1 Successfully Navigating the New Normal Requires an Adaptive Strategy Government, regulatory bodiesCompetitorsSuppliersLevels of unemploymentEconomic climateTechnologyGlobalization of tradeLabor supplyInternetInformation systemsPolitical ideologyFinancial institutionsTaxes and tax revenuePostindustrial reality:• The direction of change is unpredictable.• The pace of change is unpredictable.• The nature of change is unpredictable.• Past results cannot predict future results.• The impact of change cannot be controlled.Markets, clients, customers
2 Slow and Steady Doesn't Win the Race Any More Program Managers are struggling to find innovative ways to deliver business value under conditions of high uncertainty and short time frames.Adaptive program management is one way to make that happen. In this presentation we'll map out a low-overhead approach to program management that is flexible enough to keep everything going in the right direction no matter how complex or uncertain a program might prove to be.This image comes from the Project Gutenberg archives. This is an image that has come from a book or document for which the American copyright has expired and this image is in the public domain in the United States and possibly other countries. https://commons.wikimedia.org/wiki/File:The_Tortoise_and_the_Hare_-_Project_Gutenberg_etext_19993.jpg#filelinks
3 The Future Requires Building the Adaptive Organization Current approaches to work need to accelerateScanning (sensing) needs to become an art formContext (what, why, how) becomes the GPS system for the enterpriseUnderstanding of capabilities becomes a lifeline for rapid response
4 The EPMO Enables The Adaptive Organization Strategic Planning Assumption: By 2015, 60% of the Fortune 1000 will establish an EPMO to improve the value created by investments in projects and programs.By 2015, 60% of the Fortune 1000 will establish an EPMO to improve the value created by investments in projects and programs.Supporting the Strategic Planning Assumption:With continued pressure on financial accountability, organizations will require enterprise-level visibility of where their money is goingContinued problems with project coordination across silos will further fuel the need for enterprise visibility and coordination of programs and investmentsAlternate position to the Strategic Planning Assumption:Organizations have the structure that suits their real objectives. A strong PMO is often perceived as a threat to other senior managers.Most PMOs are in IT — a weak PMO operating in a weak matrixed management environment allows the squeaky wheel to get greased.Organizations are increasingly concerned with understanding the value that their investment in projects and programs is actually creating.The strategy execution gap has gone from something pundits write about to something companies are actively beginning to close as quickly and effectively as possible.The need to proactively rationalize cross-silo dependencies is driving a need to establish an organization at the enterprise level that is chartered with keeping everyone focused on building toward the same strategic outcome.The economic environment in which organizations find themselves is driving their decision to adopt one of the four common styles of an enterprise PMO (EPMO).
5 Key Issues What is an Enterprise Program/Portfolio Management Office? Critical steps toward the EPMO?Example case study
6 Defining the Enterprise PMO If you are a PMO in ITadding the wordEnterpriseDoes not make you an EPMO
7 Top Management becomes more involved when: In Uncertain Times, Executives Often Require a Dedicated Staff Function to Help Navigate the Choppy WatersTop Management becomes more involved when:The current business model of the enterprise is under attack.It's clear that long-term viability of the enterprise is in jeopardy.Planned growth is so significant someone needs to keep an eye on things.Top Management tends to leave well enough alone when the "outlook" is stable.If success lies in a combination of being pulled with just the right amount of push. What conditions underlie the "pull state"? The most common that we've seen stem from three sources (though there are clearly more).The first is that there is a current (possibly short term) issue with the viability of the current business model. Easy credit, inexpensive raw materials, even price supports can all be factors that have made enterprises competitive in the past but now leave them vulnerable in our current volatile economy. The second factor is that organizations all exist in an ecosystem. A partner can become a competitor, or a new product from a company in another industry can suddenly emerge as a competitive product in the eye of the customer. The third driver is executive vision. In discussions with one client, they shared that top management had made the decision that since everyone else in their industry was scrambling to survive (which they weren’t) now was the time to make changes and investments designed to make them the dominant player in the industry.
