PPM Global survey (with outputs)
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The document presents insights from PwC's third global survey on project management, highlighting key findings like the misalignment between 'run the business' and 'change the business' which impacts resources and project success. It emphasizes the importance of effective portfolio management, governance, and the correlation between maturity and performance in project execution. The survey indicates a need for improved stakeholder engagement, training, and formalized methodologies to enhance project delivery and organizational effectiveness.
PPM Global survey (with outputs)
- 1. PPM Global Survey Trends and Insights into Current Project, Programme and Portfolio Practices Presented by: Michael Cooch – Director (PPM) Hosted & Coordinated by: James M Lowe - Senior Manager (PPM) 12 February 2014
- 2. PwC Agenda and timings Registration, refreshments and networking 17:30 – 18:00 Welcome, introduction and key findings 18:00 – 18:25 Q&A session 18:25 – 18:40 Facilitated group session 18:40 – 19:25 Summary and wrap up 19:25 – 19:30 Networking 19:30 – 20:00
- 4. PwC Introduction PwC’s Third Global Survey on the current state of project management contained 146 questions focused on project performance indicators with 1,524 respondents Background: • 8 week web based survey open between December 2011 – January 2012 • PMI network of practitioners was a key channel Objectives • Assess project and programme management correlation to organisational success • Review current trends in project and programme management • Identify organisational gaps in programme management and focus on areas for improvement
- 5. PwC Demographics PwC was able to leverage its global connections to get responses from project practitioners and business executives across 38 countries and over 30 industries Figure 1: Survey participants Figure 2: Survey respondent industries
- 6. PwC Context
- 7. PwC Context Modern enterprises are currently faced with unprecedented levels of change which provides a constant threat to their success and, in many cases, survival • The PwC ‘Run the Business’ (RTB) and ‘Change the Business’ (CTB) model is used throughout this presentation to highlight and contextualise the finding Figure 3: PwC ‘Run the Business’/‘Change the Business’ Model Macro influences ‘Unstable global, and local, market conditions’ ‘Realisation of demo-graphic trends and customer behaviours’ ‘Geo-political policy and regulatory influences’ ‘Rapid technological advancement’ ‘Higher expectations on corporate responsibility and sustainability’ ‘Intense and highly agile competitive Landscape’ Run the business Change the business Alignment and prioritisation Deployment and acceptance Measurement and refinement Measurement and re-balancing Macro influences Operations Programme delivery Strategy and corporate governance Portfolio management and governance
- 8. PwC Summary of key insights Six key insights have been derived from the 2012 PwC Global Survey and contrasted with a number of other studies and observations on emerging Industry PPM themes Misalignment of ‘Run the business’ and ‘Change the business’1 Portfolio Management is a competitive differentiator2 Fit-for-purpose governance strongly influences project and programme success3 Higher performance is correlated with higher maturity4 Project and programme delivery performance is not improving5 People, tools and methodology are under-utilised6
- 10. PwC Misalignment of ‘Run the business’ and ‘Change the business’ ...results in avoidable resource wastage. However organisations are focusing on making limited ‘change’ budgets go further than ever before whilst balancing RTB demands Key findings • There is an emerging trend towards strategic portfolio management functions • Too often programmes operate without involvement from the business and there is therefore a lack of business programme accountability • With increased alignment of projects with business strategy, organisations can expect greater project portfolio impact on business success • Federated budget control is still prevalent but there are examples of centralised control (where strategic programmes cross-divisions or have significant implementation cost or impact) Key question Run the business Change the business Alignment and prioritisation Deployment and acceptance Measurement and refinement Measurement and re-balancing Macro influences Operations Programme delivery Strategy and corporate governance Portfolio management and governance To what extent is your ‘strategic change’ activity managed centrally?
