PMO - Delivering Business Results
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The document outlines the challenges facing CIOs in adapting to evolving business demands, highlighting the need for PMO (Project Management Office) effectiveness and alignment with business strategy. It introduces the PMO Accelerator, a framework designed to enhance PMO relevance and performance by combining agile, lean, and PMI methodologies to improve project delivery and stakeholder value. Key recommendations include strategic portfolio management and robust program delivery management to ensure that projects align with business objectives and optimize resources.
PMO - Delivering Business Results
- 1. PMO – Delivering Business Value… Five Keys to Success…. and How we can help !
- 2. Meet George… Page § 2 George M. CIO Major US Airport
- 3. The Changing Business Landscape – Realities confronting CIOs today… Rising Expectations Consumers/staff want the same personalized, on- demand treatment they are used to in their personal lives 37% of U.S. information workers use non-IT supported technologies at work Changing Business Models New competitors, new business models, are competing for IT budgets There has been a 30% proliferation in the IT Outsourcing space Financial Pressures Innovation Everywhere Innovation can come from anywhere, anyone, and at anytime Greater than 50% of new product innovation come from customers, suppliers and partners Less than 2% of 2500 global companies analyzed by AT Kearney showed increased in IT spend in 2011 IT budgets are being reduced and asked to do more with less while maintaining the same level of quality Page § 3
- 4. Improve Operational Efficiency Increase network utilization, streamline operations, and extract more value? Increase Customer Satisfaction Proactively prevent issues from degrading business operations " and provide reliable access to applications? Speed Time to Value Increase return on my existing and new IT investments? How Do I… Increasing Pressures on Leadership Grow My Business Capture new business opportunities and align IT investments to business strategy? Reduce Risk Ensure business continuity, regulatory compliance and security? Page § 4
- 5. Marshalling the troops to solve current challenges…. Page § 5
- 6. Laying out the IT Landscape Analyzing the Desired Business Needs Next-Generation Solutions Video Services Mobile Services Cloud/Managed Services Video Enabler Mobile Enabler Cloud/Managed Enabler Consumer & Business Experience Web 2.0Web 2.0 CollaborationCollaboration Technology Transformation! Service Transformation! Operations Transformation! IT Focus Improve operational efficiencies, optimize costs, and assure the services and end-user experience Smoothly transition the infrastructure to quickly scale and achieve cost efficiencies Enable new services, monetization models, mitigate risk and accelerated time to market
- 7. PMO is launched to address – Business pressing challenges PMO Finance! Marketing! Investments! Enhancements to financial systems Operations! IT updages, operations Systems! HR tools & Support CRM New Database Deployment Campaigns! New system to track leads
- 8. PMO Performance!Business Expectations! PMO Performance Assessment Business agility! Customer responsiveness! Cost-effective strategy ! for business process transformation! ! Projects coming in late! Projects are experiencing cost over runs! Quality of projects are poor! Delivering projects that organization does not need! Why did this happening?
- 9. PMOs projects had no impact on the overall company’s strategy PMO had no formal methodology and framework to govern their PMOs PMO was a Process Tyrants – Most PMOs are focused on process adherence rather than deliver business value 9 Deadly Sins Every PMO Should Avoid
- 10. PMO attempted to solve world hunger – The PMO took on more than its charter allowed The PMO was focused on gathering and reporting information that were irrelevant to business decision making Lack of transparency and visibility – Over 56% of the respondent ranked PMO visibility as marginal 9 Deadly Sins Every PMO Should Avoid
- 11. PMO lost its executive sponsorship hence there was no connection to the C-suite The PMO forgot its #1 goal is to communicate with all of its stakeholders – there was no basic infrastructure for communications The PMO failed to deliver strategic value to the business it is often perceived as a cost center 9 Deadly Sins Every PMO Should Avoid
- 12. Page § 12 Why did this PMO fail? Are all your Project and Programs really necessary? Which one will help you deliver your strategic objectives? What financial benefits will they give you? How much is your change portfolio impacting your business? How much is it costing you? 1 2 3 4 5 If budgets are reduced which projects will you put on hold? Impact? Do you have the right resources to delivery your projects? Are your projects being delivered consistantly on time, budget, etc? 6 7 8 The BIG Questions…!
