The Business Driven PMO Andy Jordan The Business

The Business Driven PMO Andy Jordan

The Business Driven PMO The role of the PMO in driving success through portfolio execution Presented by Andy Jordan June 11 th 2015 PMO Conference, London

Agenda � PMOs and Portfolios ◦ What is a Portfolio? ◦ The Portfolio Lifecycle � PMO Relationships ◦ Portfolio Hub ◦ Relationships – Up and Out ◦ Driving Strategy Execution � Strategic Project Execution ◦ Principles ◦ The Sub-Portfolio Manager ◦ Evolving Project Management � Making it Happen

What is a Portfolio? Program A Program B Program C Project 1 Project 3 Project 6 Project 2 Project 4 Project 7 Project 5 Strategic Management Consolidated Information Portfolio

What is a Portfolio? � Vehicle for delivering strategic priorities � Aligned with goals and objectives � May be multiple portfolios ◦ ◦ ◦ Departmental Business function Product Regional Etc. A portfolio is the management framework for effective project execution And shouldn’t that be what a PMO does?

The Portfolio Lifecycle Project Idea Business Case Selection Execution Benefits Realisation P o r t f o l i o Portfolio begins with the seeds of an idea and lives through the harvesting of the benefits Successful portfolios need nurturing at all stages of development The implication is that the PMO spans all portfolio elements and all portfolio departments

The Portfolio Lifecycle Idea Business Case • Encouragement • Capture • Tracking • Collaboration • Preliminary Screening • Prioritisation • Enhancement • Standardisation • Objectivity • Consistency • Completeness • Focus • Presentation Selection • Capability • Capacity • Modeling • Constraint Projections • Throttling • Scheduling • Reserves Execution • Results Focus • Portfolio Perspective • PM Support • Stakeholder Support • Resource Management • Throttling • Change Management Benefits Realisation • Objectivity • Accountability • Sustainability • Management Costs • Consistency

Is That the Reality in Most Organizations? Before the project After the project Viewed as a departmental responsibility Returns to operational silo Ideas compartmentalized Little to no benefits tracking Business cases inconsistent No accountability Proposals champion departmental priorities over organizational Politics plays a major role in selection Does that maximize the ability to achieve the organizational goals? Slide 8

The PMO as Portfolio Hub Executives (Strategy) PMO Central Services (Support, Alignment) Collaboration Adjustment Projects (Execution) Communication Integration Departments (Application)

PMO Relationships PMO must focus relationships ‘up and out’ to the organisation at large, not ‘down and in’ to project execution functions This may result in PMO handing off project functions to a PM Centre of Excellence type function Entire Organisation Broader Stakeholders Executives & Functional Leaders PMO

PMO Drives Strategy Execution � Enterprise wide facilitator of idea capture and enhancement � Independent subject matter expert in planning and selection � Benefits focused alignment driver during project execution � Validator � Driver of outcomes and manager of deltas of change / adjustments in response to variances

Strategic Project Execution If the PMO doesn’t provide a strategic portfolio framework then projects will make deliverable focused decisions that ignore the organizational goals Projects cannot be managed as self contained entities – they are part of the organizational ecosystem Effective project management means understanding how the project fits within that ecosystem Execution – Context = Failure

Principles of Strategic Execution � Deliverables are only relevant to the extent that they deliver business results �A project can only be successful if it delivers its planned benefits � Change decisions are often driven by the project’s alignment rather than anything internal to the project � Project management is a sub-discipline of portfolio management � Priorities and expectations are dynamic and must be managed as such

The Sub-Portfolio Manager Benefits not Deliverables No one cares about the ‘what’ if the ‘why’ isn’t Success can only achieved occur in partnership with the rest of the portfolio Business Acumen not Triple Constraint Sub. Portfolio Management Part of Ecosystem not Standalone Initiative Judgment beats blind delivery every single time Big picture thinking drives results, short term focus drives mistakes Strategic Execution not Tactical Delivery

More Evolving Project Management Business Acumen Industry & Organization Understanding Benefits Focus Portfolio Integration Strategy Driven Change Leadership Collaboration Deliverables Focus Constraint Driven Decisions Self Containment / Independence Project Driven Change Management Less

Making it Happen � Clear, business focused mandate with ‘real’ support � Realistic roadmap across all strategic elements (planning through benefits) � Integration with all areas – Finance, HR (recruitment), Projects, Operations � Cyclical implementation approach with validation of benefits at each phase � Consistency!

Questions? andy. jordan@roffensian. com @Roffensian. PM www. roffensian. com