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Making project management indispensable for business results.®
Strategy and the PMO Imperative
PMI Metrolina Professional Development Day
Steve DelGrosso, PMP
Vice Chair, 2014 PMI Board of Directors
September 2014
Overview
• PMI Board of Director Strategy Setting
• The PMI Vision
• The PMO Imperative
3
Strategy Setting
Watching the Total PMI Environment From
the Outside In
The World (The Macro Environment)
The Industry (The Business Environment)
Our
Organization
(The Transactional
Environment)
• Social
• Technological
• Economic
• Environmental
• Political
Key Forces
Key Factors
• Market size, growth,
and volatility
• Customers
• Competitors
• Suppliers
• Owners
• Communities
• Partners
• Market Conditions
Report
Environmental
Monitoring Using
Scenario Thinking
Watching Market
Conditions
• CEO Report
• Quarterly Report
• BSC Report
• Financial Audit
• Annual Report
© Global Business Network
Tracking PMI
Strategic Plan
Progress
Key Metrics
Scenario Thinking Process
PMI BOD Strategic Dialogue and Planning Cycle
BOD January Meeting
[Data Analysis]
BOD EMEA Meeting
[Synthesis]
BOD NA Meeting
[Decision]
New Patterns
Inp
uts
Pro
ce
ssO
utp
uts
To
ols
Any other reports
ready for BOD
Recommended
changes to BSC
Outputs from
SDOC PRT
Meeting
External Group
Discussion Outputs
Draft Program Plan
and Budget
BSC And/Or CEO
Report
Approved MotionsUpdated Strategic
Plan
Selection of B.I.G.
Strategic Alternative*
Approved Program
Plan and budget
Board Motion Template
Knowledge Based Decision Making and Online Community Forum
Scenario Thinking (Process and Templates)
Approved MotionsUpdated Strategic
Plan
Review Strategic
Risk Register
Version: 9Last Update: 27 Sept 2013
Pattern Recognition
Team Meeting
Act
ors PMI Staff
SDOC Members
BOD Members BOD Members BOD Members
Summary of Key
Pattern ReportsSummary Scenario
Thinking Website
Market Conditions
Report
Signpost
Monitoring Report
PMI Strategic Plan
and Assumptions
PMI Business Model
Discussion of current pattern status Identification of any new patterns and
associated risks Utilize the strategic questions for
board dialogue to identify challenges Develop contingent strategies Test contingent strategies for
robustness on the scenarios
Validation of
Priority Patterns
Pattern Report
Key Pattern Implications (Risks: Threats
and Opportunities) and Contingent
Strategies
Strategic Risk
Register
Market Conditions
Report
Signpost
Monitoring Report
Strategic Risk
Register
Summary Scenario
Thinking Website
PMI Strategic Plan
and Assumptions
PMI Business
Model
Strategic Risk Management Dialogue Bold Ideas Greenhouse Dialogue (as
required)* Emergent & new patterns dialogue Existing, new contingent strategies
dialogue Implications of new patterns on
strategic plan & PMI's business model
Strategic Risk
Register Updated
Directives to address emergent
Patterns
Pattern Update
Reports
Strategic Risk
Register
Strategic Risk Management Dialogue Bold Ideas Greenhouse Dialogue (as
required)* Consideration of any Motions arising
from previous meetings Motion Dialogue and Vote
Strategic Risk
Register Updated
Any other reports
ready for BOD
Pattern Update
Reports
Strategic Risk Management Dialogue Bold Ideas Greenhouse Dialogue (as
required)* Consideration of any Motions arising
from previous meetings Motion Dialogue and Vote
Recommended
changes to BSC
Strategic Risk
Register Updated
Strategic Risk Register
Outputs from
SDOC Pre Board
Meeting
Outputs from
SDOC Pre Board
Meeting
Strategic Risk Register Updated
Strategic Risk
Register
EMG EMG EMG
Bold Ideas Greenhouse (B.I.G.)*
PMI Risk
Framework
PMI Risk
Framework
PMI Risk
Framework
Selection of B.I.G. Strategic Alternative*Selection of B.I.G. Strategic Alternative*
PMI Risk
Framework
*To be confirmed upon completion of B.I.G. pilot
6
PMI Vision
What Does PMI Want to Accomplish?