- 13. Page § 13 The Way Forward – PMO Accelerator The PMO Accelerator adequately helps you address these questions… !
- 14. Page § 14 PMO Accelerator® - What is it? Delivering Business Value! § It is a fusion of Agile, Lean, and PMI methodologies leverage to increase PMO relevance and performance by delivering outstanding results and values to business stakeholders
- 15. Page § 15 PMO Accelerator® – Value Proposition § Based on our experience working with clients and our involvement in the industry, we believe that by focusing on the following five categories companies can accelerate project speed, predictability, and quality by 15 – 20% § Embrace Strategic Portfolio Management § Implement robust Program Delivery Management § Develop Project Management Capabilities § Leverage Performance Analytics § Create a flat Governance Framework
- 16. Tops-Down and Bottoms-up Workflow PMO Accelerator® Framework Vision Mission Strategic Objectives Strategic Plan Governance Strategy Translation Portfolio Planning Portfolio Analysis Portfolio Selection Portfolio Prioritization Portfolio Management Portfolio Re-evaluation Program Planning Program Execution Establish Governance & Infrastructure Manage Incremental Benefits Program Controls Program Transition Ongoing Operations Project Management! Initiation Planning Execution Monitor & Control Close Transition Ongoing Operations Program Delivery Management! Strategic Portfolio Management! Top Level Business Strategy! Performance Analytics! Page § 16
- 17. Assess Alternatives Align Strategic Investments Mitigate Risks Manage Financials Optimize Resources Accelerate Performance Benefits of PMO Accelerator® A comprehensive approach…! Delivering Business Value! § Align project operations with business strategy § Accurately forecast costs, schedules and resources § Provide enterprise-wide transparency of project portfolios § Optimize resource utilization and supply chain § Collaborate across functions for better decision making § Reduce total cost of ownership Customers! Page § 17
- 18. At OMNI we are committed to delivering business value: • Accelerate strategic alignment by enabling your business strategy to drive the selection and management of enterprise investments and strategic resources • Increase your ROIP through innovative and creative concepts/ideas/strategies delivered by our expert consultants • Improve operational performance by optimizing business processes and project delivery based on best practices and by enhancing process governance • Reduce total cost of ownership and free up funds for innovation by enhancing your IT strategy and landscape and effectively managing your IT investment How We Can Help? Page § 18
- 19. How We Do It? Enable Business Transformation The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. People! Processes! Technology! Delivering! Business! Value! Business Transformation requires integration between people, processes and technology; as the strategic platform to align business strategy
- 20. Experienced Consultants • All of our consultants have the practical experience • Our consultants are Thought Leaders Relevant Experience! • Project & Program leadership roles with multiple organizations • Publication, White Papers • Conference speakers Client Empowerment! • Work closely with clients to deliver knowledge transfer • Provide on-going support and training of all client needs Our People
- 21. Our Process – Six Steps To Success § Build Coalition with Business § Identify Business needs § Create PMO Offerings § Develop Delivery Process § Apply Change Management § Monitoring & Administration § Service Level Management § Integration Management PMO Integrated Delivery Methodology § Establish PMO Champion § PMO Business Case/ROI § Create PMO Charter § Conduct Maturity Assessment § Identify Stakeholders § Survey Customers § Create Service Delivery Model § Define Hi- Level Requirements & Functions § Establish Tools, Process/ People Skills § Validate PMO Architecture § Implement Offerings § Migrate Projects into EPM § Verify Value Proposition § On Going Performance Analysis § Educate Business on Offerings OPERATE OPTIMIZE DEVELOP DEFINE DESIGN DEPLOY Step 3 Step 4 Step 5 Step 6Step 1 Step 2
