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HOUSTON, TX, USA | 5 – 8 NOVEMBER 2017
#PMOSym
PMO17BR212
Five Transformational Steps Toward Increased Organizational Agility
Iain Fraser, Business Consultant
Jacobite Consulting Ltd
Five Transformational Steps Toward Increased
Organizational Agility
1. Change now!
2. Adopt theme around three Ps to success
3. Operate on elements of value management, portfolio management and
organizational structure
4. Pivot on vision, strategic goals, business objectives and integration
5. Balance risk with opportunity via the continuum of investment
So, why those five?
2
Organizational Agility – Why the Need?
• Nine out of 10 executives say agility is critical for business
success (McKinsey & Co., 2006)
• 90% of executives say vital, and 50% said that rapid
decision making and execution are essential (EIU, 2006)
• 14% more money being wasted if you are not (PMI, 2015)
• The VUCA world
3
Step 1 – Change Now! (Critical to Understand)
• Types & Levels of Change
– Operational (L1), Tactical (L2), Strategic (L3)
• Approaches
– Engineering – mechanical; value methodology- (BPR) based
– Psychological – helping making sense of it all
– Process – just that; used a model for change (e.g., John Kotter, Leading
Change)
– Being vs. doing – powerful conversations that are planned and focused
– Skills-based – innovation, professionalism, collaboration
– Storytelling – sharing the message and giving time to ponder
4
Four Conditions for Change
1. People see leadership actively modeling and advocating.
2. People have the skills to do what is required of them in the
future.
3. People alter their mindset when they see the point of change
and see what it means for them.
4. The surrounding structures, systems and reward systems
support the change objective.
The above are interrelated, not individual items.
The Three Ps to Success will assist hugely.
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Magic Ingredient of Change
– Leadership courage and asking the right questions
• Do you avoid making strong decisions?
• Do you hold back on constructive criticism?
• Do you avoid escalation?
• Are you demanding excellence?
• Are you holding staff accountable?
• Are you doing too much work?
– Head, heart and gut!
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Step 2 - The Three Ps to Success
• Purpose – vision, goals and CSFs, business objectives, culture
• People – empowerment, new skills, accountability and
responsibility
• Performance – light (lite) systems, driving for results, integration
and balance of opex & capex
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Leadership Principles
• Self-mastery – you first, before others
• Focus – together with determination, beat brains and brawn
• Power with people – leaders exercise power with people
• Persuasive communication – Leaders sell whereas others
tell
• Execution – getting things done
• Giving – leaders focus on what they give
Source: You Don’t Need a Title to be a Leader, Mark Sanborn. 2006
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Leadership Styles
• Coercive and commanding – do what I tell you
• Authoritative visionary – come with me
• Affiliate – people come first
• Democratic – what do you think?
• Pace Setting – do as I do, now!
• Coaching - try this Source: Harvard Business Review article , Daniel Goleman, 2000
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Leadership Techniques
• H – Humor those involved
• E – Excite them
• L – Listen to them as appropriate
• P – Praise as often as you can and when relevant
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Step 3 – Have These Elements
• Value management
• Portfolio management
• Organization design and integration
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Value Management Framework
• Value strategy – what does it mean to the organization?
• Value planning – tools, techniques, trade-offs, etc.
• Value engineering – optimizing chosen initiatives
• Value delivery – program of work and project management
• Value capture – benefits realization-based
Source: The Business of Portfolio Management. Iain Fraser. 2017
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VM Framework Model
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Value Levels
• Level 1 – easy to capture; examples are BPR, software upgrades
• Level 2 – quite significant change introduced; needs planning; new
product, new systems, etc.
• Level 3 – difficult!; change of culture, M&A, etc.; needs passion, planning
and expertise
You need a framework that overarches organizational activity.
14
The Rise of Portfolio Management
• Holistic view of organization
• Blend of capex & opex
• Links strategic goals with business implementation objectives
• Much different from program of work and project management
• Seen as highly suitable to combat the VUCA world
15
Portfolio Management Links with Strategy
During the business cycle, components are periodically reviewed and
validated in relation to:
• Alignment with strategic goals and business objectives
• Viability, based on key indicators
• Value and relationship to other components
• Available resources and portfolio priorities
• Addition and deletion of portfolio components
16
Portfolio Management Links with Operations
Interacts with and impacts various operational functions:
• Finance
• HR
• Marketing
• Procurement
• Brand & Corporate Communications
• Risk & Assurance.
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Portfolio Management Success Factors
• Influence the organization’s vision, goals and objectives
• Use a value management framework to determine content
• Establish CSFs and forward path toward achievement of objectives and
portfolios
• Consider all the organization’s work – both capex & opex
• Consider capabilities and capacity
• Change the organization as necessary
Keep it scalable, light and inclusive.
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Organizational Structure
• Get rid of the functional dinosaur!
• Establish a matrix form:
– Weak matrix – people positioned/rented!
– Balanced matrix – people seconded
– Strong matrix – people dedicated
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Which Model?
20
Organizational & P3M Governance
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Step 4 - The Pivot Model
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Performance Excellence…
Time
QualityScope(business planning)
Finance&
Cost
Human Resources& Culture
Brand & Communications
Risk & Opportunity
IntegratedManagement
Procurement(supply chain)
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Integrated
Functions
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Strategic Goals
ScopeManagement Excellence
PROGRAM
PORTFOLIO
PROJECT
Integrated
Solutions
Step 5 – Balance Risk with Opportunity
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Bringing it Together…
Using a Balanced Scorecard Approach(Four Common Perspectives)
Risk & Control
Financial
Strategy & Change
CustomerCommunity &
Colleague
Vision & Strategy
•Objectives, Measures, Targets and Initiatives are identified for each Perspective.•Common to have slight emphasis one 1 Perspective
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Opportunities (Action Plan) for EPMO
• Be responsible for the value management framework and portfolio
management model
• Link to strategic goals and map to business objectives
• Blend opex & capex
• Staffed by business-oriented people
• Use a range of enterprise tools – ERP, EAM, P3M, etc.
• Big picture thinking and action!
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+64 21 479 301
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Contact Information…