7
Our Path…
Establish PMI as the preferred source for project, program and portfolio management resources and information (in 3-5 years)…
Our Path…
By providing products and services, community, and content that are credible, findable and easy to use…
Our Path…
To 51 million practitioners, and organizations, around the world who wish to gain competitive advantage by improving their practice of project, program and portfolio management.
Through Differentiation…
Differentiation through Product Leadership
Creating products and services that
that improve the practice of project
management and enable global
networking and community building.
Product Leadership
Differentiation through Thought Leadership
Developing content, tools and
templates that help project managers
get better at what they do and improve
project outcomes in organizations
Thought Leadership
Differentiation through Advocacy
Demonstrating the value of project
management as a strategic business
driver through promoting successful
outcomes and organization best
practices
Advocacy
Differentiation through Partnerships
Co-branding and creating resources
with other like-minded organizations,
including academic institutions, to
advance the practice of project
management
Partnering
16
The PMO Imperative
strategy
implementation
say
of organizations
strategic is
%
1 7
Forrester: Strategic PMOs Play a Vital Role in Driving Business Outcomes
They have a seat
at the executive table
They are a vital part of the strategic planning team
They embrace core competencies
They use consistent objectives across industry and regions
Key Findings
Identity Crisis
?
?
?
?
?
?
The Five PMO Frameworks
Organizational Unit PMO/Business Unit PMO/
Divisional PMO/Departmental PMO 1
Enterprise/Organization-Wide/Strategic/
Corporate/Portfolio/Global PMO 2
Project Support/Services/Controls Office or PMO 3
Center of Excellence/Center of Competency 5
Project-Specific PMO/Project Office/Program Office 4
Organizational Unit PMO/Business Unit PMO/Divisional PMO/ Departmental PMO
Source: Pulse of the Profession®: PMO Frameworks
% Who Have This PMO
in Their Organization
Project/Program Delivery
Management
Standards, Methodologies,
Processes
Portfolio Management Prioritization
Primary Functions Performed (Top 3 with 5 Responding)
54%
46%
15%
15%
Enterprise/Organization-Wide Strategic/Corporate/Portfolio/Global PMO
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.
% Who Have This PMO
in Their Organization
Project/Program Delivery
Management
Standards, Methodologies,
Processes
Portfolio Management Prioritization
Primary Functions Performed (Top 3 with 5 Responding)
39%
30%
25%
20%
Project Support/Services/Controls Office or PMO
Just 37% routinely provide strategic alignment
and just 33% confirm strategic priorities.
% Who Have This PMO
in Their Organization
Project/Program Delivery
Management
Standards, Methodologies,
Processes
Portfolio Management Prioritization
Primary Functions Performed (Top 3 with 5 Responding)
44%
44%
19%
12%
Project-Specific PMO/Project Office/ Program Office
% Who Have This PMO
in Their Organization
Project/Program Delivery
Management
Standards, Methodologies,
Processes
Portfolio Management Prioritization
Primary Functions Performed (Top 3 with 5 Responding)
31%
46%
16%
11%
Center of Excellence/Center of Competency
% Who Have This PMO
in Their Organization
Project/Program Delivery
Management
Standards, Methodologies,
Processes
Portfolio Management Prioritization
Primary Functions Performed (Top 3 with 5 Responding)
35%
41%
24%
14%
EPMOs Enable an Integrated Approach
We do not need
Departments of Commerce,
Labor, and Education;
we need a Single Department
of Skills that will promote
an integrated approach
to global competitiveness.
- Lou Gerstner Former Chair, IBM
PMOs Enable Standardization
• Powers IBM’s project-based transformation
• Corporate programs at individual, organization and enterprise levels
• Responsible for strategic policy
• Office of the Chief Engineer
• Responsible for policies, standards, handbooks, future technologies, oversight, expertise teams, knowledge share
• Responsible for strategic policy
Enterprise-Wide PMOs
IBM: Becoming a Project-Based Enterprise
IBM’s PM Center of Excellence was Established in 1997 via CEO Charter
• Lack of project management discipline was identified as a major factor in project failure
• Project management was viewed as the key to reliably delivering on business commitments
28
IBM: Becoming a Project-Based Enterprise
29
Desired
Outcomes
A community of qualified PM Professionals that lead teams and manage on-time, delivery within scope and cost, reducing risk be the use of project based disciplines.
PM Methods and PM tool set, scalable and adaptable to customer program and project needs, that provide the right level of control to match risk and ensure delivery.