- 22. Our Process – 250+ Customized Artifacts Page § 22 Level 3 EPMO Deployment Project Status Dashboard − Overall Status Milestones/Del. Costs/Budget Requirements Overall Status Next Milestone Issues/Risks ! Establish PMO Champion ! Complete PMO Justification ! Services Delivery Model ! Detailed Delivery Offerings ! Develop Delivery Processes ! Install EPM Tools ! Roll Out Services Offerings ! Educate Business ! Very Value Prop. Based on the CPI & SPI analysis we are curently projecting that this project will experience a major cost overrun due to delay in IT processing the Project Host requirements The project team is still waiting for IT to approve Project Host as an approved Aplication Service provider to Level 3 for the MS EPM system Overall this project is on track is currently still scheduled to complete on budget, schedule, and within scope Install EPM System Roll Out Service Offerings There are no major issues to report at this time Risk – Please refer to the Slide 4 for Risks details Project Name Level EPMO Deployment Date 03-22-2012 Author Alvin McBorrough Level 3 EPMO Deployment EPMO Deployment − Timeline Project Plan! EPMO Deployment Days January February March April Procedures 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Define Phase 6 Establish PMO Champion 0 Form Initial Project Team 1 Create PMO Justification 5 Define Phase Complete 0 Design Phase 40 Create Service Delivery Model 40 Develop Detailed Offerings 10 Develop Delivery Processes 20 Design Phase Complete 0 Deploy Phase 20 Install EPM Tools 20 Roll Out Service Offerings 20 Deploy Phase Complete 0 Sustain Phase 16 Educate The Business 15 Refine Delivery Methods/Tools 10 Verify Value Proposition 1 Sustain Phase Complete 0 Level 3 EPMO Deployment Project Risks − Dashboard Assessment Scheme for the Qualitative Risk Assessment! OccurrenceProbability High >75% Low <25% Impact on the Project (Deadlines, Costs, Quality) Low High Medium 25%-75% 1 23 4 1. EPM system requires IT approval 2. Educate the Business 3. Time required for training 4. EMP Configurations ready for go live IT PMO & Business PMO Project Host Medium Level 3 EPMO Deployment Project Performance Index Cost Performance Index Schedule Performance Index 0,92 0,81 Cost Performance Index and Schedule Performance Index Time Dollars Reporting Cut-off-Date Projected Slippage Estimated Cost at Completion Projected Overrun Budgetat Completion Total Budgeted Cost Actuals Plan Earned Value
- 23. Bottom Up Top Down Our Technology – MS Enterprise Project Management
- 24. Discernment Find the relevant data connections and information streams, reduce noise, increase signal Amplification Discovery Impact Enrich information streams with knowledge, increase visual clueing and eliminate noise. Visually explore information to find insight. Easily identify the emerging opportunities and risks. Determine impact that information shifts create and notify decision makers to empower timely decisions. Public Cloud Enterprise Cloud Big Data Unexpected Value Knowledge Captured intelligence which speeds up and refines future discovery. Human Social Technology Process Our Technology – Relevance Logic
- 25. We are a team of business and technical experts consulting in industries undergoing profound change Strategy! Operations! Technology! People! We help companies implement their most complex projects so they can focus on delivering exceptional value to their stakeholders …our Mission Who We Are… The OMNI Consulting Group…
- 26. Our Vertical Focus Page § 26 ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! § Telecom § High Tech § Media & Entertainment § Electronics § Banking § Capital Markets § Insurance § Federal § State & Local § Transit & Transportation § Education § Utilities § Energy § Metals & Mining § Oil & Gas § Chemicals § Automotive § Manufacturing § Consumer & Retail § Healthcare & Life Sciences OPERATIONS (Business Process Excellence, Project & Program Management, EPMO Set-Up and Operations)! TECHNOLOGY (IT Strategy & Transformation, Business Analytics, Data Management) "! STRATEGY (Balanced Scorecard, Strategic Planning, Customer Experience Management) ! PEOPLE (Organizational Change Management, Learning & Development)! Comm. & ! High Tech! Resources! Products!Financial Services! Public Sector!
- 27. Benefits To Our Clients Enabling Business Outcomes Realize the full value of your PMO investment with world-class people, processes, and technology Monetization & Time to Market Innovation & Differentiation Cost Optimization Operational Excellence BusinessRelevance Services Relevance Business Outcomes Architecture/ Solutions and Business Models Systems Products
- 28. Thanks for Your Undivided Attention…
- 29. Page § 29 We would be happy to help. Do You Have Any Questions?
- 30. Alvin McBorrough Managing Partner The OMNI Consulting Group amcborrough@omni-pm.com 303-261-6320