8 The Four Styles of Enterprise Program Management Offices TransformationStabilityFacilitatingControllingStrategic EPMOBusiness Transformation OfficeReporting EPMOOperational EPMO
9 The Reporting EPMO (Facilitating Stability) Supports executive needs for visibility of what is happening in the organizationPrimarily fiduciary in orientationMantra“We don't care how you do it – just tell us you are getting it done"
10 The Operational EPMO (Controlling Stability) Centralizes ALL project and program execution across the enterpriseGenerally has staff in the 100sFocused on the "production of projects"Mantra“We only do one thing but we do it very well"
11 The Three Types of Strategy Top DownMiddle OutEmergent
12 The Strategic EPMO (Facilitating Transformation) Ensures that top down strategy gets executedA small group of specialists that facilitate agreement about what to do and how to do it.Mantra"It's all about realizing the value of our strategy"MISSIONSTRATEGYCOMMUNICATIONCHANGE MANAGEMENTSUCCESSTACTICSBUSINESSRESOURCES
13 Business Transformation Office (BTO) (Controlling Transformation) Facilitates the creation of a new "organization" or the evolution into a new marketFocused on building the "web" of relationships necessary to support changeMantra“This is how a caterpillar becomes a butterfly”Photo: Lancaster County Amish by it:Utente:TheCadExpert | CC 3.0 BY-SA
14 Key Issues What is an Enterprise Program/Portfolio Management Office? Critical steps toward the EPMO?Example case study
15 Understand What is Driving the Need for an EPMO Survival Induced ChangeStrategy Induced ChangeRun the BusinessPlanned ImprovementsStabilizingAdaptingExternal/PlannedInternal/Reactive
16 Decide what the "P" in "EPMO" Stands For? Project CapabilityProgramPortfolioThe “P” always stands for some form of Portfolio management (reporting or investment decisions)In more mature environments EPMO the "P“ stands for "ProgramAt the highest level of organizational maturity "Project culture and an enterprisewide project capability is added
17 Build the Project Capability Center The Goal of the Project Capability Center is to ensure that the ability to successfully execute projects is a core capability of the enterpriseSkillsMethodology trainingPerformance- based competenciesProject management training (soft skills)MethodologyProject methodologyProgram methodologyPortfolio methodologyResource managementToolsProject schedulingProject Web sitesResource schedulingCollaborationMentoringTransforming project managers into project leadersCreating high performing teamsKnowledge ManagementLessons LearnedBest PracticesSharing tacit knowledgeCommunityBuilding a project culture (performance, results, trust)Sharing tacit knowledge
18 Key Issues What is an Enterprise Program/Portfolio Management Office? Critical steps toward the EPMO?Example case study
19 Example case study - Fifth Third bank Placeholder for text (substitute your own text; delete when not used)Fifth Third Bank(NASDAQ – FITB)Super Regional BankFounded in 1862Headquartered in Cincinnati, Ohio.Fortune #326Over $5 B in RevenueOver $12.3 B Market CapitalizationOver $274 B in Assets under careLines of BusinessCommercial BankingBranch BankingConsumer LendingInvestment Advisors49% interest in Fifth Third Processing Solutions/Affiliate Model (15 Affiliates)>1,300 full-service banking centers (>100 Bank Marts)>2,450 ATMs12 States: Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, North Carolina, West Virginia, Pennsylvania, Missouri, and Georgia.
20 Problem Redundant/inefficient approval & prioritization of initiatives “Silo-ed” Operational Model (by LOB/by Affiliate)Project redundanciesPMO = IT GovernanceViewed strictly as an enforcement agencyAdoption challengesRedundant/inefficient approval & prioritization of initiativesEnterprise Risk’s NPI (New Product & Initiative) = Business Case justification + Risk Identification QuestionnairesFinance’s AR (Appropriation Request) = Business Case Justification + Capitalization WorksheetsIT Architecture’s ITAC Review = Business Case Justification + Architecture Questionnaires
21 Results Over 900 Active Projects Over 900 Projects Proposals HealthOn-time DeliveryExecutive DashboardsOver 900 Projects ProposalsReviewed & prioritized by Tier 1 / Tier 2IT Compliance self-regulationDelegation of Toll Gate Audits except for the Top Level of Rigor5/3 emerged from TARP in Q1 2011Paid U.S. Treasury back $ 3.4 B2011 Bloomberg’s World 7th Strongest BankOnly 3 U.S. Banks made it in the Top 20
22 Final Thoughts Understand your environment and pace of change Consider the EPMO as a proven tool to embrace change in the new normalSelect a model that meets your needsEnsure the basics exist with a project capability center
23 Recommended Gartner Research Predicts 2013: PPM Leaders Must Embrace Constant Innovation and Change Handler, Fitzgerald, Light, Apfel, Mieritz, Olding & Hanford (G )Deciding Which of Four EPMO Styles Is Right for Your Organization Fitzgerald & Hanford (G )PMO Versus EPMO: Symbiosis or Open Warfare Fitzgerald & Hanford (G )The Enterprise PMO: An Emerging Force in Strategy Realization Donna Fitzgerald (G )Is Your Organization Ready for an Enterprise PMO? Donna Fitzgerald (G )