- 11. PwC Misalignment of ‘Run the business’ and ‘Change the business’ 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Lack of effective project leadership Lack of resources with appropriate skill set End users not sufficiently trained to use output Outcome doesn't solve problem identified Business culture resists change End users not engaged during delivery lifecycle Lack of commitment from project resources Solution is unsustainable Lessons are not learnt from previous projects Resources not incentivised achieve the change Critical High “The programme was operating in isolation to us” Client quote “The solution delivered was not sustainable within our organisation” Client quote “We weren’t prepared for the change, and the process for integration was not communicated until too late” Client quote Figure 4: PwC 2012 RTB/CTB Survey Compilation
- 12. PwC Portfolio management is a competitive differentiator ...and its adoption is highly correlated to improvements in key business performance across all indicators of quality, scope, budget, time, and business benefits Key findings • The adoption of Portfolio Management (PfM) has not increased amongst organisations but its use clearly leads to increases in the key performance indicators • The four strongest drivers for making portfolio management effective are: - Active and periodic alignment of the CTB portfolio with the organisation’s strategy and objectives - Deploying an enterprise PMO (and associated tools) to manage the portfolio e.g. Interdependency resolution and neutral QA reviews (stage gates) - Robust benefits definition and management for financial and non-financial measures - Robust delivery performance measurement processes (e.g. resource utilisation, Earned Value, critical path management) Key question How tightly aligned is your organisational strategy to your project portfolio? Figure 5: Survey Respondents Project Management Maturity Model 0% 10% 20% 30% 40% 50% 60% 70% Strategy executed to plan Organisation works on the right projects %PerformanceImprovement Portfolio management and governance Low performance High performance Organisations with a more mature approach to PPM perform better
- 13. PwC Fit-for-purpose governance strongly influences programme and project success ...but surveyed organisations, overall, have not mastered the ability to design it effectively resulting in it being cited as a top contributor to programme and project failure Key findings • Lack of effective key stakeholder engagement often results in a misunderstanding of the benefits and, if unmanaged, political duality • Along with centralised governance for strategic change we are also seeing more ‘c- suite’ and board representation (e.g. Chief Projects Officer -CPO) • In low-performing organisations executive sponsorship is approx 60% less likely to have an appreciation of the strategic value of programme and project management • Business resources do not see or feel the benefit of working on change programmes (often on top of their ‘day job’) resulting in a lack of motivation Key question How active/effective are your governance processes? Do you have RTB/CTB resourcing conflicts? Identify, assess, map and prioritise stakeholders Develop an stakeholder engagement strategy and plan Develop key messages and tailored intervention packs Engagement with stakeholders and measure success Figure 6: PPM Service Catalogue – Governance
- 14. PwC Higher performance is correlated with higher maturity ...but there is a pronounced disconnect between ‘self-diagnosed’ programme and project management maturity and the reality (as measured by industry CMMI/PMI methods) Key findings • Self diagnosis for PM maturity (61% at Mature or Optimised) shows a stark over- estimation of capability when compared with robust industry assessment of the same (10% at Mature or Optimised). • For those organisations who have built genuine, robust programme management capabilities (Level 3 – Established to Level 5 – Optimised) we see strong performance improvement across all indicators • Based on these results further investigation is needed to understand the reasons e.g. - A lack of understanding of the concept of maturity - Softening interpretation of standards - Formal standards are still not widely adopted Key question Do you use PM maturity assessments as a value driver? Where do you sit on the scale? Level 1: Immature 26% Level 2: Established, in need of improvement 34% Level 3: Grown up, more successes than failure 30% Level 4: Mature, very successful 9% Level 5: Best in class 1% Figure 7: Survey Respondents from (CBP) Report
- 15. PwC Project and programme delivery performance is not improving ... although some, lower margin, industries (e.g. construction) are statistically better at delivery than others (e.g. banking) where margins are typically higher Key findings • 86% of projects fail to deliver against their budget, schedule, scope, quality and benefits baseline • Poor estimation continues to be the largest (32%) single contributor to project failures • The governance theme (namely: lack of executive sponsorship, poor communication and lack of stakeholder involvement) contributes even more heavily to failure (36%) • In low-performing organisations PM performance is not measured or owned • 30.7% of respondents believe their organisations do not have suitable succession plans in place (all levels) Key question How important is benefits tracking to your business? Do you track non-financial benefits? Figure 9: Factors contributing to poor project performance when implementing an organisation’s approach to PM *Source: The State of the PMO – 2007-2008 A Benchmark of Current Business Practices Center for Business Practices (CBP) Report
- 16. PwC People, tools and methodology are underutilised ...but provide ‘low hanging fruit’ for improving programme and project execution through training, standardisation and automation Key findings • In low-performing organisations PM staff are much less likely to have formal PM qualifications, hands-on-experience and extensive PM knowledge • Engaged, experienced staff lead to project success • A project staffed with uniformly very low- rated personnel on all capability and experience factors require 11 times as much time to complete a project as would a project team with the highest rating in all the above factors • Commercially available PM software drives higher levels of portfolio performance through data-driven and timely decision-support • 77% of respondents have a PM methodology Key question Is EPM software used in your organisation? ...how well? Do PM resources have targeted training? Figure 10: Types of PfM software in use PwC global project management survey of 236 senior management (2007) The State of the PMO – 2007-2008 A Benchmark of Current Business Practices – Center for Business Practices (CBP) Report
- 18. PwC Breakout group session “How do these trends impact on Governance and how can Governance be used to address them? Do the findings correlate with the APM ‘Directing Change’ methodology?” • We will break you out into groups around each of the 6 key areas • Each group will discuss the above ‘exam question’ and will be asked to feedback on the following three points: - How is Governance impacted by your trend? - How can Governance be used to impact your trend? - What does your trend mean for the APM ‘Directing Change’ guide? • Each group will be facilitated by a PwC colleague Timing: Group discussion – 30 minutes, Feedback – 15 minutes (2 minutes per group)
- 19. PwC Feedback 2 minutes per group to feedback on the following: • How is Governance impacted by your trend? • How can Governance be used to impact your trend? • What does your trend mean for the APM ‘Directing Change’ guide?
