © Lexel Project Services 2013
Benefits of getting it RIGHT
• Potential savings of 20% of portfolio value in Year 1
• 30% improvement in time to market for revenue-generating initiatives
• 5% reduction in overall costs• 59% reduction in project
failures• 78% reduction in redundant
projects• 37% decrease in cost per
project• 35% increase in number of
projects under management
Why do Portfolio Management?
50%Value
Achieved
50%Value Lost
100%
66%
0%75% 100%E
ffe
cti
ve
Se
lec
tio
n –
‘D
oin
g t
he
Rig
ht
Th
ing
s’
Iden
tify
ing
Po
ten
tial
Bu
sin
ess
Val
ue
Effective Execution – ‘Doing Things Right ’Realising Business Value
Primary Source: : IDC, September 2008
PortfolioManagement
ProjectM
gt
• Avoid the deadly combination of poor selection and ineffective execution
35 © Lexel Project Services 2013
Look out for them… beware and be aware of their influence
Norris
Florence
Lawrence
36 © Lexel Project Services 2013
What else can we do?
• We need to be vigilant• We need to adopt and use these right practices• We need to promote these practices and show
our workplaces how these will make a huge contribution to overall project & programme success
• The Zombies?• Don’t hire them. Make sure you fire them.• Tell everyone about them and where they are.• Name them. Shame them.
37 © Lexel Project Services 2013
Like to Know More?• We offer a short 1-hour workshop on each of the Zombies highlighted last
year and today. We will show you how straightforward, valuable and powerful each of these project, programme and portfolio management principles are
• We’ll show you how to apply these in your work environment
• Project Office Consulting & Services including Project Office on Demand (POD)• Project Design & Mobilisation• Project/Programme Office Services• Portfolio Prioritisation & Optimisation• Project & Programme Management Capability Development• Project & Programme Health-checks & Audits• Post-Implementation Benefit Reviews• Project & Programme Rescues• P3M Capability Development & Training• Microsoft Project Training & Consulting
Visit us at the Lexel Project Services Exhibit over the next two days
38 © Lexel Project Services 2013
Thanks
• Thanks to you all for your attention and attendance today• Thanks to Microsoft NZ for their sponsorship today• Thanks to the PMI and all sponsors for organising and helping
make this event happen.• Go New Zealand!
• Like what you heard?• Follow me on Twitter on @youssefmourra• Contact me on [email protected] or 021 423 620 for more
information.