Transform Your PMO Into a Value Center
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The document discusses transforming the Project Management Office (PMO) from a cost center to a value center, focusing on aligning with business needs to create greater value in a post-pandemic environment. Key topics include the importance of measuring value through innovation, prioritizing transformative initiatives, and fostering agility within project management practices. It emphasizes bridging the gap between strategy and execution to ensure projects contribute effectively to organizational goals.
Transform Your PMO Into a Value Center
- 1. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. TRANSFORM YOUR PMO INTO A VALUE CENTER How You Can Align with the Business and Realize More Value
- 2. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. What is a “value-based PMO” and why is it important? How the PMO can address the needs of the organization to thrive in a post-pandemic world Today’s Agenda Why a strategic, outcome-focused model is the future of the PMO Key Takeaways / Q&A
- 3. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. Defining “Value” Perhaps easier to evaluate what is not valuable: • Historically the PMO has been viewed as a cost center not a value center • Not enough focus on transformative initiatives • Metrics don’t align to business or even IT agendas, but focus on completion What does it mean to be a value center?
- 4. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. Defining “Value” What does it mean to be a value center? For a PMO, value refers to the impact generated directly from the projects and investments managed by the organization ITIL certification training
- 5. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved.https://strategyatwork2020.pathable.co/meetings/virtual/harNGDoT7LaBSWBfu Defining “Value” What does it mean to be a value center? INNOVATION IS VALUE CREATION NOT TECH OR R&D
- 6. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. Let’s Talk About Change • Organizational change is more often gradual, slow to adapt or adopt • Incremental and strategic, minimizes rejection • Can’t be required to get it right, otherwise the risk is too high and won’t happen • Is continuous learning
- 7. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. The Fundamental Gap Why value is under-valued • Focused on “what’s next” rather than what’s best • Traditional KPIs are typically lagging indicators • Predictability outweighs risk and uncertainty • Historically project evolution has not kept pace • PMO is told what to do rather than advising what could be done • Businesses need accepted systems and culture to change
- 8. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. Digital (Innovation) Loses Out Key findings from Gartner pandemic research Gartner, Preserving Your Digital Growth Investments During Economic Uncertainty, April 2020 In 2019, 82% of CEOs, up from 62% in the previous year, have a management initiative to make the business more digital. Organizations that excelled through the last downturn continued to invest at least 5% to 7% of their IT spend toward innovation or transformation projects. Most organizations use conventional value measurement and management approaches for all projects, even though digital initiatives are different from traditional transformation projects. Current methods of communicating the progress and value of digital initiatives are often considered not credible, not relatable, too technical and hard to interpret by the stakeholders.
- 9. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. • Translate strategic initiatives into portfolio gains • Resource capacity planning and management • Project and portfolio visibility • Product relationships • Dynamic portfolios – regardless of work type • Benefit realization Coordinated management of projects, programs, products, & portfolios The Next Gen PMO Strategic Objective Project A Product IV Program 1 •Project X •Project Y
- 10. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. BRIDGING THE GAP
- 11. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. PRODUCT DEMO 1. Assess Your Portfolio Transformative Sustaining Efficient • Are there projects that are supporting a transformative effort? • Are all of them really just efficiency gains? • Do they align to a larger business objective?
- 12. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. 2. Double Down on Transformative • In turbulent times, it is natural to play it safe or err on the side of stability • Consider competitive edge • Prioritize innovation
- 13. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. PRODUCT DEMO 3. Manage Change • Easier said than done but learn the art to easing change • Understand hesitations and address challenges • Over-communicate and provide assurance
- 14. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. 4. Cultivate Agility • Develop predictive indicators so changes are less drastic and more corrective • Set the expectation of agility so it’s less of a surprise when things shift
- 15. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. 5. Reveal Your Secrets • Unlike magicians, your goal is to gain trust rather than add to the mystery • Communicate often, offer visibility and be transparent • This includes showing what you are measuring toward and what the impact of your measurements are (Why are you doing it?)
- 16. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. Key Takeaways There are different types of innovation and some might be deceiving at first Transformative Takes on Many Forms Make sure the execution aligns with goals and don’t stick to old processes if they don’t work Reinvent Your PMO if Needed Measure and execute to your value metrics Focus on Value First Connecting the dots isn’t always easy, but ensuring your team is working on the right things is worth the effort Bridge the Gap Between Strategy and Execution
- 17. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. Speed of Reporting IMPROVEMENT 50% Forecast Accuracy INCREASE 60% Total Portfolio Value REINVESTMENT OF 20% For ESOs PROFITABLILITY 2x Project Management Cost SAVINGS 50% Hundreds of global customers across a diverse set of industries. including:
- 18. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. Invest in the projects or products that have the biggest impact Manage projects as you would a product for better results Prove better PMO value by delivering on strategic objectives Place the Right Bets Turn Quickly Deliver Faster Centralize projects and products regardless of methodology Allocate the right resources to the most valuable initiatives Communicate with the business and make data-driven decisions Easily pivot when business priorities shift Prioritize continuous improvement Embrace change rather than resist it to yield better results Agile Portfolio Management Applying Agile Principles to Top Down Portfolio Decision Making
- 19. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. ?QUESTIONS? Contact KeyedIn E-mail – info@keyedin.com Phone – 877.932.4402 https://www.keyedin.com/contact-us
- 20. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. www.KeyedIn.com © 2020 KeyedIn Solutions. All Rights Reserved. THANK YOU