Management Systems, infrastructure and process, that provide visibility to project and program information needed to manage the business effectively.
Focus Build skills of professionals
Put key enablers in place
Make PM systemic to our business
Initiatives
Skills
PM education
PM qualification
PM Knowledge Sharing
PM method
PM tools
Guides
Maturity assessments
Executive involvement
Measurements
Mgmt systems integration
Communications
Competence Practitioner Organizational Stakeholder
Time 1997
IBM: Becoming a Project-Based Enterprise
30
Desired
Outcomes
A community of qualified PM Professionals that lead teams and manage on-time, delivery within scope and cost, reducing risk be the use of project based disciplines.
PM Methods and PM tool set, scalable and adaptable to customer program and project needs, that provide the right level of control to match risk and ensure delivery.
Management Systems, infrastructure and process, that provide visibility to project and program information needed to manage the business effectively.
Focus Build skills of professionals
Put key enablers in place
Make PM systemic to our business
Initiatives
Skills
PM education
PM qualification
PM Knowledge Sharing
PM method
PM tools
Guides
Maturity assessments
Executive involvement
Measurements
Mgmt systems integration
Communications
Competence Practitioner Organizational Stakeholder
Time 1997
IBM: Becoming a Project-Based Enterprise
31
Desired
Outcomes
A community of qualified PM Professionals that lead teams and manage on-time, delivery within scope and cost, reducing risk be the use of project based disciplines.
PM Methods and PM tool set, scalable and adaptable to customer program and project needs, that provide the right level of control to match risk and ensure delivery.
Management Systems, infrastructure and process, that provide visibility to project and program information needed to manage the business effectively.
Focus Build skills of professionals
Put key enablers in place
Make PM systemic to our business
Initiatives
Skills
PM education
PM qualification
PM Knowledge Sharing
PM method
PM tools
Guides
Maturity assessments
Executive involvement
Measurements
Mgmt systems integration
Communications
Competence Practitioner Organizational Stakeholder
Time 1997
IBM: Becoming a Project-Based Enterprise
32
Desired
Outcomes
A community of qualified PM Professionals that lead teams and manage on-time, delivery within scope and cost, reducing risk be the use of project based disciplines.
PM Methods and PM tool set, scalable and adaptable to customer program and project needs, that provide the right level of control to match risk and ensure delivery.
Management Systems, infrastructure and process, that provide visibility to project and program information needed to manage the business effectively.
Focus Build skills of professionals
Put key enablers in place
Make PM systemic to our business
Initiatives
Skills
PM education
PM qualification
PM Knowledge Sharing
PM method
PM tools
Guides
Maturity assessments
Executive involvement
Measurements
Mgmt systems integration
Communications
Competence Practitioner Organizational Stakeholder
Time 1997
IBM: From Products to Solutions – via Projects
33
• Interconnected project teams using technology to leverage assets and common processes
• Instrumented metrics and measurements
• Intelligent practitioners who grow their competency through education, experience, recognition and mentoring
Smarter Projects!
IBM: From Products to Solutions – via Projects
Smarter Methods, tools, and processes
• WWPMM IBM’s World Wide Project Management Method based on PMI’s PMBOK
• IBM Program Work Center is IBM’s strategic Project and Program Management tool
• 7 Keys to Success™ is IBM’s simple to use set of project evaluation metrics that allows consistent reporting from all types of projects
34
Work and schedule are predictable
Business benefits are
being realized
Stakeholders are committed
Scope is realistic and
managed
Team is high performing
Risks are being mitigated
Delivery organization benefits are
being realized
Seven Keys to Success™
35
The Value of Project Management to IBM
• Project Engagement Value
• Business Unit Value
• Corporate Value
Making project management indispensable for business results.®
77%
65% 62% 58% 57%
42% 43%
35%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
PortfolioReporting
StrategicAlignment
Confirmation ofStrategicPriorities
Project Alignmentw/StrategicObjectives
EPMO
Other PMO Type
Organizations that elevate the PMO to a strategic
decision-making level are far more likely to be high performers
High Performing PMO Roadmap
Create an
organizational
culture of project
management Continually
evaluate PMO
performance Evolve and
improve through
knowledge
management
and change
management
and Can Lose Momentum
Large-Scale Change is Hard
The End Game: 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
40
Thank You from the PMI Board of Directors