- 20. PwC Outputs from 12/02/14 PwC 3rd Global PPM Survey Event for APM Governance SIG: “Trends & Insights into Current PPPM Practices” Run the business and change the business alignment Effective portfolio management as a competitive differentiator Higher performance correlated with higher maturity Project and programme delivery performance is not improving People, tools and methodology are under-utilised Key: Strategic key development area/frequent issue Strategic strength/infrequent issue There is a poor definition of benefits and baseline metrics Business cases are rarely refreshed Misalignment is often a symptom of a breakdown in governance Resources are not effectively balanced between run and change projects often resulting in conflicts Change projects are not given strong enough sponsorship Communication is often lacking and managers often misjudge escalation points Timescales are often out of sync with BAU and change cycles conflicting Managers with ‘pet’ projects can undermine overarching governance efforts Don’t always know what ‘fit for purpose governance’ should look like when it’s done well Strategy formed at board level needs to be understood at all levels There needs to be a common language and methodology Management needs to be more hands on and engage with their teams Need a more objective assessment of out maturity There is not always clear knowledge management and benchmarking Better to do the right things somehow rather than the wrong things well Performance is not always embedded in corporate governance Governance structures are often in place but are not necessarily empowered There aren't always the right people to manage change well. Priorities between projects and BAU are not always agreed at board level Lack of succession plans means there are often resourcing issuesCommunication is not consistent at all levels Considerations for the governance SIG Expectations are not managed well enough Don’t maximise the value of programmes across the business Need to ensure transparency and clear reporting across the organisation There is often a delay from the business case sign off to project start Actions taken are seen as ‘a good thing to do’ rather than being linked to strategy There is often a lack of C-suite understanding and sponsorship Approach needs to vary across industries reflecting client needs. Poor alignment between strategic intent and portfolio activity Value is not always recognised at the top Necessary level of quality and sponsorship is not present Tactical key development area/frequent issue Tactical strength/infrequent issue
- 21. PwC Conclusions
- 22. PwC Concluding remarks and findings from today • The current environment is already highly pressurised with indications that more challenges are ahead. Positioning for organisations is critical i.e. Definition of strategy and the change necessary to achieve it • The seven things organisations should do tomorrow: 1. Undertake unambiguous definition of organisational objectives, derived from strategy, which can be quantified. Projects should then clearly state how they will drive achievement of those objectives 2. Focus more on the interaction between RTB and CTB. Ensure resources who do both activity have clearly defined performance criteria to ensure motivations are aligned to the right outcomes 3. Assess the number/size/impact of cross divisional projects and consider designing an Enterprise Portfolio Management function if significant 4. Ensure project sponsors and stakeholders are actively engaged throughout the lifecycle 5. Embed formalised portfolio and programme maturity assessments, as standard, to identify ongoing opportunities for improvement 6. Consider, if not already in place: (1) a formalised PM training curriculum, (2) Enterprise PM software and (3) creation of a standardised delivery methodology (including estimating tools) 7. Hire proven PM talent (with a strong track record) to drive delivery excellence
- 23. PwC The 4th Global PPM Survey is still open for a few more days… • The 4th Global PPM Survey explores the gap between what is commissioned and what is delivered – even when the business change is delivered ‘successfully’, is the client really getting what they wanted/expected? • There is an executive level questionnaire (c.a. 20 questions) and a practitioner level one (c.a. 50 questions) • Your contributions would be very welcome… you will receive a copy of the full survey report and you will be entered into a prize draw to win an iPad mini The 4th Global PPM Survey closes on 14th February, so there is still time to submit your responses. To participate, visit www.pwc.com/ppmsurvey
- 24. © 2013 PricewaterhouseCoopers LLP. All rights reserved. In this document, "PwC" refers to PricewaterhouseCoopers LLP (a limited liability partnership in the United Kingdom), which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. Thank you!