Presentation on theme: "The Power of PMO Leadership October 2008 Copyright 2008 by Point B Solutions Group, LLP. All rights reserved."— Presentation transcript:
The Power of PMO Leadership October 2008 Copyright 2008 by Point B Solutions Group, LLP. All rights reserved.
October 2008PMO LeadershipSlide 2 PMO Leadership Current Business Issues PMO Challenges Project Portfolio Management (PPM) PMO, PPM, and Project Leadership Conclusions
October 2008PMO LeadershipSlide 3 Business Problem 90% of Corporate Strategies Are Never Implemented – Balanced Scorecard Collaborative, 2007 Companies struggle with formulating realistic strategic goals and turning strategy into outcomes
October 2008PMO LeadershipSlide 4 Industry Project Success Measures Standish Group Success: on-time, on-budget, with required features Challenged: late, over-budget, with fewer features Impaired: canceled or delivered but never used
October 2008PMO LeadershipSlide 5 The State of PMOs PMOs have been around for several years, but few are mature
October 2008PMO LeadershipSlide 6 PMO Underachievement PMOs could have much more of a business impact Most PMOs fail for these reasons: Created for the wrong reason Lack of vision Lack of executive sponsorship Poor execution - inconsistent methods, skills, governance Too tactically oriented Poor alignment with the business Lack of leadership Most PMOs end up as order-takers
October 2008PMO LeadershipSlide 7 Positioning For Success Value to Customer Can Uniquely Supply Unique supplier of something nobody wants Commodity Provide something that nobody wants and cant even do it uniquely Strategic Goal Guy Kawasaki
October 2008PMO LeadershipSlide 8 Converting Business Goals into Action Project Portfolio Management connects strategy to execution Why? Because it encourages a discipline of strategic investing It provides transparency It addresses a commonly neglected issue – is the strategic plan feasible? It helps the organization focus on value delivery and execution
October 2008PMO LeadershipSlide 9 What is Project Portfolio Management? PPM - applying the tools and discipline of financial management to project management Portfolios are investments capable of generating value Portfolio considerations Investment strategy ROI Growth Profitability Balance Diversification Risk Alignment to goals, mission
October 2008PMO LeadershipSlide 10 PMO Focus for Strategic Value PMO Terrain Lifecycle Templates Standards Training Change Control Status reports Projects Programs Initiatives Strategy PPM
October 2008PMO LeadershipSlide 11 Project Portfolio Management Goals Align projects to strategy Facilitate the transformation of strategy into results Eliminate marginal and poor project investments Provide a way to evaluate, prioritize, and sequence projects Optimize resource utilization
October 2008PMO LeadershipSlide 12 Breaking PPM Down The Process of PPM
October 2008PMO LeadershipSlide 13 Constructing a Portfolio Project NameMetadataCost
October 2008PMO LeadershipSlide 14 The Portfolio is Your Strategy
October 2008PMO LeadershipSlide 15 Using PPM To Increase Strategic Results Feasible? Two Key Pitfalls PPM Can address: Inadequate Resource Management Inadequate Risk Management
October 2008PMO LeadershipSlide 16 PPM Ensures Feasibility – Capacity Planning Are there enough of the right resources?
October 2008PMO LeadershipSlide 17 PPM Ensures Feasibility – Risk Management Key Factors Contributing to Risk
October 2008PMO LeadershipSlide 18 Risk DNA – Contributing Factors Do we control the plan? Do we know what we are doing? Do we have the commitment to deliver?
October 2008PMO LeadershipSlide 19 Visualizing Risk Using PPM Is there the right balance?
October 2008PMO LeadershipSlide 20 PPM Benefits Project investments discussed strategically Feasibility and risk assessed and mitigated before investing Transparency to stakeholders Resources deployed on only the highest-value projects Detailed trade-offs understood when new ideas are suggested
October 2008PMO LeadershipSlide 21 PPM Summary Project Portfolio Management involves applying the tools and discipline of financial management to project management PPM requires competencies in strategic planning, financial and project management Overall objective of PPM: Manage projects, people, processes, and information assets for maximum business benefit PPM requires leadership to be successful
October 2008PMO LeadershipSlide 22 Project Leadership Project Leadership is expertise that combines the science of project management with the art of leadership essential to solving tough problems and getting business results. PMO/PPM/Project Leaders: See the big picture Get people to agree on priorities Are decisive Accommodate different executive styles, processes do not Are accountable; they address issues and mistakes Understand how to turn vision into reality Conquer uncertainty Deliver results
October 2008PMO LeadershipSlide 23 Managing & Leading Enforcing Standards Resolving Issues Budgeting Planning Reviewing Status Coaching Providing Vision Motivating Aligning Stakeholders Demonstrating Standards and Providing Structure Managers are people who do things right and leaders are people who do the right thing. – Bennis and Nanus, 1985 Most U.S. corporations today are over-managed and under led. – Kotter, Harvard Business Review 2001
October 2008PMO LeadershipSlide 25 Leadership In Action – Strategic Execution The Problem: The client needed to evolve its online platform in order to grow and better serve customers. The Challenge: Complex, transformational projects often fail Project Leadership Behaviors: Created a shared vision and a process for achieving it Established high trust at the executive level Created an entrepreneurial atmosphere focused on execution Garnered crucial support from around the organization Forced tough decisions that kept the project focused and moving forward The Result: A successful open, scalable new technology platform
October 2008PMO LeadershipSlide 26 Project Leadership Testimony Point B brought in a way of thinking that elevated the internal mindset and successfully got us through this inflection point. They helped us focus our innovation and gave us a lasting understanding of how to handle large-scale projects in times of extreme transition. - CEO
October 2008PMO LeadershipSlide 27 Conclusions Business issues abound 90% of corporate strategies are never implemented Project success rates are only 35% Most PMOs rate themselves at 2 out of 5 PMOs should strive to be a business partner, not an order-taker PPM will help improve business results PMOs, PPM, and Project Execution will not be successful without leadership
October 2008PMO LeadershipSlide 28 Contact Information For a copy of these slides or other questions, contact: Gaylord Wahl email@example.com 206.517.2762 firstname.lastname@example.org
October 2008PMO LeadershipSlide 29 About Point B Point B is the first professional services firm focused on project leadership and execution. Founded in 1995, the firm provides a diverse and experienced team of locally-based project leaders to companies in Seattle, Denver, Portland, Phoenix, San Francisco, Los Angeles and Chicago. Organizations ranging in size from startups to Fortune 100 corporations turn to Point B for its ability to step into any segment or role of a mission-critical project and help lead it to success. And, unlike many professional services firms, Point B works exclusively for its clients and does not enter into alliances, reseller agreements, or other relationships that might compromise the firm's objectivity. Point B has attracted top project leaders from various industries by offering a culture that promotes flexible work schedules and well-rounded lifestyles for its more than 300 professionals. Additional information on the firm and its offerings can be viewed online at http://www.pointb.com.http://www.pointb.com