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Presentation on theme: "This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner."— Presentation transcript:

1 This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2012 Gartner, Inc. and/or its affiliates. All rights reserved. Robert Handler Vice President Gartner Research EPMO – A Tool For The New Normal

2 Successfully Navigating the New Normal Requires an Adaptive Strategy Government, regulatory bodies Labor supply Internet Economic climate Levels of unemployment Competitors Suppliers Markets, clients, customers Globalization of trade Technology Information systems Financial institutions Political ideology Taxes and tax revenue

3 Slow and Steady Doesn't Win the Race Any More

4 The Future Requires Building the Adaptive Organization Current approaches to work need to accelerate Scanning (sensing) needs to become an art form Context (what, why, how) becomes the GPS system for the enterprise Understanding of capabilities becomes a lifeline for rapid response

5 The EPMO Enables The Adaptive Organization 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 going Continued problems with project coordination across silos will further fuel the need for enterprise visibility and coordination of programs and investments Alternate 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.

6 Key Issues 1.What is an Enterprise Program/Portfolio Management Office? 2.Critical steps toward the EPMO? 3.Example case study

7 Defining the Enterprise PMO If you are a PMO in IT Does not make you an EPMO Enterprise adding the word

8 In Uncertain Times, Executives Often Require a Dedicated Staff Function to Help Navigate the Choppy Waters Top 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.

9 The Four Styles of Enterprise Program Management Offices Strategic EPMO Business Transformation Office Reporting EPMO Operational EPMO Transformation Stability Facilitating Controlling

10 Supports executive needs for visibility of what is happening in the organization Primarily fiduciary in orientation Mantra We don't care how you do it – just tell us you are getting it done" The Reporting EPMO (Facilitating Stability)

11 Centralizes ALL project and program execution across the enterprise Generally has staff in the 100s Focused on the "production of projects" Mantra We only do one thing but we do it very well" The Operational EPMO (Controlling Stability)

12 The Three Types of Strategy Top Down Middle Out Emergent

13 Ensures that top down strategy gets executed A 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" The Strategic EPMO (Facilitating Transformation)

14 Facilitates the creation of a new "organization" or the evolution into a new market Focused on building the "web" of relationships necessary to support change Mantra This is how a caterpillar becomes a butterfly Business Transformation Office (BTO) (Controlling Transformation) Photo: Lancaster County Amish by it:Utente:TheCadExpert | CC 3.0 BY-SAit:Utente:TheCadExpert

15 Key Issues 1.What is an Enterprise Program/Portfolio Management Office? 2.Critical steps toward the EPMO? 3.Example case study

16 Understand What is Driving the Need for an EPMO Survival Induced Change Strategy Induced Change Run the Business Planned Improvements Stabilizing Adapting External/Planned Internal/Reactive

17 Decide what the "P" in "EPMO" Stands For? The P always stands for some form of Portfolio management (reporting or investment decisions) In more mature environments EPMO the "P stands for "Program At the highest level of organizational maturity "Project culture and an enterprisewide project capability is added Project Capability Program Portfolio

18 Build the Project Capability Center Skills Methodology training Performance- based competencies Project management training (soft skills) Methodology Project methodology Program methodology Portfolio methodology Resource management Tools Project scheduling Project Web sites Resource scheduling Collaboration Community Building a project culture (performance, results, trust) Sharing tacit knowledge Mentoring Transforming project managers into project leaders Creating high performing teams The Goal of the Project Capability Center is to ensure that the ability to successfully execute projects is a core capability of the enterprise Knowledge Management Lessons Learned Best Practices Sharing tacit knowledge

19 Key Issues 1.What is an Enterprise Program/Portfolio Management Office? 2.Critical steps toward the EPMO? 3.Example case study

20 Example case study - Fifth Third bank (NASDAQ – FITB) Fifth Third Bank Founded in 1862 Headquartered in Cincinnati, Ohio. Fortune #326 Over $5 B in Revenue Over $12.3 B Market Capitalization Over $274 B in Assets under care Super Regional Bank Commercial Banking Branch Banking Consumer Lending Investment Advisors 49% interest in Fifth Third Processing Solutions/ Lines of Business >1,300 full-service banking centers (>100 Bank Marts) >2,450 ATMs 12 States: Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, North Carolina, West Virginia, Pennsylvania, Missouri, and Georgia. Affiliate Model (15 Affiliates)

21 Problem Project redundancies Silo-ed Operational Model (by LOB/by Affiliate) Viewed strictly as an enforcement agency Adoption challenges PMO = IT Governance Enterprise Risks NPI (New Product & Initiative) = Business Case justification + Risk Identification Questionnaires Finances AR (Appropriation Request) = Business Case Justification + Capitalization Worksheets IT Architectures ITAC Review = Business Case Justification + Architecture Questionnaires Redundant/inefficient approval & prioritization of initiatives

22 Results Health On-time Delivery Executive Dashboards Over 900 Active Projects Reviewed & prioritized by Tier 1 / Tier 2 Over 900 Projects Proposals Delegation of Toll Gate Audits except for the Top Level of Rigor IT Compliance self-regulation Paid U.S. Treasury back $ 3.4 B 5/3 emerged from TARP in Q Only 3 U.S. Banks made it in the Top Bloombergs World 7 th Strongest Bank

23 Understand your environment and pace of change Consider the EPMO as a proven tool to embrace change in the new normal Select a model that meets your needs Ensure the basics exist with a project capability center Final Thoughts

24 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 )

25 This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2012 Gartner, Inc. and/or its affiliates. All rights reserved. Robert Handler EPMO – A Tool For The New Normal


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